are salary surveys inflated?

Volume 2, Issue 2 – Second Quarter 2012
Spotlighting Trends
ARE SALARY SURVEYS INFLATED?
The short answer is...we’re not sure. Salary surveys for
many professions can be found on the internet with a quick
keyword search. It appears that the goals of
these surveys are to entice job seekers to utilize
the company’s or website’s services. While
we can’t accurately speak to the salaries of
other professions, we can address the highly
specialized Actuarial profession and its salaries.
And, more specifically, we can provide insight
into how the DW Simpson Salary Survey is
constructed, and how inflation is not a factor.
compensation within the Actuarial field, it is important to
note a few things. First of all, our survey represents 80%
of Actuaries’ compensation, with the top and
bottom 10% of cells being excluded from the
spectrum. The reason for this is because there is a
high level of variance in the top and bottom 10th
percentiles, which would make the salary ranges
too broad. Total compensation packages in the
top and bottom 10% cells can vary greatly.
The data DW Simpson uses for our salary
survey comes from actual placements - in other
words, this is real-time data reflecting both the
current compensation levels and new offers
extended to every candidate with whom we are
working and/or with whom we periodically are
touching base. While we are confident our salary
survey is an accurate representation of current
According to KC Cho, 1st Vice President and
Partner of DW Simpson, “When we first put out
the salary survey more than a dozen years ago,
the first few calls I got were from Actuaries who
were on the lower end of the ranges. But after a
few conversations with Actuaries, who told me
that they were well above our ranges and don’t
even bother referring to our survey anymore, I
realized we must be doing it right.”
(continued on page 2)
Ho t Jo b s !
RETAINED: Chief Actuary, Southeast, USA: Top
insurance provider seeks FSA or FCAS with management
experience in business / product development for Latin
American Business. International travel required. (#34598)
RETAINED: Life Actuary, West, USA: Life insurance
company seeks FSA with 10+ years of product pricing experience
for Life and Health lines of business. Strong background in
Valuation and Reserving required. Exceptional oral / written
communication skills and strong interpersonal skills are
necessary for this role. (#34207)
RETAINED: Pricing Actuary, Canada: Top P&C
insurance company seeks Actuary with strong pricing experience,
specifically in commercial lines. Requirements range from 5+
exams to FCAS. Technical skills and good communication /
people skills are highly preferred for this role. (#35278)
RETAINED: Assistant Vice President, Northeast, USA:
Insurer seeks ACAS, FCAS or MBA to lead a team
of Research Analysts. Should have experience with
Commercial Lines and managing a technical staff.
Advanced degree in Statistics or Actuarial Science
preferred. (#34991)
RETAINED: Casualty Actuary, Bermuda: Regional
firm seeks ACAS, FCAS or FIA with 8+ years of
experience. Strong background in risk and reserving
required. Capital Modeling and Solvency II experience a
plus. (#35291)
RETAINED: Health Actuary, Midwest, USA:
Multi-national consulting firm seeks Actuary with
6+ years experience. Knowledge in healthcare and
pharmaceuticals preferred. Potential to develop into a
client-facing role. (#35199)
800-837-8338 / 312-867-2300 [email protected] www.dwsimpson.com
How To Ask For A Raise
ARE SALARY SURVEYS INFLATED? continued
By: Bob Morand
To be more specific, the data points in the DW Simpson Salary Survey come
from a combination of base salary and annual bonus as these are consistently
the most stable components of one’s annual compensation. Of course, there are
many other financial components [401(k)’s, stock options, long-term incentives,
etc.]; however, these, too, can vary greatly and it’s not possible (nor would it be
accurate) to include them all in a concise survey.
President and Managing Partner
L
et’s face it: you believe you are worth
more to your employer than they’re paying
you. However, you’re not quite sure how
to go about asking for a raise. Dressing in
tattered, second-hand clothing and living
in a refrigerator box near the company
entrance did more damage to your
reputation than get the message across that
you deserve more in compensation.
So, then, what is the best approach
in asking for a raise? First, do your
homework - are you being compensated
competitively? Check out our website
and see where you fall in the DW
Simpson Salary Survey. Talk to a number
of recruiters and ask them what is a
competitive compensation level for
someone at your exam level and with
your years of experience. Ask peers in the
industry the same questions. And, if at the
end of the day, you realize you fall below
market, prepare to make your case to your
superior.
Second, make the “asking for a raise”
conversation easy on you and your
superior. Ask her/him to coffee before
the start of the work day, letting her/him
know that you’d like to get her/his valuable
input on an aspect of your work. Approach
the conversation with an upbeat attitude.
Recite why you thoroughly enjoy working
at the company before you build your case
for a raise. Then, build your case for a raise,
citing the data that you derived from doing
your homework. And then, ask for her/his
thoughts, be quiet and listen. You might
learn some things that you heretofore
did not consider, particularly with regard
to your overall work performance and
its reflection on your compensation. If
you’ve had a history of strong performance
reviews, refer to them in a constructive
(not defensive) way to help support your
case. Remember, upbeat.
Finally, have a number in mind. If you’re
at $74K base salary and your homework
tells you that, at your level, you should
be in the $80K - $90K range, ask for a
precise number...confidently. More often
than not, a reasonable superior will take
your request into consideration, especially
if it’s presented in a factual manner and
without a “line-in-the-sand” attitude. And
when your raise is approved, thank your
superior, discard the refrigerator box in the
nearest dumpster and take yourself clothes
shopping. You deserve it. DWS
Further, the DW Simpson Salary Survey is all encompassing in that it does not
take into account insurance versus consulting, or New York City versus, say,
the rural Southeast. Importantly, salaries tend to be flatter within the Actuarial
profession and are not greatly affected by geography, due to the high demand for
Actuarial talent nationwide. For example, a consultant in Charlotte would not
expect his or her compensation to be fully adjusted according to the variance in
cost of living if he or she were to transfer to NYC, or vice versa. Quite simply, the
nation’s current supply and demand for talent dictates compensation level - not
specific cost of living indices. For example, if it costs 30% less to live in Charlotte
versus NYC, you can expect an increase when moving to NYC, but not a 30%
increase solely to reflect the cost of living.
Lastly, one might wonder why DW Simpson produces a salary survey. This is
simple: DW Simpson is seen as the foremost Actuarial and Analytics recruitment
firm worldwide. Given this, we are both a benchmark and a resource to the
Actuarial industry. We are able to share with our clients and candidates precise
and trusted data. Because DW Simpson has been
compiling and updating our salary survey for more
than 12 years, we have the most data points which come
directly from those working in the profession. We help
clients understand what it takes to retain top talent
and we help candidates understand their value in the
marketplace. DWS
The Inside Scoop
Salary Discussions And The Interview Process
The discussion of salaries can be a delicate one and it is important to position this
dialogue at a timely point in the interview process.
So, at what point in the interview process do you discuss salary? Beginning?
During an interview? After an offer has been extended?
Most companies will want to know upfront what a candidate’s current salary is.
The reason for this is so companies can ascertain whether or not they could make
a candidate an attractive offer. For example, if a candidate is currently earning
$95K and the position is slotted for a salary up to $80K, there is likely not going
to be a fit. During the interview process, companies follow up with DW Simpson
recruiters to make sure they have all the components of a candidate’s salary.
Therefore, it’s important to keep your recruiter updated with any promotions,
changes to your base salary, exam raises/bonuses, etc. However, the question of
salary is not a discussion that a candidate should typically address while in the
interview process. If pressed, a candidate should say, “I’m looking for something
current with the market,” or “I would like to learn more about the company
and role before pinpointing an exact salary.” We recommend this approach so
candidates do not immediately rule themselves out based on compensation alone.
Additionally, candidates should discuss with their recruiter what their salary
expectations are. Large increases in salary and bonus are not necessarily the norm.
Instead, candidates should focus on the overall offer, i.e., the base salary, annual
bonus component, benefits, 401(k), vacation and, equally if not more important,
the long term career trajectory. All of these are important factors that help make
an offer attractive; and, by focusing on the larger picture in total, a candidate will
likely be able to make the most educated decision. DWS
800-837-8338 / 312-867-2300 [email protected] www.dwsimpson.com
More salary info at www.dwsimpson.com/salary
Salary Survey Data
So... What’s New?
The DW Simpson Salary Survey now includes historical data in the form of scatter
plots and trend lines. The most recent data points are in dark blue, while previous
years are smaller and lighter in color. In general, entry-level and student salaries fall
within very predictable ranges, while Actuaries with 7+ years experience see a much
wider range of compensation.
What Makes the Top 10% So Special?
Exceptional Oral & Written Communication Skills and Post Graduate Degrees as
well as experience in: Management, Product / Business Development, Reinsurance,
Consulting Principals, Solvency II, Software / Programming, Predictive Modeling,
International Experience, Non-Traditional Actuarial Roles, Chief Actuaries and the
list goes on....
A Look Back at Salaries...
The graphs below represent the 90th percentile of FSA and FCAS salaries between 2005 and 2011. After all of the recent economic turbulence, one thing remains constant – experienced Actuarial salaries continue to grow. The reason behind this is
simple - Fellows have always been in high demand / low supply. Economic conditions rarely effect either side of this equation
How’s the Entry-Level Market?
The entry-level market has been the most volatile segment of the salary survey. Way
back when, in 2001, an entry-level Actuary would have multiple offers after passing
a single exam. In the current market, most employers want to see two exams with
internship experience prior to the initial phone interview.
With the recent economic downturn in 2008, the number of entry-level positions
available decreased overnight, while employer expectations continued to rise. What
we are left with is an abundance of qualified Actuarial science graduates competing
for a smaller number of open jobs.
What Can I Do to Stand Out?
The two most important factors to land your first full time Actuarial position are passing exams and internship experience.
To help pass your next exam, the formula is simple: Study + Study + Study. You can increase your effectiveness while growing
your network by starting a study group. Don’t know anyone taking an exam? Use social networks like the Actuarial Outpost to
ask your questions online.
The best place to look for an internship is close to home. Find local companies that hire Actuaries and expand your search
radius from there. To land your first internship, make sure that you make every resume count. Do this by researching each
company and letting your resume show how your experience lines up with each company’s culture and expectations. Finding
a job is one of the hardest jobs you’ll ever have. Fill in these two gaps on your Actuarial resume and you’ll see it’s much easier
than you ever expected. DWS
800-837-8338 / 312-867-2300 [email protected] www.dwsimpson.com
Company Events
DW Simpson will be attending the following
Meetings, Seminars and Conferences this quarter:
 Casualty Actuarial Society/Society of Actuaries
ERM Symposium
April 18 - 20 at the
Marriott Wardman Park, Washington, DC
 Casualty Actuarial Society Spring Meeting
May 20 - 23 at the
Arizona Grand Resort, Phoenix, AZ
 Society of Actuaries Life and Annuity Symposium
May 21 - 22 at the
JW Marriott Los Angeles, Los Angeles, CA
 CAGNY Meeting
June 1 at the
New Yorker Hotel, New York, NY
 Casualty Actuarial Society CARe Seminar
June 4 - 5 at the
Hyatt Regency Cambridge Hotel, Boston, MA
 Society of Actuaries Spring Health Meeting
June 13 - 15 at the
New Orleans Marriott, New Orleans, LA
DW Simpson ANNOUNCEMENTS
Welcome to the team...
Caitlin Cunningham - Caitlin joined our firm in February
and is leading our Entry-level team. She is assisting aspiring
Actuaries in launching their full-time careers. Caitlin
previously worked in business-to-business publishing, from
which she offers 5 years of writing and editing experience.
Valerie Sun - Joining the Hong Kong office, Valerie is
originally from China and attended university in Australia
before becoming a non-life Actuarial Analyst in Sydney.
Fluent in Mandarin, Cantonese and English, Valerie sees this
as a perfect opportunity to utilize her background and match
Actuarial talent in the region.
Emily Paxton - Emily joined DW Simpson in late March as
a Recruiter on Lindsey Nelson’s team. Prior to that, she was
an Organization Development Coordinator in Omaha, NE
working on a variety of projects within the Human Resources
department. Emily moved to Chicago from Omaha in
January 2012. Outside of work, she enjoys exploring the city
she now calls home!
Connect with DW Simpson
 Southeastern Actuaries Conference (SEAC)
June 20 - 22 at the
The Carolina, Pinehurst, NC
1800 West Larchmont Avenue, Chicago, IL 60613
66 Hunter Street, Sydney, Australia NSW 2000
p: (800) 837-8338 / f: (312) 951-8386
http://www.dwsimpson.com
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SYDNEY | LONDON | SINGAPORE | HONG KONG | DUBAI | ZURICH | FRANKFURT
800-837-8338 / 312-867-2300 [email protected] www.dwsimpson.com