Clair Hayward notes that brokers are looking for the regional touch
It's a job seeker's market in broking at the moment, whether you are working for a regional, national or Lloyd's broker.
While the recent scale of redundancies at Marsh may have taken some by surprise, that situation, driven by the Spitzer investigations in the US, is an anomaly to the general state of the market.
Indeed, movement of people between intermediaries is fluid at all levels.
Many opportunities are available across the board making it a good time for candidates to assess their options.
There is no doubt that a skills shortage exists, particularly on the corporate side.
Positions for brokers with between two and five years experience can be difficult to fill and, as a consequence of this, salaries have risen in this area for candidates with the right level of skill and experience.
Vacancies exist across the broking spectrum for account handlers, insurance technicians, new business developers, team leaders, account directors - and the list goes on.
Such professionals are in demand by both small and large brokers in London and across the UK.
Training costs
Arguably, this situation has arisen due to under-investment in training, particularly among smaller brokers where training costs are significant.
The situation is not helped by a poor industry image, making it difficult to attract younger individuals with broad qualifications.
Many of the more senior positions, certainly within the provincial market, are filled by internal candidates. However, there is still movement at the most senior level, notably from national broker to either another national or to a large regional, and in particular, to some of the 'super regionals'.
Moreover, the skills shortage and lack of people looking within the market means competition for the top jobs is less fierce than would usually be expected.
With the additional requirements created by the FSA, a number of new positions have arisen and compliance professionals find themselves in a very strong position.
Current salaries
With fewer candidates for positions, remuneration has increased substantially.
Most areas have seen inflationary increases in the last few years and the same should be expected in the short term.
Pay for more specialist roles, however, has increased much faster. In addition, some brokers are increasingly considering candidates with regional market experience for roles within the London market.
Any broker keen to make the transition could see their salary rise by up to 25% in one move.
In a London broker, the average salary for an account executive with around five years experience is about £28,000, which could be expected to rise to £29,000 over the next year.
A senior account handler or broker with five years experience should expect an average salary of £35,000, while a broking director with ten years experience could earn anything upwards of £60,000.
Generally, the more senior the position, the less comparative data there is to measure against competitors, so salaries vary more widely.
Factors that play a part in determining salaries at this level can include the size of the business as well intangibles such as the range of contacts and depth of industry knowledge of the employee, as well as the cultural fit with the business.
For the regional equivalent, account executives with five years' experience are averaging a basic salary of about £27,000, with an expected rise over the next 12 months to £28,500.
£50,000 salary
Senior account handlers/brokers, again with five years' experience, would expect an average salary of £28,250, while broking directors should be looking at a salary in the range of £50,000.
With regard to regional differences, the upper levels that can be earned are, in general, significantly higher in London, whereas the differences between national and regional brokers are less noticeable.
Overall, salaries do seem to be increasing, due to an absence of available talent and lack of professionally qualified people.
Those people that have these skills and qualifications are in a position to demand higher salaries.
- Clair Hayward is regional manager of Mansion House Executive.
