Poaching, skills scarcity a harsh reality
“A VICIOUS CYCLE HAS BEEN UNLEASHED” – Michael Blain, CEO, Centriq Insurance on skills poaching within SA’s insurance industry
According to Michael Blain (pictured), CEO of Centriq Insurance, SA insurers’ overall lack of investment in the training of employees is a direct result of skills poaching within the industry.
“Poaching, which has become a sad necessity in SA’s insurance industry due to the severe shortage of skills, has left the sector without a future generation of skills to replenish the niche insurance market in particular,” says Blain. He adds that a vicious cycle has been unleashed. “Organisations fear that new trainees will be poached before their investment yields returns and therefore delay much needed training.”
That said, it is a well known fact that the aggressive targeting of individuals by competitors increases salary and employment costs as employees are lured in by unrealistically high salaries that aren’t market related. “This makes it even more difficult for companies to retain talented staff,” adds Blain.
THE SAFEGUARDING OF SKILLS
Even though Centriq has been fortunate in the sense that it has managed to retain its core skills base despite competitors’ poaching attempts, valuable skills have been lost to career growth opportunities or changes in job responsibilities which could not be matched within Centriq – indicating that the safeguarding of skills will always remain a challenge.
“An industry rules of engagement needs to be drawn up whereby all role players agree to foster the growth of skills in a neutral zone where trainees can focus on acquiring the necessary skills and experience within the industry,” notes Blain.
Besides the obvious aspects such as rigorous succession planning, market related pay and attractive incentives, employers should also strive to create a balanced working environment that accommodate the personal needs of employees while challenging and stimulating them. “It is for this very reason that corporate culture and values will continue to play an increasingly important role in making employees feel that they belong at a specific company.”
STATISTICS REVEAL
At 61, 25% SA’s insurance sector rated third in the Careers24 scarce business and leadership online skills survey conducted recently. “Many insurance organisations therefore have a skills vacuum to fill - a challenging task given the tough economic climate SA is in,” notes Blain.
According to SA’s Insurance Sector Education and Training Authority’s (INSETA) scarce and critical skills report for 2007 / 8 in which scarce skills data from 458 organisations within the insurance sector was analysed - a total of 229 managerial positions among others could not be filled due to a scarcity of skills.
Critical skills shortages in the administrative staff category as far as call centre operators, client and claims services, relationship administrators, insurance agents and telemarketers are concerned were also captured in the report, noting a severe shortage of underwriting skills.
Other specific professional positions that participating organisations had difficulty filling during 2007 / 8 included insurance broker (851 vacancies), financial investment advisor (388 vacancies), marketing specialist (202 vacancies), claims assessor (66 vacancies) and business analyst (48 vacancies) positions to name but a few.
REASONS FOR DIFFICULTIES
In the managerial category, INSETA highlighted the lack of appropriate experience and required qualifications as well as changes in legislation as the main skills shortage and poaching triggers within the insurance industry.
States the report:
“In the past, expertise in the insurance industry was usually gained by moving through the ranks and learning on-the-job. However, new legislation such as FAIS prescribes formal qualifications for people who perform certain functions in the industry, while employment equity legislation necessitates the fast tracking of black managers to address race and gender imbalances in employment.
Blain wholeheartedly agrees, stating that new entrants with qualifications but no experience and experienced people with “incorrect” or no formal qualifications will remain one of the biggest challenges facing the insurance sector this year.
