Compensation trends in the insurance industry (1)
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PayScale Tim Low, VP Marketing [email protected] Karaka Leslie, Business Development [email protected] COMPENSATION BEST PRACTICES Trends in the Insurance Industry
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Presentation to the National Association of Mutual Insurance Companies HR & Finance Summit August, 2013 in San Antonio, TX.
Transcript of Compensation trends in the insurance industry (1)
PayScaleTim Low, VP [email protected]
Karaka Leslie, Business [email protected]
COMPENSATION BEST PRACTICES
Trends in the Insurance Industry
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14,000 Positions
2500 Customers
40 Million Salary Profiles
250 Compensable Factors
11 Countries
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The Market is Volatile
o The recovery of the economy and profits and the compensation lag
o The latest trends in HCM & compensation
o The on-going war for talent and the impact on compensation
o Results of the PayScale 2013 Compensation Best Practices Survey
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Macro & Insurance Industry Trends
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*University of Wisconsin Center for Cooperatives Research http://reic.uwcc.wisc.edu/mutualinsurance/
Mutuals: $2B in Direct Wages
$26B in total Wages
$2B X .05 = $100,000,000
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Where Mutual Co Employees work: Lots of places…
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Exercise #1Guess the Trends
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PayScale IndexLabor Market Trends
Compensation Volatility ‘07-’13
National vs. Insurance ‘07-’13
Small vs. Large Companies ‘07-’13
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Job Trends
HR Jobs vs. Finance Jobs ‘07-’13
Hot Jobs in the Insurance IndustryQ2 2011-Q2 2013
Operations M
anag
er
Claims A
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Exam
iner / In
vesti
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Insuran
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Insuran
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Senior B
usines
s Analy
st
Personal
Lines
Man
ager
(Insu
rance
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Customer
Servi
ce Su
perviso
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Actuari
al Analys
t
Finan
cial A
nalyst
Claims P
roce
ssor
Insuran
ce Apprai
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uto Damag
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Busines
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tems A
nalyst
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
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Exercise #2What’s Your Purple
Squirrel
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• Surveyed over 4,000 respondents• Themes:
– Financial Performance– Hiring Practices– Retention Concerns– Wage Growth– Managing Increases
• Company size breakdown:– Small: < 100 employees - 45%– Medium: 100 - 1,000 employees - 34%– Large: >1,000 employees – 21%
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General Trends: Financial Performance
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67% of respondents in Insurance industry expected financial situation to improve in 2013
Insurance Trends: Financial Performance
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General Trends: Hiring Practices
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Insurance Trends: Hiring Practices
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General Trends: Retention Concerns
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67% of respondents from the Insurance Industry cite retaining top employees as their primary compensation objective in 2013
Insurance Trends: Retention Concerns
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General Trends: Wage Growth
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87% of respondents from the Insurance Industry gave raises in 2012
90% of respondents from the
Insurance Industry say they will give raises in 2013
Insurance Trends: Wage Growth
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Market Trend:Ongoing Shift Toward P4P
Source: Hewitt Survey – U.S. Salary Increases 2009/2010 and Impact on Org Spend for 2010
When crafting next years budget vs. this year the use of Across the board increases down by 50%Use of Variable Pay has increased 300%
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Insurance Trends: Performance
67% of respondents from the Insurance Industry planned on performance being the primary reason for increases
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Prioritized TreatmentNot all individuals, process, functions and business units have the same impact on results
We need to prioritize jobs, key employees and business units and then allocate the greatest portion of its resources to those high priority areas.
Ideas:o Recruitmento Base Payo Incentive Payo Perks & Fringe benefitso Recognition
Pay Spread at Most Profitable Companies
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Exercise #3Top Comp Priorities
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Elementary• Know your jobs
• Have an understanding of the market
Intermediate• Discuss a compensation strategy with leadership
• Know what you want to reward and what you value
• Build guidelines that reflect a compensation strategy that works for your business
Advanced• Find new and creative ways to incorporate performance pay
• Know how your pay practices stack up against your exact competition for talent
• Communicate your pay strategy with management
• Develop a strong compensation structure
Takeaways
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Q&A
o Ever-fresh Compensation Datao Subscription Software to Create
and Manage Compo Compensation Plan Design
Karaka Leslie, Business [email protected]
Tim Low, VP [email protected]
Thank You!
