GAD ACTUARIAL STAFF:
1. During the course of my oral evidence
to the Committee on 8 February, I was asked to provide a note
on GAD's recruitment and retention of actuarial staff.
2. Below is a table setting out the number
of actuarial staff in post, the associated turnover rate for the
year in question and a comparison of GAD's turnover with the aggregate
figures for all the actuarial employers who participate in the
Annual Survey carried out by Remuneration Economics.
3. Excluding the Department's senior staffwhere
the turnover rate has been a little lowerthe turnover rates
for both qualified and trainee actuaries over the last four years
have ranged from 10 per cent to 21 per cent of the average staff
in post (about 45), which compares to a range of 7.5 per cent
to 10 per cent annual turnover reported by private sector employers.
If senior actuarial staff are included then the range drops slightly
to 10 per cent and 18 per cent, but most of the relevant private
sector comparators to these senior grades are excluded from the
4. The turnover rates are high because GAD
has to compete with private firms in a recruitment market that
is continually tight. There is a shortage of actuaries for the
profession as a whole, and pressures on the insurance industry
to complete the pensions mis-selling work, as well as a huge demand
for work in respect of the occupational pension schemes, has made
qualified actuaries highly marketable and valued members of staff.
5. Our staff are always in demand from the
private sector, which often use employment "head hunters"
to recruit from GAD, even at quite junior actuarial trainee levels.
Among the key attractions in the recruitment packages on offer
outside are the higher salaries on offer. As a public sector employer,
GAD does not expect to be able to match private sector actuarial
salaries or fringe benefits. However, GAD has been able to take
advantage of flexibilities in pay to offer reasonable salaries
for recruitment purposes and flexibilities in grading to ensure
that existing staff get proper recognition for enhanced responsibility
and proven consulting skills.
6. Notwithstanding the general market position,
persistence in recruitment efforts has enabled GAD to maintain
and slightly increase the numbers of qualified actuarial staff
over the past 10 years, and to increase substantially the number
of actuarial trainees. The total number of actuarial staff, both
trainee and qualified, now stands at 69 compared with 55 in 1996-97.
That this has been possible is a reflection, I believe, of GAD's
unique position as a public sector actuarial employerand
the high regard with which it is held in the actuarial profession
both in the UK and internationally. Many people still choose to
join GAD, for a time at least, because of the interesting work
carried out and because of GAD's professional ethos and reputation.
GAD AND ALL
(% of average staff in post who resigned during year)
|Year||Acturial Staff in Post
|GAD Turnover (1) %
||GAD Turnover (2) %||All Acturial Employers Turnover (3) %
|Average in post: 56.5 including senior staff
1. Based on monthly average of staff in post in GAD Qualified
Actuary and Trainee Actuary gradesexcluding senior grades.
2. Includes all GAD professional staff.
3. Source: Salary Survey of "employed" Actuaries
and Acturial Students 2000Remuneration Economics. (Excludes
partners and fee earning self-employed actuaries).