Are Salvos cost-of-living findings reflected in insurance recruitment trends?

Are Salvos cost-of-living findings reflected in insurance recruitment trends? | Insurance Business Australia

Insurance News

Are Salvos cost-of-living findings reflected in insurance recruitment trends?

But broker job market is “quite buoyant” says expert

Insurance News

By
Daniel Wood

In the final days of their Red Shield Appeal to help the poor through winter, the Salvation Army released research that shows six out of 10 vulnerable Australians can’t afford their electricity bills. More than half are on hardship plans with their energy provider and nearly three-quarters have reduced the use of lighting.

This cost-of-living crisis is also having an impact on recruitment in the insurance industry.

“Now, people [industry job seekers] are really starting to worry a bit more about paying energy bills and the cost-of-living so what a financial package looks like is suddenly more important than being able to work from home a few days a week,” said Daniel Marsh (pictured above), managing director of Blake Oliver Consulting.

The Melbourne-based insurance industry recruitment specialist said candidates are “really focusing” on pay package amounts and eligibility for bonuses.

Back to the office to save on electricity bills?

Rising electricity bills are even driving some insurance professionals back to the office to avoid heating their homes all day.

“Also, working in Melbourne’s relatively cooler climate, it’s quite evident that people are a bit more encouraged to come to work where their heating is free,” he said. “If you’re in your [work] office you save a bit of money.”

Insurance Business asked Marsh if rising energy costs are now a reason why industry professionals are returning to the office?

“Absolutely,” he said.

Mindset shifts as COVID hangover ends

Marsh also said the insurance industry’s “COVID hangover” has largely disappeared. Work flexibility, including working from home, were once key negotiating points for industry job seekers. Marsh said he’s starting to see “a shift in the mindset of candidates.”

“The first question we’re getting asked now, is not, ‘is it hybrid working?’” he said. “It’s ‘what’s the salary and is there a bonus?’ That’s a real change from six to 12 months ago.”

For example, he said some candidates have shown a willingness to come back to office for five days a week if it means a 20% salary increase.

Other anecdotal evidence, said Marsh, suggests a movement of workers back to the office.

“I was looking at a few articles on LinkedIn last week where people complained that the trains and trams are getting busy again,” he said. “So I think we are starting to see a return to what the cities used to be like, although the statistics don’t necessarily suggest that yet.”

IT experts are still hard to find

Some things haven’t changed. Marsh said it’s still very hard for insurance companies to find experienced IT experts. However, the job situation for brokers is still relatively positive.

“If you’re a broker and you’re out of work, or looking to change jobs, you’re probably going to be able to find yourself an opportunity if you’re willing to travel or change firms,” said Marsh.

The situation is not the same for underwriters, he said.

“I think underwriting is probably a bit more difficult,” said Marsh. “If you’re a senior casualty underwriter, which is a good career, the trouble is if you do find yourself out of work or looking to change jobs, you can’t necessarily just move from a Chubb to an AIG because you want to.”

About three or four years ago, said Marsh, if a vacancy for an underwriter didn’t exist at a company, the business was often prepared to make one for a good candidate. Not anymore.

“We’re finding that in underwriting, you’ve usually got to wait for the opportunity to come up,” he said. “Whereas in broking, there’ll always be a job for you if you’re a good corporate broker.”

He described “quite a buoyant market” of job opportunities for brokers.

“We’re getting a lot more traction across the universities with lecturers reaching out to us,” said Marsh. “We’re also being asked to present at student events and a few lectures as well about the [insurance industry] career paths that students can take.”

How is the cost-of-living crisis impacting your staff and insurance business? Please tell us below

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