The results from our latest Semi-Annual Insurance Industry Labor Market Study are in! Since the first survey in 2009, this study has become an accurate predictor of the industry’s staffing outlook. Read on to gain insight into the projected talent market for this year or download the full results.
Slowed Revenue Growth Projections
Historically, the insurance industry has seen a significant gap between the growth rates in revenue and in staffing—with revenue far outpacing staffing projections. However, while the number of insurers expecting increased revenue has slowed, plans to increase staffing over the next year have remained steady. This continued focus on growing staff has greatly reduced the revenue-staffing gap, bringing them within five points of each other.
Continued Staffing Growth
Of companies who plan to add staff, 82 percent expect an increase in revenue, with 53 percent responding that this will be caused by a change in market share. Small companies (fewer than 300 employees) report the highest expectations for growth in staff, as more than 77 percent expect to hire new employees. In contrast, large companies (more than 1,000 employees) project the greatest decrease in staff, with 12 percent anticipating a reduction in force.
Additionally, the U.S. Bureau of Labor Statistics reports that the number of job openings in finance and insurance continues to rise. The current 262,000 job openings is the highest number since the inception of our study in 2009. This continued upward trend indicates that openings are taking longer to fill now than in the past—a growing concern that insurance organizations are working to address.
Labor Market Challenges
The insurance industry remains focused on combatting the growing talent gap and increasing demands for staff. Virtually non-existent industry unemployment—currently 3.3 percent—has resulted in a shallow talent pool, accentuating the challenging recruiting environment. Actuarial, analytics and technology roles remain the most difficult-to-fill positions.
As a result of the tight labor market, many companies are turning to contract professionals to fill challenging positions. Some of the waning in job growth over the next several years may, in fact, be a result of organizations turning to temporary talent as part of their staffing strategies.
Filling Gaps with Temporary Staff
Though the insurance industry continues to enjoy growth; continued staffing demands amid today’s shallowing hiring pool are accelerating the need for new talent solutions. For further insights into the industry’s 2017 labor outlook, download the full results of the study.