2022 Salary Survey
3 min read
We just released our 18th Semi-Annual Insurance Salary Report to our clients covering the WDC region including Virginia and Maryland for the period ended June 30, 2022.
This data is based on data collected from our 2022 placements and prospective candidates that have been interviewed and voluntarily provided their compensation levels.
Salaries have been cooling off the past few months in exchange for many firms now providing remote work environments for their employees. In a recent survey, we found that candidates value working remotely much more than simple salary increases. Welcome to the New World we now live in.
Clients have already been calling and emailing asking, “where have all the workers gone?”
According to a July 9th, 2022 WSJ article, titled, The Feds Can’t Print More Workers, here is where they have gone:
- 3.7 million workers are now ill with COVID or caring for someone who has COVID.
- 2.7 million workers are not working because they worry about getting or spreading COVID.
- 5.8 million workers have stopped working to care for their children, not in school or daycare. Daycare is almost impossible to find post-COVID.
- This does not even include others who quit to homeschool their children – I have seen in other reports this number to be approximately 3.5 million parents.
- This does not include those that have simply decided not to work anymore and take the government handouts (this is applicable to mostly lowered paid CSRs, etc.)
- Folks over 55 are now taking early retirement due to their 401ks becoming bloated in the stock market runup the past few years. Early retirement directly affects the insurance brokerage sector because most agencies are top-heavy in terms of age.
Winners & Losers: The losers are clearly those firms who have reverted back to policies requiring staff to be back in the office on a regular schedule. A+ players with these firms are now leaving in significant numbers for competitor firms that offer 100% or even Hybrid remote environments.
The Genie is out of the bottle. Folks are not going to leave a remote or hybrid job for one that is now M-F, 8-5. Some will, but the good ones will not.
The Best Model? Based on my client feedback, there is no magic bullet solution but those who are allowing employees outside of a 30-45 minute daily commute to work remotely three to four days per week seem to have found the right balance with those living outside this range having a 100% option – for experienced and trusted staff only.
Management Tip: Going to a tiered model of having some working 100% remote and others not will lead to internal dissent and problems if not managed effectively. It is important to
communicate to those coming into the office that those who have face time with management in the office on a regular basis have a much higher chance for advancement and promotions. This is a fact. It’s also common sense.
If you are never in the office, you are always going to be somewhat out of the loop. It’s a work/life trade-off. As long as this is consistently communicated, you will find that those coming into the office will understand the professional benefits of doing so.
Closing Thoughts: there continues to be a War on Talent in every respect:
- The Post Covid-19 economic government stimulus plans, economic recovery, inflation uptick, and the general reluctance of top talent to make a change in this period of uncertainty is creating a critical shortage of top talent in the WDC and surrounding markets.
- Firms are now smartly providing remote work environments to counter inflationary salary increases.
- Remote work technology and support is a difference maker in terms of the ability to successfully onboard new hires.
- P&C professionals continue to earn significantly less than their Employee Benefits counterparts but the gap is closing now.
- In the past five years, EB account manager salaries have increased by 24% in large agencies and
- 33.1% in small agencies.
- In the past five years, P&C account manager salaries have increased by 12.7% in large agencies and 18.9% in small agencies.
- EB account managers and producers make, on average and with the same experience level, approximately 20.3% more than their P&C colleagues. EB is clearly the place to be.
M&A activity in the WDC region is creating some movement at the top range of the job market.
Employees with industry certifications MAKE SIGNIFICANTLY more money than those without.
Your feedback is greatly appreciated. Last year’s comments were awesome which, in fact, led to a total redesign of the visual optimization aspect of this newsletter!
We look forward to continuing serving you in 2022!!