5.2.

Human Resources
5.2.1.

Recruitment

The company has planned to employ additional 80 new employees to

different positions in the upcoming budget year. The number of new addition
is expected to increase the staff strength of the Company to 358.
From these new additions, 7 will be hired on Managerial, 29 on Professional
18 on Clerical 26 on non-clerical positions.
These employees will be hired on vacant positions, at head office, new
branches and other branches that are expected to produce premium of
higher amount and which are assumed that their current human resources
strength are unable to fully undertaking their set budget for the fiscal year.
5.2.2.

Human Resource Development Program (HRDP)

The main objective of the HRDP is to define appropriate development

processes that will facilitate knowledge and skill building that OIC
requirement at stake. The plan has been designed to support the
transformation of the company to become a leading insurer. The
recommendations given in the HRDP are in line with the industry trends /
best practices and prospect of strategic plan.
In this regard, to retain the existing staff and attract new employees from
external environment it is imperative to upgrade the skills and knowledge of
the employees it holds. It is therefore, par important for the Company to give
priority for training and development in the upcoming budget year.
Because of the shortage of insurance specific education institutions that
exclusively provides insurance courses like underwriting and claims
management and related trainings, there is an obvious gap between the
demand and supply of HR in the insurance professions in the industry. This
can only be bridged through Companys reasonable HR share of training and
development own staff exposing them to various on job and off job training
courses.
The refresher training also will be offered to maintain and update the subject
matter skills of existing employees. The trainings will offer new information

on subject matter as well as review of older material. It will also promote

continuous learning where employees can update their non-job-specific
knowledge as and when desired.
This in turn will help the company to have quality human resources at its
disposal that can minimize the cost of recruitment and loss of quality human
resources to competitors.
Shifting focus to HRDP helps the Company to have the required quantity &
quality of human resources that can undertake its roles effectively and
efficiently so as to ensure customers satisfaction and build a good image of
the Company.
Therefore, the Company has planned to implement Continuous Development
program (CDP) which includes training on different fields such general
insurance, management and leadership to upgrade the employees
knowledge and skills in order to attain the vision and strategic goal of the
Company. The intended important fields of training include insurance
operations (life, life, micro and general insurances), management and
leadership. These trainings will be given both in-house and externally.
The company has planned to have its employees get access to education
which they can learn through distance or evening extension programs. The
planned program includes specific fields of Masters and advanced diplomas.
The company will be benefited from such development programs in retaining
and attracting of employees in general and preparing employees for higher
assignments in particular. Thus, the company has planned to invest in
development of human resources.
For this purpose, it has set Birr 854,000 .00 which accounts 3.07% of basic
salary aside for HRDP on the upcoming fiscal year.
5.2.3.

Promotion

One of the strategies of the Company to maintain its skilled workforce is

through promotion of employees to the higher job positions and
responsibilities.
Currently there are 56 numbers of employees who have served over one
year and above on the position they are currently holding and it is assumed

that these employees will get promoted to the next higher grade through
competitive basis.
Besides, there are 15 positions which are expected to be fulfilled through
promotion of from within and the total promotion budget of Birr 326,652 has
been set accordingly.
5.2.4.

Recognition and Reward

The Company has been showing tremendous growth and profitability from
year to year. This is the result of the concerted and orchestrated efforts of all
stakeholders while the roles of the leadership and staff constitute the largest
share. This begs for setting of the recognition and reward system to
stimulate and sustain the commitment and efforts of the team in the future
too.
Thus, based on its profit for the year 2015/16, the company has planned a
good will for reward and recognition with bonus and salary increment for
better future achievement which amounts two step salary increments while
two months bonus has been budgeted to be furnished for employees
accordingly.
5.2.5. Benefits
The Company has currently been giving the benefits of transportation, representation, hardship,
shuttling, fuel, telephone airtime allowance and others so as to achieve the Companys objectives
and to ease financial burdens on staff. These are both job related and general benefits. To keep
the employees purchasing power in congruent with the national economic growth, the company
has planned to provide its employees with compensation plan earmarking Birr 2,611,277.60 for
the budget of different benefits. For detail reference administrative cost table will be shown
below.