as it may sound, India, the outsourcing hub, is facing a talent crunch today!
And one of the most highlighted sector-victim of the present times is the
regulation to hike the FDI limit in insurance sector has been passed in this
parliament session. With this change, the industry is expected to bolster its
wings and new synergies will emerge in the market so far as the new entrants
There has been
enough conjecture in market with respect of new entrants both in broking &
Insurer side, some of the prominent names have already begin making due
diligence and should look forward to enter soon.
However, one of the
major threat for all companies (of course apart from business volume) would
surely be the skilled manpower available in the market.
It is a best know
fact that the market is very niche & curbed with respect to talent and
there is an acute shortage of skilled/ experience professionals in this sector
(both life & General).
The everlasting gap
of demand v/s supply is widening, as the percentage of new graduates/ entrants
is still way small required to fill the gap. Industry as a whole has not been
very supportive of making joint efforts to invite fresh talent into the sector.
Consulting has been at the center stage for providing the talent management services
to the general insurance sector for the last 7 + years and we have observed
that the graph of demand has been increasing very rapidly however the talent
has not grown at this pace.
analyse, today companies are looking more to hire on technical positions like
Actuarial, reinsurance, Underwriters, Claims to name a few as the market is
maturing fast and need for such technically experienced professionals is need
This demand/ Supply
analyses has started impacting the Salary budgets of many companies. Today, the
market is breaching the normal standard hike when someone moves his job. The
normal negotiation process has taken a back seat and its more offering that is
driving talent to accept the offer.
Though this trend
cannot continue for long, as it’s a very short terms strategy to attract talent
just on monetary basis. We have known some classic examples where companies
have burnt their fingers by offering humongous hikes.
there is no denial of the fact that talent crunch is a serious problem which
over a period of time can be grown to an unmanageable state. The industry as a
whole must start addressing this and make joint efforts in promoting the
industry as strong career option. Strong training & development, , compensation
career prospect to grow can be few measures to attract new talent into the