A

Project Report

On

RECRUITMENT AND SELECTION

PROCESS OF

INSURANCE COMPANIES

BY:

SUMEET KATOCH

SCHOOL OF BUSINESS STUDIES

GOVERNMENT COLLEGE DHARAMSHALA

A

Project Report

OnRECRUITMENT AND SELECTION PROCESS

OF INSURANCE COMPANIES

In partial fulfillment of requirements for the degree of

BACHELOR OF BUSINESS

ADMINISTRATION

Submitted By:

SUMEET KATOCH

Under the Guidance of

NAMRITA KALIA

SCHOOL OF BUSINESS STUDIES

GOVERNMENT COLLEGE DHARAMSHALA

CERTIFICATE

This is to certify that the project entitled “RECRUITMENT AND SELECTION PROCESS OF INSURANCE

COMPANIES” has been carried out by SUMEET KATOCH under my guidance in partial fulfillment of

the degree of” BACHELOR OF BUSINESS ADMINISTRATION” of HIMACHAL PRADESH UNIVERSITY,

SHIMLA during the academic year 2010-2011(Semester-VI) at SCHOOL OF BUSINESS STUDIES,

GOVERNEMENT COLLEGE DHARAMSHALA.

Date:

Place: DHARAMSHALA

Guide Head, School Of Business Studies

(NAMRITA KALIA) (DR. Uttam Chand Kapoor)

PRINCIPAL, Government College Dharamshala

(name)

RECRUITMENT AND

SELECTION PROCESS OF INSURANCE

ICICI

People are a company’s most important assets. They can make or break the fortunes of a business. In today’s highly competitive business environment placing the right people in the right position is very critical for the success of any organization.

The recruitment and selection decision is of prime importance as it is the vehicle for obtaining the best possible person-to-job fit that will, contribute significantly towards the Company's effectiveness. It is also becoming increasingly important, as the Company evolves and changes, that new recruits show a willingness to learn, adaptability and ability to work as part of a team. The Recruitment & Selection procedure ensures that these criteria are addressed

In this project I have studied RECRUITMENT AND SELECTION PROCESS OF ICICI PRUDENTIAL LIFE INSURANCE . I am privileged to be one of the students who got an opportunity to study about ICICI Prudential Life Insurance

ICICI Prudential Life insurance is one of India's leading financial institutions offering complete financial solutions that encompass every sphere of life. In a short span of time, ICICI has set an example by having a steady and confident journey to growth and success.

During the project I have studied deeply the process of hiring in ICICI Prudential Life insurance and did a SWOT analysis of ICICI Prudential Life Insurance to find out the existing shortcomings and potential threats. This project however is an attempt to share as best as possible my experience in corporate world with all my colleagues and my faculty.

I would be delighted to receive reader’s comments which maybe valuable lessons for my future projects.

EXECUTIVESUMMARY

In today’s rapidly changing business environment, organizations have to respond quickly to requirements for people. The Financial market has been witnessing growth which is manifold for last few years. Many private players have entered the economy thereby increasing the level of competition. In the competitive scenario it has become a challenge for each company to adopt practices that would help the organization stand out in the market. The competitiveness of a company of an organization is measured through the quality of products and services offered to customers that are unique from others. Thus the best services offered to the consumers are result of the genius brains working behind them.

Human Resource Management in this regard has become an important function in any organization. All practices of marketing and finances can be easily emulated but the capability, the skills and talent of a person cannot be emulated. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Therefore a recruitment practice in an organization must be effective and efficient in attracting the best manpower.

Coverage –The extent and limitation

With largest number of life insurance policies in force in the world, insurance happens to be a mega opportunity in India. Its business is growing at 15-20% annually and presently is of the order of Rs. 450m. Together with banking sector it adds about 7% to the GDP.

Like the case of BPO’s, Insurance sector too faces the problem of attrition.   Thus, recruitment is an ongoing process carried throughout the year. The project is based on the study of recruitment process. The various recommendations put forward is the result of the study. The idea is to generate ways of dealing with high attrition and making hiring process manageable and efficient.

DATA USED IN PROJECT

There were mainly two sources of data collection

Primary data:

Survey method Personal interview with candidates Conversation with the placement agency

Secondary data:

Study of recruitment policy Websites Published articles

Research methodology used

Study of recruitment and selection at ICICI Prudential Life Insurance by the manual provided by the HR department;

Web sites Journals Magazines Books

Findings

Recruitment is done throughout the year more during the months of May-June and Oct-Nov;

Huge investment of time; Huge recruitment cost;

To pursue these, I would be going through the recruitment policies of the company. By active participation in the recruitment process, the areas where improvement can be bought about can be identified.

Thus the whole research would be done under the guidance of external guide. It will also involve recruitment and selection processes, reading the material provide internally by the organization, information from the new employees.

INTRODUCTIONOF

THE INSURANCE INDUSTRY

OVERVIEW

The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years.

The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business.

Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.

With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense.

A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country.

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.

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.

The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 14 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies..

Life Insurance Market

The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players have tripled to Rs 19000 crore in year 2009- 10. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer.

The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. Buoyed by their quicker than expected success, nearly all private insurers are fast- forwarding the second phase of their expansion plans.

Major Insurance Players

Licenses have been issued for the following companies

ICICI Prudential Life Insurance Limited ICICI Prudential Life Insurance Company Limited HDFC Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited SBI – Cardiff Life Insurance Company Limited ING Vysya Life Insurance Company Limited Bajaj Allianz Life Insurance Company Limited MetLife Life Insurance Company Limited Aviva Life Insurance Company Limited AMP Sanmar Life Insurance Company Limited Sahara India Life Insurance Limited Sri Ram Life Insurance Limited Kotak Insurance Future Genrali Insurance Company

Protection of the interests of policyholders:

IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this objective, the Authority has taken the following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policy proposal documents in easily understandable language; claims procedure in both life and non-life; setting up of grievance redressal machinery; speedy settlement of claims; and policyholders' servicing. The Regulation also provides for payment of interest by insurers for the delay in settlement of claim.

The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to payment of claims.

It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms and conditions under the policy. The advertisements issued by the insurers should not mislead the insuring public.

All insurers are required to set up proper grievance redress machinery in their head office and at their other offices.

The Authority takes up with the insurers any complaint received from the policyholders in connection with services provided by them under the insurance contract.

ICICI PRUDENTIAL

LIFE INSURANCE

COMPANY-PROFILE:

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquartered in the United Kingdom.

ICICI was established in 1955 to lend money for industrial development. Today, it has diversified into retail banking and is the largest private bank in the country. Prudential plc was established in 1848 and is presently the largest life insurance company in UK.

ICICI Prudential is currently the No. 1 private life insurer in the country. For the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies.

The Company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The Company aims to achieve this by striving to provide world class service levels through constant innovation in products, distribution channels and technology based delivery. The Company has already taken significant steps to achieve this goal.

India's Number One private life insurer, 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. 23.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

ICICI Prudential was 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'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India.

ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the first quarter ended June 30, 2007, the company garnered Rs. 987 crore of weighted retail + group new business premiums and wrote over 450,000 retail policies in the period. The company has assets held to the tune of over Rs. 18,400 crore.

Distribution

ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 680 branches and over 235,000 advisors.

The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks (RRBs), Sangli Urban Co-operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Co-operative Bank and Imphal Urban Cooperative Bank Limited.

Products Insurance Solutions For Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to create a customized solution for each policy holder.

Savings Solutions

Save’n’ Protect is a traditional endowment savings plan that offers life protection along with adequate returns.

CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child’s marriage, expenses for a child’s higher education or purchase of an asset.

LifeTimeSuper offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 4 fund options — Preserver, Protector, Balancer and Maximiser.

LifeLink Super is a single premium Unit Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market.

Premier Life Gold is a limited premium paying plan that offers customers life insurance cover till the age of 75.

InvestShield Life New is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation.

· InvestShield Cashbak is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options.

Protection Solutions

LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 options – level term assurance, level term assurance with return of premium and single premium.

HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.

Child Plans

SmartKid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child’s life. SmartKid plans are also available in unit-linked form – both single premium and regular premium.

Education Insurance Plans

Education insurance under the SmartKid brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child's life. SmartKid plans are also available in unit-linked form - both single premium and regular premium

Retirement Solutions

ForeverLife is a retirement product targeted at individuals in their thirties. Market-linked retirement products LifeTime Super Pension is a regular premium market-linked pension plan. Golden Years: is a limited premium paying retirement solution that offers tax

benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and payout stages.

Health Solution

Health Assure and Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing

policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover

Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions.

Diabetes Care and Diabetes Care Plus*: 1st ever critical illness insurance cover for diabetics.

Hospital Care*: Hospital Care offers a Cashless hospitalization facility in more than 3000 network hospitals

Crisis Cover : is a 360-degree product that will provide long-term coverage against 35 critical illnesses, total and permanent disability, and death

Note (*) products Re-launched on 1st July 2006

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations.

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement.

ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.

Flexible Rider Options

ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer.

Accident Benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.

Accident & Disability Benefit: This rider option pays 10% the sum assured under the rider every year till next 10 years on Accidental Permanent Disability of 2 Organs.

Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death.

Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available on SmarKid, SecurePlus and CashPlus

Waiver of Premium: In case of total and permanent disability due to an accident, the premiums are waived till maturity. This rider is available with SecurePlus and CashPlus.

Choice of Six Investment Options :- ICICI prudential offers you the opportunity of selecting between investment options to match your investment priorities.

1) Protector:-

An Investment Option with investment indebt and money market instruments.

2) Maximiser :-

An investment option with investment in equity and equity related instruments.

3) Balancer :-

An investment option with investment in a mix of equity and debt oriented instruments.

4) Preserver:-

An investment option with investment in low-risk instruments like cash and call money markets.

5) Flexi Growth:-

New Fund (NFO) launched in March 2007, Long term returns from an equity portfolio lare,mid and small cap companies.

6) Flexi balanced:-

Balance of capital appreciation and stable returns from an equity (large,mid & small cap companies) & debt portfolio.

VISION AND MISSION OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY

Their vision is to make ICICI Prudential Life Insurance Company the dominant new insurer in the life insurance industry. This they hope to achieve through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise.

The success of the organization will be founded on its strong focus on values and clarity of purpose. These include:

Understanding the needs of customers and offering them superior products and service

Building long lasting relationships with their partners Providing an enabling environment to foster growth and learning for their

employees

And above all building transparency in all our dealings.

They believe that they can play a significant role in redefining and reshaping the sector. Given the quality of their parentage and the commitment of their team, they feel that there will be no limits to their growth.

Registered Office :   ICICI Towers 9thfloor, Bandra-Kurla Complex, Mumbai - 400 051, Tel: 494 3232

Regional Office :   8th floor EROS Coorporate Tower, Nehru place, New Delhi-110011.Tel:46554405

Delhi office :   3rd floor, Videocon Towers E-1, Rani Jhansi Road, New Delhi - 110055. Tel: 601 3232

ICICI Prudential Life Insurance opens office in Dubai

In a move to consolidate its position in the Gulf region, ICICI Prudential Life Insurance (ICICI Prudential), India's No. 1 private life insurance company, also opened its representative office in Dubai, becoming the first private life insurer from India to open an office in the Emirate.

At ICICI Prudential we offer pragmatic, world-class solutions. Put simply, solutions with a lot of common sense. Solutions that take care of your four basic financial needs - Earning, Saving, Investing and Spending. So you live your life to the fullest, sans worries.

OBJECTIVES OF THE PROJECT

 

Every task is undertaken with an objective. Without any objective a task is rendered

meaningless. The main objectives for undertaking this project are:

     To understand the internal Recruitment process at ICICI Prudential Life Insurance

     To identify areas where there can be scope for improvement

     To give suitable recommendation to streamline the hiring process

 

METHODOLOGYThe insurance sector is marked with a high level of attrition and therefore recruitment

process becomes a crucial function of the organization. At ICICI Prudential Life Insurance,

recruitment is all time high during May-June and Oct-Nov. The attrition is high among the

sales managers, unit mangers mostly in the sales profile. The recruitment is high during these

months due to the fact that March and September are half year closing and business is high

during Jan-Mar. Thus it is only after March that people move out of the companies.

Since my project study was during Feb.-march, it gave me the opportunity of involving

myself directly with the recruitment process and analyzing the process so that suitable results

can be drawn out of it. This project is centered on identifying best hiring practices in the

insurance industries. It therefore requires great amount of research work. The methodology

adopted was planned in advance so as to collect data in the most organized way.

My area of focus was the recruitment and selection particularly at ICICI Prudential Life

Insurance. I was studying the recruitment for candidates for the sales profile. I was particularly

involved with the sourcing of candidates for dharamshala.

Before any task was undertaken, we were asked to go through the HR policies of ICICI

Prudential Life Insurance so that we get a better understanding of the process followed by

them.

 The first task was to understand the various job profiles for which recruitment was to be

done.

 The next step was to explore the various job portals to search for suitable candidates for the

job profile.

 Once the search criteria were put, candidates went through a telephonic interview to validate

the information mentioned in their resume.

 A candidate matching the desired profile was then lined for the first round of Face to Face

interview in their respective cities.

 Firstly the candidate had filled up the personal data form (pdf).

 Then the candidates INTERVIEW EVALUATION SHEET which is provided by interviewer

was crosschecked by the HR team. If they think that the candidate was good to hire or not.

 When a candidate cleared his first round, he is then made to take an online aptitude test. We

created the online aptitude test. It the HR department, which has the exclusive rights to

assign test, codes to the candidates. Each code was unique and could be used only once by a

candidate.

 I was involved in assigning codes and administering the test

 Once the candidate completed his first assessment, his scores were checked. If he cleared his

cut-off he was given another test.

 I had the responsibility to make sure that candidates complete all formalities and had to

regularly follow up with them.

 Since we received many resumes, it was essential that a database be maintained to keep a

track. It was convenient method than to stock up piles of papers. ICICI has their own

database named as “PACE”, I update all the records of the new joiners’ in that tracker.

PACE contains all the information of a candidate such as name, contact number, location

etc.

 The external guide maintained a regular updating of the database.

 Understanding what kinds of database are maintained and how they help in keeping a record.

I was also involved in maintaining a track of test codes given, the database for employee

referrals, Database for the resumes received through mails and response of advertisement.

 

RESEARCH METHODOLO

GY                         

                

 DATE SOURCE

Primary            :-          Through Questionnaires

Secondary        :- Through Internet, Journals, News papers and Misc.

Data Collection Procedure: - Survey

Research Instrument: - Structured Questionnaire.

Sample Size: - 20 

Sample Area: - Dharamshala Office.

Sample procedure: - Random sampling. 

          

Limitations of the study

Every task is undertaken with an objective and accomplishment of this objective determines our success.

Task:

The recruitment at ICICI Prudential Life Insurance involved a lot search from the database and calling up candidates to check whether they fit the job specification.

Difficulties:

     Candidates were reluctant to talk at times;

     Candidates who were contacted were not interested in Insurance on

many occasions;

     Candidates who were scheduled for interview would not turn up;

     Run out of database many times since most of them would have already

been contacted;

Task:

Candidates were to be searched from the job portals and called up to be scheduled for an interview.

Difficulties:

     A summer trainees we could not separate systems to work on;

     At times many people had for couple of hours to work on the computer;

     Since STD calls had to be made, the availability of phone was limited, so

there was greater coordination required with respect to its usage and

maintains a time slot so that other person has a chance to use.

Task:

Intercompany analysis through survey and questionnaire filling.

Difficulties:

     Did not secure cooperation easily;

     People asked lot of counter question so convincing them was a major

task;

     People did not disclose much about their employee details.

 

Topic Information

RECRUITMENT

AND

SELECTION

 “The art of choosing men is not nearly so difficult as the art of

enabling those one has chosen to attain their full worth”.

Recruitment is the process by which organizations locate and attract

individuals to fill job vacancies. Most organizations have a continuing need

to recruit new employees to replace those who leave or are promoted in

order to acquire new skills and promote organizational growth.

Recruitment follows HR planning and goes hand in hand with

selection process by which organizations evaluate the suitability of

candidates. With successful recruiting to create a sizeable pool of

candidates, even the most accurate selection system is of little use

Recruiting begins when a vacancy occurs and the recruiter receives

authorization to fill it. The next step is careful examination of the job and

enumeration of skills, abilities and experience needed to perform the job

successfully. Other steps follow:

     Creating an applicant pool using internal or external methods

     Evaluate candidates via selection

     Convince the candidate

     And finally make an offer

Scope: To define the process and flow of activities while recruiting,

selecting and appointing personnel on the permanent rolls of an

organization.

Authorization:

S.No

.

Authorized Signatory

1 Head- Human resource

2 Managing director

Amendments and deviations:

Any amendments to and deviations from this policy can only be authorized

by the Head-human Resources and the Managing Director.

Exclusions:

The policy does not cover the detailed formalities involved after the

candidate joins the organization.

                        ACTIVITY FLOW

The organization philosophy should be kept in mind while formulating the

recruitment procedure.

The HR department would set the recruitment norms for the

organization. However, the onus of effective implementation and

compliance with the process rests with the heads of the respective

functions and departments who are involved in the recruitment and

selection process.

The process is aimed at defining the series of activities that needs to

be performed by different persons involved in the process of recruitment,

the checks and control measures to be adopted and information that has to

be captured.

Recruitment and Selection is conducted by:

     HR & Branch Manager

     Functional Head

 

RECRUITMENT PLANNING

Recruitment planning on the basis of budget

A. The manpower planning process for the year would commence with the company’s budgeting activity. The respective Functional heads would submit the manpower requirements of their respective functions/ departments to the board of Directors as part of the annual business plan after detailed discussion  with the head of human Resource Function along with detailed notes in support of the projected

numbers assumptions regarding the direct and indirect salary costs for each position.

B. A copy of the duly approved manpower plan would be forwarded by the HR department for their further actions during the course of the year. The annual budget would specify the manpower requirement of the entire organization, at different levels, in various functions/departments, at different geographical locations and the timing of the individual requirements. It would also specify the requirement budget, which is the cost allotted towards the recruitment of the budgeted staff and the replacement of the existing employees. The manpower plan would also clearly indicate the exact time at which the incumbent should be on board in such a way that the Regional HR has adequate notice for the time lapses involved in sourcing any other activities.

C. The Regional HR’s would undertake the planning activity and necessary preparations in advance of the anticipated requirements, as monthly and quarterly activities on the basis of the approved budget, estimated separations and replacements therefore.

D. The vacancies sought to be filled or being filled shall always be within the approved annual manpower budget and no recruitment process shall be initiated without the formal concurrence of the Head of the Regional HR under any circumstance. Head of the Regional HR shall also have the responsibility to monitor the appointments being considered at any point of time with specific respect to the duly approved manpower budgets.

Review of Manpower Plans and Additional Manpower

A.    Review of manpower budgets shall take place on a quarterly basis. In

the event of any new position or any deviations to the original plans,

details of the positions maybe forwarded to the VP-HR along with the

adequate supporting information. The recommendations would

normally require a formal approval of the Managing Director.

Alternately, VP-HR may record the summary of his discussion with the

Managing Director and the MD’s approval on the recommendations,

to signify the final decision taken regarding the recommendations.

SOURCING OF SUITABLE CANDIDATES

Selection of Sources

Regional HR would tap various sources/channels for getting the right

candidate. Depending on the nature of the position/grade, volumes of

recruitment and any other relevant factors, the Regional HR would use any

one multiple sources such as:

     Existing database (active application data bank);

     Employee referral as per any company scheme that may be approved

from time to time;

     Advertisement in the internet/newspapers/magazines/company’s

sites/job sites or any other media;

     Placement Agencies (particularly for positions of Managers and above);

     Headhunting firms particularly for senior positions, specialist positions

and critical positions;

     Direct recruitment from campuses/academic institutes;

     Job websites and

     Any other appropriate sources.

The norms for using any of the sources are not water tight. Number of

positions, criticality of positions and the urgency of the positions,

confidentiality requirements, relative efficacy and cost considerations would

play a role in the choice of the appropriate sourcing mechanism.

ADVERTISEMENTS

     All recruitment advertisements (in any form and any medium) shall

always conform to the KLI compliance norms and would not be released

by any department or branch without the approval of the VP-HR.

depending on the specifics of each position for which recruitment

advertisements are to be released, Regional HR may obtain assistance

from the company’s marketing department and/or any external

advertising agencies for the preparation of the contents. Key features of

the positions as notified by the Functional Heads would normally form a

part of the advertisement text.

     The media for releasing advertisement would depend on the level of the

position being considered and the urgency of the requirements.

     The advertisement mode that could be broadly specified as newspapers

(local or mainline depending on requirements), internet sites and

business magazines.

Placement Agencies/Headhunting Agencies

     Depending upon the vacancies, fresher fitting different description listed

above may be recruited from time to time, from academic institutes of

appropriate standards/reputation/grade, in the requisite numbers and at

the compensation/stipend amounts to be formally approved of the VP-

HR. Plans for such recruitment need specific special approval of VP-HR.

norms regarding the identification of the appropriate institutes,

constitution of the selection panels, timings of the recruitment, number

of candidates to be recruited into different positions, choice of the

appropriate selection process and the tools thereof shall be decided by

the Head of the Regional HR in consultation with the VP-HR, depending

on the specific features of the position.

Screening the candidates

First level screening

The Candidates would be screened by the HR Manager/Branch

Manager for the respective locations. Screening would be on the basis of

the profile of the candidate and the departmental requirements.

This assessment will be with respect to:

a. The general profile of the candidate,b. Personality fit of the candidate into the profile,c. Aptitude/attitude of the candidate,d. Motives of the person to join the company and whether focus

is in the short term or is a long term player,e. Basic skill level on our set of requirements, say numerically

ability, networking ability, etcf. Establish the annual guaranteed cash compensation of the

individual and check whether the person would fit into the system.

g. Explain the role of Sales manager to the applicant and check the acceptance of the candidate for the same.

In case of need, the Regional HR may take a Tele interview of the candidate

for further assessment process.

Second Level Screening

Aptitude Test

If the first assessment is positive, the candidates will give the

aptitude test, once such test is selected approved by the company. The

scoring, interpretation and the generation of interview probes from that test

will also be done at this time. People who qualify the minimum criteria on

this test will be put up on to the Functional Head (VP’s in case of HO) for

functional assessment and suitability into the role.

Tied Agency Sales Manager candidates short listed by the BM have

will then take sales Aptitude test, once such a test is finalized. For the final

selection, the regional Manager (Business Heads for HO) will meet the

candidates short listed by the branch manager/VP. The chart specifying the

Minimum approval level for each level of recruitment is specified below:

Category Branch

Manager/Chief

Manager

Area

Manager/AVP/VP

Business

Heads

Managing

Director

CSE/ADVISORS Yes No No No

BIC Yes Yes No No

BM/CM Yes Yes Yes No

SM Yes Yes Yes Yes

 General Norms regarding interview Process:

A. Interviews should consider the entire data provided by the candidate either through the formal CV or otherwise before coming to a conclusion about the candidate. They may insist on seeing the proof of the claims made by the candidate regarding qualifications, experience and other achievements. They may, at their discretion, decide to meet the candidate on more than one occasion or to refer the candidate to another panel.

B. Ratings on various attributes of the candidates shall be recorded in the interview evaluation sheet, soon after the interview is over. Along with these numerical ratings, qualitative observations about the candidate and overall decision regarding selection or otherwise (including a decision to defer the induction, referral to another panel, considering for another position) shall be forwarded to the associated Recruitment Manager/ Head of Regional HR. Individual panel members have the option of appending their additional remarks/observations. No selection will be treated as final

unless the IES form is filled comprehensively. Suitably appropriate IES formats may be created for specific positions.

C. Any discrepancies noticed by the panel members regarding the authenticity of the data provided by the candidate should be specifically and formally recorded on the IES form and suitably high lightened.

D.  Specific points to be probed during the reference check process, if any, must also be clearly recorded and high lightened on the IES forms.

Administrative Actions Regarding Interviews

A. Scheduling and the venue of the interviews would be handled by the recruitment team in consultation with the short listed candidate and the selection panel members, after taking mutual convenience into account. For field positions, respective branch/regional heads would undertake this co-ordination.

B. After the final round, if the candidate is selected, the complete set of papers Personal Data Form, CV, job requisition no., Interview evaluation sheet ,reference check details, educational details, along with the interviewer’s recommendations and Reference check form should be forwarded by the recruitment managers to recruitment head. Fitment of the candidate into a grade and compensation fitment shall be on the assumption of authenticity of the information provided in the CV/application form.

C. An appropriate formal communication shall be sent to the candidate whose candidature is not being taken forward, or details of the verbal/telephonic communications provided to the candidate shall be recorded on the candidates papers, by the recruitment team/associated line managers. In the case of interviews taking place at the branch/regional levels, similar noting should be recorded on the individual candidate’s papers.

Negotiations of the terms and conditions and other pre-appointment

formalities

A. In the case of sales-Tied Agency functions, the branch managers will be allowed to fix the salary and grade of the incoming sales manager, provided the compensation does not exceed 20% of the candidates current cash salary. Any fitment beyond this norms will need the approval of Head-HR. HR will forward a worksheet to support  the BM’s to evaluate the appropriate cash CTC of the incumbent. For all other functions, the compensation and grade would be fixed post a discussion between the Head of the Regional HR and the associated AVP/VP. Any candidate being offered a CTC of more than 4lacs will need the sign off from HEAD-HR. In appropriate cases, at the discretion of the VP-HR, a deviation may be referred to the Managing Director, for the MD’s formal approval.

B. Responsibility for negotiations and finalization of the terms shall rest with the best Branch Manager/Associated Manager. They may seek the assistance of the recruitment managers, whenever required. Reference checks process should not normally be initiated unless the candidate has indicated his firm acceptance of the offer being made by us.

Reference checks

A.    Normal, reference checks should be undertaken with at least one

reference. A second reference check will be done if considered

necessary. Responsible officials from the former employers, academic

institutes and/or any other eminent personalities can be considered

as appropriate references. Close relatives and friends cannot be

considered as references. Wherever feasible and considered

appropriate, a reference should be made with a senior official of the

candidate’s current employer. In case the candidate is currently un-

employed, reference should be made with the latest employer. The

format of reference check is to be used as a framework for conducting

the process.

B.     Where the minimum two reference checks are not possible

(particularly with the current employer) or where there is a mixed

response from different sources, the matter may be to the VP-HR for a

final decision. Depending on the seniority and any other

considerations about the positions, VP-HR would normally consult the

functional head concerned, before coming to conclusions. Any

candidate whose credentials are doubtful shall not be recruited.

C.     In case of recruitment of Management trainees, fresher and life

advisors as sales Managers no reference checks will be required. 

Employment offer letter

A. When a recruitment Manager is fully satisfied about the selection of the right candidate and about completion of all the formalities connected with the appointment of candidate including requisite documentation, satisfactory reference check reports and medical fitness, he/she would forward the relevant papers listed below to the head of recruitment.

      Personal Data form

      Employee requisition form duly filled by the regional Head/Branch 

Manager

      Interview evaluation sheet filled by the regional head/Branch

manager/interviewer with his/her comments.

      Latest and updated resume of the candidate

      Photocopy of the appointment letter of the last employer or latest

salary slip.

      Employment details.

      Two Professional references.

      Language Proficiency.

 

B. Document check list for every grade is as follows:

      Authorization Release Form.

      Background check Form.

      Higher Education certificate.

      Higher Education mark sheet.

      1 Month Salary Slip of Current Employer.

      1 Month Salary Slip of Last Employer.

      Relieving Letter of last Employment.

      Proof of Residence.

      2 Passport Size Photograph.

 

C. Regional HR manager will take the signature of Head-HR on the employee requisition form and forward the papers to the employee service team for issuance of the offer letter.

D. Employee services team will issue offer letter, to be signed by the National Recruitment Manager or Chief Manager-HR, and send the same to the concerned Branch Manager/ HR Manager.

E. It would be the responsibility of the Branch Manager/HR Manager to ensure that the accepted copy of the offer letter is forwarded to the employee service team within a week of receipt of the offer letter. Till this letter is issued, the ‘offer’ has not taken place in formal sense. A copy of the offer letter shall be duly signed and returned to the candidate. Candidate would be expected to fulfill various joining formalities, which are also formally communicated to him/her in the form of a checklist that is attached to the letter of offer. The Regional HR head shall have the overall responsibility and accountability to maintain the templates of the offer letters and also for drafting of suitable non-standard terms to any specific candidate.

F. The employee service team will follow up Branch Manager/Regional HR Manager for the joining of the candidate and will collect all relevant documents from the candidate including the joining report, before issuing the appointment letter. The employee service team may enlist the help of the Branch Manager to ensure that all necessary documents within ten days o the person joining. After the of all necessary documents, the employee service team will send the appointment letter to the new joinee.

G. Once the documentation is complete for the new joinee (including the accepted appointment letter), people who may have joined before 20th  of the month but have not been included in the payroll for the month because of delay in receipt of papers will be given ad-hoc salary advance (up to maximum of 65% of the pro rated salary). This advance will be adjusted once the person gets included in the subsequent month’s payroll.

H. If the person does not submit the relieving letter from the previous organization, where required to be submitted as per the table given above, within three months of joining, the

employee service manager can put their salary on hold till such time as the said documents are received.

Key tasks of Regional HR Head

Regional HR Head will have the authority and responsibility to

administer/implement the recruitment and selection process as outlined. An

illustrative list of the key deliverables of these incumbents is listed below.

     Ensuring inductions as per quality, numbers, time and cost consideration

of the company in accordance with the approved manpower budget.

     Creation of appropriate sourcing mechanism along with tracking the

performance of these mechanisms.

     Creation of quarterly and monthly recruitment plans

     Effective coordination with external parties such as candidates,

placement agencies, consultants, academic/professional institutes and

any other including the custody of the formal agreements , tracking

timely payments and adjusted thereto

     Creation of comprehensive and appropriate tools, linkages, documents,

templates and any other mechanisms to ensure smooth execution of the

process requirement, along with timely improvements thereto

     Assistance to user department and line managers including in

interviewing/selection support, scheduling etc.

     Effective internal communication with user departments and line

managers including making the standard recruitment formats and other

templates easily available to such users and notifying the modifications

to such formats and templates.

     Creation and maintenance of qualitative information base regarding

candidates, placement agencies, campuses, institutes, and any other

employment-market information.

     Creation and maintenance of appropriate and high-quality MIS for current

and future needs of the organization, including publication/circulation of

appropriate reports there from to the relevant users within the company.

     Monitoring recruitment costs

     Complete documentation for the entire recruitment and selection process

for easy and quick retrieval in a readily auditable format

     Timely and effective communication with all internal and external parties

including the candidates

     Tracking the progress of the selected candidates including resignation,

extensions of probation periods/training period, etc for the purpose of

improvement to recruitment and selection process.

     Effective coordination with the post recruitment arm of the Human

Resource function

     Documentation and creating MIS regarding waiver, deviation, etc and

identifying the key areas for improvement in the formal recruitment and

selection process document.

 

 

 

RECOMMENDATIONS

&

SUGGESTIONS

 

 Compress the "white space" in your hiring process.

White Spaces are delays in hiring process that are unproductive, waste

time, and virtually assure you'll lose talented candidates. Often the longest

delays occur between critical selection events. For example, a recruiter may

need several weeks to screen a few hundred resumes from the Web job

boards, or candidates who make it through screening may wait weeks to

interview with a hiring manager.

Here at ICICI Prudential Life Insurance, the delays occur when the outstation

candidates are called for interviews at Regional branches like Delhi and

Mumbai. Sometimes, because of busy schedule of senior managers and

sometimes because of tight schedule of candidate, the interview has to be

postponed. This delay could be minimized by scheduling interviews in the

regional locations. It is recommended to reduce the turnaround time for the

recruitment and selection process. It must be made mandatory for the

candidates to take the test, filling up forms etc within the stipulated time,

this will make sure that the candidates do not hold casual attitude and take

the recruitment process more seriously. Additionally it can send across a

positive image about the company.  White space in recruitment can be

compressed by the use of  IT also. Technology (such as automated or Web-

based tracking) is ideal for eliminating unnecessary steps and reducing

delays.

Tie up with more & more consultants from multiple segments

 Since the limited placement agencies are sourcing candidates to all

insurance companies, there often comes the problem of duplication of data.

Therefore it is recommended that more and more consultants should be

tied up from multiple segments to attract large pool of new and fresh

talent.

  Know what you're looking for in candidates.It is observed that the candidates sourced by placement agencies and

send for further rounds of interviews are rarely found suitable by the

hiring managers. Therefore, in case there is need to utilize the service of

a placement agency, then it is recommended that these placement

agencies be given a well drafted job description and job specification.

This can also be circulated to internal employees under the employee

referral scheme. This will help people to get a clearer picture and

provide for most suitable candidates. Thus making efficient utilization of

the existing resources.

        Reduce the pre offer formalities:

Pre-offer documentation includes filling of a lengthy Blue form which

includes all personal, educational and professional details of candidate. This

is very time consuming and even after taking these details from candidate

its not sure that offer will be made or not. This also becomes frustrating for

the candidate sometimes. So, it is recommended that unnecessary details

should not be asked before we make the final offer to the candidate. Blue

form should be made consise.

        One size doesn’t fits all

An effort must be made to study local condition, education levels. Since

applying common test for all candidates across entire country can

overshadow a candidates capabilities. This factor must be given

importance since Indian society is divided on various parameters such as

education, language, infrastructure etc. A test with high level of English

and complicated sentence structure can be a hurdle in areas where

language itself is barrier. An option is to have different tests for different

regions.

  Blend technology into every aspect of your recruiting and hiring process.  

Web-based technology lets you increase hiring speed and quality while

reducing costs. Currently, job boards constitute the biggest use of the

Web, offering access to thousands of resumes within hours. But the Web

can also be a powerful tool for screening and qualifying that flood of

resumes. Companies have begun to use the Web to collect and instantly

match data on candidate skills, motivations, and experiences against job

criteria. Other uses of Web-based technology include online interviewing,

candidate assessment and testing, applicant self-scheduling, and

tracking. Work the Web wisely and you save time for recruiters and

hiring managers and nab top candidates before your competitors can.

     It is recommended that apart from the person-job fit, method must be

devised to check for person-organization fit. A person-organization helps

to assess how well a candidate is suited the organization. Whether the

attitude he/she carries will promote both organizational as well personal

goals. This takes a great importance especially when attrition is high. It

will help the organization to retain its employees for a longer period of

time and less burden on recruitment staff.

  Build and manage your candidate pool as a precious resource.  

A "candidate pool" is a group of individuals who have shown interest in

working for your company and are qualified for and ready to fill certain

positions. Rather than undertaking the time-consuming process of filling

one job at a time, you draw on the candidate pool and fill jobs as they

become available. How do you keep a pool active? Some companies

send their newsletters to pool candidates, give them product coupons,

and keep in touch through e-mail. Pool management is not easy in a

tight labor market --good candidates often go elsewhere. But many

organizations, especially those with a reputation as a great place to

work, are able to fill positions quickly using the pool concept.

  Create winning impression even on those who are not selected

Its very important to create a favorable impression of your organization

on all those who come for interview. Those who are not selected in the

first round of personal interview should also carry this impression that

they have missed the opportunity to work in a great company.  For this,

there must a proper coordination of the interview of the candidate and

greater degree of professionalism. A candidate when invited for a

interview must be attended as soon as possible and should be made to

wait for hours together. Interviews conducted on a scheduled time leave

a good impression on the candidate. Even if he is not selected, a good

impression about the will make him recommend the name to his people.

CONCLUSION

Insurance is confronted with high attrition rate. Therefore it

makes recruitment a critical function in the organization. In order to grow

and sustain in the competitive environment it is important for an

organization to continuously develop and bring out innovations in all it

activities. It is only when organization is recognized for its quality that it can

build a stability with its customers. Thus an organization must be able to

stand out in the crowd.

The first step in this direction is to ensure competitive people come in

the organization. Therefore recruitment in this regard becomes an

important function. The organization must constantly improvise in its

recruitment process so that it is able to attract best in the industry in order

to serve the best. Thus the organization must look out for methods that can

enable it to adopt best recruitment practices.

LEARNINGS

Every endeavor undertaken to accomplish challenging goals, can only be successful under the experienced and encouraging guidance. I am privileged to have undergone training at ICICI Prudential Life Insurance. As learning never stops, my learning at Kotak has come from a lot of exposure, on the job training and close interaction with the corporate. In brief my learning and achievements can be summarized as under:

Understanding of person and profile fit. Convince people about the job profile and to sell the job to the prospective

candidate; Following up with the candidates during the entire selection process; Learned to convince candidates about the offer rolled out and making them

accept the offer through effective communication; Learning about salary fitments.

Communicating with the corporate; Performance appraisals, its various types, implications and significance; Handling queries received from various quarters; Managing HR department in the absence of HR manager; Reply to official mails; Prioritize issues according to their importance; Field work exposure to tap candidates that further strengthened the learning.

Q1.Do you have a clearly stated Recruitment & Selection Policy ?

· Yes

· No

· To some extent

2) What are the qualities of ICICI Prudential Life Insurance Company recruitment System:-

· Quick Response time for requirement

· Bringing in Quality People

· Proper coordination with other team or department

· Efficient Maintenance & Updating of Database

3) What Recruitment Sources are used?

· Advertisement

· Employee Referral

· Consultant

· Portals

· All of these….

4) Does ICICI Prudential adopt Internal Recruitment Source i.e. Transfer & Promotion:-

(i) Yes (ii) No

If Yes than for which type of post………………………………….

5) Which source of Recruitment is better for companies:-

(i) Internal Source (ii) External Source

(iii) Depends on Situation & Post……………………………………

6)Rank the Qualities in the order of your preference on the basis of which you select candidate:-

· Qualification

· Experience

· Skills

· Personality

· Depend on Job Variety

7) How many Stages are followed in selection procedure:-

· 2

· 3

· 4

8) Does ICICI Prudential ask candidates to enter into BONDS with them:-

· Yes

· No

If Yes then what kind of Job or Department………………………….

Q9. Is the estimation of Recruitment Process cost is done?

· Yes

· No