Professional Documents
Culture Documents
This is to certify that Mr. Daksha Yajaman C.N. , Mr. Ravi Aggarwal , Ms. Anjum
Jabeen and Ms. Ragini Kumari , all belonging to group E10 of Batch FW/2007-08, of
the Indian Institute of Planning and Management, Bangalore has successfully
completed their project on “ Recruitment and Retention issues in software
companies in Bangalore” under my guidance and supervision as fulfillment of her
course curriculum.
The assistance and help received during the research has been fully acknowledged.
1
Acknowledgement
We take this opportunity to thank all the people whose cooperation and
encouragement made the completion of this research project a possibility.
First of all we wish to express my sincere gratitude and for all the support
throughout the project study to my research guide Dr. Jaishree Desai under whose
guidance the Research was undertaken. Without her supervision at each stage of
research, the task would not have been accomplished.
Last but not the least I wish to thank all the respondents who gave me some
of their valuable time to fill up the questionnaires, without which the Research
wouldn’t have been a success.
Date: ………………
2
EXECUTIVE SUMMARY
A firm should evaluate its recruitment and retention process along with all its other
human resource management activities. Collecting appropriate evaluation measures
on recruitment and retention efforts can help an organization to predict the time and
budget needed to fill future openings. Identify the recruiting and retention methods
that yield the greatest number and/or the greatest quality of candidates, and
evaluate the performance of each individual.
The granddaddy of all recruiting evalvuation measures is cost per hire, though speed
of filling vacancies is also an important measure. Nationwide insurance , a large
insurance , financial services firm and also the fast growing software industries in
Bangalore , recently benchmarked its recruiting methods and subsequently made a
number of improvements to the process. Improvements in the recruitment process
were needed to modify and improve the recruitment process. Many studies have
been done to study the recruitment process of the software companies.
Most of the software industries retention policies are formal in nature. Positions such
as “Manager of recruiting and retention” have been created to emphasize the
importance of getting and then keeping high-quality staff.
3
TABLE OF CONTENTS
1. INTRODUCTION
……HUMAN RESOURCE 5
……RECRUITMENT AND RETENTION ISSUES
IN company 26
4. INDUSTRY p 40
6. FINDINGS 59
7. CONCLUSIONS 62
8. SUGGESTIONS 63
9. BIBLIOGRAPHY 66
10. ANEXURE 67
4
INTRODUCTION TO HUMAN RESOURCE
Human resources is a term with which many organizations describe the combination
of traditionally administrative personnel functions with performance , Employee
Relations and resource planning. The field draws upon concepts developed in
Industrial/Organizational Psychology. Human resources has at least two related
interpretations depending on context. The original usage derives from political
economy and economics, where it was traditionally called labor, one of four factors
of production. The more common usage within corporations and businesses refers to
the individuals within the firm, and to the portion of the firm's organization that deals
with hiring, firing, training, and other personnel issues. This article addresses both
definitions.
The objective of Human Resources is to maximize the return on investment from the
organization's human capital and minimize financial risk. It is the responsibility of
human resource managers to conduct these activities in an effective, legal, fair, and
consistent manner.
1. Selection
2. Training and Development
4. Promotions
5. Redundancy
10.Career development
5
Human resources
An extreme version of this view is that historical inequities such as African slavery
must be compensated by current developed nations, which benefited from stolen
"human resources" as they were developing. This is an extremely controversial view,
but it echoes the general theme of converting human capital to "human resources"
and thus greatly diminishing its value to the host society, i.e. "Africa", as it is put to
narrow imitative use as "labor" in the using society.
6
scales (i.e. organized and related groups of items) and not simply focus on individual
elements in isolation. To understand how high levels of employee engagement affect
organizational performance/productivity it is important to have an a priori model that
demonstrates how the scales interact. There is also overlap between this concept
and those relating to well-being at work and the psychological contract.
Advocating the central role of "human resources" or human capital in enterprises and
societies has been a traditional role of Human Resource socialist parties, who claim
that value is primarily created by their activity, and accordingly justify a larger claim
of profits or relief from these enterprises or societies. Critics say this is just a
bargaining tactic which grew out of various practices of medieval European guilds
into the modern trade union and collective bargaining unit.
A sign of consensus on this latter point was the ISO 9000 series of standards which
in its 1994 revision could be understood to require procedures or a "job description"
of every participant in a productive enterprise. The 2000 revision of ISO 9001 in
contrast requires to identify the processes, their sequence and interaction, and to
define and communicate responsibilities and authorities. In general, heavily
unionized nations such as France and Germany have adopted and encouraged such
job descriptions especially within trade unions. One view of this trend is that a strong
social consensus on political economy and a good social welfare system facilitates
labor mobility and tends to make the entire economy more productive, as labor can
move from one enterprise to another with little controversy or difficulty in adapting.
An extreme version of this view is that historical inequities such as African slavery
must be compensated by current developed nations, which benefited from stolen
"human resources" as they were developing. This is an extremely controversial view,
but it echoes the general theme of converting human capital to "human resources"
and thus greatly diminishing its value to the host society, i.e. "Africa", as it is put to
narrow imitative use as "labor" in the using society.
A sign of consensus on this latter point was the ISO 9000 series of standards which
in its 1994 revision could be understood to require procedures or a "job description"
of every participant in a productive enterprise. The 2000 revision of ISO 9001 in
contrast requires to identify the processes, their sequence and interaction, and to
define and communicate responsibilities and authorities. In general, heavily
unionized nations such as France and Germany have adopted and encouraged such
job descriptions especially within trade unions. One view of this trend is that a strong
social consensus on political economy and a good social welfare system facilitates
labor mobility and tends to make the entire economy more productive, as labor can
move from one enterprise to another with little controversy or difficulty in adapting.
8
this appropriation is similar to colonial commodity fiat wherein a colonizing European
power would define an arbitrary price for natural resources, extracting which
diminished national natural capital.
The traditional but extremely narrow context of hiring, firing, and job description is
considered a 20th century anachronism. Most corporate organizations that compete
in the modern global economy have adopted a view of human capital that mirrors
the modern consensus as above. Some of these, in turn, deprecate the term "human
resources" as useless.
Human resource management (HRM) is the strategic and coherent approach to the
management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the
business. The terms "human resource management" and "human resources" (HR)
have largely replaced the term "personnel management" as a description of the
processes involved in managing people in organizations. Human Resource
management is evolving rapidly. Human resource management is both an academic
theory and a business practice that addresses the theoretical and practical
techniques of managing a workforce.
Features
Personnel administration
Personnel management
Manpower management
Industrial management
But these traditional expressions are becoming less common for the theoretical
discipline. Sometimes even industrial relations and employee relations are
9
confusingly listed as synonyms although these normally refer to the relationship
between management and workers and the behavior of workers in companies.
The theoretical discipline is based primarily on the assumption that employees are
individuals with varying goals and needs, and as such should not be thought of as
basic business resources, such as trucks and filing cabinets. The field takes a positive
view of workers, assuming that virtually all wish to contribute to the enterprise
productively, and that the main obstacles to their endeavors are lack of knowledge,
insufficient training, and failures of process.
Synonyms such as personnel management are often used in a more restricted sense
to describe activities that are necessary in the recruiting of a workforce, providing its
members with payroll and benefits, and administrating their work-life needs. So if we
move to actual definitions, Torrington and Hall (1987) define personnel management
as being:
“a series of activities which: first enable working people and their employing
organisations to agree about the objectives and nature of their working relationship
and, secondly, ensures that the agreement is fulfilled" (p. 49).
".......those decisions and actions which concern the management of employees at all
levels in the business and which are related to the implementation of strategies
directed towards creating and sustaining competitive advantage" (p. 352).
Academic theory
The basic premise of the academic theory of HRM is that humans are not machines,
therefore we need to have an interdisciplinary examination of people in the
10
workplace. Fields such as psychology, industrial engineering, industrial and
organizational psychology, industrial relations, sociology, and critical theories:
postmodernism, post-structuralism play a major role. Many colleges and universities
offer bachelor and master degrees in Human Resources Management.
One widely used scheme to describe the role of HRM, developed by Dave Ulrich,
defines 4 fields for the HRM function:
Employee champion
Administration
However, many HR functions these days struggle to get beyond the roles of
administration and employee champion, and are seen rather as reactive than
strategically proactive partners for the top management. In addition, HR
organizations also have the difficulty in proving how their activities and processes
add value to the company. Only in the recent years HR scholars and HR
professionals are focusing to develop models that can measure if HR adds value. [7]
Critical Theory also questions whether HRM is the pursuit of "attitudinal shaping"
(Wilkinson 1998), particularly when considering empowerment, or perhaps more
precisely pseudo-empowerment - as the critical perspective notes. Many critics note
the move away from Man as Machine is often in many ways, more a Linguistic
(discursive) move away than a real attempt to recognise the Human in Human
Resource Management.
11
Critical Theory, in particular postmodernism (poststructualism), recognises that
because the subject is people in the workplace, the subject is a complex one, and
therefore simplistic notions of 'the best way' or a unitary perspectives on the subject
are too simplistic. It also considers the complex subject of power, power games, and
office politics. Power in the workplace is a vast and complex subject that cannot be
easily defined. This leaves many critics to suggest that Management 'Gurus',
consultants, 'best practice' and HR models are often overly simplistic, but in order to
sell an idea, they are simplified, and often lead Management as a whole to fall into
the trap of oversimplifying the relationship.
Two studies of employees in the life insurance industry examined the impact of
employee perceptions that they had the power to make decisions, sufficient
knowledge and information to do the job effectively, and rewards for high
performance. Both studies included large samples of employees (3,570 employees in
49 organizations and 4,828 employees in 92 organizations). In both studies, high-
involvement management practices were positively associated with employee
morale, employee retention, and firm financial performance [3]. Watson Wyatt found
that high-commitment organizations (one with loyal and dedicated employees) out-
performed those with low commitment by 47% in the 2000 study and by 200% in
the 2002 study.[8]
Influences
Employee clarity of job expectations. "If expectations are not clear and basic
materials and equipment not provided, negative emotions such as boredom or
resentment may result, and the employee may then become focused on surviving
more than thinking about how he can help the organization succeed."
Regular feedback and dialogue with superiors. "Feedback is the key to giving
employees a sense of where they’re going, but many organizations are
remarkably bad at giving it." [4] "'What I really wanted to hear was 'Thanks. You
did a good job.' But all my boss did was hand me a check.'"
Recruitment of candidates is the function preceding the selection, which helps create
a pool of prospective employees for the organisation so that the management can
select the right candidate for the right job from this pool. The main objective of the
recruitment process is to expedite the selection process.
PLANNED i.e. the needs arising from changes in organization and retirement
policy.
ANTICIPATED
UNEXPECTED
Resignation, deaths, accidents, illness give rise to unexpected needs.
Attract and encourage more and more candidates to apply in the organisation.
Create a talent pool of candidates to enable the selection of best candidates for
the organisation.
Recruitment is the process which links the employers with the employees.
Help reduce the probability that job applicants once recruited and selected will
leave the organization only after a short period of time.
Meet the organizations legal and social obligations regarding the composition of
its workforce.
Begin identifying and preparing potential job applicants who will be appropriate
candidates.
15
Increase organization and individual effectiveness of various recruiting techniques
and sources for all types of job applicants
Retention
Now that so much is being done by organizations to retain its employees, why is
retention so important? Is it just to reduce the turnover costs? Well, the answer is a
16
definite no. It’s not only the cost incurred by a company that emphasizes the need of
retaining employees but also the need to retain talented employees from getting
poached.
The process of employee retention will benefit an organization in the following ways:
Employees do not leave an organization without any significant reason. There are
certain circumstances that lead to their leaving the organization. The most common
reasons can be:
Job is not what the employee expected to be: Sometimes the job
responsibilities don’t come out to be same as expected by the candidates.
Unexpected job responsibilities lead to job dissatisfaction.
17
Job and person mismatch: A candidate may be fit to do a certain type of
job which matches his personality. If he is given a job which mismatches his
personality, then he won’t be able to perform it well and will try to find out
reasons to leave the job.
No growth opportunities: No or less learning and growth opportunities in
the current job will make candidate’s job and career stagnant.
Stress from overwork and work life imbalance: Job stress can lead to
work life imbalance which ultimately many times lead to employee leaving the
organization.
New job offer: An attractive job offer which an employee thinks is good for
him with respect to job responsibility, compensation, growth and learning etc.
can lead an employee to leave the organization.
The basic practices which should be kept in mind in the employee retention
strategies are:
2. Empower the employees: Give the employees the authority to get things
done.
3. Make employees realize that they are the most valuable asset of the
organization.
18
8. Keep their morale high.
9. Create an environment where the employees want to work and have fun.
These practices can be categorized in 3 levels: Low, medium and high level.
Recruitment pressures have increased by more than 20 per cent during the past
twelve months, despite the economic slowdown and wave of redundancies.
The CIPD’s survey confirms the trend of the ‘3Rs effect’, where mass redundancy co-
exists alongside recruitment and retention difficulties.
19
The three main causes of the problem include a lack of specialist skills, poor quality
applicants and pay inflexibility, all of which are particularly acute in the public sector.
The cost of living is also cited as a major reason - in London and the South East in
particular.
The problem is even more acute in the public sector, where more than eight out of
ten report problems. Retaining administrative staff is also proving difficult. And more
organisations in London report retention difficulties than in any other UK region.
Angela Baron, CIPD Adviser on Employee Resourcing and the survey's co-ordinator
comments, "Recruiting and retaining staff remains HR's biggest challenge in spite of
the economic downturn. While some may see this as surprising, a combination of low
unemployment and a massive expansion in public sector recruitment has meant that
staff at all levels, in all sectors and in all regions are difficult to recruit and retain.
"The problems are particularly acute in the public sector where the demand for
trained specialist staff currently exceeds supply. However, this should even itself out
over time as more trained staff come on stream."
One result of these recruitment and retention problems is that employers are now
more prepared to train new recruits and lower the level of experience required.
Seven out of ten organisations now say that they will appoint people with potential
who do not currently meet the job requirements, while the use of coaching and
mentoring has also increased sharply.
Although more than a third of organisations have improved their starting salaries to
recruit staff, the number that have increased pay to retain staff has dropped, a
reflection of difficult economic conditions.
But this pay inflexibility has led to almost a half of organisations losing candidates,
with the public sector the biggest loser. More than six out of ten public sector
organisations see pay as a major issue.
On the flip side, however, a greater emphasis on work-life balance has become the
public sector’s key retention weapon. Half of public sector organisations offer flexible
working hours compared with just a quarter of manufacturing and production
organisations. Half of not-for-profit and public service organisations also offer both
family-friendly and work-life balance provisions beyond the legal minimum.
Problems with staffing and retention may not be due to bad hires or a low
unemployment rate.
20
In fact, they may be related to poor management insight by not recognizing your
employees as a core competency in your business strategy. Although employees may
not fit the strictest definition of a core competency, it is a fact that your employees
are the ones responsible for creating many of your core competencies. It is an
undisputable fact that failure to recognize the importance of employee contributions
will lead to failure regardless of your business strategy.
Creating a strategic plan and definitive initiatives is the easy part of the formula for
success. The difficult part is finding, recruiting and retaining the appropriate talent
combination in today's market to carry out that plan. Recruitment and retention are
major issues in most industries today. These issues are especially critical to the
wholesale distribution industry for two reasons:
Second, the number of employees between the ages of 25 and 44, traditionally the
bulk of the workforce, will continue to decline in the United States for at least the
next five years. The baby-boomers are aging quickly toward retirement.
Under these circumstances, how in the world does a company not only recruit new
talent, but protect the talent they have? Questions about compensation, training,
incentives, benefits and work environment always come to the forefront. The answer
is committing to becoming an employer of choice (EOC) with as much tenacity as
you commit to being a supplier of choice, always wanting the first call and last look.
Many company executives pay far too little attention to this part of their businesses.
Often the mindset is that this is the "touchy-feely" stuff that's a non-revenue
producing necessary evil. Maybe that thought process didn't hurt the company in the
80's or early 90's when unemployment in some areas reached 10%, but that's not
the case today where the labor unemployment rate in many markets is less than 4%.
When unemployment is that low, most people who are unemployed just don't want
to work. As a result, there is a lot of corporate raiding going on. Even with the recent
massive layoff announcements by the automotive industry and some high-tech
industries, unemployment remains at a level that just is not conducive to recruitment
and retention.
Going on midnight raids? Offering BMWs as signing bonuses? Paying way above
market wages? NO, the answer is building a human resource strategy into your
21
business plan. Get over the old paradigm that human resource departments are too
costly and of little value. In fact, those companies that adopt that philosophy actually
spend more money by having highly compensated managers, particularly sales
managers, running ads, receiving resumes and doing preliminary interviews when
they should be selling. The costs associated with that process as well as the revenue
lost due to extended position vacancies inevitably far exceeds the annual costs of
dedicated human resource professionals. Secondly, a huge percentage of new hires
will jump ship within 18 months if they sense the company is not committed to its
employees. They will jump if the company does not accept them into the fold
properly by offering initial orientation, subsequent training and a culture that treats
the employee as the company's most precious assets.
The question is not, "Can you afford to invest in this soft touchy-feely stuff?" The
question becomes, "Can you afford to not invest in your most important asset, your
employees?"
The old paradigm creates a bias against paying attention to the human element of
the workforce. Many company executives that do strategic business plans initiate
from the top down instead of the bottom up often ignoring the real value of a
strategic plan. The real value is the involvement and education of your employees in
completing the plan, not in the document itself.
This bias that exists in many companies is almost as though admitting that
employees are the most precious of corporate assets will lead to an anarchy on
which owners and managers will fall at the mercy of the workforce. Well, shake your
head in disbelief if you want to, but the reality of the situation is that you are at the
mercy of your workforce. The rules have to continue to change. If you aren't willing
to admit that and get your head in the game then you won't survive in the new
millennium.
"People are not profits but without people there are no profits."
Some companies recognized their dilemma years ago. Many of the top performers in
your industry are at the top because they strive to be employers of choice. These are
forward thinking companies that have found solutions to their recruitment and
retention challenges. Following in their footsteps requires an initial "gut check."
Honestly ask yourself how your employees would answer questions like:
Do you receive performance updates and recognition beyond a once a year chat with
your boss?
These questions relate to the basic core competencies of human resources: staffing,
training, rewarding, recognizing and organizing. The business strategic plan cannot
succeed without paying attention to this part of the business. You must facilitate
your employees' involvement and feedback into this process. This basic premise in
implementation across steel service centers varies according to size. The same plan
for a $20 million privately held company would not work for a $500 million private or
public company.. EOC
To solve your recruitment and retention problems you must strive to become an
Employer of Choice. To accomplish that objective you must have a Human Resources
strategy that is integrated into your corporate strategic plan that acknowledges and
recognizes the employees as the company's most precious asset. R2 = EOC
23
to be developed for implementing recruitment programmes and procedures by
filling up vacancies with best qualified people.
The sort of careers available in HRM are varied. There are generalist HRM jobs such
as human resource assistant. There are careers involved with employment,
recruitment and placement and these are usually conducted by interviewers, EOE
(Equal Opportunity Employment) specialists or college recruiters. Training and
development specialism is often conducted by trainers and orientation specialists.
Compensation and benefits tasks are handled by compensation analysts, salary
administrators, and benefits administrators.
Each company has a different set of circumstances, and so develops an individual set
of human resource policies.
To ensure that every applicant and employee is treated equally with dignity
and respect.
Unbiased policy.
24
Optimization of manpower at the time of selection process.
Organizational objectives
Every person who has cleared higher secondary examination can become
an Agent other than a minor or the person who is convicted in any court
for crime or any legal proceedings. Men and women both can work as an
Agent. A single person can be associated with other life insurance
companies.
A training program is there to train a person who wants to become an
Agent. There is 100 Hrs. training program which can be done either with
25
the physical appearance in the class room or the interest basis. In the
classroom training the trainee has to be physically present in the training
session. There are difference sessions of training program. A trainee can
attend any session according to his comfort. The training period is of 25
days approx. If the trainee does not have enough time to devote in the
classroom training, then there is another option left that is training on
Internet.
On the basis of Internet the trainee has provided a login number along
with the password through which he operated his login and completed his
training hrs. as convenient. Each and every hour pass on the net under his
login head will be count on his account. The test for the training program
is also on line. This is only procedure to be an Insurance Agent.
Work of financial consultant:
The FC is the interface between the customer and insurance
company. l The agent should be able to accomplish the following
service.
Assessing and analyzing the clients risk profile.
Finding the best product or products available in the market.
Negotiating the best deal available.
Continuity of service throughout the period of insurance.
26
Ensuring peace of mind and quality of life for the millions of people
around you.
27
State the reason for the call.
Clearly succinctly explain how the meeting will be benefiting the
prospect.
Achievements:
Recruited eight financial consultants for company.
Increase in confidence level.
Got the knowledge about, how to differentiate our product form that of
LIC.
Made more and more people aware about my companies Products
(Policies)
Taken some appointments for policies and got positive response from 8
persons with the help of my BDM.
RECRUITMENT PROCESS:
Steps in recruitment of Insurance Agents
Approach to the likely person
Appointment as per condition
Discuss the topic
28
As a financial consultant the role will be to identify prospective customer.
You will makes presentation, as to how you can help analyses their
financial needs, provide customize financial solution to cater to their
respective needs and conduct reviews on regular basis to keep
customers on thank.
Flexible work timings, part time or full time: FCs can work
whenever he likes and from whereeve4r he like, FCs can work full time
depending on their convenience its like no other job however, the time.
Strong Partnership:
A powerful brand – HDFC Standard Life Insurance:
29
We have grown over 130% in the last and more than 8 Lakhs policy
holder. HDFC standard life insurance has one of the highest brand recall
of around 80%
IRDA Training: Online training of 100 hrs. prepares for career as FCs and
enables to pass the IRDA examination. After the IRDA license, first step
towards a successful career as a FC.
SCOPE OF STUDY
30
India is a repository of talent and the global corporati ons have
immense confi dence in the skill of the employers recruited from
India. In the past couple of years a sudden growth has been
noti ced in recruitment from India by the insurance companies that
operate globally. This has also helped in the creati on of a
considerable number of job vacancies in the insurance industry.
India has one of the largest Higher Educati on System in the World.
Therefore hiring Indians enable the Insurance Companies to keep
a step ahead of their competi tors. Skilled and competent
employees can be hired by the Insurance Industry at a minimum
cost from India. Infact that Insurance Industry recruitment from
India is closely related to the fact that apart from featuring as one
of the major recruitment markets in the world, India is also a
country that boasts of skill diversity. The Indian professionals are
innovati ve, dedicated and talented individuals who are preferred
all across the globe and across myriad job arenas.
31
OBJECTIVES OF THE STUDY
32
LIMITATIONS OF THE STUDY
The sample size. We restricted ourselves to samples. And due to this errors
while would have arisen in analyzing the data since important data’s were not
recorded.
There was also a time constraint. There was little time given to complete the
project since we were doing our internship as well at the same time.
Most of the people whom we surveyed did not give out sufficient information
which could have been useful to our project.
33
INDUSTRY PROFILE
LIFE INSURANCE
Historical Perspective
3. It was the first company to charge same premium for both Indian
and non-Indian lives.
Insurance sector in India was liberalized in March 2000 with the passage
of the Insurance Regulatory and Development Authority (IRDA) Bill,
lifting all entry restrictions for private players and allowing foreign
players to enter the market with some limits on direct foreign ownership.
There is a 26 percent equity cap for foreign partners in an insurance
company. There is a proposal to increase this limit to 49 percent. The
opening up of the insurance sector has led to rapid growth of the sector.
Presently, there are 16 life insurance companies and 15 non-life
insurance companies in the market. The potential for growth of
insurance industry in India is immense as nearly 80 per cent of Indian
population is without life insurance cover while health insurance and
non-life insurance continues to be well below international standards.
Registration Restriction:
Composite Registration not available.
35
Market Opening:
August 2000 with invitation for application for registration.
Life Insurance 01 12 13
General Insurance 04 09 13
Reinsurance 01 0 01
Total 06 21 27
Life Insurance:
1. Allianz Bajaj Life Insurance Company Limited.
General Insurance
1. Bajaj Allianz General Insurance Company Limited.
37
COMPANY PROFILE
HDFC is the largest housing Company in India for the last 27 years.
STANDARD LIFE
38
Standard Life is Europe’s largest mutual life assurance company. Standard
Life, which has been in the life insurance business for the past 175 years
is a modern company surviving quite a few changes since selling its first
policy in 1825. The company expanded in the 19 th century from kits
original Edinburgh premises, opening offices in other towns and
acquitting other similar businesses.
Standard Life Currently has assets exceeding over £ 70 billion under its
management and has the distinction of being accorded “AAA” rating
consequently for the six years by Standard and Poor.
JOINT VENTURE
HDFC Standard Life Insurance Company Limited was one of the first
companies to be granted license by the IRDA to operate in life insurance
sector. Reach of the JV player is highly rated and been conferred with
many awards. HDFC is rated ‘AAA ’ by both CRISIL and ICRA. Similarly,
Standard Life is rated ‘AAA’ both by Moody’s and Standard and Poor’s.
These reflect the efficiency with which HDFC and Standard Life manage
their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. Respectively.
39
HDFC Standard Life Insurance Company Ltd. Is one of India’s leading
Private Life Insurance Companies., which offers a range of individual and
group insurance solutions. It is a joint venture between Housing
Development Finance Corporation Limited (HDFC Ltd.) India’s leading
housing finance institution and the Standard Life Assurance Company, a
leading provider of financial services from the United Kingdom. Both the
promoters are will known for their ethical dealings and financial strength
and are thus committed to being a long-term player in the life insurance
industry- all important factors to consider when choosing your insurer.
PRODUCTS
VISION of HDFCSL
The most successful and admired life insurance company, which means
that we are the most trusted company, the easiest to deal with, offer
the best value for money, and set the standards in the industry. In short,
Values of HDFCSL
- Integrity - Innovation
SWOT
STRENGTHS
41
1. HDFC Standard life insurance offers a range of individual
and group insurance solutions.
WEAKNESSES
OPPORTUNTIIES
THREATS
42
2. Belief towards LIC as it is a government corporation phobia
is continue to surmount the people of India despite lots of
flaws and development and liberalization of life insurance.
RESEARCH METHODOLOGY
There are two types questionnaire bing carried necessary for the
market survey of the summer training being undertaken and put
for the by the trainee to the sample people taken as a base for
entire population:
44
questionnaire being followed by me during the course of the
summer training market survey.
45
DATA ANALYSIS AND INFERENCE
46
ANALYSIS OF THE INTERPRETATION
The first question in the survey was to find out how many people were aware of the
recruitment policy of the organization. And this is the result as shown below.
47
As shown in the pie graph above(in percentage) most of the people who said
yes make up 97% of the total people shown in.
While 3% of the total people said they have no idea of the recruitment policy
of their organization.
There are different ways by which organizations recruit their employees. And an
analysis was made according to this after taking the surveys.
48
The x-axis shows different ways, the company use to recruit their employees.
Only 1 respondent specified others i.e. he was the person responsible for
recruiting employees .
The next question deals with the accuracy of the recruitment and retention
policy in the company.
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This was split up into three different sectors--- 45%-50% ---- 55%-75% -----
75%>
This shows that the compny accuracy in their recruitment and retention
process is more than 75% by majority (43%).
The next question deals with how much awareness the employees working in
a software company have about the retention policies of their organization.
50
It seems that the respondents who were not aware of the retention policy
made up 55% of the total respondents.
Respondents who were aware of the retention policy were less than those
who were aware of it. They made up 45% of the total respondents.
The next question deals with the different methods by which employees are retained
in the company.
51
The bar graph shows that most of thecompany go for increasing the salary annually.
The least popular among the 40 respondents working in different company were
methods like incentives and appraisals used in order to retain their employees.
The next question was asked to find out whether the employees working in
the company think that the recruitment and retention policy are interrelated.
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As indicated by the pie chart 77% of the total respondents said “yes, the
recruitment and retention policy were indeed interrelated”.
But 23% of the total respondents said “recruitment and retention policy were
not interrelated”.
53
Next the respondents was asked to rate their organizations retention policy
as compared to the industry.
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Next the respondents were asked how successful the retention policy is in
their organization.
Most of the respondents said that their retention policy were satisfactory as
opposed to it being good and very good.
52% of the people said it(i.e. the retention policy) was satisfactory.
43% of the people said it(i.e. the retention policy) was good.
5% of the people said it(i.e. the retention policy) was very good.
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ANALYSIS OF THE INTERPRETATION
AVERAGE 16 18
GOOD 22 16
POOR 12 16
TOTAL 50 50
Analysis
The above table shows that out of 50 respondents 16 told that the working environment
before Recruitment is average and 22 said it was good and remaining 12 said it was poor
after Recruitment only 16 respondents said that working environment in the company is
good.
INFERENCE
It can be observed that working environment was good before Recruitment, but the
difference is not much.
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ANALYSIS OF THE INTERPRETATION
HEAVY 26 29
NORMAL 24 21
TOTAL 50 50
ANALYSIS
The above table shows that out of 50 respondents 26 told that the workload before
Recruitment was heavy and 24said that it was normal.
INFERENCE:
YES 17 27
NO 33 23
TOTAL 50 50
ANALYSIS:
The above table shows that out of 50 respondents 17 were satisfied & 33 were not satisfied
regarding welfare activities before Recruitment.
After Recruitment 27 respondents said that they are satisfied and remaining are not
satisfied.
INFERENCE:
It can be observed that the satisfaction regarding the welfare activities is more after
Recruitment.46%of employees after Recruitment are satisfied.
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FEEDBACK NO. OF RESPONDENTS
YES 39
NO 11
TOTAL 50
ANALYSIS:
The above table shows that out of 50 respondents 39 told that the authority & freedom is
changed.
Only 11 respondents said that authority and freedom in the company is changed.
INFERENCE:
60
It can be observed that there is a change in authority & freedom after
Recruitment
YES 28
NO 22
TOTAL 50
ANALYSIS:
61
The above table shows that out of 50 respondents 28 told that the symbol of status is
changed. Only 22 respondents said that the symbol of status is not changed.
INFERENCE:
Regarding status symbol 44%of employees are felt that there is no change in it after
Recruitment.
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ANALYSIS OF THE INTERPRETATION
YES 32
NO 18
TOTAL 50
ANALYSIS:
The above table shows that out of 50 respondents 32 told that they are enjoying extra
benefits
Only 22 respondents said that they are not getting any extra benefits.
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INFERENCE:
64% employees said that they are benefited with the Recruitment. It means Recruitment
brought some extra benefits to the major portion of the employees.
INFERENCE:
64
Further, the age qualification for agency recruitment, it was found that 39%
respondents were belonging to 18 – 25 age group, 35% were belonging to 25 – 35
age group where as 20% to 35 -45 age group and remaining 6% to above 45 age
group. Also depicted in the following tale mentioned below: -
25 – 35 age group 37
35 – 45 age group 21
INFERENCE:
65
Respondents had different views about the dissatisfaction from
the present status of working or occupation. Dissatisfaction has
been depicted in a table below and graphically above:
Would you like to know about a career in life insurance advisor ship
where you can fulfill every desire of your life?
66
INFERENCE:
Would you like to become or opt for life insurance advisor under
esteemed and prospering organization HDFC Standard Life
insurance?
67
INFERENCE:
68
1- Candidates are less aware about recruitment in the private
insurance company in market.
2- HDFC is too selective in making a FC rather than to appoint any
one like LIC.
3- Candidates don’t want to join as financial consultant because it’s
on commission basis they want job on salary basis.
4- Candidates are joining HDFC the segment is more of tax
consultant, investment for consultant and other people who are
engaged in investment business that is because they want to
diversify their portfolio.
5- HDFC SLIC is having good retention strategies for their financial
consultant.
Reason for not joining HDFC SLIC.
Associated with an other company.
Do not have time
Low sales.
Private Player.
Lack of awareness.
SUGGESTIONS
69
Following are suggestions made for the benefits and augmentation of
BIBLIOGRAPHY
70
REFERENCES:
http://recruitment.naukrihub.com/recruitment-process.html
http://retention.naukrihub.com/retention.html
http://en.wikipedia.org/wiki/Human_resources
http://en.wikipedia.org/wiki/Human_Resource_Law
http://www.management-issues.com/2006/8/24/research/recruitment-
retention-problems-on-the-rise.asp
Questionnaire
Name:_______________________
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Company:____________________
Department:__________________
No. of years:__________________
Designation:___________________
Yes / No
(b) Consultancy
(e) Others_________________
Yes / No
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_____________________________
_____________________________
Yes / No
7] How do you rate your organization with respect to its retention policy as
compared to the industry?
(a) Satisfactory
(b) Good
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12. Is the jobs are having the work load ?
Yes No
Yes No
17. Do you have the eligibility age
a) Low employment
c) Low status
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19.Would you like to know about a career in life insurance advisor
ship where you can fulfill every desire of your life?
a) Yes
b) No
a) Yes
b) No
Suggestions: -
1. ……………………………………………………………
2. ……………………………………………………………
3. ……………………………………………………………
4. ……………………………………………………………
5. ……………………………………………………………
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