A recent study revealed some scary news for the insurance industry: a shortage of skilled insurance brokers has left many insurance companies with a deficient number of employees.
Not only is it getting more difficult to fill these roles, but the retention rate after 4 years of work with an insurance company is only 15%.
But there may be some ways to reverse this trend.
In addition to this study that was released, research was also conducted to find that over 50% of Australians would be willing to take a pay cut to base salary for the opportunity to earn more through performance based bonuses.
In fact, 46% of Australians would be willing to take a pay cut of up to 20% to their base salary. Offering compensation packages with this structure may help insurance companies promote interest and awareness of careers in the insurance industry.
Compensation packages such as these often included a base pay rate, benefits packages, and bonus pay opportunities. This structure rewards employees directly for the hard work they do while incentivizing them to continue their success.
Not only are compensation packages with this structure more attractive to employees, but they may be beneficial to your company as well. Increasing bonus pay opportunities motivates staff and can greatly increase your staff’s efficiency.
As insurance companies struggle to fill enough insurance broker roles, they may want to consider updating their pay structure. Lowering base pay while offering more opportunities for performance-based bonuses not only improves efficiency, but employees often find it motivating as well.
As seasoned experts specialising in the insurance, warranty, and advisory needs of Australians, IC Frith knows not only how to provide customers with the highest level of service, but how to find talented, skilled professionals in the insurance industry.