Actuaries: salaries and benefits
Demand for qualifed and part-qualified actuaries in the UK has always been buoyant across the board, in all areas of insurance and pensions. However, the market has tended to be characterised by a shortage of suitable applicants.
To counter worsening skills shortages, employers have been heavily recruiting graduates, tying the best recruits into excellent benefits and incentives schemes. Opportunities for experienced but unqualified candidates are consequently in bountiful supply.
According to the most recent Hays Actuarial Salary & Benefits Guide, the basic salary for a newly qualified actuary in a life company in London can typically expect to earn £55,000; nationally the figure would be £48,500 and for pensions consultancies this would be £53,500. Ten years' plus experience in pensions and the figure rises to £100,000.
A newly qualified actuary can expect to earn £56,000 nationally for general insurance, £56,750 for life and health reinsurance, £58,000 for a life consultancy and £47,000 for a non-life consultancy.
Interpersonal skills
The image of actuaries was for many years associated to back-room calculating machines. Times have changed considerable, and today's actuary is outgoing, personable, commercially aware and a good business developer.
Meanwhile, employers seek actuaries who can demonstrate personal effectiveness alongside technical expertise. IT skills, business awareness - even MBA qualifications - are desirable. Development potential and the ability to challenge traditional thinking attract the attention of many recruiters.
Candidates are looking for more client contact, increased responsibility and variety as well as stimulating challenges and job diversification. There are more people actively seeking a career in the profession. Apart from the potential remuneration - the number one attraction for many students - diversifying roles are becoming more resonant.
Employers are finding it increasingly difficult to recruit actuaries with fluency in another language. European employers are increasingly recruiting British actuaries, on the basis of the UK market's reputation and product sophistication. Similarly, overseas actuaries are attracted to the UK.
Improving benefits and incentives
Financial remuneration is not always the prime motivator for jobseekers, who are increasingly weighing up their options. Forward-thinking employers are increasingly revising their strategies to attract and retain the best staff, turning to flexible benefits packages such as pension schemes, private healthcare, car allowance and study leave. Most want to see tangible long-term career opportunities.
The Hays Actuarial Salary & Benefits Guide revealed that a desire for higher salary was ranked second as the reason why employees wanted to leave their employer. The number one reason was the prospect of a new challenge or more interesting work. Location also an oft-quoted reason.
Two thirds of employers admitted to encountering problems in recruitment over past 12 months and were underestimating the importance of salary considerations. Almost 90% of employees wanted a 25 days plus holiday entitlement and nearly 80% sought a performance-related bonus. Study support was also high on the list.
Flexible working
Employers that offered staff the possiblity of working flexible hours said that this had a positive overall impact - however, less than half actually offered this option.
The majority of pension schemes offered are contributory and most employers did offer bonus schemes, with a quarter prepared to pay over 25% of salary.
Ambitious candidates actively seek exposure to other parts of the business, greater training and study support, and more personal responsibility. They also increasingly seek greater involvement in strategic business development. Financial security of the employer and brand reputation are also important considerations.
Future prospects for candidates looking to work in the actuarial industry are exceedingly bright. Demand for qualifed actuaries is also very buoyant and employers are reviewing their salary and benefits packages to keep up with the growing trend of work-life balance.
The long-term future of the actuarial industry will depend on how well actuaries adapt to the changing marketplace. Good quality candidates with business development skills, who look to integrate into new areas such as risk management, will continue to prosper.
