Some insights from Angelica Solutions here;
Small insurance businesses will favour experienced contractors and automation over developing new talent unless recruitment support tackles the cost of employing and training people at the start of their careers, warns Angelica Solutions.
Following last month’s Budget, the additional apprenticeship support leaves a wider challenge unresolved in how smaller firms fund salaries and the time experienced colleagues spend supervising and mentoring new recruits. This could constrain growth and competition across insurance consultancies, managing general agents, claims businesses and other innovators in the industry.
Sarah Vaughan, Founder and Director of Angelica Solutions, comments:
“The question for insurance after this Budget is who will invest in developing the next generation of talent. Smaller firms have an important part to play, but they need to be able to afford the salary and supervision costs long before a new recruit can contribute commercially.
“When the immediate business case favours buying in experience or automating a task, entry-level opportunities risk being squeezed. That may meet today’s needs, but where will tomorrow’s experienced insurance professionals come from?
“This Budget needed to make it more affordable for small businesses to recruit and develop people starting their careers. The measures announced do not go far enough to address the underlying problem, businesses are being asked to invest in tomorrow’s workforce while facing increasing pressure to make every hire pay for itself immediately.
“Having taken on a summer apprentice, I have seen that first hand. Existing apprenticeship funding and hiring grants are welcome, but eligibility can be narrow and substantial employment and supervision costs remain with the business. Someone starting their career at 25 or older still needs an opportunity to learn.
“Every industry can make a case for special treatment, but this challenge cuts across sectors. Whether you run a restaurant, an insurance business or a consultancy, taking on someone who needs training means paying their salary while committing experienced colleagues’ time to helping them develop.
“A larger business may have the resources to recruit a cohort of graduates and wait two years for that investment to pay back. For a small business, even one additional salary is a significant commitment and the pressure for that person to contribute commercially starts much sooner.
“I would like to see meaningful support towards employment costs over the first two years: 50% in year one and 25% in year two for small businesses taking on a graduate or school leaver in their first substantive job, with eligibility that recognises people enter the workforce at different ages.
“If smaller firms cannot afford to build their teams, their ability to grow, innovate and challenge established players is constrained. In insurance, that affects businesses throughout the value chain, from specialist consultancies to managing general agents and claims firms.
“Helping small businesses develop talent is an investment in future competition and consumer choice. We need an economy in which smaller firms can afford to grow, rather than one where only the largest businesses have the resources to invest for the long term.”
Be the first to comment