PROJECT

“AN ANALYSIS OF Recruitment and Retention of EMPLOYEES AT
HDFC STANDARD LIFE INSURANCE COMPANY”
A Project Report
submitted in partial fulfillment of the requirement for the award of
Masters Degree in Business Administration
for
Academy Of Business Management Tourism and Research College
Bangalore- 560 068
BY :
Mr. SIBI ABRAHAM. C
Reg No. - 9207840008
Under the Guidance of

Mr. BINTO KURIEN
Acknowledgement
A research cannot be said to be work of an individual. A research is a combination of

views and ideas, suggestions and contributions of many people.
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 Mr.Binto Kurien under whose
guidance the Research was undertaken. Without his 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: ………………
Place: Bangalore SIBI ABRAHAM.C
MBA 2nd YEAR
DECLARATION
I SIBI ABRAHAM.C of ACADEMY OF BUSINESS MANAGEMENT TOURISM

AND RESEARCH, from MBA-1 hereby declare that I have completed this project
on “ An Analysis Of Recruitment And Retention Of Employees At HDFC Standard
Life Insurance Company” during 15th june 2010 to aug 1st 2010.The information
submitted is true and original to the best of my knowledge. The views expressed in
this report are not necessarily those of the company or college and all responsibility
for any errors remains with the author.
……………………………………..
Signature
Date:
TABLE OF CONTENTS
SERIAL NO CHAPTERS PAGE NO
1. Executive Summary
2. Introduction
3. Company profile
4. Methodology
5. Presentation and Analysis of data and

interpretation
6. Summary of findings
7. Recommendations
8. Conclusion
9. Bibliography
10. Annexure
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.
Having identified employees or job categories where turnover would be especially

dysfunctional, organizations should be proactive in working to retain these people. An
increasing percentage of employers claimed to have strategies for promoting retention
and less percentage were developing strategies.
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.
A comprehensive retention management program must be built on accurate information

about why people are leaving a particular organization. In the absence of such
information, wrong conclusions may be drawn about the causes of departure and
ineffective means to combat it adopted. Employees say that the least important factor in
motivating them to quit is the availability of jobs that pay more. In fact the reason why
employees leave the job is because their job is underappreciated and not recognized. The
software industry should improve in this area, regardless of the external labor market.
Opportunities to move up and develop skills are also important to employees , and with
proper career planning, innovative career ladders, mentoring, and employer provided
training or tuition reimbursement programs, much can be done in this areas as well.
SCOPE OF STUDY
Insurance Industry is emerging in a big way in both the Indian and the
overseas market and is on a recruitment spree to absorb the talented,
skilled and performance driven individuals for the industry. There is a
tendency among the recruiters to employ skilled workers. The penchant
of the insurance industry to recruit form Indian can be attributed to a
variety of reasons.
India is a repository of talent and the global corporations have immense

confidence in the skill of the employers recruited from India. In the past
couple of years a sudden growth has been noticed in recruitment from
India by the insurance companies that operate globally. This has also
helped in the creation of a considerable number of job vacancies in the
insurance industry. India has one of the largest Higher Education System
in the World. Therefore hiring Indians enable the Insurance Companies
to keep a step ahead of their competitors. 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 innovative, dedicated and
talented individuals who are preferred all across the globe and across
myriad job arenas.
Being an Insurance Agent of HDFC-STANDARD LIFE INSURANCE provides a legal

mean to earn money which protects a person from earning through a illegal source
which is harmful for society as well as himself. For the youngsters it provides great
platform to prove them. On the basis of their performance they can be recruited as unit
manager.
Its recruitment procedure is very easy.
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.
Human resource management serves these key functions:
1. Selection
2. Training and Development
3. Performance Evaluation and Management
4. Promotions
5. Redundancy
6. Industrial and Employee Relations
7. Record keeping of all personal data.
8. Compensation, pensions, bonuses etc in liaison with Payroll
9. Confidential advice to internal 'customers' in relation to problems at work.
10. Career development

Human resources
Modern analysis emphasizes that human beings are not "commodities" or "resources",
but are creative and social beings that make class contributions beyond 'labor' to a society
and to civilization. The broad term human capital has evolved to contain some of this
complexity, and in micro-economics the term "firm-specific human capital" has come to
represent a meaning of the term "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.
In terms of recruitment and selection it is important to consider carrying out a thorough

job analysis to determine the level of skills/technical abilities, competencies, flexibility of
the employee required etc. At this point it is important to consider both the internal and
external factors that can have an effect on the recruitment of employees. The external
factors are those out-with the powers of the organization and include issues such as
current and future trends of the labor market e.g. skills, education level, government
investment into industries etc. On the other hand internal influences are easier to control,
predict and monitor, for example management styles or even the organizational culture.
Access to a reliable model enables organizations to conduct validation studies to establish

the relationship of employee engagement to productivity/performance and other measures
linked to effectiveness.
It is an important principle of industrial and organizational psychology (i.e. the

application of psychological theories, research methods, and intervention strategies
involving workplace issues) that validation studies should be anchored in reliable 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.
As employee productivity is clearly connected with employee engagement, creating an

environment that encourages employee engagement is considered to be essential in the
effective management of human capital.
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 contrary view, common to capitalist parties, is that it is the infrastructural capital and
(what they call) intellectual capital owned and fused by "management" that provides most
value in financial capital terms. This likewise justifies a bargaining position and a general
view that "human resources" are interchangeable.
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 important controversy regarding labor mobility illustrates the broader philosophical
issue with usage of the phrase "human resources": governments of developing nations
often regard developed nations that encourage immigration or "guest workers" as
appropriating human capital that is rightfully part of the developing nation and required
to further its growth as a civilization. They argue that 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 debate regarding "human resources" versus human capital thus in many ways echoes
the debate regarding natural resources versus natural capital. Over time the United
Nations have come to more generally support the developing nations' point of view, and
have requested significant offsetting "foreign aid" contributions so that a developing
nation losing human capital does not lose the capacity to continue to train new people in
trades, professions, and the arts.
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.
In terms of recruitment and selection it is important to consider carrying out a thorough

job analysis to determine the level of skills/technical abilities, competencies, flexibility of
the employee required etc. At this point it is important to consider both the internal and
external factors that can have an effect on the recruitment of employees. The external
factors are those out-with the powers of the organization and include issues such as
current and future trends of the labor market e.g. skills, education level, government
investment into industries etc. On the other hand internal influences are easier to control,
predict and monitor, for example management styles or even the organizational culture.
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 important controversy regarding labor mobility illustrates the broader philosophical

issue with usage of the phrase "human resources": governments of developing nations
often regard developed nations that encourage immigration or "guest workers" as
appropriating human capital that is rightfully part of the developing nation and required
to further its growth as a civilization. They argue that 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.
In general the abstractions of macro-economics treat it this way - as it characterizes no

mechanisms to represent choice or ingenuity. So one interpretation is that "firm-specific
human capital" as defined in macro-economics is the modern and correct definition of
"human resources" - and that this is inadequate to represent the contributions of "human
resources" in any modern theory of political economy.
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
Its features include:
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 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.
HRM is seen by practitioners in the field as a more innovative view of workplace
management than the traditional approach. Its techniques force the managers of an
enterprise to express their goals with specificity so that they can be understood and
undertaken by the workforce, and to provide the resources needed for them to
successfully accomplish their assignments. As such, HRM techniques, when properly
practiced, are expressive of the goals and operating practices of the enterprise overall.
HRM is also seen by many to have a key role in risk reduction within organisations.
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).
While Miller (1987) suggests that HRM relates to:
".......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 goal of human resource management is to help an organization to meet strategic

goals by attracting, and maintaining employees and also to manage them effectively. The
key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the
management of an organization's employees, and the overall strategic direction of the
company (Miller, 1989).
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 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:
Strategic business partner
Change agent
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 Academic Theory
Postmodernism plays an important part in Academic Theory and particularly in Critical

Theory. Indeed Karen Legge in 'Human Resource Management: Rhetorics and Realities'
possess the debate of whether HRM is a modernist project or a postmodern discourse
(Legge 2004). In many ways, critically or not, many writers contend that HRM itself is an
attempt to move away from the modernist traditions of personnel (man as machine)
towards a postmodernist view of HRM (man as individuals). Critiques include the notion
that because 'Human' is the subject we should recognize that people are complex and that
it is only through various discourses that we understand the world. Man is not Machine,
no matter what attempts are made to change it i.e. Fordism / Taylorism, McDonaldisation
(Modernism).
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.
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.
Life insurance industry
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]
Access to a reliable model enables organizations to conduct validation studies to establish

the relationship of employee engagement to productivity/performance and other measures
linked to effectiveness.
It is an important principle of industrial and organizational psychology (i.e. the

application of psychological theories, research methods, and intervention strategies
involving workplace issues) that validation studies should be anchored in reliable 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.
As employee productivity is clearly connected with employee engagement, creating an

environment that encourages employee engagement is considered to be essential in the
effective management of human capital.
Influences
Employee perceptions of job importance. According to a 2006 study by Gerard

Seijts and Dan Crim, "...an employees attitude toward the job['s importance] and the
company had the greatest impact on loyalty and customer service then all other employee
factors combined."
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."
Career advancement/improvement opportunities. "Plant supervisors and managers
indicated that many plant improvements were being made outside the suggestion system,
where employees initiated changes in order to reap the bonuses generated by the
subsequent cost savings."
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.'"
Quality of working relationships with peers, superiors, and subordinates. "...if

employees' relationship with their managers is fractured, then no amount of perks will
persuade the employees to perform at top levels. Employee engagement is a direct
reflection of how employees feel about their relationship with the boss."
Perceptions of the ethos and values of the organization. "'Inspiration and values' is
the most important of the six drivers in our Engaged Performance model. Inspirational
leadership is the ultimate perk. In its absence, [it] is unlikely to engage employees."
Effective Internal Employee Communications - which convey a clear description

of "what's going on". "'If you accept that employees want to be involved in what they are
doing then this trend is clear (from small businesses to large global organisations). The
effect of poor internal communications is seen as its most destructive in global
organisations which suffer from employee annexation - where the head office in one
country is buoyant (since they are closest to the action, know what is going on, and are
heavily engaged) but its annexes (who are furthest away from the action and know little
about what is happening) are dis-engaged. In the worst case, employee annexation can be
very destructive when the head office attributes the annex's low engagement to its poor
performance... when its poor performance is really due to its poor communications.
INTRODUCTION TO RECRUITMENT AND RETENTION
According to Edwin B. Flippo, “Recruitment is the process of searching the candidates

for employment and stimulating them to apply for jobs in the organisation”. Recruitment
is the activity that links the employers and the job seekers. A few definitions of
recruitment are:
 A process of finding and attracting capable applicants for employment. The process
begins when new recruits are sought and ends when their applications are submitted. The
result is a pool of applications from which new employees are selected.
 It is the process to discover sources of manpower to meet the requirement of staffing

schedule and to employ effective measures for attracting that manpower in adequate
numbers to facilitate effective selection of an efficient working force.
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.
Recruitment is a continuous process whereby the firm attempts to develop a pool of

qualified applicants for the future human resources needs even though specific vacancies
do not exist. Usually, the recruitment process starts when a manger initiates an employee
requisition for a specific vacancy or an anticipated vacancy.
RECRUITMENT NEEDS ARE OF THREE TYPES
PLANNED i.e. the needs arising from changes in organization and retirement policy.
ANTICIPATED
Anticipated needs are those movements in personnel, which an organization can predict
by studying trends in internal and external environment.
 UNEXPECTED
Resignation, deaths, accidents, illness give rise to unexpected needs.
Purpose & Importance Of Recruitment

 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.
 Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
 Recruitment is the process which links the employers with the employees.
 Increase the pool of job candidates at minimum cost.
 Help increase the success rate of selection process by decreasing number of visibly
under qualified or overqualified job applicants.
 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.
 Increase organization and individual effectiveness of various recruiting techniques and
sources for all types of job applicants
Retention
Employee Retention involves taking measures to encourage employees to remain in the

organization for the maximum period of time. Corporate is facing a lot of problems in
employee retention these days. Hiring knowledgeable people for the job is essential for
an employer. But retention is even more important than hiring. There is no dearth of
opportunities for a talented person. There are many organizations which are looking for
such employees. If a person is not satisfied by the job he’s doing, he may switch over to
some other more suitable job.
In today’s environment it becomes very important for organizations to retain their

employees. The top organizations are on the top because they value their employees and
they know how to keep them glued to the organization. Employees stay and leave
organizations for some reasons. The reason may be personal or professional. These
reasons should be understood by the employer and should be taken care of. The
organizations are becoming aware of these reasons and adopting many strategies for
employee retention.
Importance Of Employee 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 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:
1. The Cost of Turnover: The cost of employee turnover adds hundreds of

thousands of money to a company's expenses. While it is difficult to fully
calculate the cost of turnover (including hiring costs, training costs and
productivity loss), industry experts often quote 25% of the average employee
salary as a conservative estimate.
2. Loss of Company Knowledge: When an employee leaves, he takes with him

valuable knowledge about the company, customers, current projects and past
history (sometimes to competitors). Often much time and money has been spent
on the employee in expectation of a future return. When the employee leaves, the
investment is not realized.
3. Interruption of Customer Service: Customers and clients do business with a

company in part because of the people. Relationships are developed that
encourage continued sponsorship of the business. When an employee leaves, the
relationships that employee built for the company are severed, which could lead
to potential customer loss.
4. Turnover leads to more turnovers: When an employee terminates, the effect is

felt throughout the organization. Co-workers are often required to pick up the
slack. The unspoken negativity often intensifies for the remaining staff.
5. Goodwill of the company: The goodwill of a company is maintained when the

attrition rates are low. Higher retention rates motivate potential employees to join
the organization.
6. Regaining efficiency: If an employee resigns, then good amount of time is lost in
hiring a new employee and then training him/her and this goes to the loss of the
company directly which many a times goes unnoticed. And even after this you
cannot assure us of the same efficiency from the new employee
What Makes Employee Leave?

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.
• 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.
• Lack of appreciation: If the work is not appreciated by the supervisor, the

employee feels de-motivated and loses interest in job.
• Lack of trust and support in coworkers, seniors and management: Trust is the
most important factor that is required for an individual to stay in the job. Non-
supportive coworkers, seniors and management can make office environment
unfriendly and difficult to work in.
• 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.
• Compensation: Better compensation packages being offered by other companies

may attract employees towards themselves.
• 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.
Employee Retention Strategies
The basic practices which should be kept in mind in the employee retention strategies
are:
1. Hire the right people in the first place.
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.
4. Have faith in them, trust them and respect them.
5. Provide them information and knowledge.
6. Keep providing them feedback on their performance.
7. Recognize and appreciate their achievements.
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 and Retention Issues in companies
Recruitment & retention problems on the rise
Recruitment pressures have increased by more than 20 per cent during the past twelve
months, despite the economic slowdown and wave of redundancies.
According to the Chartered Institute of Personnel and Development (CIPD), the problem
exists across all sectors and regions with more than nine out of ten of the 557
organisations surveyed experiencing difficulties.
The CIPD’s survey confirms the trend of the ‘3Rs effect’, where mass redundancy co-
exists alongside recruitment and retention difficulties.
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.
Meanwhile, the number of organisations reporting retention difficulties has jumped even
more markedly in the past year from half in 2002 to more than seven out of ten this year.
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.
When staff do decide to leave, three-quarters of organisations monitor the findings from
exit interviews and six out of ten use staff attitude surveys. But less than a third monitor
the financial cost of replacing leavers.
R2 = EOC (Recruitment and Retention = Employer of Choice)
Problems with staffing and retention may not be due to bad hires or a low unemployment
rate.
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.
Recruitment and Retention
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:
First, wholesale distribution is one of our aged-basic industries that doesn't necessarily
project the excitement of the high-tech industries and the dot coms of the new millennium
(even though many have crashed and burned).
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 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.
Are you at the mercy of your workforce?
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 counseling on a career plan?
Is there a current wage and salary plan in place?
Do performance incentives exist?

Do you receive regular training and instruction?
Do you receive performance updates and recognition beyond a once a year chat with your
boss?
Does customer feedback play a role in performance evaluations?
Are suggestions reviewed and awarded?
Is there both a formal and informal communication channel?
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
Recruitment Policy Of a Company
In today’s rapidly changing business environment, a well defined recruitment policy is

necessary for organizations to respond to its human resource requirements in time.
Therefore, it is important to have a clear and concise recruitment policy in place,
which can be executed effectively to recruit the best talent pool for the selection of
the right candidate at the right place quickly. Creating a suitable recruitment policy is
the first step in the efficient hiring process. A clear and concise recruitment policy
helps ensure a sound recruitment process.
It specifies the objectives of recruitment and provides a framework for implementation of

recruitment programme. It may involve organizational system 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.
Human resource policies are systems of codified decisions, established by an

organization, to support administrative personnel functions, performance management,
employee relations and resource planning.
Each company has a different set of circumstances, and so develops an individual set of
human resource policies.
COMPONENTS OF THE RECRUITMENT POLICY
• The general recruitment policies and terms of the organisation

• Recruitment services of consultants
• Recruitment of temporary employees
• Unique recruitment situations
• The selection process
• The job descriptions
• The terms and conditions of the employment
A recruitment policy of an organisation should be such that:
• It should focus on recruiting the best potential people.
• To ensure that every applicant and employee is treated equally with dignity and
respect.
• Unbiased policy.
• To aid and encourage employees in realizing their full potential.
• Transparent, task oriented and merit based selection.
• Weightage during selection given to factors that suit organization needs.
• Optimization of manpower at the time of selection process.
• Defining the competent authority to approve each selection.
• Abides by relevant public policy and legislation on hiring and employment

relationship.
• Integrates employee needs with the organisational needs.

FACTORS AFFECTING RECRUITMENT POLICY
• Organizational objectives
• Personnel policies of the organization and its competitors.
• Government policies on reservations.
• Preferred sources of recruitment.
• Need of the organization.
• Recruitment costs and financial implications.
LIFE INSURANCE FINANCIAL CONSULTANT
Eligibility for an Insurance Agent
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 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.
Role of a Financial Consultant
1. Meet people and present service

2. Understand their financial need
3. Customizes life insurance plans
4. Provide efficient after- sales support
5. Helps customers protect their lifestyle, realize their dreams and enjoy their lives
Opportunity to a Financial Consultant
 Realize their dream.

 Flexible work hours.
 100% self -decide income.
 Financial Independence to live with self respect.
 Be your Boss.
Business Opportunity to a Financial Consultant
Ensuring peace of mind and quality of life for the millions of people around you.
Offers to a Financial Consultant

An exciting career that can change your life.
Recruitment of Financial consultant (FCs) of a excellent profile and their retention

strategies and what are their benefit that company going to provided for retention of their
FCs.
 What type of people are we looking for ?

1) Committed people who have the drive, determination and ability to become
professional financial consultants.
2) Ability to sell a range of financial products.
 What do We Expect from financial Consultant ?
1) Devote a time and energy during training.
2) Sell at least 5 policies each month once after licensed with company.
3) We look forward to a long term mutually beneficial relationship.
 Why should financial consultant choose HDFC standard life ?
1) Brand value and the reputation of the partners (HDFC Limited) Market leader in
housing finance:
2) 15 lakhs home financed.
3) 11 lakhs retail deposits customer base.
 Reputation for providing the higher standards of customer service.

 Financial Strength of the partners.
 Brand value and the reputation of the partners standard life:
 175 years experience in life insurance.
 Largest mutual life insurer in Europe.
 Product innovation.
Strategies: Strategies Employed to achieve the target are as follows:-
 Telecalling
 Contacting the person directly (interview)
 Collect references.
Some important steps to make effective telecalling:-
Open the call in a friendly and positive way.
State the name, position and company name.
Check the prospect has time to speak.
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
 Give the documents which includes:-
1. Prospectus of the company
2. Brochure
3. Company’s plan
4. Questionnaire
 Collect the document after it’s completion
 Forward it to project manager
 Feed it in the computer as the database
 Follow up as per conditions
Modes of Contact
 Personal Contacts
 References
 Phone Calls
 Guidance as per Unit Manager

BENEFITS OF BEING A FINANCIAL CONSULTANT ARE AS FOLLOWS:
Financial consultant, the right way to start career:
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.
Easy way to start on career:
Zero investment: There is no start-up capital. Be an own boss with a flexible working
environment, unlimited earning potential and the opportunity to be part of world class
sales team.
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.
Sunrise industry: Life insurance in India has a huge potential for growth Statistics
reveal that only 25% of the insurable population in India is insured and those insured are
in need of still higher insurance cover. The over 100% growth displayed by private life
insurers indicates this hu7ge untapped potential.
Strong Partnership:
A powerful brand – HDFC Standard Life Insurance:

We were the first private life insurance company to be granted a license by IRDA.
We have been rated by business world magazine. As Indies most respected private life
insurance company 2004.
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%
PROFESSIONAL TRAINING PROGRAMS AND CONTINUID GUIDANCE:
At HDFC standard training is an inherent element of our support system for FCs. Some
of our training and support initiative are as:
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.
Basic Training and Induction: Independence of work experience, this training will give
perfect knowledge about the insurance industry along with comprehensive knowledge
about the insurance along with comprehensive knowledge abut HDFC SLIC Product.
Disha training: This is a professional sales skill program eased by us to one selling
skills. Those program enable to understand customer need and provide need based
insurance solution.. A huge step from an amateur to a true finance professional.
Advance Training: Once Fc have settled down as a FC professional we will

continuously upgrade capability and knowledge through sophisticated training program,
fit for this dynamic world of financial products and markets.
COMPANY PROFILE
HDFC Standard Life Insurance Company Ltd.
HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since
emerged as the largest residential mortgage finance institution in the country The
corporation has had a series of share issues raising its capital to Rs. 119 crores. The gross
premium income for the year ending March 31, 2007 stood at Rs. 2, 856 crores and new
business premium income at Rs. 1,624 crores. The company has covered over 8,77,000
lives year ending March 31, 2007.
HDFC operates through almost 450 locations throughout the country with its corporate
head quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE,
with service associates in Kuwait, Oman and Qatar.
HDFC is the largest housing Company in India for the last 27 years.
About HDFC, Standard Life & Joint Venture
STANDARD LIFE
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 19th 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.
HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000.
HDFC is the majority stakeholder in the insurance JV with 81.4 %stale and Standard :of
as a staple pf 18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture.
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
At HDFC Standard Life, we offer a bouquet of insurance solutions to meet every

need. We cater to both, individuals as well as to companies looking to provide
benefits to their employees. This section gives you details of all our products.
We have incorporated various downloadable forms and product details so that
you can make an informed choice about buying a policy.
For individuals, we have a range of protection, investment, pension and savings

plans that assist and nurture dreams apart from providing protection. You can
choose from a range of products to suit your life-stage and needs.
For organisations we have a host of customised solutions that range from Group
Term Insurance, Gratuity, Leave Encashment and Superannuation Products.
These affordable plans apart from providing long term value to the employees
help in enhancing goodwill of the company.
HDFC Standard Life – Achievements
 Inaugurated on 14th Aug 2000

 First Private Life Insurance Co. to get license from IRDA
 Customer Base of more than 10,00,000 customers
 “Best New Insurer” Award from Outlook Money - 2003
 “Most Respected Private Insurance Company” Award from
Business Word – 2004
 “Intelligent Enterprise” Award from Technology Senate

 First Private Life Insurance Co. to declare bonuses
 Bonus Declaration for 6 consecutive years from inception
 First Private Life Insurance Co. to introduce certification to sell Unit Linked
Policies
 First to implement Need Based Selling in insurance
 First Life Insurance Co. to introduce Fund with 100 % exposure to Equities
 First Life Insurance Co. to offer 24 free switches to their Unit Linked
Policyholders
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,
“The most obvious choice for all”
Values of HDFCSL
- Integrity - Innovation
- Customer Centric - People Care
- Team Work - Joy & Simplicity
SWOT
STRENGTHS
1. HDFC Standard life insurance offers a range of individual and group

insurance solutions.
2. HDFC Standard Life has the financial expertise required to manage your
long-term investments safely and efficiently.
3. The company has covered over 8,77,000 lives year ending March 31,
2007
4. Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year for
High service standards
5. Life insurance industry is a rapid growing and a nobler service industry.
WEAKNESSES
1. LIC is prevalent and sustains even today a major source of population.
2. Low number of offices and network and number of life insurance agents.
3. Lack of knowledge and expertise.

OPPORTUNTIIES
1. Life insurance has captured its mere15 – 20% growth therefore a wide
open untapped market is open to the company to develop, grow and measure its
success.
2. Still the number of companies are few and company has every
capabilities to grow and forward its performance areas to the widest
THREATS
1. People are hesitant to invest and put their hard earned money to the
private life insurance company with the fear of getting lost.
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.
3. Alternative financial services such as mutual fund, banking services,

share and securities also pose problems and threats to the working of the life
insurance sector.
4. Illiteracy and unemployment also pose threat.
5. Rising real estate industry also pose threat as people are investing a bulk
of their money over to that industry.
OBJECTIVES OF THE STUDY
Recruitment helps a company to achieve its objective from time to time by creating a
positive attitude among workers. Reducing wastage and making maximum use of
resources etc.
Allocating the jobs to the right person :-
If proper recruitment and selection methods are followed, the company will be able to
select the right people for the right job. When this happens the number of people leaving
the job will reduce as the will be satisfied with their job leading to decrease in labour
turnover
To know the benefits of Recruitment to the employees with respect to welfare activities
LIMITATIONS OF THE STUDY
Some of the limitations of the study include:
• 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.
• We restricted our research to hyderabad city only. We had taken 40 surveys of

employees of company .
FINDINGS AND SUGGESTIONS
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
Following are suggestions made for the benefits and augmentation of
the sound working of the company – HDFC Standard life insurance:
1. Need to train and develop life insurance agents with more comprehensive
knowledge and skills to counter every queries of the customer.
2. It is suggested that company should not left any stone unturned towards
sound advertisement and promotional measures on every section whether it is
printed, media or or air via radio.
3. It is also suggested that skilled management graduates need to be places

on sales and marketing of financial servies who can render their best ideas for the
accomplishment of the company goals and objectives to the best extent.
4. Also, care need to be taken that every customer’s grievance should be met
with delight whether before purchase or after sales.
5. Customers should be made aware of the brand name of Insurance

company through advertisement.
6. The fear in the customer mind should be removed by company.
RESEARCH METHODOLOGY
Research: - is a process of collecting, analyzing, interpreting and summarizing

in a significant manner for the purpose of framing out necessary conclusion and
findings of data perceived and formulated for deriving out the meaningful
information. To carry our research necessary telephonic calls needed to be done,
suitable appointments were to be fixed and therefore market survey is to be
followed.
Objective of training: - To understand life insurance and recruitment of

capable life insurance advisors for growth prospects.
Process: Methodology or process involving in the Research followed during the

course of summer training is as follows: -
a) Collection of data: - This is an important aspect in formulating the objective
of research process where the data is collected via two process: - i) Primary Sources
and ii) Secondary sources
i) Primary sources: - Where the data is collected primarily by interviewing

and personal observation and is original in nature and accurate to the considerable
extent.
ii) Secondary sources: -Where the data is obtained from some published
and printed sources such as newspaper, magazines, websites and so on.
b) Analyzing of collected data: - The data collected through market survey and
published sources is then processed to obtained necessary inferences and findings for
the purpose of achieving the objective as well as to derive necessary conclusion. A
considerable skill and knowledge is involved in analyzing the data for the purpose of
interpreting thereof.
c) Interpreting of data: - it is the significant step where the data collected and
analyzed is interpreted in the forms of graphs and figures is depicted in the report
called Project report.
d) Summarizing of data: - Thereby necessary summary is prepared which is

essential in the project report of the summer training being done under an
organization.
Helpful Arms of Research Methodology: -

Questionnaire is a set or group of questions being framed for the purpose of
obtaining market perspective about a particular aspect or topic.
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:
a) Open ended Questionnaire: - where the people (also called respondents) are
required freedom to present their views and suggestions for the benefits and success
of the organization.
b) Close ended questionnaire: - where the respondents is limited to the choice

of answer being delivered by the interviewer itself so that quick and fast means of
responses be derived out without wasting much time. Here close ended questionnaire
being followed by me during the course of the summer training market survey.
Sampling: - Sampling is a process of obtaining a number of individuals taken a

base for the entire population since entire population can not be asked about the
necessary objective upon which a questionnaire is put forth needed for the
responses to be derived for the purpose of generation of facts and customer view
point regarding their perception of particular product or services.
There are two type of sampling – i) Random Sampling and ii) Systematic
sampling.
i) Random sampling: - Random sampling is a process of selecting the

sample size randomly and no choice or preference to be made about the selection of
respondents for the market survey and questionnaire to be put forth against him.
Here, Random sampling being adopted by me.
ii) Systematic sampling: - it is a sampling where the limited number of

selected respondents is figured out based on some criteria so that only those
respondents can be asked for the purpose of filing questionnaire. Sample Size: -For
1to6 is 50 then is 150 respondents
DATA ANALYSIS AND INFERENCE
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.
 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.
 Most of the employees are aware of the recruitment policy of their organization
i.e.
There are different ways by which organizations recruit their employees. And an analysis
was made according to this after taking the surveys.
 The x-axis shows different ways, the company use to recruit their employees.
 The y-axis shows numbers (not in percentage) of how employees get recruited in .
 29 respondents said their immediate boss recruits them , 22 respondents said it

was the recruitment agency, 21 respondents said it was a consultancy firm and 12
said it was the panel of directors who recruits them.
 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.
This was split up into three different sectors--- 45%-50% ---- 55%-75% ----- 75%>
 An accuracy of 75% was registered by 43% of the respondents which came in top.
 An accuracy of between 55%-75% was registered by 20% of the respondents.
 An accuracy of between 45%-50% was registered by 37% of the respondents.
 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.
 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.
 The bar graph shows that most of thecompany go for increasing the salary
annually.
 The next popular one refers to the company perks.
 The third one is the frequent job rotations.
 The fouth one is bonuses.
 The fifth one is giving training to employees.
 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.
 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”.
 Next the respondents was asked to rate their organizations retention policy as
compared to the industry.
 40% agreed that it was about 60%
 52% agreed that it was about 50%
 And 8% agreed that it was rated above 70%
 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.
 Next we asked respondents whether their recruitment system was centralized or

was it local.
 55% of the total respondents said the recruitment system is local.
 45% of the total respondents said the recruitment system is centralized.

IS THE WORKING ENVIRONMENTGOOD ?
FEEDBACK BEFORE RECRUITMENT AFTER RECRUITMENT
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.
IS THE JOBS ARE HAVING THE WORK LOAD ?
BEFORE
FEEDBACK AFTER RECRUITMENT
RECRUITMENT
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.
After Recruitment 29 respondents said that workload in the company is heavy.

INFERENCE:
It can be observed that there is no much change workload after Recruitment
THE SATISFACTION REGARDING WELFARE ACTIVITIES IS CONSIDERD ?
FEEDBACK BEFORE AFTER RECRUITMENT

RECRUITMENT
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.
Is there the changes in terms of authority & freedom ?
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:
It can be observed that there is a change in authority & freedom after Recruitment
Is there changes in symbol of status
TABLE SHOWING THE CHANGES IN SYMBOL OF STATUS:
YES 28
NO 22
TOTAL 50
ANALYSIS:
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.
Are extra benefits enjoyed by the employees after recruitment?
table showing extra benefits enjoyed by the employees after recruitment
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.
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.
Do you have the eligibility age?
AGE QUALIFICAITON:
6%
20%
39% 18-25 age group
25 – 35 age group
35 – 45 age group
Above 45 age group
35%
INFERENCE:
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: -
18-25 age group 41
25 – 35 age group 37
35 – 45 age group 21
Above 45 age group 6
What dissatisfied you most in your occupation?

CAUSES OF DISSATISFACTION
10%
23%
Low employment
16%
Low earning / income
Low status
17%
34% Huge capital investment
All of the above
INFERENCE:
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:
Low employment 24 Low earning 36 Huge capital investment 17
Low status 18 All of the above 10

Would you like to know about a career in life insurance advisor ship where you can
fulfill every desire of your life?
ABOUT CAREER IN LIFE INSURANCE
70
59
60
46
RESPONDENTS
50
40
NO. OF
30
20
10
0
Yes RESPONSES No
INFERENCE:
When asked about whether they would like to know about a glorified career in
life insurance agency where they can fulfill any and every desire of their life, 59
respondents agreed while 46 respondents said No and will see later sometime in
future. It has been depicted that life insurance sector should be promoted at the
wide extent as it contribute to the economy as a useful source beneficial for both
nation as well as is citizens.

Would you like to become or opt for life insurance advisor under esteemed and
prospering organization HDFC Standard Life insurance?
ACCEPT LIFE IN S UR AN CE AS A CAR EER ?

50
41
40
RESPONDENTS
30 18
NO. OF
20
10
0
Ye s No
R ES PO N S ES
INFERENCE:
From the 59 respondents who agreed to know about the life insurance as a
career, 18 of them agreed to join HDFC Standard life insurance for agency and
come to the company fore more information whereas 41 still took time to think
and postponed to some future date. People are highly dissatisfied from the
earning, status and living standard they are sustaining at present and would
definitely like to make some additional source of earning and for this agency for
life insurance would prove a boon.
FINDINGS AND SUGGESTIONS
6- Candidates are less aware about recruitment in the private insurance company in
market.
7- HDFC is too selective in making a FC rather than to appoint any one like LIC.
8- Candidates don’t want to join as financial consultant because it’s on commission
basis they want job on salary basis.
9- 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.
10- 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
Following are suggestions made for the benefits and augmentation of
the sound working of the company – HDFC Standard life insurance:
7. Need to train and develop life insurance agents with more comprehensive
knowledge and skills to counter every queries of the customer.
8. It is suggested that company should not left any stone unturned towards
sound advertisement and promotional measures on every section whether it is
printed, media or or air via radio.
9. It is also suggested that skilled management graduates need to be places
on sales and marketing of financial servies who can render their best ideas for the
accomplishment of the company goals and objectives to the best extent.
10. Also, care need to be taken that every customer’s grievance should be met
with delight whether before purchase or after sales.
11. Customers should be made aware of the brand name of Insurance

company through advertisement.
12. The fear in the customer mind should be removed by company.

BIBLIOGRAPHY
REFERENCES:
• HUMAN RESOURCE MANAGEMENT by Cynthia D. Fischer, Lyle F.

Schoenfeldt, James B. Shaw.
• 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

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“AN ANALYSIS OF Recruitment and Retention of EMPLOYEES AT

HDFC STANDARD LIFE INSURANCE COMPANY”

submitted in partial fulfillment of the requirement for the award of

Masters Degree in Business Administration

Academy Of Business Management Tourism and Research College

Bangalore- 560 068

Mr. SIBI ABRAHAM. C

Reg No. - 9207840008

Under the Guidance of

A research cannot be said to be work of an individual. A research is a combination of

MBA 2nd YEAR

I SIBI ABRAHAM.C of ACADEMY OF BUSINESS MANAGEMENT TOURISM

SERIAL NO CHAPTERS PAGE NO

5. Presentation and Analysis of data and

Having identified employees or job categories where turnover would be especially

A comprehensive retention management program must be built on accurate information

India is a repository of talent and the global corporations have immense

Being an Insurance Agent of HDFC-STANDARD LIFE INSURANCE provides a legal

Its recruitment procedure is very easy.

INTRODUCTION TO HUMAN RESOURCE

Human resource management serves these key functions:

2. Training and Development

3. Performance Evaluation and Management

6. Industrial and Employee Relations

7. Record keeping of all personal data.

8. Compensation, pensions, bonuses etc in liaison with Payroll

9. Confidential advice to internal 'customers' in relation to problems at work.

10. Career development

In terms of recruitment and selection it is important to consider carrying out a thorough

Access to a reliable model enables organizations to conduct validation studies to establish

It is an important principle of industrial and organizational psychology (i.e. the

As employee productivity is clearly connected with employee engagement, creating an

In terms of recruitment and selection it is important to consider carrying out a thorough

An important controversy regarding labor mobility illustrates the broader philosophical

In general the abstractions of macro-economics treat it this way - as it characterizes no

Its features include:

While Miller (1987) suggests that HRM relates to:

The goal of human resource management is to help an organization to meet strategic

Strategic business partner

Critical Academic Theory

Postmodernism plays an important part in Academic Theory and particularly in Critical

Critical Theory, in particular postmodernism (poststructualism), recognises that because

Life insurance industry

Access to a reliable model enables organizations to conduct validation studies to establish

It is an important principle of industrial and organizational psychology (i.e. the

As employee productivity is clearly connected with employee engagement, creating an

Employee perceptions of job importance. According to a 2006 study by Gerard

Quality of working relationships with peers, superiors, and subordinates. "...if

Effective Internal Employee Communications - which convey a clear description

According to Edwin B. Flippo, “Recruitment is the process of searching the candidates

 It is the process to discover sources of manpower to meet the requirement of staffing

Recruitment is a continuous process whereby the firm attempts to develop a pool of

RECRUITMENT NEEDS ARE OF THREE TYPES

Purpose & Importance Of Recruitment

 Increase the pool of job candidates at minimum cost.

Employee Retention involves taking measures to encourage employees to remain in the

In today’s environment it becomes very important for organizations to retain their

1. The Cost of Turnover: The cost of employee turnover adds hundreds of

2. Loss of Company Knowledge: When an employee leaves, he takes with him

3. Interruption of Customer Service: Customers and clients do business with a

4. Turnover leads to more turnovers: When an employee terminates, the effect is

5. Goodwill of the company: The goodwill of a company is maintained when the

What Makes Employee Leave?