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INTRODUCTION:

Recruitment and Selection

Recruitment: “It is the process of finding and attracting capable applications for

employment.” Recruitment is a process to discover the sources of manpower to

meet requirement of the staffing schedule and to employ effective measures for

attracting that manpower in adequate numbers to facilitate effective selection of an

efficient working force.

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.

Recruitment represents the first contact that a company makes with potential

employees. It is the next step in the procurement function, the first being the

manpower planning.

Sources of recruitment:

Internal

External

Internal recruitment: It seeks applicants for positions from those who are

currently employed.

Present employees

Direct referrals

Former employees

New joinee referrals

External recruitment: These sources lie outside the organization

Advertisements

Campus recruitments

Walk-ins

Consultants

Job portals

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Internal recruitment:

Recruiting from among the existing workforce refers as internal recruitment and it

offers many advantages. Seeing your employees at work on a day-to-day basis will

enable you to evaluate their particular strengths and weakness accurately and choose

the most suitable person for the position. When the company recruits from within the

organization the employees will feel important and highly valued since it appears that

the organization immediately turns to them whenever a vacancy occurs. Usually it

depends on the post as well to decide whether there is an availability of internal

candidate or an external one.

Advantages

It is less costly

Candidates are already oriented towards the organization.

Organization has better knowledge about the candidates

Enhancement of employee’s morale and motivate them to work more

Good performance is then rewarded

The employee is already familiar with the work culture and the organization’s

environment.

Disadvantages:

It perpetuates the old concept of doing things.

Candidate’s current work may be affected.

Politics play a greater role.

Moral problem, for those who are not been motivated.

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External recruitment:

External recruiting is nothing but recruiting the people in your organization from

outside the company. It will help the company to make best use of other sources that

are laying outside the organization like for example campus recruits is an effective

and efficient way of recruiting when a company wants new minds that are more

creative and go-getters for any task. If a company wants to concentrate only on its

core activities and wants to relieve the burden of the task of recruitment then the more

feasible option would be third party recruiting or recruitment process outsourcing

RPO. The experienced persons but unemployed can be recruited into the company

which may reduce the training cost if they are from same industry. When a company

is involved in large expansions and is more oriented towards achieving high growth

and high market share, with more focus on quality of the product and high customer

satisfaction then it is inevitable for any organization to go for external recruiting.

Advantages:

Benefits of new skills new talents and new experience to the organization

Compliance with reservation policy becomes easy

Scope of jealousy and heartburns avoided.

No politics and biasness involved.

Disadvantages:

It is a very costly affair

Adjustment of new employees to the organization culture takes longer time.

Better moral and motivation associated with internal recruiting is denied to the

organization.

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Selection

Definition: “It is the process of differentiating between applicants in order to identify

those with a greater likelihood of success in a job”.

Selection is the process of picking individuals with requisite qualification and

competence to fill jobs in the organization. It is a long process commencing from the

preliminary interview of the applicants and ending with the contract of employment.

The objective of the process is to determine whether an applicant meets the

qualification for a specific job and to choose the applicant who is most likely to

perform well in that job.

Suitability for a job is typically assessed by looking for skills e.g. communication,

typing, and computer skills. Qualifications may be shown through résumés, job

applications, interviews, educational or professional experience, the testimony of

references, or in-house testing, such as for software knowledge, typing skills,

numeracy, and literacy, through psychological tests or employment testing.

In some countries, employers are legally mandated to provide equal opportunity in

hiring. Business management software is used by many recruitment agencies to

automate the testing process. Many recruiters and agencies are using an Applicant

tracking system to perform many of the filtering tasks, along with software tools for

psychometric testing.

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Objectives of the study

To understand the recruitment procedure with reference to insurance sector.

To find out whether the alternative sources are been able to reduce

dependency on consultancy on the company.

To find out whether the cost has decreased in the last four years by increasing

the dependency.

To compare the recruitment procedure of other companies to improvise on the

present recruitment procedure.

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Research methodology

Research methodology is a way to systematically solve the research problem .it may

be understood as a science of studying how research is done scientifically. The study

of research methodology gives us the necessary training in gathering materials,

arranging them, participating in filed when required and training in techniques for the

collection of data appropriate for a particular problem.

Thus in research we talk not only of the methods used but also the logic behind the

method we use in the context of our research, so the result can be evaluated by the

researcher or others concerned. Research Methodology is the most practical way of

obtaining and analyzing data and it plays an important role in project.

Research methodology followed by TATA-AIG

Methodology adopted:

Questionnaire

Field study

Questionnaire

A structured questionnaire was used to study the recruitment procedure of three

financial companies which consist of understanding of the cost involved in the whole

procedure and various methods by which the sourcing of candidates are done.

Field study

In the field study the actual process of sourcing of candidates and recruitment of the

three companies were examined and witnessed and a comparison was done with the

help of this a comparative study was done.

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Hypothesis

Generally there are two types of hypothesis null and alternate. Null hypothesis

assumes that the difference. If any in the observed data is attributed to random error.

Null hypothesis is denoted as h0 hypothesis should be developed before sample is

drawn. Hypothesis should be specific, it should be fit for testing.

Here in this project the hypothesis is:

“Whether the alternate sources of recruitment like new joinee referrals, placemint,

direct walk-in or job portals reduce the dependency on consultancy.”

Sources of data

Primary data

Secondary data

Primary data:

This data is been collected by the person who is doing the project it is very

accurate as compared to secondary data but it has its demerits like it is time

consuming process and the same time it is a costly affair. Here in this project

the secondary data was collected by using a questionnaire and by visiting the

three companies.

Secondary data:

Information which is been collected by other individuals and when we use it for our

project work that is called as secondary data. Information is collected by various

documents, magazine and also by referring reference books.

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Sample size:

The questionnaire used in report was made considering 3 financial companies into

consideration and then the questionnaire was filled by the HR manager.

Methodology

Interview with hr manager of three companies

Questionnaire

Collection of data

Analysis of data

Interpretation

Conclusion

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Scope and Limitation:

Scope: The recruitment decision is the prime importance in every organization. It is a

vehicle for the best possible person for the post. This can be used by the students and

the organization.

So the scope of this project is to understand the recruitment procedure of an insurance

company and also a comparative analysis between three financial companies to

reduce the cost of the sourcing of candidates.

For the company the scope is that with the help of this project they can implement the

innovative ways of reducing the turnaround time and the cost of the recruitment

procedure.

Limitation: During the tenure of the project at TATA-AIG there were certain

constraints because of which certain points are not described and certain points are

not done in detail.

Time was the most important factor, as time was limited and in which the whole

project had to be completed within the given time.

There was only agency vertical I could do the project because of the vastness of the

company function and the time constraint because of that it was difficult to come to a

conclusion of the project that whether the turnaround time and the cost of the

procedure has reduced.

Because there was more emphasis was on the reducing the dependency on

consultancy through alternate sources the other procedures of the company was not

been studied deeply.

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Indian Insurance Industry

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972,

Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related

Acts. With such a large population and the untapped market area of this population

Insurance happens to be a very big opportunity in India. Today it stands as a business

growing at the rate of 15-20 per cent annually. Together with banking services, it adds

about 7 per cent to the country’s GDP .In spite of all this growth the statistics of the

penetration of the insurance in the country is very poor. Nearly 80% of Indian

populations are without Life insurance cover and the Health insurance. This is an

indicator that growth potential for the insurance sector is immense in India. It was due

to this immense growth that the regulations were introduced in the insurance sector

and in continuation “Malhotra Committee” was constituted by the government in

1993 to examine the various aspects of the industry. The key element of the reform

process was Participation of overseas insurance companies with 26% capital. Creating

a more efficient and competitive financial system suitable for the requirements of the

economy was the main idea behind this reform. Since then the insurance industry has

gone through many sea changes .The competition LIC started facing from these

companies were threatening to the existence of LIC .since the liberalization of the

industry the insurance industry has never looked back and today stand as the one of

the most competitive and exploring industry in India. The entry of the private players

and the increased use of the new distribution are in the limelight today. The use of

new distribution techniques and the IT tools has increased the scope of the industry in

the longer run.

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Brief History of Insurance in India

The history of life insurance in India dates back to 1818 when it was conceived as a

means to provide for English Widows. Interestingly in those days a higher premium

was charged for Indian lives than the non-Indian lives as Indian lives were considered

more risky to cover.

Insurance regulation formally began in India with the passing of the Life Insurance

Companies Act of 1912 and the provident fund Act of 1912. Several frauds during

20's and 30's sullied insurance business in India. By 1938 there were 176 insurance

companies. The first comprehensive legislation was introduced with the Insurance Act

of 1938 that provided strict State Control over insurance business. The insurance

business grew at a faster pace after independence. Indian companies strengthened

their hold on this business but despite the growth that was witnessed, insurance

remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and

provident societies under one nationalized monopoly corporation and LIC was born.

Nationalization was justified on the grounds that it would create much needed funds

for rapid industrialization. This was in conformity with the Government's chosen path

of State lead planning and development.

Insurance Sector Reforms

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor

R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend

its future direction.

The committee was set up with the objective of complementing the reforms initiated

in the financial sector. The reforms were aimed at "creating a more efficient and

competitive financial system suitable for the requirements of the economy keeping in

mind the structural changes currently underway and recognizing that insurance is an

important part of the overall financial system where it was necessary to address the

need for similar reforms"

Insurance Business

Life Insurance Non- Life Insurance

Fire Marine Miscellaneous

Covers Fire

Related Risks

Covers transport

related risks and ships

Covers liability, fidelity, motor, crop, personal accident, etc.

Covers death and disability

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While the company submitted its report in 1994, it took another six years before the

enabling legislation was passed in the year 2000, legislation amending the Insurance

Act of 1938 and legislating the Insurance Regulatory and Development Authority Act

of 2000. The same year that the newly appointed insurance regulator - Insurance

Regulatory and Development Authority IRDA -- started issuing licenses to private life

insurers.

Classification of Insurance business- India

In India, insurance business is classified primarily as life and non-life or general. Life

insurance includes all risks related to the lives of human beings and general insurance

covers the rest. General insurance has three classifications viz., Fire (dealing with all

fire related risks), Marine (dealing with all transport related risks and ships) and

Miscellaneous (dealing with all others like liability, fidelity, motor, crop, personal

accident, etc). Personal accident and sickness insurance, which are related to human

beings, is classified as 'non-life' in India, but is classified as `life', in many other

countries. What is 'Non-life' in India is termed `Property and Casualty' in some other

countries.

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Life Insurance

Human Life is an income generating asset which can be lost due to premature death or

become non-functional due to an accident or sickness. Life insurance does not

PROTECT LIFE – it tries to minimize the impact of an untimely death on those

dependent on that income. Life Insurance claims can be made if:

i. Occurrence has to be random

ii. Occurrence has to be Accidental

iii. Not the Deliberate creation of the Insured Person

Innovations in Life Insurance Industry

Economic growth in the emerging markets has time and again outpaced the developed

and industrialized countries. Alongside the rising importance of emerging economies,

their life insurance sectors are also drawing more attention.

It’s been four years since the life insurance sector was opened up for private players

in India. The reasons that prompted the government to bring in reform in this sector

are well known. While the public sector life insurance companies made enormous

contribution in the spread of awareness about insurance, and expanded the market, it

was recognized that their reach was still limited, the range of products offered

restricted and the service to the consumer inadequate. It was also felt that the rapid

economic growth witnessed in the 90s couldn’t be sustained without a thriving

insurance sector.

Today, the private sector accounts for nearly 20% of the market. The market share of

the private players has to be seen in the context of this enlarged market. There has

been a flurry of private players providing a wide range of innovative products,

services and customized solutions. Emerging markets—such as China, India, Mexico

and Russia— are home to some 86% of the world’s population. Collectively, they

account for 23% of world economic output. Yet, insurance business is

underdeveloped in these markets.

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Present Scenario

The Government of India liberalized the insurance sector in March 2000 with the

passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting

all entry restrictions for private players and allowing foreign players to enter the

market with some limits on direct foreign ownership. Under the current guidelines,

there is a 26 percent equity capital for foreign partners in an insurance company.

There is a proposal to increase this limit to 49 percent. Premium rates of most general

insurance policies come under the preview of the government appointed Tariff

Advisory Committee.

The insurance sector in India has come a full circle from being an open competitive

market to nationalization and back to a liberalized market again. Tracing the

developments in the Indian insurance sector reveals the 360-degree turn witnessed

over a period of almost two centuries.

All life insurance companies in India have to comply with the strict regulations laid

out by Insurance Regulatory and Development Authority of India (IRDA). Therefore

there is no risk in going in for private insurance players.

With a huge population base and large untapped market, insurance industry is a big

opportunity area in India for national as well as foreign investors. India is the fifth

largest life insurance market in the emerging insurance economies globally and is

growing at 32-34% annually. This impressive growth in the market has been driven

by liberalization, with new player’s significantly enhancing product awareness and

promoting consumer education and information. The strong growth potential of the

country has also made international players to look at the Indian insurance market.

Moreover, saturation of insurance markets in many developed economies has made

the Indian market more attractive for international insurance players, according to

Booming Insurance Market in India (2008-2011)”.

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Indian Scenario:

Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and 3rd

largest in terms of purchasing power parity. With factors like a stable 8-9 per cent

annual growth, rising foreign exchange reserves, a booming capital market and a

rapidly expanding FDI inflows, it is on the hinge of an ever increasing growth curve.

Indians have a tendency to invest in properties and gold followed by bank deposits.

They selectively invest in shares also but the percentage is very small--4-5%. This in

itself is an indicator that growth potential for the insurance sector is immense. It’s a

business growing at the rate of 15-20% per annum and presently is of the order of

$47.9 billion. India is a vast market for life insurance that is directly proportional to

the growth in premiums and an increase in life density. With the entry of private

sector players backed by foreign expertise, Indian insurance market has become more

vibrant. Competition in this market is increasing with company’s continuous effort to

lure the customers with new product offerings. However, the market share of private

insurance companies remains very low -- in the 10-15% range. Even to this day, Life

Insurance Corporation (LIC) of India dominates Indian insurance sector. The heavy

hand of government still dominates the market, with price controls, limits on

ownership, and other restraints. The upward growth trend started from 2000 was

mainly due to economic policies adopted by the Indian government. This year saw

initiation of an era of economic liberalization and globalization in the Indian economy

followed by several reforms and long-term policies that created a perfect roadmap for

the success of Indian financial markets. On the basis of several 26 macroeconomic

factors like increase in literacy rate & per capita income, decrease in death rate and

unemployment, better tax rebates, growing GDP etc., we estimate that the Indian

insurance sector will grow by $28.65 billion and reach $76.54 billion by 2011 with a

CAGR of 12.44% and a growth of 59.82%.

The Indian life insurance market generated total revenues of $41.36 billion in 2007,

thus representing a compound annual growth rate (CAGR) of 11.84% for the period

spanning 2000-2007. Life insurance market had a growth of $22.46 billion within a

period of 7 years with a growth rate of 118.24%. Estimated life premiums rose from

INR1, 470,800 million ($36.77 billion) in 2006 to INR1, 301,540 million

($32.54billion) in 2005. We envisage that life premiums in 2011 will be $65.96

billion, a growth larger than they were in 2007. The performance of the market is

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forecast to accelerate, with an anticipated CAGR of 9.78% for the four-year period

2007-2011 expected to drive the market to a value of $65.96 billion by the end of

2011. There would be a growth of $24.6 billion i.e. 59.48% in the next 4 years. Non-

life premiums in India were $6.53 billion in 2007. Gross written premium (GWP) in

the Indian non-life insurance market reached a value of $5.75 billion in 2006, this

representing an annual growth of 13.55% for the period spanning 2006-2007.

Estimated non-life premiums rose from INR230 billion ($5.75 billion) in 2006 to

INR261 billion ($6.53 billion) in 2007. We anticipate that non-life premiums will

grow by a CAGR of 9.40% between 2007-2011. We are looking for non-life

premiums to rise by $405 million over the five years to the end of 2011 with a growth

rate of 62.02%.

The general insurance industry grew by 16% in 2006-07 as private insurers continued

their robust performance, while public sector players like New India Assurance and

Oriental Insurance improved their show. Despite continuous fall in business of

government-owned National Insurance, the 12 non-life insurers collected Rs 20,378

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crore in first year premium in the last fiscal compared to Rs 17,531 crore collected in

2005-06, according to data compiled by regulator IRDA.

New India Assurance collected Rs 4,762 crore in premium and continued to lead the

non-life sector by cornering 23.36% of the market. National Insurance was at the

second spot by collecting Rs 3,524 crore in premium, a decline of 7%, but had a

market pie of 17.29%. Oriental Insurance mopped up Rs 3,518 crore in premium

income after logging 16.6% growth in business to corner a market share of 17.26%.

Another PSU insurer United India grew by a modest 6.8% to collect Rs 3,147 crore in

premium and had 15.44% of the market. The eight private players expanded their

business by 52% to collect Rs 5,427 crore in premium income and increased their

combined market share to 26.6% from 20.2% a year ago. 28 ICICI Lombard led the

private players by logging 80% growth in premium at Rs 1,592 crore, followed by

Bajaj Allianz, which grew by 50% to collect Rs 1,287 crore in premium. ICICI

Lombard had a market share of 7.81% and Bajaj Allianz had 6.31% of the market.

Growth of Life Insurance Industry

Total life insurance premium in India is projected to grow Rs 1,230,000 crore by

2010-11. A booming life insurance market has propelled the Indian life insurance

agents into the ‘top 10 country list’ in terms of membership to the Million Dollar

Round Table (MDRT) — an exclusive club for the highest performing life insurance

agents.

Taking into account the changing socio-economic demographics, rate of GDP growth,

changing consumer behaviour and occurrences of natural calamities at regular

intervals, the Indian life insurance market is expected to reach the value of around Rs

1683 Billion in the year 2009.

India's insurance industry has changed significantly in the past two years, as a range

of global European and US insurance companies have been launched in Mumbai and

Delhi. Previously depressed salary rates, limited employee movement and low

penetration in the insurance sector have been replaced with a boom in demand for

talented insurance specialists.

Convergence, globalization, and consolidation - as well as new technologies and

changing demographics - are impacting the pace and level of change in the insurance

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industry. As a result, insurance companies will be challenged to remain competitive,

and ultimately, to thrive. Having talent that can both adapt to change and meet

customer demands, has become a priority.

Insurance companies continue to face challenges in both recruiting skilled

professionals and fully developing home-grown talent. The present situation in India's

insurance sector is a welcome development as it enhances the strength of employers

as well as the career opportunities of insurance industry professionals. However, there

is still a lack of qualified talent to take many positions as actuaries and insurance

specialists which is currently skewing the demand-supply

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2.1.3 Company Profile

Tata Enterprises with 82 companies, spread over seven sectors and with an annual

turnover exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group

has shown over years that it is a value driven company and has pioneering

contributions in various fields including insurance, aviation, iron and steel. In terms of

capital market performance as many as 40 listed Tata companies account for nearly

5% of the total market capitalization of all listed companies. The Group has had a

long association with India's insurance sector having been the largest insurance

company in India prior to the nationalization of insurance.

The Tata Group

Tata is a rapidly growing business group based in India with significant international

operations. Revenues in 2007-08 are USD 62.5 billion (around Rs. 251,543 crores), of

which 61% was from business outside India. The Group’s Net Profit for 2007-08 is

USD 5.4 billion (around Rs. 21,578 crores). The Group employs around 350,000

people worldwide. The Tata name has been respected in India for 140 years for its

adherence to strong values and business ethics. The business operations of the Tata

Group currently encompass seven business sectors - Communications and

Information Technology, Engineering, Materials, Services, Energy, Consumer

Products and Chemicals. The Group's 28 publicly listed enterprises have a combined

market capitalization of around $60 billion, among the highest among Indian business

houses, and a shareholder base of 2.9 million. The major companies in the Group

include Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata

Chemicals, Tata Tea, Indian Hotels, Tata Teleservices and Tata Communications.

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American International Group, Inc. (AIG)

American International Group, Inc. (AIG), a world leader in insurance and financial

services, is the leading international insurance organization with operations in more

than 130 countries and jurisdictions. AIG companies serve commercial, institutional

and individual customers through the most extensive worldwide property-casualty and

life insurance networks of any insurer. In addition, AIG companies are leading

providers of retirement services, financial services and asset management around the

world. AIG's common stock is listed on the New York Stock Exchange, as well as the

stock exchanges in Ireland and Tokyo.

Tata AIG Life Insurance Company Ltd.

Tata AIG Life Insurance Company Limited (TALIC) is a joint venture company,

formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG

Life combines the Tata Group’s pre-eminent leadership position in India and AIG’s

global presence as one of the world’s leading international insurance and financial

services organization. Tata AIG Life Insurance Co. Ltd. is capitalized at Rs. 185

crores of which 74 per cent has been brought in by Tata Sons and the American

partner brings in the balance 26 per cent.. The alliance between the two stood for trust

and experience in the minds of the Indian consumers. Tata AIG Life Insurance

Company was licensed to operate in India on February 12, 2001 and started

operations on April 1, 2001. The company headquartered in Mumbai, with branch

operations in Delhi, Chennai, Hyderabad, Bangalore Calcutta, Pune and Chandigarh.

Tata AIG Life Insurance Company Ltd. "Tata AIG Life" offers a broad array of life

insurance products to individuals, associations and businesses of all sizes, with a wide

variety of additional coverage to ensure our customers can find an insurance product

to meet their needs.

Tata AIG Insurance provides facilities to both corporate and individuals. Starting its

operations on April 1, 2001, it seeks to serve different categories of people. It

acquired its license for carrying out operations in India on February 12, 2001. Tata

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AIG Insurance Solutions is one of the most prestigious organizations in the business

world. It employs thousands of employees and offers various opportunities to people

to build a prospective career. As a leading name in the financial world, it identifies the

potential and experience of the individual. This insurance company identifies the

clients‟ needs and works accordingly. It stresses on innovative aspect and opening of

new markets. It believes in new economy and latest Internet technology.

Tata AIG Insurance offers a number of products for the General Insurance holders.

General insurance products include:

Individual insurance

Small business insurance

Corporate insurance

Tata AIG Insurance offers flexible life insurance to the individuals, business

organization and other association. For the corporate, there are various insurance

products like group pensions, employee benefits, work place solutions and credit life.

For the individuals, Tata AIG Insurance offers various products for adults, children

and for retirement planning.

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List of Products offered by TATA AIG:

The life insurance plans are generally divided into two types: (a) Traditional plans (b)

Unit linked insurance plans (ULIP). Traditional plans are basically insurance plus

savings whereas ULIPs are insurance plus investment. Further they are classified into

pure protection, savings, investments, pension and living benefits. The classifications

are shown in the table below.

Traditional Plan:

Pure

Protection

Savings Investment Pension Living

Benefits

Raksha 1.Maha Life

Gold

1.Nirvana

Plus

2.Easy retire

3.Riders

1.Health

protector

2.Riders

Unit linked insurance plans (ULIPs):

Pure

protection

Savings Investments Pension

Living

benefits

1.Invest

Assure Gold

2.Invest

Assure II

1. Invest

assure plus

2.Invest

assure flexi

1.Invest

assure future

1.Health

investor

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TATA-AIG insurance company is divided into general and life insurance.

Agency vertical is further divided into four divisions:

Business associate model:-BA sales (Executive/AM/manager) all these positions are

on the payrolls of the company.

Unit manager model: - {UMM−BSM−MANAGER

UM− officerexective

/AM they are under the rolls of the

company

Whereas agents are on the commission basis.

Similarly there are basically three divisions which I used to recruit for sales manager,

BA sales executive.

TATA - AIG

Life Insurance

Agency

Alternate

Channels

SMD

General Insuarance

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Recruitment procedure followed by TATA-AIG LTD.

Hiring process

Scope: To understand the process of hiring through various sources.

Process Steps: 1.Head of Department / Line Manager shares the open positions with

the Hiring Managers along with the job description if present to the hiring team. The

following are the reasons for the open position-

o PIP (performance improvement plans)

o Replacement due to attrition

o New position due to opening of new branch

o Expansion of the present department.

o Absconding.

o Resignation.

2. The line manager gives the open position to the HR department /hiring team who in

turn starts sourcing for positions through different channels.

There are many ways the HR department source CVs from

o Consultants (its most easy and expensive option)

Alternate options are:

o Naukri

o Employee referral ( placemint+)

o New joinee referral

o TALIC website

o Walk-in/direct

3. Once the CVs are procured then there is 1st level screening done by the hiring

team

o Basic profile match.

o Education qualification.

o Work experience.

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o Location.

o CTC (cost to the company)

4. If the above criterion matches the requirement then the candidate is short listed

and there is an HR round conducted followed by functional round of interview

then once the candidate is short listed then the zone HR sends a pre-

employment mail and ask the candidate the necessary documents.

The following are the necessary documents required

o Offer letter/Appointment letter.

o Last two month salary slips.

o Name and contact details of the two referees.

o Pay revision letter or Increment / Bonus letter.

o Incentive proof.

o Pre-Employment Health Declaration form.

5. All the documents are send to the corporate HR who then sends a fitment sheet

to zone who in turn will fill the fitment sheet and give back to the corporate

HR. The corporate will then will release the offer and the candidate is asked to

accept the offer.

6. Once the reference check is positive then appointment letter is generated by

the corporate.

7. The candidate has to acknowledge the offer letter read and then sign it keep

one copy of it with him and send the other copy.

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Employee requisition

The hiring procedure starts when there is a vacant position in the system .So there are

many situations when there is an open position in the system. Mainly the line manager

tells the hiring department that there is the open position and if he JD is not available

then he creates a JD (job description) and sends to the hiring team.

Generally the main source to know about the open position is the intimation from the

line manager and there are secondary sources like PIP (performance improvement

plans) is to find the employees who are not performing and so that they can find what

are the future open positions, generally 45 days are given to the employee to improve

their performance.

Absconding is also one of the reason when the person does not report to the

organization even after he is been informed .Then as warning he is been given three

letters and he is being told to report to origination, if he does not respond to the first

letter then the second letter is sent to him and he is been warned and the third letter is

given when he has to be terminated.

At times there is a business case where he company wants to introduce a branch at

that time there is hiring done on a large scale, hiring of suppose 15 people then it

becomes business case and the line manager intimates the HR department.

a) Consultants: This is the easiest way of getting resumes and the most expensive at

the same time.

Generally consultants are decided by two ways one is the PAN India i.e. for the

metros they have large number of position to be covered and other option is small

areas local consultants.

There are various parameters by which consultants are decided they are:

27

o How big is the consultancy?

o How well known is the consultancy?

o How many team members are there in team?

It depends upon the needs of the company what kind of consultants they want to

choose, if they want to source for metro cities like Mumbai, Pune and Ahmedabad etc

that time they have to go for big consultants (PAN India).

Empanelment: It is a legal process where there is a deal between the company and

the consultants. This is done to find whether the consultants are:

o Genuine.

o If they source a CV what is the amount of invoice make.

o If they source a candidate and the candidate leaves the companies so the

consultants are suppose to take money from them? Tata-aig always works with

the empanelled consultants.

28

Process Steps

1. Head of Department / Line Manager Shares the open positions with the Hiring

Managers by way of SSR / JD / Position details.

2. The open position will either be due to exit of an employee or a new role in the

function.

3. The Hiring Manager lists out the critical factors of the open position like job

responsibilities, years of work experience and educational qualification from the

Job Description / details provided by Head of Department / Line Manager.

4. The Hiring Manager also works out a salary range for the position based on

Function and Band / Grade of the vacancy. He / she will also check salary of some

of the employees who are in the same function, doing similar role.

5. The requirements are passed on to Placement Consultants through email /

telephone / handing over a hard copy during consultant’s visit to the office.

6. The Placement consultants also check the interest level of the candidates before

sending the resumes to the Hiring Manager.

7. Once the Hiring Manager receives the profiles from the Placement consultants,

he / she will do the first level screening.

8. The first level screening involves checking each resume with the required

educational qualification, number of years of work experience, type of experience

and current salary; this is to ascertain if the candidates profile fits with the basic

criteria of the vacancy.

9. The selected resumes are forwarded to Line Manager for second level of

screening.

10. The Line Manager, after necessary interviewing, informs the Hiring Manager of

his shortlist. The profiles short listed by the Line Manager are then called for

interview.

11. The Hiring Manager informs the Placement Consultant of the profiles selected for

interview. He / she also intimate the interview date, time & venue to the

consultant.

29

12. The Hiring Manager will also inform the consultant reasons for not selecting some

/ all profiles sent by them.

13. The candidates come for interview and are met by Line Manager and Hiring

Manager

14. Line Manager & Hiring Manager decide on the final shortlist and select a

candidate they feel is best suited for the role.

15. The Hiring Manager informs the Placement Consultant about the selection.

16. In case the Line Manager and / or Hiring Manager do not like the candidates, the

placement consultant is informed and asked to source more profiles.

17. The Placement consultant stays in touch with the candidate till he / she joins the

company.

18. The Placement consultant also undertakes pre-employment reference check of the

candidate through two referees.

19. Once the candidate comes on board, the Placement Consultant raises an invoice

for placement of the candidate.

Alternate options

a) Placemint +: The success of every Company depends on the quality and

effectiveness of its people. It is a constant endeavour at Tata AIG to bring onboard

talent into various roles in the Company, who are capable of taking the Company to

greater heights.

They recruit though various methods, - consultants, Internet, direct CVs and

importantly through Placemint+. As employees, each of us is best equipped to

understand our Company, its plans and its strengths and opportunities.

Placemint+ is an in-house Employee Referral Program, which provides employees the

forum and indeed the opportunity to refer the company, candidates – usually people

who in their assessment are very good, and who would fit specific roles in the

Company.

The primary objectives of Placemint+ are to increase the band of quality candidates

available for recruitment, to enhance levels of business awareness in the company and

to expedite time for filling vacant positions.

30

The process is simple, and the contribution enormous! It is a matter of pride that on an

average, over the last 2 years, 30%+ of the total number of new hires are through this

referral program. The Placemint+ money will be paid out to the referee only on the

confirmation of the referred candidate.

Non Eligibility

However the following staffs is not eligible for Placemint+ financial rewards

o The Department Manager to whom the position being filled in reports

directly / indirectly

o The Head of the function of the Department for which the position is being

filled in

AVPs and above

o Employees from the Human Resources function

b) Job portals:

Generally there are certain things which are taken to consideration when Tata-Aig

collaborates with job portals:

o Relevance-suppose it has a large database of financial services which Tata-aig

deals in

o How big is the job portal?

o Freshness of resumes?

o Cost involved in the deal?

o After sales services like training the employees who are suppose to use the

site?

These are some parameters which are checked while the company signs a contract

with the company.

c) TALIC website:

This website helps the company for recruitment and the job posting which is

monitored by the HR department. There is an advertisement done on TALIC website

where they show the open positions against which branch, and then the candidate who

31

is interested will drop his detailed copy pf his resume then the HR team will go

through his resume and then call him for interview if he is suitable for the job.

Three major processes can be described as:

o Collation of current open position as per department

o Updating the current open position as per department on the website.

o Monitoring profiles through career.life.id

It is the responsibility of the HR recruitment team to utilize the TALIC website as an

effective means of sourcing talent by the posing current open positions.

This is how the process is been followed:-

oPrepare list of open positions

oPrepare short (5-10 line) description of each role.

Generate a word document consisting of a consolidated list of all positions along

with their respective description.

It is the responsibility of HR department to ensure that marketing team has uploaded

the open position of the TALIC website.

Data of current open positions department wise, to be provided to marketing

representative by HR recruitment representative one week prior to end of every

month.

This data is to be updated to the TALIC website in the first week of every month.

Process steps

o Last week of every month consolidated job openings data is to be provided to

marketing dept by HR recruitment.

o Marketing to upload the formatted and final data on the TALIC website by the

first week of the month.

32

o Monitoring profiles through career.life.id

HR recruitment department will ensure that response received through the TALIC

website is monitored on a regular basis.

Once the CVs are procured then there is 1st level screening done by the hiring team

where the following things are checked:

o Basic profile match.

o Education qualification.

o Work experience.

o Location.

o CTC (cost to the company)

After these parameters are checked then the interview is been scheduled by

the HR team and the candidate’s HR round is conducted.

Interview

HR hiring team and/or external recruitment consultants will have first screening of the

resume and short listed resumes will be referred to hiring supervisor /manager for

review and HR executive will helps arranging the interviews of hiring

supervisor/manager.

The candidate shall undergo at least one interview with hiring supervisor/manager and

or HR hiring team. Candidate interview evaluation sheet will be used to record the

information obtained from the interview candidates referred by their imminent direct

supervisor will be interviewed by an independent functional executive. In case staff

employed by TALIC partners/vendors are to be recruited the same shall be put up for

approval with VP-HR any other competent approving authority. These items have

been incorporated in the interview evaluation form and revised interview evaluation

forms attached as Annexure.

HR executive will notify the candidate on selection and will send him for the line

manager interview where the line manager basically checks two things:

o Performance

o Potential.

33

1) Performance: Line manager firstly checks is communication skills and his

persuasion skills. How easily can he influence the BA (business associates) to motive

the agents and get business from them? Line manager also checks the candidate’s

performance which is generally during the first three months of the year. This is when

the insurance business at its peak, this is the time when the tax aviation and the later

three months are when the BA or the sales manager builds his team and generates

business.

2) Potential: The line manager also checks the potential of the candidate by

asking question like:

1. How many agents can you get when you join the company?

2. How much amount of business can you generate for the company?

Once the line manager has short listed the candidate by usually two rounds, and then

the line manager has to intimate the HR team then the HR managers has to sent the

pre-employment mail to the shortlisted candidate and ask the candidate to submit

some documents.

With the help of these documents the company comes to know that candidate is

genuine. The following are the necessary documents required

o Offer letter/Appointment letter.

o Last two month salary slips.

o Name and contact details of the two referees.

o Pay revision letter or Increment / Bonus letter.

o Incentive proof.

o Pre-Employment Health Declaration form.

Once all the documents are been collected from candidate then the process initiation

mail is been given to the corporate to start the process, the corporate maintains a file

where the candidate’s resume along with necessary documents are been filed. The

corporate then sends the fitment sheet which is divided into two sections they are

present and proposed.

Here the present designation and the CTC is mentioned this fitment sheet is send to

the zone branch where the HR manager files the amount of the CTC and the proposed

designation then the fitment sheet is send back to corporate to sign.

34

HR hiring team shall obtain at least one reference from the candidate if no

information of reference is provided in the compensation summary sheet.

Undertake reference and salary check and medical check-up upon the receipt of the

compensation summary sheet, HR hiring team shall verify the amount versus the

amount shown in previous salary pay slips, last appointment letter and revision

letter(if any)for the proof of income .The compensation summary sheet will be kept

for salary proposal.

B) HR hiring team or external recruitment consultants will conduct the candidate

check. Recruitment check form will be used to record the information obtained from

the references.

The candidate must have a medical check-up be for joining the company HR hiring

team will provide short briefing to the candidate of the procedures and advice

available medical clinic for information the medical check-up report will be

forwarded to HR hiring team for documentation.

United health care is currently appointed to provide pre-employment check-up to the

candidate to the list of medical tests is provided in appendix.

Salary proposal and confirmation: HR hiring team will ask the HR executive

(responsible for (payroll) for at last one internal benchmark with similar background

band and experience or fitment will be made as per the approved salary fitment range.

HR hiring team will also make use of the information in the compensation summary

sheet as the reference for salary proposing salary and recording the details. All

signoffs to be done as per the approval authority matrix.

OFAC checking

HR hiring team lead will check the name of the candidate against the OFAC database

before sending the acceptance of offer. The office of foreign assets control (OFAC)

database which comprises various global watch lists.

Result of OFAC checking will be printed out and field of record if the name of the

candidate matches with those on the checklist .The candidate will not be considered

35

for offer. HR hiring team head will also require checking against the OFAC database

of existing staff every 6 months termination of employment is required if the name of

staff matches to the database.

Acceptance of offer

Upon the clearance of reference, medical checkup and salary confirmation etc. HR

hiring executive will prepare the letter of acceptance of offer and forward to the

candidate. The reply in authenticated email of the conformation of offer is acceptable

when the candidate turns down the offer or decides not to join the company it is

suggested to keep those unsuccessful records for retrieval in case of any related

opening to be posted in future the unsuccessful records be destroyed if no further

usages being evaluated.

Delivery of appointment letter:

Upon the receipt of the acceptance of offer HR hiring team will prepare the

appointment letter. All sign off to be done as per the approval authority matrix. The

appointment letter will be sent along with the joining kit (forms to be submitted after

the commencement of the employment) the candidate will be required to sign on a

copy of the appointment letter as the acceptance of official offer.

b) HR hiring team will forward to the HR operation team a salary compensation sheet

(fitment sheet) which will be used by and helps HR executive to design new staff

code and key in compensation data into the payroll file.

Documentation of hiring activity: HR hiring team will open personal file to file all

submitted documents as well as to complete a hiring activity sheet. The information

related to this hiring the sheet will to be prepared by responsible hiring executive and

will be reviewed by hiring team head. The personal file shall be maintained properly

and updated timely during the tenure of employment.

Once the reference check is positive then appointment letter is generated by the

corporate.

The candidate has to acknowledge the offer letter and sign it keep one copy of it with

him and send the other copy.

Before one joining we send him a mail stating about the documents required during

joining formalities, they include:

36

1) Resignation Acceptance Letter / Relieving Letter of your current

organization – These documents must be handed over on the day of joining to

ascertain the candidate’s employment with the company. Absence of the same

will delay the candidate’s date of joining with TALIC.

2) Residential Proof – One of the mentioned proofs are required for domicile

verification i.e. Valid Passport, Voters ID Card, Utility Bill-Telephone,

Electricity (in your name), Bank statement-Current, Rent Agreement,

Insurance Premium Receipt, Ration Card.

3) Education Qualification Documents – ORIGINAL & PHOTOCOPIES –

This will include Mark sheets & Certificates for SSC, HSC, Graduation and

Post-Graduation coupled with additional qualification pursued and completed.

Mark sheets have to be sent with Certificates only and not in exclusion.

4) Photo ID Proof - Driving License, Passport, Voter ID card, PAN Card.

5) Employment Details from Last employers – This will include Appointment

Letter, Salary Slips, & Resignation Acceptance Letter / Relieving Letter.

6) Five recent photographs

7) Required to keep the following details handy : PF account number and

Corporate address of the previous organization

Among all the documents the resignation letter of current organization mandatory.

Then the candidate is asked to fill the neokit and the company accepts the

appointment letter from him, then his joining day is considered.

37

Flowchart of recruitment procedure

38

In order to understand the process in detail and also to know the innovative steps on

cost reduction I have considered three financial companies namely:

J P Morgan Financial services

Angel Broking

ICICI Prudential life Insurance Company

These three companies are taken into consideration because:

o They are all financial companies so it would be easy to compare their

recruitment process.

o They all sell financial products so it would be easy to understand the profiles

and also their recruitment procedure.

Questionnaires are an inexpensive way to gather data from a potentially more than one

respondent. Often it is the only feasible way to reach a number of reviewers large enough to

allow statistically analysis of the results. A well-designed questionnaire that is used

effectively can gather information on both the overall performance of the test system as

well as information on specific components of the system. If the questionnaire includes

demographic questions on the participants, they can be used to correlate performance and

satisfaction with the test system among different groups of users.

To get the clear understanding about the recruitment process of each company a

questionnaire is made, with the help this questionnaire all the aspects like the sourcing

of profiles or cost reduction is considered.

This questionnaire is then filled by the senior level managers who have replied to the

best of their knowledge.

39

J P Morgan Financial Services:

JP Morgan deals in the Investment Bank, Treasury and Securities Services, Asset

Management and Private Banking. Individuals and families require investment

products and services that serve a host of needs. J.P. Morgan offers individual and

family investors a world-class asset and wealth management platform through our

Private Bank, Asset Management and Private Wealth Management teams.

Services are designed to help clients to build wealth, manage it prudently and pass it

on to future generations. They foster long-term client relationships by offering

tailored solutions designed to help individual investors and families achieve their

unique financial goals. The following are the products which company offers for their

clients:

Solutions for individuals and families include:

o Investment Management and Advice

o Managed Accounts

o Mutual Funds  

o Private Wealth Management  

o Retirement Savings  

o Short-Term Cash Management  

o Trust Services  

o Wealth Transfer.

40

ICICI Prudential Life Insurance Company

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank -

one of India's foremost financial services companies-and prudential plc - a leading

international financial services group headquartered in the United Kingdom. Total

capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74%

and Prudential plc holding 26%.

They began their operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA). Today, they are nation-wide

team comprises of 2099 branches (inclusive of 1,116 micro-offices), over 276,000

advisors; and 18 banc assurance partners.

 

ICICI Prudential is the first life insurer in India to receive a National Insurer Financial

Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI

Prudential has been voted as India's Most Trusted Private Life Insurer, by The

Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands. 

ICICI Prudential deals in various segments:

o Life Insurance 

o Health Insurance 

o Retirement 

o Tax Planning 

o Group Insurance 

o Pensions 

41

Angel broking:

Angel Broking's tryst with excellence in customer relations began in 1987. Today,

Angel has emerged as one of the most respected Stock-Broking and Wealth

Management Companies in India. With its unique retail-focused stock trading

business model, Angel is committed to providing “Real Value for Money’ to all its

clients.

The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock

Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX

& MCX. Angel is also registered as a Depository Participant with CDSL.

BSLI the pioneer of Unit Linked Life Insurance plans amongst the private life

insurers in India, has entered into an Exclusive Alliance with Angel Broking under

which, the country’s leading personal financial service provider will sell Birla Sun

Life Insurance Plans, as its Corporate Agent, through its widespread network of more

than 100 branches, 3500 business associates with the largest network of broking

terminals in the country .

 

Angel Broking has been awarded “The Major Volume Driver” award by BSE for

three consecutive years. It currently employs over 2200 employees and is servicing

more than 3 lakhs retail customers. Angel Broking has been actively pursuing

initiatives to enhance its product basket in order to provide a complete array of

financial products to its customers making it a One Stop Shop catering to all financial

needs of a retail client. Through this exclusive arrangement, BSLI envisages that

Angel Broking will augment BSLI’s distribution reach significantly and also bring its

vast retail sales experience to generate significant volumes for BSLI all across the

country.

42

FEEDBACK OF QUESTIONNAIRE

SR.

NO. QUESTIONSANGEL BROKING J P MORGAN ICICI

PRUDENCIAL

1. What is the hiring

process followed

in your

organization?

When there is opening

of positions, there is

manpower planning

done then the HR

department tries to

create online vacancy

for the job.

After doing that the

CVs are procured

through various

sources and then the

interview are lined up

to the HR manager

once shortlisted by the

HR team then the

profile goes to the line

manager who screens

the candidate and

shortlists him.

Then after Finalizing

Salary negotiation,

online Interview

Assessment Form

Hiring process

starts with job

requisition which

is given by the

various

departments to the

HR team.

Then followed by

sourcing the

resumes with the

help of the (JD)

which is been

prepared by the

line manager of

that particular

department.

After doing that

there is a personal

interview with HR

manager, once the

hr manager

First the various

departments give

the requisition of

opening in their

departments.

Following that the

line manager of

that department

creates a job

description (JD)

which helps the

sourcing team and

the candidates to

have a clear idea

of the job

responsibilities of

that position.

Then the sourcing

department line-

up the candidates

for the interview

process generally

there are two

43

(IAF) is being filled

by HRM and offer

letter is issued from

Central Support

Office (CSO),

Mumbai by HR

Operations.

Then after the

documentation and

reference check the

candidate is onboard.

shortlists the

candidate then the

line manager takes

the interview.

Following that

there is a written

aptitude test at

times which is

necessary

according to the

post.

interviews

conducted

namely: the HR

interview which is

followed by the

line manager

interview.

Once that is done

the reference

check and the

documentation is

done then

candidate is hired

and the position is

closed.

2. What are the

alternate sources

of hiring apart

from consultants?

The alternate sources

of hiring which

followed by angel

broking are

Campus placement.

Advertisement

Recruitment Vendors

Job Portal

Employee Referral

HR Network.

The alternate sources

of hiring which

followed by J P

MORGAN are

Campus

placement

Vendors

Direct walk-in

Employee

referrals

Internal

mobility.

The following are the

alternate sources of

hiring apart from the

consultants:

Reference

IJP (internal

job posting)

Direct

application.

44

3. Which

system/software

module is used for

recruitment in

your organization?

They have their own

module of recruitment

which has been

developed in house

within the

organization.

J P Morgan uses

PeopleSoft which

makes the

procedure of

recruitment

automated and

fast.

There is a

Recruitment portal

which is used for

process of hiring

in ICICI

Prudential. It is

makes the

recruitment

process fast and

the overall cost is

also reduced.

4. How are the

requisitions for

job opening

raised?

The manpower

planning for the

month / quarter have

all the data based

which is normally

communicated to HR

department by

Business team over

mail.

The requisition is

been raised by the

Hiring Managers

and the line

manager in

PeopleSoft so that

the process is

clear and visible

by the whole

team.

The requisition for

the job opening is

raised on the

recruitment portal.

5. What is the

process for

posting jobs? Is it

done centrally or

at department

level?

Angel broking has

their own job posting

module where they do

their posting

department wise and

the HR team come to

know about the job

The process of

posting jobs is

done department

wise in people

soft, and can be

viewed by

The process of

posing jobs is

done centrally.

45

posting. everybody.

6. Do you have IJP

(internal job

posting) in your

organization, if

yes what is the

preference given

to internal

candidates?

Angel broking do not

have any laid down

process, but usually

when they feel that

the internal candidate

would be more

suitable for the profile

they give preference

to the internal

candidate.

J P Morgan has

internal job

posting (IJP) and

the internal

candidates are

always given

more preference

before looking at

the external

candidate.

ICICI Prudential

has an internal

job posting in

their

organization and

the first

preference is

given to the

internal

candidates.

7 What are the basic

parameters which

are followed for

sourcing CVs?

Angel broking gives

preference to Domain

Knowledge and

relevant experience

while sourcing for

CVs. Also education

is given importance.

The following are

the parameters

which are taken

into consideration

while sourcing for

CVs:

Tenure,

work

experience

skill sets

Salary range.

For sourcing

CVs they first

give preference

to education and

then the salary

bracket.

46

8. What are various

means of sourcing

CVs which are

cost effective?

The most cost

effective source of

sourcing CVs is

Employee Referral

Scheme following that

is job portal which is

cost effective as both

of the ways are in-

house and do not need

external source.

The following are

the means of

sourcing CVs

which are cost

effective:

Job

portals,

Direct

referrals

Reference

E-groups.

Employee

Referrals, IJP

(internal job

posting), direct

application and

also their

recruitment portal

are the various

alternate sources

which are cost

effective.

9. Is there a hiring

plan prepared

every month?

Which period in

the year has the

highest openings?

Generally there is a

monthly plan prepared

in Angel broking and

there is no specific

period in which they

have higher openings.

The hiring trend is

based on the Business

Requirements i.e. as

and when it is

required.

There is no

standard process

of hiring plan; it

depends upon the

type of business.

ICICI Prudential

makes the hiring

plan annually and

it does not

depend on a

particular month

it

depends on the

business

requirement.

10.

What is the

process of

tracking

candidates who

Angel broking do not

have any such

mechanism to track

the candidates who

have reneged in the

past.

The process of

tracking

candidates who

have reneged in

the past can be

found out via

There is the

recruitment portal

which tracks the

candidates who

have reneged in

the past.

47

have reneged in

the past?PeopleSoft

software.

11. How is the

recruitment

expenses tracked?

In Angel broking all

the billing is

processed centrally, so

the tracking does not

become an issue and

all the bills are cleared

smoothly.

All the expenses

which are related

to recruitment are

tracked via

PeopleSoft.

There is a

separate budget

team which tracks

the recruitment

expenses.

12. Which are the

various MIS

reports maintained

for recruitment?

There are multiple

trackers which are

maintained by the

company like new

joinee, offers issuance,

back filling and new

vacancies, which are

tracked for making the

recruitment procedure

easy.

There are various

MIS maintained

by the hiring team

for the process of

recruitment among

them are Cost

sheet, Sources

tracker, Turn

around Time,

conversions.

Conversion ratio,

source details are

the MIS reports

maintained for

recruitment.

13. Which are the

different job

portals used by the

organization?

Angel broking uses

almost all the popular

job portals for

recruitment.

J P MORGAN

uses all the

popular job portals

for recruitment.

Job portals are

not at all used in

the organization

as they are the

most expensive

method of

sourcing CVs.

Generally the HR They don’t have a

48

14. On an average

what is the

achievement target

every month?

team achieves the

targets which are

given to them every

month.

There is no

specific target

which they have to

complete.

specific target

which they have

to complete.

15. What is the

average cost

per hire?

They see it in

perspective of profile

& loss and not the cost

per hire.

The average cost

is decided by the

budget of the

company.

The budget team

decides the

average cost per

hire.

17. Compared to

previous years has

the recruitment

cost increased or

reduced?

Compared to previous

years the recruitment

cost has reduced

owing to increase in

use of employee

referral and job portals

and reduce

dependency on

consultants on the

great extent.

Compared to

previous years the

recruitment cost

has reduced

because they have

a recruitment

portal owing to

which the

recruitment cost

has reduced to a

great extent.

Compared to

previous years the

recruitment cost

has reduced.

49

18. What are the

various cost

effective measures

you have taken to

reduce the

recruitment cost?

Angel broking have

completely banned

using consultants for

sourcing of resumes

and they depend 50%

on employee referral

and 50% on job

portals.

The company has

introduced a

recruitment portal

which is an in-

house portal with

the help of that

portal this is a cost

effective measure

taken by the

company.

They have

completely

banned

consultants or the

job portals they

use recruitment

portal where they

advertise the

openings and then

the candidates

sends their

resumes through

them.

50

CONCLUSION AND FINDINGS.

With the help of the questionnaire the hypothesis stands valid because with the help of

alternate sources and implementing a recruitment portal the company can actually

reduce the recruitment cost and also the turnaround time is also reduced to the great

extent.

According to survey the three companies the alternate sources are employee referral,

job portals, new joinee referral .though companies are having various alternate

sources of recruiting people still they are highly dependent on consultants for their

major sourcing similarly TATA-AIG has alternate sources like Placemint, direct

referral, Job Portals etc.

The system software which the companies use is their own internal software or the

recruitment module where the candidate is in which status and similarly they use

PeopleSoft as software.

Manpower planning or the requisition which generally this is done by the line

manager or HR manager but the by a recruitment manual process can be done faster.

All the companies follow the system of (IJP) Internal job posting which is a very good

option as far as reduction of cost is concerned but at the same time it cannot be used

always because the company post the employee to fill the position without hampering

the present process.

The companies have their internal software to track the candidates who have reneged

in the past or they can be traced with the help of PeopleSoft.

Generally the expenses are processed centrally so the tracking the expenses becomes

easy or the or the company uses the PeopleSoft as a software for tracing the expenses.

There are various MIS reports like cost sheet, turnaround time, conversions and cost

sheets which are been provided.

The cost effective methods of sourcing for CVs are referral scheme and job portal and

(IJP) internal job posting, along with that one way of reducing the recruitment cost is

introducing an internal recruitment portal.

51

In Today competitive world because of globalization & liberalization the organization

has to abreast their people with latest information and knowledge in the field of

technology & matters of administration as well.

52

Suggestion.

Taking into consideration the above aspect and after discussing with the managers of

the company. They can use the following suggestions and using the following sources

for recruitment.

Upgrading employment branding

Reinvigorating referral programs

Renewing the focus on quality of hire.

Reinforcing the business case for recruiting

Utilizing social networks.

Utilizing video.

Upgrading succession planning

Using employee blogs for recruiting

Using mobile phone recruiting

Revitalizing corporate jobs page.

Using a CRM(customer relationship management)model for hiring

Hiring innovators.

Hiring teams instead of an individual

Targeting public-sector employees, ex-servicemen

Hiring housewives, senior citizens, fresh school pass-outs for - part-time work

Partnering with educational and training institutes

Job fairs

Pre-placement offers (PPOs)

Recruitment through blogs: It is innovative practice paving it way in to the

recruitment world if one reads the blog attentively it conveys more work

abilities about the blogger implicity.Corporate HR is surfing blogs to unearth

candidates, expanding their talent pool and gaining insights that they can’t get

from resumes and interviews. If the candidate has written a blog, it helps to

know the mental makeup of the person.

A blog can be an effective tool to gauge into someone attitude quite easily.

53

An HR person can use a blog to understand the likes and dislikes of the candidates as

it allows them to structure the right environment for the candidate. There are some

issues that are rarely addressed during an interview:

Like passion of candidate about his job profile

How innovative the candidate

How does the candidate with criticism

Convincing power.

Also there is a very innovative way of recruiting which is an e-recruitment portal:

Leaders in the e-recruitment software markets have products

E-recruitment:-the buzzword and the latest trends in recruitment is the “e-

recruitment” and also known as online recruitment it is the use of technology

or the web based tools to assist the recruitment processes. The tool can be

either a job website like naukri.com the organization is corporate website or its

own intranet. Many small and large organization use internet as source of

recruitment. They advertise job vacancies through worldwide web. The job

seekers send the applications or CV through and email using the internet.

Alternatively job seekers place their CVs in World Wide Web which can be

drawn by the prospective employees depending upon their requirements. The

internet penetration in India is increasing and has tremendous potential.

According to a study by job is among the top reasons why new users will

come on to the internet besides email.

Advantages of e recruitment:

Low cost

No intermediaries

Reduction in time for recruitment

Recruitment of right type of people.

Efficiency of recruitment process.

54

Leaders in the e recruitment software market have products that can meet the

challenges presented by large, complex global organization these vendors have strong

track records and demonstrate strong sales and marketing execution.

Typically they have well articulated strategies that include an in-depth focus (for e.g.

workforce planning contingent workforce management vertical markets and

geographical expansion on talent acquisition or a broader focus on talent management

(for e.g. performance management secession management and compensation

management.)

Kenexa recruiter e-recruitment offerings seamless integrate with its comprehensive

talent management solutions which include performance management, succession

planning career development.

Kenexa global solutions include applicant tracking on boarding, recruitment process

outsourcing employee branding, skill and behaviour assessments structured interviews

and performance management multi people rated feedback surveys, employee

engagement surveys and HR analysis. Also TATA-AIG can come up with their own

recruitment portal which will help them in the whole process of recruitment.

55

Annexure

Questionnaire

1) What is the hiring process followed in your organization?

2) What are the alternate sources of hiring apart from consultants? If possible give

in percentages?

3) Which system/software module is used for recruitment in your organization?

4) How are the requisitions for job opening raised?

5) What is the process for posting jobs? Is it done centrally or at department level?

6) Do you have IJP (internal job posting) in your organization, if yes what is the

preference given to internal candidates?

7) What are the basic parameters which are followed for sourcing CVs?

8) Is there a hiring plan prepared every month? Which period in the year has the

highest openings?

9) What is the process of tracking candidates who have reneged in the past?

10) How is the recruitment expenses tracked?

11) Which are the various MIS reports maintained for recruitment?

56

12) Which are the different job portals used by the organization?

13) On an average what is the achievement target every month?

14) What are various means of sourcing CVs which are cost effective?

15) What is the average cost per hire?

16) Compared to previous years has the recruitment cost increased or reduced?

If the cost has increased what are the steps which would implemented to reduce

costs?

If the cost has reduced what is the measure you have taken in terms of source

mix?

o Consultants

o Employee referral

o Job portals

o Notice pay reimbursement etc?

57

Offer letter of TATA-AIG:

Date:

Mr/ Ms.:

Address:

Dear __________________,

Subject: Offer of Employment

This is with reference to your candidature for the post of Wealth Planning Officer at

Tata AIG Life Insurance Company Ltd. Subsequent to our meetings and discussions;

we are pleased to make you an offer for the same, to be based out of

___________________, at a cost to company of Rs. ____________ per annum.

Your proposed compensation breakup is as follows:

Wealth Planning Officer

Annual Monthly Annual

Basic 4,167 50,000

HRA 2,083 25,000

Conveyance Allowance 800 9,600

Supplementary Allowance 10,968 131,620

Medical Allowance 1,250 15,000

Communication

Allowance 600 7,200

Statutory Bonus 292 3,500

PF 500 6,000

58

Gratuity* 173 2,080

CTC 20,833 250,000

Note:

1. In addition to the above, employees posted in New Delhi, Chennai, Bangalore,

Hyderabad, Kolkata and Mumbai, will be entitled to an additional allowance

of Rs. 30,000/- per annum. This allowance will be added to the Supplementary

Allowance. In the event of an employee moving out of the above cities, this

allowance shall be discontinued.

2. You will be eligible for performance linked incentive scheme as per the

company’s policy.

This offer is subject to you clearing a medical examination conducted by the

Company certified doctor, receipt of satisfactory references and successful

completion of background verification, including but not limited to, proof of

education and professional qualifications, employment history and proof of identity,

which are satisfactory to us. In the event of any of the above being unsatisfactory to

the company, the Company reserves its right to revoke your offer of employment.

This offer is made relying upon the information furnished and representation made by

you from time to time. If any information or representation is found to be incorrect or

if any material information is detected by us to have been suppressed by you or any

action is found to be in contravention to the Company’s code of conduct or rules of

the Company, the Company will have the right to revoke your offer of employment at

any time without notice.

The offer stated above is valid for a period of 7 days from the date of this offer letter.

59

Yours sincerely, Agreed

to and accepted

Date:____________

Assistant Vice President - Human Resources

Pre Employment Health Declaration

60

Name:

_____________________________________________

Date of Birth: Gender:

Height _______________

cms.

Weight _______________

Kgs

Blood Group

_____________

Personal History:

Smoking:

Tobacco Products:

Alcohol:

Allergies:

Permanent / Partial disability (if any):

Impaired sight/Color vision defects (if any):

If you wear eye glasses / lenses mention power - Left eye: Right eye:

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

1. Have you ever been treated or diagnosed for any of the following:

Diabetes:

High Blood Pressure:

Heart Disease:

Asthma:

Lung Disease:

Cancer:

Kidney Disease:

Mental Disorder:

Hepatitis or Liver disorder:

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

2. In the last 6 months have you consulted a physician or currently

receiving any medical treatment, advise for any condition (other than

minor impairment such as cold or flu)

Yes No

61

3. In the past 2 years have you ever had any illness, injury, surgical

operation, received treatment for any ailment for a continuous period of

more than 2 weeks or been confined in a hospital, clinic or similar

institution for any condition (other than minor impairment such as cold or

flu).

Yes No

4. Have you or your spouse received or expect to receive any medical

advise, counseling or treatment in connection with sexually transmitted

disease, AIDS, AIDS Related Complex or any other AIDS related

condition, or had a blood test for antibodies to the AIDS virus (HIV test)

Yes No

5. Have you ever been advised not to travel by any mode of transport due

to medical or health reasons?Yes No

6. FEMALE ONLY: Are you pregnant? If “Yes”, please state the expected

date of delivery _______________(mm/dd/yyyy)Yes No

7. a) Have you had or advised to undergo any of the following tests or

investigations in the past 12 months. If “Yes” please √ which of the

following:

Blood tests X- ray USG ECG Biopsy Endoscopy Others :

___________

Reason for tests:

___________________________________________________________

__________________________

Yes No

7 b) Were there any abnormalities found in any of the tests conducted Yes No

8. Present state of health :

Good/Fair/Poor

“I hereby testify that all the aforesaid information is true and correct to the best of my

knowledge and belief and I accept that if any information is subsequently found to be

false, I will be liable to be immediately disqualified or dismissed from service without

any notice or liability accruing to TATA AIG Life Insurance Company Limited in this

regard”.

Place: Date: Signature

62

63

Reference check

Reference Check of:

1. How do you know this person?

2. Has your association been professional or personal? If professional – No of years

3. What was his main reason for leaving the organization?

General Assessment: How would you rate him on:

b) Integrity Excellent Good Average Poor

d) Commitment and Excellent Good Average Poor

Dedication to work

e) Team work Excellent Good Average Poor

f) Motivation/Initiative Excellent Good Average Poor

g) Problem Solving Excellent Good Average Poor

Capabilities

64

j) Attendance/ Excellent Good Average Poor

Punctuality

k) Performance Excellent Good Average Poor

7) Is there anything in this person’s performance history that would raise a question of their

employability?

8) If you had the opportunity to re-employ him/her. Would you do so: Yes / No.

Address Verifed??

Name of the person providing this assessment:

Designation:

Organization:

Phone No. (Office) __________________ (Residence) ________________ (Mobile)

__________________

65

Interview evaluation letter

Name of Candidate: Role being interviewed for:

Interviewer(s): Branch:

Source: Search Firm/Internet/Referral/Direct Reporting Head:

Has the candidate been interviewed by TALIC

Earlier? Yes/No

If yes Zone_____________,

Location_______________ Position

interviewed

for________________________

When____________________

If SF/Net/Referral mention name: Replacement/New Hire:

Is the Referee eligible for referral money: Replacement for:

SiTARA eligibility:

Criteria Rating

(1-Poor, 2-

Below

Average, 3-

Average, 4-

Good, 5-

Excellent)

Remark

Personality

Initial Impact & Presentation

Mobility & Need for Job

Competencies:

66

Communication

(Clarity,Delivery & Listening

skills)

Professional/Technical

Knowledge

Experience

Knowledge & skills

Market Awareness

Initiative(Seeking

info,Gathering ideas,Action)

Individual Leadership/

Influencing

Accomplishing Tasks

Building & Maintaining

Relationships

Delegating Authority &

Responsibility (Accomplishing

Tasks through delegation by

identifying right opportunity and

persuasiveness)

Team Building (Giving

feedback, Guiding and

supporting)

67

Adaptability and Flexibility

(Tasks & People)

Motivational Fit:

Ability to meet increasing

work challenges

Ability to perform tasks at a

fast pace

Diverse Perspectives (Working

with people having wide range

of backgrounds and

perspectives)

Overall Evaluation: Highly Suitable/Suitable/Average/Not Suitable

Whether Candidate have ever been convicted under any law

Yes/No

Can be considered for other positions:

Comments

DECLARATION

TATA AIG INSURANCE CO. LTD.

CANDIDATE INTERVIEW EVALUATIOET

68

I, son / daughter / wife of have accepted the offer for

the position of dated for (location).

1. I hereby declare that, I have not been convicted by any Court or Tribunal till date, and

neither are any criminal matter pending against me in any court of law in India or abroad.

Signature

……………………………

2. I hereby declare that following cases are pending against me for which the decision of

the

court is awaited

Case Details Case No & Date Court & Location

a. ……………………… ………………….. ……………..

b. ……………………… ………………….. ……………..

c. ……………………… …………………... ……………..

d. ……………………… …………………... ……………..

Signature

……………………………

3. I hereby declare that following cases were registered against me for which I was

imprisoned and the case is now closed.

Case Details Case No & Date Court & Location

69

a. ……………………… ………………….. ……………..

b. ……………………… ………………….. ……………..

c. ……………………… …………………... ……………..

d. ……………………… …………………... ……………..

Signature

……………………………

4. I hereby declare that I have no association with any of the terrorist groups/organization

and

any such organization which is banned by the Government in India or by any foreign government

having diplomatic relations with India. I further declare that I have not been a member/part of such

organization in the past.

Signature

……………………………

Place: Date: