Insurance industry recruitment is starting to pick up again, but it is not returning to the boom years before the global financial crisis.

According to the Australian Bureau of Statistics (ABS) about one in six workers started work with a new employer in the 12 months to February.

Of the 10.9 million people who were working by February, 2 million (18%) had been with their current employer for less than 12 months. Almost half of these (963,000) had changed their employer during the previous 12 months.

Arnold Group MD Glenn Arnold says there are indications insurance companies are undertaking some restructuring, but it is not returning to the days of hiring huge teams on expensive wages.

“Our general insurance portfolio is quiet, but we have seen some demand for underwriters and account executives,” he told insuranceNEWS.com.au.

“But we are seeing difficulties in the availability of people for these roles.”

The life insurance boom is being reflected in higher recruitment levels, with Financial Recruitment Group MD Judith Beck saying life insurance recruitment has become so busy her organisation is hiring new consultants for the Melbourne and Sydney offices.

“We are seeing every short-listed candidates having two or three other opportunities as well,” she told insuranceNEWS.com.au.

“Good life insurance business development managers are very sought after, especially those with experience.” 

With companies across the risk insurance spectrum looking again at restructuring teams after the global financial crisis and bringing in fresh blood, companies are being careful with restructuring to find the right people to fit in with their culture.

Ms Beck says companies “don’t mind upsetting the applecart” to get the people they want.

During the global financial crisis many companies took the opportunity to clear out non-performing staff and generally downsize the workforce.

Anecdotal evidence of companies telling staff they were lucky to have a job is starting to backfire.

“In the general insurance sector we saw people being asked to work part-time or longer hours,” Mr Arnold said.

“Although employers tried to do the right thing, the way they treated employees resulted in staff loyalty disappearing. So those staff are now looking to move as things get better.”

He says people have taken their careers off hold and are now actively looking for new positions again.

“We are now seeing the mobile employee again, and employers who think they have the upper hand are in for some shocks.”

Ms Beck says employers are realising they have to offer more to attract the right candidate.

“Employees want a transparent structure to bonuses with clearly defined key performance indicators,” she said.

“They are also looking at the brand of the company and the personal brand of the person they will report to before making any decisions about joining a company.”

One of the difficulties finding top people for positions is the gap in salary expectations by employees and employers.

Mr Arnold says some companies are still thinking they can pay lower salary packages.

“They are working on budgets which are unattractive in the marketplace, as they still think they have the upper hand,” he said. “They don’t.”

The financial crisis has also changed people’s attitudes to work and there is a move towards more balanced work and leisure.

Mr Arnold says it has been a long time coming, as since September 11 2001 the trends have seen people seeking a better balance.

“People’s life patterns have been changing – they are looking for a real balance,” he told insuranceNEWS.com.au. “I feel there is a push towards a stronger requirement for flexibility.”

One good outcome of the recent financial crisis has been to teach Generation Y some of the lessons learned by Baby Boomers and Generation X over the years.

This was the first market downturn Generation Y has experienced, and Mr Arnold says it has been an “eye-opening” experience for them.

“It gave Generation Y the kick they needed,” he said. “Generation Ys have now settled down and aren’t so arrogant when looking for jobs.”