New research from Norwich Union Healthcare reveals that the intermediary industry is failing to attract and retain younger workers and will remain older and male-dominated if this trend continues.
New research from Norwich Union Healthcare reveals that the intermediary industry is failing to attract and retain younger workers and will remain older and male-dominated if this trend continues. The comprehensive study, "Intermediary Health of the Nation", is an extension of Norwich Union Healthcare’s bi-annual Health of the Nation research and provides valuable insights into the health of intermediaries, their lifestyle and attitudes to work.
Worryingly, all respondents aged 18 to 24 admitted that they have considered leaving the industry altogether within the last 12 months. The research indicated that only 7% of intermediaries are aged 18 to 24 but unless the industry tackles its image problem, the numbers are set to dwindle further.
The majority (59%) of respondents are aged 45-65 and only 16% are female. The research suggests more must be done to tackle the industry’s older and male-dominated stereotype to attract a younger generation of male and female intermediaries.
'Too much paperwork'
Poorly defined career progression is often a major issue for younger workers across a number of industries. However, lack of professional development was identified by only 3% of respondents as the number one cause of dissatisfaction with their job.
It seems instead that the amount of paperwork and administration involved are major problems, identified in the research by three quarters (74%) of intermediaries as the number one cause of job dissatisfaction.
Paperwork and administrative tasks currently take up 65% of respondents working time. In contrast, only a quarter (24%) of their time is actually spent on the element of the job that many find most satisfying, that of face-to-face interaction with clients. For younger workers keen to develop highly effective interpersonal skills and to provide a valued, professional service to clients this is proving a major disincentive.
Stress is also an issue for many intermediaries. The research identified work as the greatest cause of stress for intermediaries, with 40% blaming high stress levels on their jobs. With over a quarter (27%) of those in the industry working over 50 hours a week, many confessed in the study to being unhappy with their current work life balance.
David Elms, chief executive of IFA Promotion (IFAP), said: “We’re extremely keen that young talent is attracted to the vibrant IFA sector. Working as an intermediary offers a range of rewarding opportunities, especially for those advisers who choose to obtain additional qualifications to improve the level of advice they can offer consumers and businesses. However, as this research indicates, more needs to be done to extend the sector’s appeal to graduates and younger workers in this highly competitive job market.”
'Satisfied seniors'
On a more positive note, the research revealed that satisfaction levels among more senior intermediaries are generally much higher despite the long working hours. 39% of respondents aged 45-54 have considered leaving the industry in the last 12 months, compared with 100% of 18-24 year olds. The research suggests this could in part be explained by the fact that today’s intermediaries enjoy a more active life than traditionally associated with those working within the industry.
In the research, more than a quarter (26%) of intermediaries described themselves as physically very active with 22% of the 55 plus age group claiming to be physically very active. Respondents spend on average 4.3 hours a week exercising and 51% participate in sports after work and at weekends suggesting that many manage to juggle the demands of the job with varied interests outside of work.
Nicole Hockley, head of consumer marketing propositions at Norwich Union Healthcare, said: “Working as an intermediary can bring with it excellent prospects, but as our research suggests, lack of job satisfaction and its causes are clearly issues for the industry. Our ‘Intermediary Health of the Nation’ research helps to provide us with an in-depth understanding of their needs and the ways in which they work. Services such as Healthcare Zone, an online toolkit for intermediaries and Norwich Union Healthcare sales support teams help us develop profitable business relationships with intermediaries and highlight our commitment to addressing problems identified by the research.”
To find out more about starting a career as an independent financial adviser, IFAP offers a free guide, available from www.unbiased.co.uk/website/aboutus/careerifa.asp or by calling 0800 085 3250.
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Notes to editors:
- Norwich Union is the UK's largest insurer. It is a leading provider of life, pensions and investment products and one of the leading Financial Adviser (FA) providers. FAs provide around 75% of the company's long-term savings business in the UK
- Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
- Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.
About Norwich Union Healthcare
- Norwich Union Healthcare was founded in 1990 as the healthcare arm of Norwich Union and now provides a range of income protection and private medical insurance products that cover over 800,000 lives. It is one of the largest providers of income protection and private medical insurance in the UK.
- Member of the Association of British Insurers and the Financial Ombudsman Service.