Professional Documents
Culture Documents
INSURANCE Co.Ltd.”
By
(Bency Babu)
2009-10
GUIDE CERTIFICATE
Certified that this dissertation is based on the original project study conducted by
(Bency Babu) under my guidance. She has attended all the required guidance
sessions held. This project report has not formed a basis for the award of any other
Apart from the efforts of me, the success of any project depends largely on the
gratitude to the people who have been instrumental in the successful completion of
this project.
for providing me the opportunity to do the project and our college Dean
I would also like to thank Professor-Smitha Sharma who has been of a great
encroach upon his precious time and showed his generosity by helping me carrying
I also convey my thanks to all those who have knowingly or unknowingly helped
Bibliography
Annexure
LIST OF TABLES AND GRAPHS:
1.
TABLES:
CHAPTER 1:
1.1 INTRODUCTION
Human resource management (HRM) is the strategic and coherent approach to
the of management 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.
Intelligent employers always realize the importance of retaining the best talent.
Retaining talent has never been so important in the Indian scenario; however,
things have changed in recent years. In prominent Indian metros at least, there is no
dearth of opportunities for the best in the business, or even for the second or the
third best. Retention of key employees and treating attrition troubles has never been
so important to companies.
Whereas the same is often indirectly linked to, satisfied colleagues and reporting
staff, effective succession planning and deeply embedded organizational
knowledge and learning. Employee retention matters, as, organizational issues such
as training time and investment, costly candidate search etc., are involved. Hence,
failing to retain a key employee is a costly proposition for any organisation.
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:
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.
1. 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.
CHAPTER 2
DESIGN OF THE STUDY
2.1 INTRODUCTION:
• Compensation:
Compensation constitutes the largest part of the employee retention process. The
employees always have high expectations regarding their compensation packages.
Compensation packages vary from industry to industry. So an attractive
compensation package plays a critical role in retaining the employees.
Compensation includes salary and wages, bonuses, benefits, prerequisites, stock
options, bonuses, vacations, etc. While setting up the packages, the following
components should be kept in mind:
Basic wage
Dearness allowance
Salary and wages represent the level of skill and experience an individual has. Time
to time increase in the salaries and wages of employees should be done. And this
increase should be based on the employee’s performance and his contribution to the
organization.
Bonus: Bonuses are usually given to the employees at the end of the year or on a
festival.
Long-term incentives: Long term incentives include stock options or stock grants.
These incentives help retain employees in the organization's startup stage.
After retirement: It includes payments that an Employee gets after he retires like
EPF (Employee Provident Fund) etc.
The important factors in employee growth that an employee looks for himself are:
Work profile: The work profile on which the employee is working should be in
sync with his capabilities. The profile should not be too low or too high.
Communications skills
Technical skills
• Support
Lack of support from management can sometimes serve as a reason for employee
retention. Supervisor should support his subordinates in a way so that each one of
them is a success. Management should try to focus on its employees and support
them not only in their difficult times at work but also through the times of personal
crisis.
The feedback from supervisor helps the employee to feel more responsible,
confident and empowered. Top management can also support its employees in their
personal crisis by providing personal loans during emergencies, childcare services,
employee assistance programs, counseling services, et al.
o By providing feedback
o By counseling them
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. Thus it is important to know the reasons to reduce
attrition in the organisation.
2.3 SCOPE OF STUDY:
The project limits to only 1 branch of MetLife in Bangalore and the project was
accomplished with the complete support of all the printed materials required and
i. Compensation
Compensation constitutes the largest part of the employee retention process.
The employees always have high expectations regarding their compensation
packages.
Compensation packages vary from industry to industry. So an attractive
compensation package plays a critical role in retaining the employees.
SAMPLE DESIGN :
A Sample design is a definite plan for obtaining a sample from a given population.
It is the procedure used by the researcher in selecting items for the sample. Thus
Stratified Random Sampling technique is used.
2.7 TECHNIQUES OF DATA COLLECTION:
PRIMARY SOURCE:
• Questionnaire
SECONDARY SOURCE:
• Journals
• Books
2.8 LIMITATIONS:
• One constraint has been regarding the cost, as study involves the collection
of primary and secondary data. Therefore, the cost incurred was much more.
• Another constraint has been geographical area, which is confined only to
MetLife (M.G Road Branch.)
• Normally employees hesitate to disclose the information.
2.9 OVERVIEW OF THE CHAPTER SCHEME:
CHAPTER 1
CHAPTER 2
CHAPTER 3
CHAPTER 4
CHAPTER 5
The company has 600 employees, 3,000 commission agents and 300- 400 other
distributors. MetLife India has a capital base of US$ 35 million. Working towards a
goal of 5 million customers by 2010, MetLife India currently has more than
100,000 customers.
MetLife is a joint venture between its parent company, Metropolitan Life Insurance
Company (MetLife), Jammu and Kashmir Bank, M.Pallonji and Co. and other
private investors. MetLife, having 130-year-old reputation, is the largest Life
Insurance Company in the U.S. MetLife operates in 15 countries throughout
Americas, Europe and Asia and it serves approximately 9 million individual
households in the U.S as well as 87 of the Fortune 100 companies.
MetLife benefits from its parent company’s global presence in the field of
insurance, track record of establishing successful insurance operations in
emerging markets and the unique strengths of its other Indian promoters. MetLife,
headquartered in Bangalore, delivers value and world class service to customers
through its financial advisors and corporate sales representatives.
VISION:
“To be formidable player in the industry in the Indian Life Insurance Industry”
• INNOVATION
• PARTNERSHIP
MetLife Worldwide:
MetLife’s sales function is divided into two functional structures within the
organization. These two Structures are: Banc assurance, Agency
BANCASSURANCE OR BANCA: -
Banks:
• Axis Bank
• Dhanalakshmi Bank
• Karnataka Bank
Corporate Agents:
• Geojit Securities
• Way2wealth Consultancy
• Agency Manager(AM)
Advisors:- Advisors are the people who are the regular employees of the
METLIFE, Commissioned agents are also a part of agency but they are not the
regular employees of the company and are being paid for insuring peoples with
MetLife’s traditional and nontraditional insurance policy.
3.3 ORGANIZTIONAL STRUCTURE:
MANAGING
DIRECTOR
HUMAN
ACTURIAL COMPLIANCE AGENCY RESOURCES
MARKETING
REWARDS
REGIONAL BRAND
STATUTORY INERNAL AND
AGENCY MGMT
VALUATION CONTROL SALES
PERFORMAN
CE
REGIONAL CHANNEL
INDIVIDUAL BOARD
CORE HR
PRICING AFFAIRS
AGENCY MKTG
Fig: 1
BANGALORE AGENCY:
MetLife Bangalore branch is divided into three agency headed by one agency
manager with senior sales managers and sales managers in their individual team.
Then the sales manager appoint financial advisors who work as the agents for the
company. The multiple distribution channels will help an insurance company to
offer a range of contact points to the customer, thereby increasing the chances of
success.
GRAPH 1:
INFERENCE:
The graph(1) shows that there are 35 employees who have been working in
MetLife for almost 5 years and only 5 have joined within a time span of 1-2 years.
GRAPH 2:
INFERENCE:
The graph (2) shows that maximum numbers of employees are satisfied with the
job in MetLife and only 5 employees are dissatisfied.
ANALYSIS:
The company takes ample measure to retain their employees in the organization for
the company to grow in all ways.
The major issue faced by all employees in all jobs is the growth career and it is
resolved only through identification of proper adequate training needs and
implementing it.
MetLife always initiates training requirements and supports the employees. The
main aim of MetLife is to equipping the employees to become an all –round sales
professional through world class training and coaching. This training support is
done through:
• Skills training
• Professional courses
The R&R includes Monetary and the Non Monetary benefits such as
Launch of long term retention programmes for both managers and the employees is
the initiative taken in this current year by the Director Mr. Samal Bansal.
The goal sheets have been simplified in order to provide the employees with an
opportunity to aspire for better and higher achievements. The agency structure also
has been simplified to enable faster decision making and career progression.
MetLife conducts monthly all round meetings with all its employees and managers
for discussing the current issues faced by them in the organization for
implementing the transparencies in the working of the organization.
Job rotation is on employee need basis and the need for the organization for both in
the benefit of the employee as well as the managers.
The hirechial structure is becoming quite narrow and the manager needs to handle
only 4-5 employees in a row, which speeds up the decision-making process and
makes the employees happy, as they need not report to many managers at a time.
The work is also inclusive of incentive-based structure as and when clients are
increased, the monetary benefits are raised to the next level.
Objective 2: To analyze employee perception on retention strategies
GRAPH (3):
INFERENCE:
As shown in the graph (3) the employees feel that the managers are making ample
measures to safeguard the interest of the employees in the organization and it
makes the employees happy and satisfied to work in MetLife.
TABLE 4: Is MetLife flexible when it comes to modifying its strategies?
RESPONSE NUMBER OF
RESPONDENTS
FLEXIBLE 40
NOT VERY FLEXIBLE 5
RIGID 5
GRAPH (4):
INFERENCE:
As shown in the graph (4) 40 employees feel that the strategies implemented are
quite flexible in nature and can be modified as per the results achieved by the
organization and only five employees feel it is rigid.
TABLE 5: Do you have the authority to take part in the formulation of retention
strategies?
GRAPH 5:
INFERENCE:
As shown in the graph (5) majority of the employees have the authority to have a
say in the affairs of the company rewards and recognition policy.
ANALYSIS:
MetLife is an organization that endeavors in equal participation of employees as
well as the employers in the functioning of the company for its future existence and
for the goodwill of the company.
This also helps the employees in building good rapport between the management
and the staff in order to create a congenial atmosphere to work in.
A good relation with the manager and the peers is one of the factor which tends to
make the employees stick to the organization for a longer period of time and thus
resulting in reduction of attrition rates.
Objective3: To study factors which help in employee retention
TABLE 6: Rate the factors in a scale of (1-4) for you to retain in MetLife
(lowest to highest)
OPTIONS NUMBER OF
RESPONDENTS
FLEXIBILITY 5
PAY PACKAGE 25
GROWTH OPPURTUNITY 15
RELATIONSHIP WITH PEER 5
AND MANAGER
GRAPH (6):
INFERENCE:
As shown in the graph (6) pay package and growth opportunities are the most
important factors that motivate the employees to stay in the organization
ANALYSIS:
The most important factor pertaining to employees is the pay package and the
growth career in their lives. These two factors gives them satisfaction and personal
growth and development to climb the ladder in the corporate world.
The flexibility is the secondary factor that helps in maintains a balance between the
professional and the personal life of the employees. It can be possible if the work is
done from home or there is shift timings whichever is comfortable to the employees
and the work is not hampered in any of the ways.
The relationship with the manager and the peers is also a very crucial factor as the
behavior and the integrity of the employee is known and analyzed in this factor.
This helps the work to be done in a cordial and friendly manner that results in
proper understanding and avoids conflicts and chaos in an organization.
GRAPH 7:
INFERENCE:
As shown in the graph (7) majority of the employees are satisfied with the current
strategies used in the organization and that is the reason the attrition rate is too low.
Only 10 employees feel that there needs to be changed with respect to flexibility in
timing i.e. work from home can be introduced if required.
TABLE 8: Do you feel there needs to be a change in the retention Policies
undertaken?
GRAPH 8:
INFERENCE:
As shown in the graph (8) maximum employees do not need any change in the
retention strategies in the organization, as they are able to balance their professional
with their personal life.
ANALYSIS:
The employees in MetLife feel that the strategies used are quite acceptable to them
with only the rigidness of timings and the implementation of shift timings would be
an alterations in the policies.
• Fun activities, games to be organized so that employees feel the ease in the
work pressure and tend to come to work happily and thus feel contended and
satisfied.
• Personal counseling to be provided to all the employees so that they feel de-
stressed and relaxed to work
CHAPTER 5
AND SUGGESTIONS
5.1SUMMARY OF FINDINGS:
The findings include the following:
• High salaries and incentives is the primary tool for employee retention. Most
of the companies attract the employees by paying them high salaries and
other incentives time to time. Monetary packages are able to attract and
retain talent, however, in long run it becomes limiting for the organization to
pay huge cash.
• The best and foremost HR practice to retain employees is proper and tangible
recognition and appreciation to employees for their individual performance. The
tools like employer of the year/month, best performer/trainee of the project etc are
those appreciations that not only retain employees but also encourage them for
better performance.
• For employee satisfaction, the most important aspect to take care by the
organization is that the job profiles offered should match with individual
capabilities and aspirations. This makes the employee feel satisfied and glad in his
job.
• Better work culture is also very important where the relationship between
employee and employer is such that individual problems and conflicts are properly
addressed with time.
CONCLUSION:
As employees are the bases for company so retention of employees is a major focus
for HR department. The management should identify the important factors that
affect retention and should take necessary measures to improve these. Also, the
management should take appropriate measure to identify the reasons of employee
voluntarily leave.
It is only the employees that implement and give tangibility to the corporate
mission. In other words if it is the highest rung in the corporate hierarchy that has
ideas, it is the employees’ rung that has the chisel to bring the vision to life.
In the best of worlds, employees would love their jobs. Like their co-workers, work
hard for their employers, get paid well for their work, have ample chances of
advancement and flexible schedules so they could attend to personal or family
needs when necessary. And never leave. But then there’s the real world. And in the
real world, employees, do, leave, either because they want more money, hate the
working conditions, hate their co-workers, want a change, or because their spouse
gets a dream job in another state.
Unlike inanimate products and systems that subject themselves to fine tuning
without any reaction, employees would not subject themselves to any measure
taken without reaction and analysis. Hence managing human resources, particularly
retaining them, is an art that calls for special skills and strategies.
Employee survey and exit interviews can be used for assessing the reasons of
employee voluntarily leave. HR interventions such as improving selection process,
effective orientation and training, better employee relation, better career
development programs and planning etc should be used to improve employee
retention.
SUGGESTIONS:
BIBLIOGRAPHY:
(A) BOOKS:
(B) WEBSITES
• www.google.com
• www.yahoo.com
• www.scribd.com
Annexure:
Questionnaire:
Name :
Designation :
a) 3-4 years
b) 2-3 years
c) 1-2 years
d) < 1 year
a) Yes
b) No
a) Yes
b) No
a) Flexible
c) Rigid
Q.5) Do you have the authority to take part in the formulation of retention strategies?
a) Yes
b) No
Q.6) Rate the factors in a scale of (1-4) for you to retain in MetLife(lowest to highest)
b) Pay package
c) Growth opportunities
Q.7) Do you think the current strategies used with respect to Retention are motivating
the employees to stay in the organization?
a) Yes
b) No
Q.8) Do you feel there needs to be a change in the retention Policies undertaken?
a) Yes
b) No