IMP Project Document

8/6/2019 IMP Project Document

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with all my colleagues and my faculty.

I would be delighted to receive readers comments which maybe valuable lessons for my futureprojects.

EXECUTIVE SUMMARY

In todays rapidly changing business environment, organizations have to respond quickly torequirements for people. The Financial market has been witnessing growth which is manifold forlast few years. Many private players have entered the economy thereby increasing the level ofcompetition. In the competitive scenario it has become a challenge for each company to adoptpractices that would help the organization stand out in the market. The competitiveness of acompany of an organization is measured through the quality of products and services offered tocustomers that are unique from others. Thus the best services offered to the consumers areresult of the genius brains working behind them. Human Resource in this regard has become animportant function in any organization. All practices of marketing and finances can be easilyemulated but the capability, the skills and talent of a person cannot be emulated. Hence, it isimportant to have a well-defined recruitment policy in place, which can be executed effectively toget the best fits for the vacant positions. Selecting the wrong candidate or rejecting the rightcandidate 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 amega opportunity in India. Its business is growing at 15-20% annually and presently is of theorder of Rs. 450m. Together with banking sector it adds about 7% to the GDP.

Like in the case of BPOs, Insurance sector too faces the problem of attrition. Thus, recruitment isan ongoing process carried through out the year. The project is based on the study of recruitmentprocess. The various recommendations suggested have been the result of the study. The idea isto generate ways of dealing with high attrition and making hiring process manageable andefficient.

Data Used

There were mainly two sources of data collection

Primary data:

Survey method

Personal interview with candidates

In depth conversation with the placement agency

v Secondary data:

Study of recruitment policy

Websites

Published articles


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Research methodology used

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

v Web sites

v Journals

v Magazines

v Books

Findings

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

v Huge investment of time;

v Huge recruitment cost;

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

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

1.1 Introduction Of The Insurance Industry

Overview

The story of insurance is probably as old as the story of mankind. The same instinct that promptsmodern businessmen today to secure themselves against loss and disaster existed in primitivemen also. They too sought to avert the evil consequences of fire and flood and loss of life andwere willing to make some sort of sacrifice in order to achieve security. Though the concept ofinsurance is largely a development of the recent past, particularly after the industrial era pastfew 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 44companies 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 legislationgoverning not only life insurance but also non-life insurance to provide strict state control overinsurance 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 startedfunctioning.

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


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business.

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

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

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

1956: 245 Indian and foreign insurers and provident societies are taken over by the centralgovernment and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with acapital 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 TritonInsurance Company Ltd., the first general insurance company established in the year 1850 inCalcutta 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 ofgeneral insurance business.

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

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

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised 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 amega opportunity in India. Its a business growing at the rate of 15-20 per cent annually andpresently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per centto the countrys GDP. Gross premium collection is nearly 2 per cent of GDP and funds availablewith LIC for investments are 8 per cent of GDP.

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

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

India has come a full circle from being an open competitive market to nationalization and back toa liberalized market again. Tracing the developments in the Indian insurance sector reveals the360 degree turn witnessed over a period of almost two centuries.


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Present Scenario

The Government of India liberalized the insurance sector in March 2000 with the passage of theInsurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions forprivate players and allowing foreign players to enter the market with some limits on direct foreignownership.

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

Life Insurance Market

The Life Insurance market in India is an underdeveloped market that was only tapped by the stateowned LIC till the entry of private insurers. The penetration of life insurance products was 19percent of the total 400 million of the insurable population. The state owned LIC sold insurance asa tax instrument, not as a product giving protection. Most customers were under- insured with noflexibility 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 themarket in terms of premium income. The new business premiums of the 12 private players hastripled to Rs 1000 crore in 2002- 03 over last year. Innovative products, smart marketing andaggressive distribution. That's the triple whammy combination that has enabled fledgling privateinsurance 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 theprivate 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 totake out bigger policies. Buoyed by their quicker than expected success, nearly all privateinsurers 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 Standard 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


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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

Protection of the interests of policyholders:IRDA has the responsibility of protecting the interest of insurance policyholders. Towardsachieving this objective, the Authority has taken the following steps:

v IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policyproposal 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 insettlement of claim.

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

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

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

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

1.2 COMPANY PROFILE

ICICI Prudential Life Insurance

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

ICICI was established in 1955 to lend money for industrial development. Today, it has diversifiedinto retail banking and is the largest private bank in the country. Prudential plc was established in1848 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 yearended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a totalsum assured of Rs 13,780 crore and wrote nearly 615,000 policies.

The Company recognizes that the driving force for gaining sustainable competitive advantage inthis business is superior customer experience and investment behind the brand. The Company


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aims to achieve this by striving to provide world class service levels through constant innovationin products, distribution channels and technology based delivery. The Company has alreadytaken significant steps to achieve this goal.

India's Number One private life insurer, ICICI Prudential Life Insurance Company is a jointventure between ICICI Bank-one of India's foremost financial services companies-and Prudentialplc- a leading international financial services group headquartered in the United Kingdom. Totalcapital infusion stands at Rs. 23.72 billion, with ICICI Bank holding a stake of 74% and Prudentialplc holding 26%.

ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strengthrating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been votedas India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Margsurvey 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 tocustomers all over India.

FACT SHEET

THE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premierfinancial powerhouse, and Prudential plc, a leading international financial services groupheadquartered in the United Kingdom. ICICI Prudential was amongst the first private sectorinsurance companies to begin operations in December 2000 after receiving approval fromInsurance Regulatory Development Authority (IRDA).

ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and Prudential plc holding74% and 26% stake respectively. For the first quarter ended June 30, 2007, the companygarnered Rs. 987 crore of weighted retail + group new business premiums and wrote over450,000 retail policies in the period. The company has assets held to the tune of over Rs. 18,400crore.

ICICI Prudential is also the only private life insurer in India to receive a National Insurer FinancialStrength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is aclear assurance of ICICI Prudential's ability to meet its obligations to customers at the time ofmaturity or claims.

For the past six years, ICICI Prudential has retained its position as the No. 1 private life insurer inthe country, with a wide range of flexible products that meet the needs of the Indian customer atevery step in life.

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, FederalBank, 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 ofIndia 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 ImphalUrban Cooperative Bank Limited.

Products Insurance Solutions For Individuals


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

Savings Solutions

SavenProtect is a traditional endowment savings plan that offers life protection along withadequate returns.CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a childsmarriage, expenses for a childs higher education or purchase of an asset.LifeTimeSuper offer customers the flexibility and control to customize the policy to meet thechanging 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 insurancecover 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 tillthe age of 75.InvestShield Life New is a unit linked plan that provides premium guarantee on the investedpremiums and ensures that the customer receives only the benefits of fund appreciation withoutany of the risks of depreciation.

InvestShield Cashbak is a unit linked plan that provides premium guarantee on the investedpremiums 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 customerscover their home loans in a simple and cost-effective manner.Child Plans

SmartKid education plans provide guaranteed educational benefits to a child along with lifeinsurance cover for the parent who purchases the policy. The policy is designed to provide money

at important milestones in the childs 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 benefitsto a child along with life insurance cover for the parent who purchases the policy. The policy isdesigned to provide money at important milestones in the child's life. SmartKid plans are alsoavailable in unit-linked form - both single premium and regular premiumRetirement Solutions

ForeverLife is a retirement product targeted at individuals in their thirties.Market-linked retirement productsLifeTime 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 Rs100,000 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 provideslong 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 anequivalent life insurance cover Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well asat different stages in the treatment of various cancer conditions.


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

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

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

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

Group Insurance SolutionsICICI Prudential also offers Group Insurance Solutions for companies seeking to enhancebenefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Prus group gratuity plan helps employers fund theirstatutory gratuity obligation in a scientific manner. The plan can also be customized to structureschemes that can provide benefits beyond the statutory obligations.

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

ICICI Pru Group Term Plan: ICICI Prus flexible group term solution helps provide affordablecover to members of a group. The cover could be uniform or based on designation/rank or amultiple of salary. The benefit under the policy is paid to the beneficiary nominated by themember 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.1. 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. Ifthe death occurs while traveling in an authorized mass transport vehicle, the beneficiary will beentitled to twice the sum assured as additional benefit.

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

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

4. 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 andCashPlus5. Waiver of Premium: In case of total and permanent disability due to an accident, thepremiums 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 yourinvestment priorities.

1) Protector:-


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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 capcompanies) & debt portfolio.

Vision and Mission

Their vision is to make ICICI Prudential Life Insurance Company the dominant new insurer in thelife 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 organisation will be founded on its strong focus on values and clarity ofpurpose. 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 thequality of their parentage and the commitment of their team, they feel that tere will be no limits to

their growth.

DISTRIBUTION

ICICI Prudential has one of the largest distribution networks amongst private life insurers in India,having commenced operations in 150 cities and towns in India, stretching from Bhuj in the west toGuwahati in the east, and Jammu in the north to Trivandrum in the south.

The company has 9 bank partnerships for distribution, having agreements with ICICI Bank, Bankof India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some co-operative banks, as


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well as over 300 corporate agents and brokers. It has also tied up with NGOs, MFIs andcorporates for the distribution of rural policies.

ICICI Prudential has recruited and trained more than 1, 90,000 insurance advisors to interfacewith and advise customers. Further, it leverages its state-of-the-art IT infrastructure to providesuperior quality of service to customers

RegisteredOffice :

ICICI Towers 9thfloor, Bandra-Kurla ComplexMumbai - 400 051.Tel: 494 3232

Regional Office :8th floor EROS Coorporate Tower,Nehru place,

New Delhi-110011.Tel:46554405

Delhi office :

3rd floorVideocon TowersE-1, Rani Jhansi RoadNew 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 (ICICIPrudential), India's No. 1 private life insurance company, today opened its representative office inDubai, 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 ofcommon 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.

The Project Report on Recruitment and Selection Process - Recommendations, Conclusions,Learning Process are in the next chapter.

Find the Next Chapter - OBJECTIVES RESEARCH METHODOLOGY, Limitations,RECRUITMENT AND SELECTION RECOMMENDATIONS conclusion, learning .........

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Project Report Recruitment-Selection Process Insurance Companies

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:

v To understand the internal Recruitment process at ICICI Prudential Life Insurance

v To identify areas where there can be scope for improvement

v To give suitable recommendation to streamline the hiring process


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METHODOLOGY

The insurance sector is marked with a high level of attrition and therefore recruitment processbecomes a crucial function of the organization. At ICICI Prudential Life Insurance, recruitment isall time high during May-June and Oct-Nov. The attrition is high among the sales managers, unitmangers mostly in the sales profile. The recruitment is high during these months due to the factthat March and September are half year closing and business is high during Jan-Mar. Thus it isonly after March that people move out of the companies.

Since my summer training was in the months of May-June, it gave me the opportunity of involvingmyself directly with the recruitment process and analyzing the process so that suitablerecommendations can be given. This project is centered on identifying best hiring practices in theinsurance industries. It therefore requires great amount of research work. The methodologyadopted 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 directly involved with the recruitment for candidates for the sales profile. I was particularlyinvolved with the sourcing of candidates for the regions outside Delhi such as M.P, U.P and

Rajasthan.

Before any task was undertaken, we were asked to go through the HR policies of ICICI PrudentialLife Insurance so that we get a better understanding of the process followed by them.

v The first task was to understand the various job profiles for which recruitment was to bedone.

v The next step was to explore the various job portals to search for suitable candidates for thejob profile.

v Once the search criteria were put, candidates went through a telephonic interview to validatethe information mentioned in their resume.

v A candidate matching the desired profile was then lined for the first round of Face to Faceinterview in their respective cities.

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

v Then the candidates INTERVIEW EVALUATION SHEET which is provided by interviewerwas crosschecked by the HR team. If they think that the candidate was good to hire or not.

v When a candidate cleared his first round, he is then made to take an online aptitude test. Wecreated the online aptitude test. It the HR department, which has the exclusive rights to assigntest, codes to the candidates. Each code was unique and could be used only once by acandidate.

v I was involved in assigning codes and administering the test

v Once the candidate completed his first assessment, his scores were checked. If he clearedhis cut-off he was given another test.

v I had the responsibility to make sure that candidates complete all formalities and had toregularly follow up with them.

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


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track. It was convenient method than to stock up piles of papers. ICICI has their own databasenamed as PACE, I update all the records of the new joinees in that tracker. PACE containes allthe information of a candidate such as name, contact number, location etc.

v The external guide maintained a regular updating of the database.

v Understanding what kinds of database are maintained and how they help in keeping arecord.

v I was also involved in maintaining a track of test codes given, the database for employeereferrals, Database for the resumes received through mails and response of advertisement.

RESEARCH METHODOLOGY

Date Source

Primary :- Through Questionnaires

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

Data Collection Procedure :- Survey

Research Instrument :- Structured Questionnaire.

Sample Size : - 80

Sample Area : - work done in Delhi regional Office.

Sample procedure :- Random sampling.

PROJECT SCHEDULE :-

First 1 week :-Training program from the company.

Second week :-Collecting the primary and secondary data.

Third Fourth week :- Study Recruitment & Selection Process

Fifth week :-Designing the questionnaire .

Sixth week :-Conducting the survey in RO.

Seventh week :-Analysis of Data Collection.

Eighth week :-Final Report preparation and presentation.

Limitations of the study

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

Task:


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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. Thenext step is careful examination of the job and enumeration of skills, abilities and experienceneeded to perform the job successfully. Other steps follow:

v Creating an applicant pool using internal or external methods

v Evaluate candidates via selection

v Convince the candidate

v And finally make an offer

Scope: To define the process and flow of activities while recruiting, selecting and appointingpersonnel 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-humanResources and the Managing Director.

Exclusions:

The policy does not cover the detailed formalities involved after the candidate joins theorganization.

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 respectivefunctions 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 differentpersons involved in the process of recruitment, the checks and control measures to be adoptedand information that has to be captured.

Recruitment and Selection is conducted by:

v HR & Branch Manager


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v Functional Head

RECRUITMENT PLANNING

Recruitment planning on the basis of budget

The manpower planning process for the year would commence with the companys budgetingactivity. The respective Functional heads would submit the manpower requirements of theirrespective functions/ departments to the board of Directors as part of the annual business planafter detailed discussion with the head of human Resource Function along with detailed notes insupport of the projected numbers assumptions regarding the direct and indirect salary costs foreach position.A copy of the duly approved manpower plan would be forwarded by the HR department for theirfurther actions during the course of the year. The annual budget would specify the manpowerrequirement of the entire organization, at different levels, in various functions/departments, atdifferent geographical locations and the timing of the individual requirements. It would alsospecify 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 clearlyindicate the exact time at which the incumbent should be on board in such a way that theRegional HR has adequate notice for the time lapses involved in sourcing any other activities.The Regional HRs would undertake the planning activity and necessary preparations in advanceof the anticipated requirements, as monthly and quarterly activities on the basis of the approvedbudget, estimated separations and replacements therefore.The vacancies sought to be filled or being filled shall always be within the approved annualmanpower budget and no recruitment process shall be initiated without the formal concurrence ofthe Head of the Regional HR under any circumstance. Head of the Regional HR shall also havethe responsibility to monitor the appointments being considered at any point of time with specificrespect 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 newposition or any deviations to the original plans, details of the positions maybe forwarded to theVP-HR along with the adequate supporting information. The recommendations would normallyrequire a formal approval of the Managing Director. Alternately, VP-HR may record the summaryof his discussion with the Managing Director and the MDs approval on the recommendations, tosignify 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 onthe nature of the position/grade, volumes of recruitment and any other relevant factors, the

Regional HR would use any one multiple sources such as:

v Existing database (active application data bank);

v Employee referral as per any company scheme that may be approved from time to time;

v Advertisement in the internet/newspapers/magazines/companys sites/job sites or any othermedia;

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


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v Headhunting firms particularly for senior positions, specialist positions and critical positions;

v Direct recruitment from campuses/academic institutes;

v Job websites and

v Any other appropriate sources.

The norms for using any of the sources are not water tight. Number of positions, criticality ofpositions and the urgency of the positions, confidentiality requirements, relative efficacy and costconsiderations would play a role in the choice of the appropriate sourcing mechanism.

ADVERTISEMENTS

v All recruitment advertisements (in any form and any medium) shall always conform to the KLIcompliance norms and would not be released by any department or branch without the approvalof the VP-HR. depending on the specifics of each position for which recruitment advertisementsare to be released, Regional HR may obtain assistance from the companys marketingdepartment 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 theadvertisement text.

v The media for releasing advertisement would depend on the level of the position beingconsidered and the urgency of the requirements.

v The advertisement mode that could be broadly specified as newspapers (local or mainlinedepending on requirements), internet sites and business magazines.

Placement Agencies/Headhunting Agencies

v Depending upon the vacancies, fresher fitting different description listed above may berecruited 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 theVP-HR. Plans for such recruitment need specific special approval of VP-HR. norms regarding theidentification of the appropriate institutes, constitution of the selection panels, timings of therecruitment, number of candidates to be recruited into different positions, choice of theappropriate selection process and the tools thereof shall be decided by the Head of the RegionalHR 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 respectivelocations. Screening would be on the basis of the profile of the candidate and the departmental

requirements.

This assessment will be with respect to:

The general profile of the candidate,Personality fit of the candidate into the profile,Aptitude/attitude of the candidate,Motives of the person to join the company and whether focus is in the short term or is a long termplayer,Basic skill level on our set of requirements, say numerically ability, networking ability, etc


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Establish the annual guaranteed cash compensation of the individual and check whether theperson would fit into the system.Explain the role of Sales manager to the applicant and check the acceptance of the candidate forthe same.In case of need, the Regional HR may take a Tele interview of the candidate for furtherassessment process.

Second Level Screening

Aptitude Test

If the first assessment is positive, the candidates will give the aptitude test, once such test isselected approved by the company. The scoring, interpretation and the generation of interviewprobes from that test will also be done at this time. People who qualify the minimum criteria onthis test will be put up on to the Functional Head (VPs in case of HO) for functional assessmentand suitability into the role.

Tied Agency Sales Manager candidates short listed by the BM have will then take sales Aptitudetest, once such a test is finalized. For the final selection, the regional Manager (Business Headsfor 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


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Yes

Yes

No

SM

Yes

Yes

Yes

Yes

General Norms regarding interview Process:

Interviews should consider the entire data provided by the candidate either through the formal CVor 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 otherachievements. They may, at their discretion, decide to meet the candidate on more than oneoccasion or to refer the candidate to another panel.Ratings on various attributes of the candidates shall be recorded in the interview evaluationsheet, soon after the interview is over. Along with these numerical ratings, qualitativeobservations about the candidate and overall decision regarding selection or otherwise (includinga decision to defer the induction, referral to another panel, considering for another position) shallbe forwarded to the associated Recruitment Manager/ Head of Regional HR. Individual panelmembers have the option of appending their additional remarks/observations. No selection will betreated as final unless the IES form is filled comprehensively. Suitably appropriate IES formatsmay be created for specific positions.Any discrepancies noticed by the panel members regarding the authenticity of the data providedby the candidate should be specifically and formally recorded on the IES form and suitably high

lightened.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

Scheduling and the venue of the interviews would be handled by the recruitment team inconsultation with the short listed candidate and the selection panel members, after taking mutualconvenience into account. For field positions, respective branch/regional heads would undertakethis co-ordination.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 interviewers recommendations and Reference check form should be forwarded bythe 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 theCV/application form.An appropriate formal communication shall be sent to the candidate whose candidature is notbeing taken forward, or details of the verbal/telephonic communications provided to the candidateshall 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 berecorded on the individual candidates papers.Negotiations of the terms and conditions and other pre-appointment formalities

In the case of sales-Tied Agency functions, the branch managers will be allowed to fix the salary


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and grade of the incoming sales manager, provided the compensation does not exceed 20% ofthe candidates current cash salary. Any fitment beyond this norms will need the approval ofHead-HR. HR will forward a worksheet to support the BMs to evaluate the appropriate cash CTCof the incumbent. For all other functions, the compensation and grade would be fixed post adiscussion between the Head of the Regional HR and the associated AVP/VP. Any candidatebeing offered a CTC of more than 4lacs will need the sign off from HEAD-HR. In appropriatecases, at the discretion of the VP-HR, a deviation may be referred to the Managing Director, forthe MDs formal approval.Responsibility for negotiations and finalization of the terms shall rest with the best BranchManager/Associated Manager. They may seek the assistance of the recruitment managers,whenever required. Reference checks process should not normally be initiated unless thecandidate 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 secondreference check will be done if considered necessary. Responsible officials from the formeremployers, academic institutes and/or any other eminent personalities can be considered asappropriate references. Close relatives and friends cannot be considered as references.Wherever feasible and considered appropriate, a reference should be made with a senior officialof the candidates 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 aframework for conducting the process.

B. Where the minimum two reference checks are not possible (particularly with the currentemployer) or where there is a mixed response from different sources, the matter may be to theVP-HR for a final decision. Depending on the seniority and any other considerations about thepositions, VP-HR would normally consult the functional head concerned, before coming toconclusions. Any candidate whose credentials are doubtful shall not be recruited.

C. In case of recruitment of Management trainees, fresher and life advisors as sales Managersno reference checks will be required.

Employment offer letter

When a recruitment Manager is fully satisfied about the selection of the right candidate and aboutcompletion of all the formalities connected with the appointment of candidate including requisitedocumentation, satisfactory reference check reports and medical fitness, he/she would forwardthe 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 withhis/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.


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Document check list for every grade is as follows: Authorization Release Form.

Background check Form.

Highest Education certificate.

Highest Education marksheet.

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.

Regional HR manager will take the signature of Head-HR on the employee requisition form andforward the papers to the employee service team for issuance of the offer letter.Employee services team will issue offer letter, to be signed by the National Recruitment Manageror Chief Manager-HR, and send the same to the concerned Branch Manager/ HR Manager.It would be the responsibility of the Branch Manager/HR Manager to ensure that the acceptedcopy of the offer letter is forwarded to the employee service team within a week of receipt of theoffer letter. Till this letter is issued, the offer has not taken place in formal sense. A copy of theoffer letter shall be duly signed and returned to the candidate. Candidate would be expected tofulfill various joining formalities, which are also formally communicated to him/her in the form of achecklist that is attached to the letter of offer. The Regional HR head shall have the overallresponsibility and accountability to maintain the templates of the offer letters and also for drafting

of suitable non-standard terms to any specific candidate.The employee service team will follow up Branch Manager/Regional HR Manager for the joiningof the candidate and will collect all relevant documents from the candidate including the joiningreport, before issuing the appointment letter. The employee service team may enlist the help ofthe 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 letterto the new joinee.Once the documentation is complete for the new joinee (including the accepted appointmentletter), people who may have joined before 20th of the month but have not been included in thepayroll 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 persongets included in the subsequent months payroll.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 servicemanager 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 therecruitment and selection process as outlined. An illustrative list of the key deliverables of theseincumbents is listed below.

v Ensuring inductions as per quality, numbers, time and cost consideration of the company inaccordance with the approved manpower budget.


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v Creation of appropriate sourcing mechanism along with tracking the performance of thesemechanisms.

v Creation of quarterly and monthly recruitment plans

v Effective coordination with external parties such as candidates, placement agencies,consultants, academic/professional institutes and any other including the custody of the formalagreements , tracking timely payments and adjusted thereto

v Creation of comprehensive and appropriate tools, linkages, documents, templates and anyother mechanisms to ensure smooth execution of the process requirement, along with timelyimprovements thereto

v Assistance to user department and line managers including in interviewing/selection support,scheduling etc.

v Effective internal communication with user departments and line managers including makingthe standard recruitment formats and other templates easily available to such users and notifyingthe modifications to such formats and templates.

v Creation and maintenance of qualitative information base regarding candidates, placementagencies, campuses, institutes, and any other employment-market information.

v Creation and maintenance of appropriate and high-quality MIS for current and future needs ofthe organization, including publication/circulation of appropriate reports there from to the relevantusers within the company.

v Monitoring recruitment costs

v Complete documentation for the entire recruitment and selection process for easy and quickretrieval in a readily auditable format

v Timely and effective communication with all internal and external parties including thecandidates

v Tracking the progress of the selected candidates including resignation, extensions ofprobation periods/training period, etc for the purpose of improvement to recruitment and selectionprocess.

v Effective coordination with the post recruitment arm of the Human Resource function

v Documentation and creating MIS regarding waiver, deviation, etc and identifying the keyareas for improvement in the formal recruitment and selection process document.

SWOT Analysis of ICICI Prudential Life Insurances Recruitment Process

Strengths

Brand equity of Kotak Mahindra Bank.

Rigorous Pre-Hiring assessment tests to understand aptitude and personality of candidates.


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Proper reference checks to ensure that only bonafide candidates are appointed.

Adequate number of channel partners to generate footfalls for each location.

Footfall MIS being maintained at each branch locally by Admin.

Weaknesses

Pre assessment tests are costly.

Conversion of footfalls is low.

Lengthy pre-offer formalities.

Huge employee turnover.

Opportunities

Campus recruitments have huge potential for fulfilling manpower requirements cost effectively.

Tie up with recruitment agencies on supplying fixed number of footfalls week on week.

Develop exclusive contract with channel partners to meet the manpower requirements.

Make blue form brief and to the point.

Reduce turn around time of making an offer.

Threats

Increasing number of private players in insurance sector creates ample choices, frequent andeasy mobility for employees.

Same channel partners are handling all insurance companies. This leads to same pool ofcandidates being circulated to all partners.

Increasing spill over as a candidate has more than one offer at the time of making a job shift.

As the insurance industry is small, senior level candidates hesitate to meet HR of othercompanies for the fear of grapevine.

RECOMMENDATIONS & SUGGESTIONS

Compress the "white space" in your hiring process.

White Spaces are delays in hiring process that are unproductive, waste time, and virtually assureyou'll lose talented candidates. Often the longest delays occur between critical selection events.


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For example, a recruiter may need several weeks to screen a few hundred resumes from theWeb job boards, or candidates who make it through screening may wait weeks to interview with ahiring manager.

Here at ICICI Prudential Life Insurance, the delays occur when the outstation candidates arecalled for interviews at Regional branches like Delhi and Mumbai. Sometimes, because of busyschedule of senior managers and sometimes because of tight schedule of candidate, theinterview has to be postponed. This delay could be minimized by scheduling interviews in theregional locations. It is recommended to reduce the turnaround time for the recruitment andselection process. It must be made mandatory for the candidates to take the test, filling up formsetc within the stipulated time, this will make sure that the candidates do not hold casual attitudeand take the recruitment process more seriously. Additionally it can send across a positive imageabout 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 unnecessarysteps and reducing delays.

Tie up with more & more consultants from multiple segments

Since the limited placement agencies are sourcing candidates to all insurance companies, thereoften 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 ofinterviews are rarely found suitable by the hiring managers. Therefore, in case there is need toutilize the service of a placement agency, then it is recommended that these placement agenciesbe given a well drafted job description and job specification. This can also be circulated to internalemployees under the employee referral scheme. This will help people to get a clearer picture andprovide 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 aftertaking these details from candidate its not sure that offer will be made or not. This also becomesfrustrating for the candidate sometimes. So, it is recommended that unnecessary details shouldnot be asked before we make the final offer to the candidate. Blue form should be made consise.

One size doesnt fits all

An effort must be made to study local condition, education levels. Since applying common test forall candidates across entire country can overshadow a candidates capabilities. This factor mustbe 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 structurecan be a hurdle in areas where language itself is barrier. An option is to have different tests fordifferent 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 withinhours. 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 includeonline 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


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candidates before your competitors can.

v It is recommended that apart from the person-job fit, method must be devised to check forperson-organization fit. A person-organization helps to assess how well a candidate is suited theorganization. Whether the attitude he/she carries will promote both organizational as wellpersonal goals. This takes a great importance especially when attrition is high. It will help theorganization to retain its employees for a longer period of time and less burden on recruitmentstaff.

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 companyand 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 theybecome available. How do you keep a pool active? Some companies send their newsletters topool candidates, give them product coupons, and keep in touch through e-mail. Poolmanagement is not easy in a tight labor market --good candidates often go elsewhere. But manyorganizations, especially those with a reputation as a great place to work, are able to fill positionsquickly 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 forinterview. Those who are not selected in the first round of personal interview should also carrythis impression that they have missed the opportunity to work in a great company. For this, theremust a proper coordination of the interview of the candidate and greater degree ofprofessionalism. A candidate when invited for a interview must be attended as soon as possibleand should be made to wait for hours together. Interviews conducted on a scheduled time leave agood impression on the candidate. Even if he is not selected, a good impression about the willmake him recommend the name to his people.

CONCLUSION

Insurance is confronted with high attrition rate. Therefore it makes recruitment a critical functionin the organization. In order to grow and sustain in the competitive environment it is important foran organization to continuously develop and bring out innovations in all it activities. It is only whenorganization is recognized for its quality that it can build a stability with its customers. Thus anorganization must be able to stand out in the crowd.

The first step in this direction is to ensure competitive people come in the organization. Thereforerecruitment in this regard becomes an important function. The organization must constantlyimprovise in its recruitment process so that it is able to attract best in the industry in order toserve the best. Thus the organization must look out for methods that can enable it to adopt bestrecruitment practices.

LEARNINGS

Every endeavor undertaken to accomplish challenging goals, can only be successful under theexperienced and encouraging guidance. I am privileged to have undergone training at ICICIPrudential Life Insurance. As learning never stops, my learning at Kotak has come from a lot ofexposure, on the job training and close interaction with the corporate. In brief my learning andachievements 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;


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Learned to convince candidates about the offer rolled out and making them accept the offerthrough 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.

http://www.allprojectsmba.com/RECRUITMENT%20AND%20SELECTION%20PROCESS%20OF%20ICICI%20PRUDENTIAL%20LIFE/recruitment%20and%20selection,%20summary,%20introduction%20of%20insurance%20 16/5/2011

http://www.citehr.com/research.php?q=Free-downlod-MBA-Project-on-Recruitment-and-Selection&pag=10 16/5/2011

http://www.citehr.com/research.php?q=Free-downlod-MBA-Project-on-Recruitment-and-Selection&pag=10(IMP 16/5/11)

Documents

IMP Project Document