2023 Insurance Salary Report: Sneak Peek!
Our analytics team is busily crunching the numbers for the 2023 Salary Report for the WDC regional insurance community to be published right here on January 4th.
I can already report that after a fast start to the year, salary levels for insurance brokerage workers are now cooling in the WDC region. It’s a relative cooling, and in some functional segments it’s a fever moving from 104 degrees to 99 degrees.
Other than simple supply and demand, we have found three other reasons why salaries may be finally cooling:
Work Culture: Workers are increasingly looking for a human-centered work culture. This includes employees understanding and buying into the mission and purpose of the organization.
This purpose also has to be clearly and consistently communicated up and down the chain of command.
Work/Life balance is very important as well as a host of other non-financial benefits. I discussed this in detail in the recent Employment Satisfaction Survey published this past summer. In case you missed it, you can find the full report here: 2023 Employee Satisfaction Report
Remote Work Environment: We all understand that for senior executives, it is critical to be in the office more than not to provide leadership and keep your finger on the pulse of your organization. But for those non-managerial employees in that $60k – $100k salary range, being able to work remotely can be a very important perk.
They could be single-moms, someone who wants to reside in a rural area, or just someone who doesn’t want to necessarily climb the corporate ladder.
For these people, being able to work remotely is something they value more than a salary raise or promotion. I am also finding many candidates who will willingly depart an existing position for a lateral or slight decrease to take a remote position.
The Employee Benefits Package: Ten years ago, most firms offered a basic benefits package that was industry-standard. Most included a package that offered: an affordable, low-deductible PPO group medical plan, term life insurance, long and short-term disability, 401k matching, etc.
Employee benefits packages have greatly evolved in recent years.
Firms are now differentiating themselves from their competition by offering: Health Plan Reimbursements, HSA accounts, Employee Assistance Programs (EAPs), Comprehensive Wellness Programs, Flexible Spending accounts, Long Term Care, Continuing Education, Flexible Hours/Arrangements, and expanded vacation time to include personal days, mental health days, and even “travel-away days.”
I have found just in the past year that even top-shelf candidates will accept up to 10% less in salary if their monthly group medical premiums are subsidized by the employer and the benefits package is comprehensive at a relatively low cost.
Bottom Line: Those employers who have a high-value work culture, provide remote/hybrid work environments, and offer innovative, quality benefits packages to their employees are not having to match or exceed salaries that workers are demanding in the marketplace right now. I expect this trend to continue into the future.
