Aviva research: Brokers having to pay higher salaries with vacancies taking longer to fill
94% of brokers are recruiting, up from 71% in 2023240% of vacancies have been open for four months or more (2023: 23%2)72% of brokers pay more than expected for new recruits (2023: 58%2)Industry brain drain as one in three vacancies are due to staff leaving for another sectorAviva is helping brokers face their recruitment challenges, supporting 90-plus broker apprentices since 2022, and helping experienced brokers through its Future Leader Programme, which has had 121 delegates since 2018
The scale of the recruitment challenge for the broking industry has been laid bare, as Aviva’s Broker Barometer data shows that compared to last year, more brokers are recruiting, vacancies are taking longer to fill, and more brokers are paying more than expected for new hires.
The recruitment challenge is universally felt, with 94% of brokers actively recruiting1. This is a significant increase on last year, when 71% of brokers had a vacancy open. Nearly all regional brokers surveyed (98%) had a vacancy, followed by 94% of local brokers and 89% of national brokerages.
The industry’s recruitment drive is translating into longer wait times for vacancies to be filled, with four in ten brokers (40%) reporting that they’ve had a vacancy open for four months or longer, compared to 23% in 2023. The average length a broking vacancy has been open is three and a half months, up from three months and one week in 2023.
The dearth of available talent could prove to be a stumbling block to brokers’ growth ambitions. Aviva’s Broker Barometer research revealed in May that brokers were upbeat on their own growth prospects, with 83% of brokers expecting their business to grow this year. Supporting this, one in three brokers (33%) said that they are hiring because their business is growing and they need more staff.
The race for talent comes at a cost, though. Seven out of ten brokers (72%) said they had to pay more than they had expected in order to hire the candidate they wanted, considerably up on last year’s figure of 58%.
Brain drain
While growth might be a nice problem to have, there are other, more difficult issues facing recruiting brokers. One in three brokers said they were recruiting because staff had left the industry, while 22% of brokers said they were recruiting to replace someone who has retired.
This has created a demand for experienced brokers. Of the brokers reporting vacancies, 53% had middle management vacancies, 39% had senior positions waiting to be filled and 35% had junior-level vacancies.
The result is that a larger group of brokers are chasing after a dwindling talent pool. This is fuelling a circuitous recruitment hunt, as brokers seek to replace someone who has moved to a competitor (34%), been headhunted (31%), or gone to work for an insurer (29%).
This underscores the pressing need for the industry to build a pipeline of new talent. To help brokers with this, Aviva has developed a range of guides and programmes for brokers to recruit, grow and nurture the next generation of industry talent and leadership.
Ryan Birbeck, Broker & Client Development Director, Aviva, said, “Our research yet again paints a challenging recruitment picture for brokers. As experienced brokers leave the industry through retirement or choosing a career in another industry, the question facing brokers and insurers is, ‘how can we work together to ensure the future talent pipeline of this vital industry?’
“The good news is that Aviva has a range of programmes designed to help brokers build and retain their talent base. Whether through coaching from our recruitment experts, access to our specialist recruitment guides, or funded apprenticeships and career focussed learning and development programmes – not to mention a wealth of online learning material – there are a wide range of tools available for brokers to help them attract and retain new talent.
“Using apprenticeships as an example, our levy funding has supported more than 90 broker apprentices so far and we have more than doubled the funded apprenticeship places available since the programme started in 2022.
“More experienced brokers can also work with us to build their people management capability, or even improve their core business skills to help them run a successful brokerage. Aviva’s Future Leader Programme (FLP) prepares those who are ready to take on more senior roles to help them lead their businesses successfully. Our two-year FLP programme has had 121 delegates since 2018, with 38 promotions, 35 now in Board Level positions and 31 running their own business.
“While the current recruitment landscape might seem daunting, brokers can rest assured that there are ways to attract, develop and retain talent so that they are able to capitalise on their growth ambitions.”
Authored by Aviva
