Insurance IT Pros Satisfied Despite Flat Salaries

Outside IT

Roughly half of staff (46%) and managers (51%) have had positions outside of IT in the past, according to InformationWeek's survey. In their current roles, more than three-fourths (77%) of staff and nearly two-thirds of managers (63%) say their responsibilities are solely IT-focused. Staffers who have formal responsibilities outside the IT organization most often say they work in research and development, business development and non-IT support functions. Managers' non-IT roles are most often in business development, finance and operations, supply chain and manufacturing.

Few staffers (17%) say they report to a non-IT manager or are physically located in a business unit outside IT (17%). In addition, only 19% of staff respondents say they spend half or more of their time with peers in a business unit outside IT, indicating that non-IT collaboration among staffers is limited. Managers are more likely to be collaborating, with 35% saying they spend half or more of their time with peers in non-IT business units. Only 27% of managers indicate they have no role outside of IT.

Safe And Secure

Insurance IT jobs are some of the most secure. Unemployment in the industry runs 3% to 5% lower than rates across the economy, says Ward Group's Rieder. "We saw some head-count reduction in the 2008 to 2009 time frame, but these individuals were mostly in claims and processing areas and some other areas, and not technology," he says.

Only 7% of staff respondents say they feel insecure about their jobs this year, down from 13% last year. Nine percent of managers have said they feel insecure each year since 2011. The industry has rebounded significantly and most companies are in a growth mode, so there's less budget pressure now. Insurers are having a hard time finding the right IT talent, Rieder says, and they can't easily eliminate positions requiring specific expertise since that would lower productivity.

The economy still affects the ability of small and midsize insurers to attract and retain talent. "We're very cost-aware, which is trickling down to staff members," says one survey respondent at a smaller company. "This means the good people are leaving and recruiting is more difficult."

That said, outsourcing is still a concern for many insurance IT professionals. Sixty percent of staff respondents and 53% of managers say that the practice is reducing the number of available IT jobs, and more than half of both groups say that outsourcing is negatively impacting morale.

"My employer is outsourcing 80% of its IT staff to India by end of 2013," says one respondent. "And I believe that other U.S. insurance companies will be forced to either go along with this trend or merge with other companies, then outsource. This will increase the number of unemployed IT [workers] in the U.S., causing a dramatic drop in salaries."

A Clear Career Path

Still, insurance IT pros appear to have a greater potential to move up in their companies compared with those in other business areas such as claims or underwriting. Both staff and managers responding to InformationWeek's survey indicated they believe that an IT career path is as promising today as it was five years ago.

The insurance industry isn't typically seen as a progressive, sexy place to work. However, as a complicated and highly regulated industry, it's a challenging environment that attracts good IT professionals once they understand what it takes to work there.

"Compared with a Google or a startup, insurance is perceived to be a less-exciting environment," Rieder says. But some of the best leaders at insurance companies are people who have a strong technology background. They "understand where to find data and how to structure systems to make the organization run more efficiently," he says.

4 Steps To More Engaged Employees

• Create internal processes that empower employees. Most of the workforce is smart, educated and doesn't need oversight or supervision, says Jeff Rieder, partner and head of Ward Group, a consulting firm. "So in many ways, companies have to get out of their own way and allow employees to make their own decisions more quickly," he says.

• Provide cross-departmental experiences. Employees who get exposed to various departments in your company are more likely to want to stay with you, Rieder says. And they'll be better equipped to handle various situations in the future, he adds.

• Invest in training. Training programs that help grow internal talent are the cornerstone of any organization that's serious about going to the next level. Training helps with retention as well.

• Match employees with mentors and executive sponsors. "Insurers must make sure they're investing time with the emerging leaders, who may need some extra development and coaching to move up within the company," says Margaret Resce Milkint of the Jacobson Group, an executive search firm. Training helps with retention as well.

Peggy Bresnick Kendler has been a writer for 30 years. She has worked as an editor, publicist and school district technology coordinator. During the past decade, Bresnick Kendler has worked for UBM TechWeb on special financialservices technology-centered ... View Full Bio

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