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This is to certify that Mr. Daksha Yajaman C.N. , Mr. Ravi Aggarwal , Ms. Anjum
Jabeen and Ms. Ragini Kumari , all belonging to group E10 of Batch FW/2007-08, of
the Indian Institute of Planning and Management, Bangalore has successfully
completed their project on “ Recruitment and Retention issues in software
companies in Bangalore” under my guidance and supervision as fulfillment of her
course curriculum.

The assistance and help received during the research has been fully acknowledged.

Date:………… Dr. Jaishree Desai

Place: Bangalore (Research Guide)
Indian Institute of Planning and Management


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

views and ideas, suggestions and contributions of many people.

We take this opportunity to thank all the people whose cooperation and
encouragement made the completion of this research project a possibility.

First of all we wish to express my sincere gratitude and for all the support
throughout the project study to my research guide Dr. Jaishree Desai under whose
guidance the Research was undertaken. Without her supervision at each stage of
research, the task would not have been accomplished.

Last but not the least I wish to thank all the respondents who gave me some
of their valuable time to fill up the questionnaires, without which the Research
wouldn’t have been a success.

Date: ………………

Place: Bangalore GROUP E10

(Daksha Yajaman C.N.)

(Ravi Aggarwal)
(Anjum Jabeen)
(Ragini Kumari)


A firm should evaluate its recruitment and retention process along with all its other
human resource management activities. Collecting appropriate evaluation measures
on recruitment and retention efforts can help an organization to predict the time and
budget needed to fill future openings. Identify the recruiting and retention methods
that yield the greatest number and/or the greatest quality of candidates, and
evaluate the performance of each individual.

The granddaddy of all recruiting evalvuation measures is cost per hire, though speed
of filling vacancies is also an important measure. Nationwide insurance , a large
insurance , financial services firm and also the fast growing software industries in
Bangalore , recently benchmarked its recruiting methods and subsequently made a
number of improvements to the process. Improvements in the recruitment process
were needed to modify and improve the recruitment process. Many studies have
been done to study the recruitment process of the software companies.

Having identified employees or job categories where turnover would be especially

dysfunctional, organizations should be proactive in working to retain these people.
An increasing percentage of employers claimed to have strategies for promoting
retention and less percentage were developing strategies.

Most of the software industries retention policies are formal in nature. Positions such
as “Manager of recruiting and retention” have been created to emphasize the
importance of getting and then keeping high-quality staff.

A comprehensive retention management program must be built on accurate

information about why people are leaving a particular organization. In the absence of
such information, wrong conclusions may be drawn about the causes of departure
and ineffective means to combat it adopted. Employees say that the least important
factor in motivating them to quit is the availability of jobs that pay more. In fact the
reason why employees leave the job is because their job is underappreciated and not
recognized. The software industry should improve in this area, regardless of the
external labor market. Opportunities to move up and develop skills are also
important to employees , and with proper career planning, innovative career ladders,
mentoring, and employer provided training or tuition reimbursement programs, much
can be done in this areas as well.



IN company 26



4. INDUSTRY p 40






10. ANEXURE 67


Human resources is a term with which many organizations describe the combination
of traditionally administrative personnel functions with performance , Employee
Relations and resource planning. The field draws upon concepts developed in
Industrial/Organizational Psychology. Human resources has at least two related
interpretations depending on context. The original usage derives from political
economy and economics, where it was traditionally called labor, one of four factors
of production. The more common usage within corporations and businesses refers to
the individuals within the firm, and to the portion of the firm's organization that deals
with hiring, firing, training, and other personnel issues. This article addresses both

The objective of Human Resources is to maximize the return on investment from the
organization's human capital and minimize financial risk. It is the responsibility of
human resource managers to conduct these activities in an effective, legal, fair, and
consistent manner.

Human resource management serves these key functions:

1. Selection
2. Training and Development

3. Performance Evaluation and Management

4. Promotions

5. Redundancy

6. Industrial and Employee Relations

7. Record keeping of all personal data.

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

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

10.Career development

Human resources

Modern analysis emphasizes that human beings are not "commodities" or

"resources", but are creative and social beings that make class contributions beyond
'labor' to a society and to civilization. The broad term human capital has evolved to
contain some of this complexity, and in micro-economics the term "firm-specific
human capital" has come to represent a meaning of the term "human resources."

An extreme version of this view is that historical inequities such as African slavery
must be compensated by current developed nations, which benefited from stolen
"human resources" as they were developing. This is an extremely controversial view,
but it echoes the general theme of converting human capital to "human resources"
and thus greatly diminishing its value to the host society, i.e. "Africa", as it is put to
narrow imitative use as "labor" in the using society.

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

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

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

establish the relationship of employee engagement to productivity/performance and
other measures linked to effectiveness.

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

application of psychological theories, research methods, and intervention strategies
involving workplace issues) that validation studies should be anchored in reliable

scales (i.e. organized and related groups of items) and not simply focus on individual
elements in isolation. To understand how high levels of employee engagement affect
organizational performance/productivity it is important to have an a priori model that
demonstrates how the scales interact. There is also overlap between this concept
and those relating to well-being at work and the psychological contract.

As employee productivity is clearly connected with employee engagement, creating

an environment that encourages employee engagement is considered to be essential
in the effective management of human capital.

Advocating the central role of "human resources" or human capital in enterprises and
societies has been a traditional role of Human Resource socialist parties, who claim
that value is primarily created by their activity, and accordingly justify a larger claim
of profits or relief from these enterprises or societies. Critics say this is just a
bargaining tactic which grew out of various practices of medieval European guilds
into the modern trade union and collective bargaining unit.

A contrary view, common to capitalist parties, is that it is the infrastructural capital

and (what they call) intellectual capital owned and fused by "management" that
provides most value in financial capital terms. This likewise justifies a bargaining
position and a general view that "human resources" are interchangeable.

A sign of consensus on this latter point was the ISO 9000 series of standards which
in its 1994 revision could be understood to require procedures or a "job description"
of every participant in a productive enterprise. The 2000 revision of ISO 9001 in
contrast requires to identify the processes, their sequence and interaction, and to
define and communicate responsibilities and authorities. In general, heavily
unionized nations such as France and Germany have adopted and encouraged such
job descriptions especially within trade unions. One view of this trend is that a strong
social consensus on political economy and a good social welfare system facilitates
labor mobility and tends to make the entire economy more productive, as labor can
move from one enterprise to another with little controversy or difficulty in adapting.

An important controversy regarding labor mobility illustrates the broader

philosophical issue with usage of the phrase "human resources": governments of
developing nations often regard developed nations that encourage immigration or
"guest workers" as appropriating human capital that is rightfully part of the
developing nation and required to further its growth as a civilization. They argue that
this appropriation is similar to colonial commodity fiat wherein a colonizing European
power would define an arbitrary price for natural resources, extracting which
diminished national natural capital.
The debate regarding "human resources" versus human capital thus in many ways
echoes the debate regarding natural resources versus natural capital. Over time the
United Nations have come to more generally support the developing nations' point of
view, and have requested significant offsetting "foreign aid" contributions so that a
developing nation losing human capital does not lose the capacity to continue to
train new people in trades, professions, and the arts.

An extreme version of this view is that historical inequities such as African slavery
must be compensated by current developed nations, which benefited from stolen
"human resources" as they were developing. This is an extremely controversial view,
but it echoes the general theme of converting human capital to "human resources"
and thus greatly diminishing its value to the host society, i.e. "Africa", as it is put to
narrow imitative use as "labor" in the using society.

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

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

A sign of consensus on this latter point was the ISO 9000 series of standards which
in its 1994 revision could be understood to require procedures or a "job description"
of every participant in a productive enterprise. The 2000 revision of ISO 9001 in
contrast requires to identify the processes, their sequence and interaction, and to
define and communicate responsibilities and authorities. In general, heavily
unionized nations such as France and Germany have adopted and encouraged such
job descriptions especially within trade unions. One view of this trend is that a strong
social consensus on political economy and a good social welfare system facilitates
labor mobility and tends to make the entire economy more productive, as labor can
move from one enterprise to another with little controversy or difficulty in adapting.

An important controversy regarding labor mobility illustrates the broader

philosophical issue with usage of the phrase "human resources": governments of
developing nations often regard developed nations that encourage immigration or
"guest workers" as appropriating human capital that is rightfully part of the
developing nation and required to further its growth as a civilization. They argue that

this appropriation is similar to colonial commodity fiat wherein a colonizing European
power would define an arbitrary price for natural resources, extracting which
diminished national natural capital.

The traditional but extremely narrow context of hiring, firing, and job description is
considered a 20th century anachronism. Most corporate organizations that compete
in the modern global economy have adopted a view of human capital that mirrors
the modern consensus as above. Some of these, in turn, deprecate the term "human
resources" as useless.

In general the abstractions of macro-economics treat it this way - as it characterizes

no mechanisms to represent choice or ingenuity. So one interpretation is that "firm-
specific human capital" as defined in macro-economics is the modern and correct
definition of "human resources" - and that this is inadequate to represent the
contributions of "human resources" in any modern theory of political economy.

Human resource management (HRM) is the strategic and coherent approach to the
management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the
business. The terms "human resource management" and "human resources" (HR)
have largely replaced the term "personnel management" as a description of the
processes involved in managing people in organizations. Human Resource
management is evolving rapidly. Human resource management is both an academic
theory and a business practice that addresses the theoretical and practical
techniques of managing a workforce.


Its features include:

Personnel administration
Personnel management

Manpower management

Industrial management

But these traditional expressions are becoming less common for the theoretical
discipline. Sometimes even industrial relations and employee relations are
confusingly listed as synonyms although these normally refer to the relationship
between management and workers and the behavior of workers in companies.

The theoretical discipline is based primarily on the assumption that employees are
individuals with varying goals and needs, and as such should not be thought of as
basic business resources, such as trucks and filing cabinets. The field takes a positive
view of workers, assuming that virtually all wish to contribute to the enterprise
productively, and that the main obstacles to their endeavors are lack of knowledge,
insufficient training, and failures of process.

HRM is seen by practitioners in the field as a more innovative view of workplace

management than the traditional approach. Its techniques force the managers of an
enterprise to express their goals with specificity so that they can be understood and
undertaken by the workforce, and to provide the resources needed for them to
successfully accomplish their assignments. As such, HRM techniques, when properly
practiced, are expressive of the goals and operating practices of the enterprise
overall. HRM is also seen by many to have a key role in risk reduction within

Synonyms such as personnel management are often used in a more restricted sense
to describe activities that are necessary in the recruiting of a workforce, providing its
members with payroll and benefits, and administrating their work-life needs. So if we
move to actual definitions, Torrington and Hall (1987) define personnel management
as being:

“a series of activities which: first enable working people and their employing
organisations to agree about the objectives and nature of their working relationship
and, secondly, ensures that the agreement is fulfilled" (p. 49).

While Miller (1987) suggests that HRM relates to:

".......those decisions and actions which concern the management of employees at all
levels in the business and which are related to the implementation of strategies
directed towards creating and sustaining competitive advantage" (p. 352).

Academic theory

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

strategic goals by attracting, and maintaining employees and also to manage them
effectively. The key word here perhaps is "fit", i.e. a HRM approach seeks to ensure
a fit between the management of an organization's employees, and the overall
strategic direction of the company (Miller, 1989).

The basic premise of the academic theory of HRM is that humans are not machines,
therefore we need to have an interdisciplinary examination of people in the
workplace. Fields such as psychology, industrial engineering, industrial and
organizational psychology, industrial relations, sociology, and critical theories:
postmodernism, post-structuralism play a major role. Many colleges and universities
offer bachelor and master degrees in Human Resources Management.

One widely used scheme to describe the role of HRM, developed by Dave Ulrich,
defines 4 fields for the HRM function:

Strategic business partner

Change agent

Employee champion


However, many HR functions these days struggle to get beyond the roles of
administration and employee champion, and are seen rather as reactive than
strategically proactive partners for the top management. In addition, HR
organizations also have the difficulty in proving how their activities and processes
add value to the company. Only in the recent years HR scholars and HR
professionals are focusing to develop models that can measure if HR adds value. [7]

Critical Academic Theory

Postmodernism plays an important part in Academic Theory and particularly in

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

Critical Theory also questions whether HRM is the pursuit of "attitudinal shaping"
(Wilkinson 1998), particularly when considering empowerment, or perhaps more
precisely pseudo-empowerment - as the critical perspective notes. Many critics note
the move away from Man as Machine is often in many ways, more a Linguistic
(discursive) move away than a real attempt to recognise the Human in Human
Resource Management.

Critical Theory, in particular postmodernism (poststructualism), recognises that
because the subject is people in the workplace, the subject is a complex one, and
therefore simplistic notions of 'the best way' or a unitary perspectives on the subject
are too simplistic. It also considers the complex subject of power, power games, and
office politics. Power in the workplace is a vast and complex subject that cannot be
easily defined. This leaves many critics to suggest that Management 'Gurus',
consultants, 'best practice' and HR models are often overly simplistic, but in order to
sell an idea, they are simplified, and often lead Management as a whole to fall into
the trap of oversimplifying the relationship.

Life insurance industry

Two studies of employees in the life insurance industry examined the impact of
employee perceptions that they had the power to make decisions, sufficient
knowledge and information to do the job effectively, and rewards for high
performance. Both studies included large samples of employees (3,570 employees in
49 organizations and 4,828 employees in 92 organizations). In both studies, high-
involvement management practices were positively associated with employee
morale, employee retention, and firm financial performance [3]. Watson Wyatt found
that high-commitment organizations (one with loyal and dedicated employees) out-
performed those with low commitment by 47% in the 2000 study and by 200% in
the 2002 study.[8]

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

establish the relationship of employee engagement to productivity/performance and
other measures linked to effectiveness.

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

application of psychological theories, research methods, and intervention strategies
involving workplace issues) that validation studies should be anchored in reliable
scales (i.e. organized and related groups of items) and not simply focus on individual
elements in isolation. To understand how high levels of employee engagement affect
organizational performance/productivity it is important to have an a priori model that
demonstrates how the scales interact. There is also overlap between this concept
and those relating to well-being at work and the psychological contract.

As employee productivity is clearly connected with employee engagement, creating

an environment that encourages employee engagement is considered to be essential
in the effective management of human capital.


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

Gerard Seijts and Dan Crim, " employees attitude toward the job['s
importance] and the company had the greatest impact on loyalty and customer
service then all other employee factors combined."

Employee clarity of job expectations. "If expectations are not clear and basic
materials and equipment not provided, negative emotions such as boredom or
resentment may result, and the employee may then become focused on surviving
more than thinking about how he can help the organization succeed."

Career advancement/improvement opportunities. "Plant supervisors and

managers indicated that many plant improvements were being made outside the
suggestion system, where employees initiated changes in order to reap the
bonuses generated by the subsequent cost savings."

Regular feedback and dialogue with superiors. "Feedback is the key to giving
employees a sense of where they’re going, but many organizations are
remarkably bad at giving it." [4] "'What I really wanted to hear was 'Thanks. You
did a good job.' But all my boss did was hand me a check.'"

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

employees' relationship with their managers is fractured, then no amount of
perks will persuade the employees to perform at top levels. Employee
engagement is a direct reflection of how employees feel about their relationship
with the boss."

Perceptions of the ethos and values of the organization. "'Inspiration and

values' is the most important of the six drivers in our Engaged Performance
model. Inspirational leadership is the ultimate perk. In its absence, [it] is unlikely
to engage employees."

Effective Internal Employee Communications - which convey a clear

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


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

candidates for employment and stimulating them to apply for jobs in the
organisation”. Recruitment is the activity that links the employers and the job
seekers. A few definitions of recruitment are:

 A process of finding and attracting capable applicants for employment. The

process begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of applications from which new employees are

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

staffing schedule and to employ effective measures for attracting that manpower in
adequate numbers to facilitate effective selection of an efficient working force.

Recruitment of candidates is the function preceding the selection, which helps create
a pool of prospective employees for the organisation so that the management can
select the right candidate for the right job from this pool. The main objective of the
recruitment process is to expedite the selection process.

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

qualified applicants for the future human resources needs even though specific
vacancies do not exist. Usually, the recruitment process starts when a manger
initiates an employee requisition for a specific vacancy or an anticipated vacancy.

PLANNED i.e. the needs arising from changes in organization and retirement


Anticipated needs are those movements in personnel, which an organization can

predict by studying trends in internal and external environment.

Resignation, deaths, accidents, illness give rise to unexpected needs.

Purpose & Importance Of Recruitment

 Attract and encourage more and more candidates to apply in the organisation.

 Create a talent pool of candidates to enable the selection of best candidates for
the organisation.

 Determine present and future requirements of the organization in conjunction

with its personnel planning and job analysis activities.

 Recruitment is the process which links the employers with the employees.

 Increase the pool of job candidates at minimum cost.

 Help increase the success rate of selection process by decreasing number of

visibly under qualified or overqualified job applicants.

 Help reduce the probability that job applicants once recruited and selected will
leave the organization only after a short period of time.

 Meet the organizations legal and social obligations regarding the composition of
its workforce.

 Begin identifying and preparing potential job applicants who will be appropriate
 Increase organization and individual effectiveness of various recruiting techniques
and sources for all types of job applicants


Employee Retention involves taking measures to encourage employees to remain in

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

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

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

Importance Of Employee Retention

Now that so much is being done by organizations to retain its employees, why is
retention so important? Is it just to reduce the turnover costs? Well, the answer is a

definite no. It’s not only the cost incurred by a company that emphasizes the need of
retaining employees but also the need to retain talented employees from getting

The process of employee retention will benefit an organization in the following ways:

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

thousands of money to a company's expenses. While it is difficult to fully
calculate the cost of turnover (including hiring costs, training costs and
productivity loss), industry experts often quote 25% of the average employee
salary as a conservative estimate.

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

him valuable knowledge about the company, customers, current projects and
past history (sometimes to competitors). Often much time and money has
been spent on the employee in expectation of a future return. When the
employee leaves, the investment is not realized.

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

with a company in part because of the people. Relationships are developed
that encourage continued sponsorship of the business. When an employee
leaves, the relationships that employee built for the company are severed,
which could lead to potential customer loss.

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

effect is felt throughout the organization. Co-workers are often required to
pick up the slack. The unspoken negativity often intensifies for the remaining

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

the attrition rates are low. Higher retention rates motivate potential
employees to join the organization.

6. Regaining efficiency: If an employee resigns, then good amount of time is

lost in hiring a new employee and then training him/her and this goes to the
loss of the company directly which many a times goes unnoticed. And even
after this you cannot assure us of the same efficiency from the new employee

What Makes Employee Leave?

Employees do not leave an organization without any significant reason. There are
certain circumstances that lead to their leaving the organization. The most common
reasons can be:

 Job is not what the employee expected to be: Sometimes the job
responsibilities don’t come out to be same as expected by the candidates.
Unexpected job responsibilities lead to job dissatisfaction.

 Job and person mismatch: A candidate may be fit to do a certain type of
job which matches his personality. If he is given a job which mismatches his
personality, then he won’t be able to perform it well and will try to find out
reasons to leave the job.
 No growth opportunities: No or less learning and growth opportunities in
the current job will make candidate’s job and career stagnant.

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

employee feels de-motivated and loses interest in job.

 Lack of trust and support in coworkers, seniors and management:

Trust is the most important factor that is required for an individual to stay in
the job. Non-supportive coworkers, seniors and management can make office
environment unfriendly and difficult to work in.

 Stress from overwork and work life imbalance: Job stress can lead to
work life imbalance which ultimately many times lead to employee leaving the

 Compensation: Better compensation packages being offered by other

companies may attract employees towards themselves.

 New job offer: An attractive job offer which an employee thinks is good for
him with respect to job responsibility, compensation, growth and learning etc.
can lead an employee to leave the organization.

Employee Retention Strategies

The basic practices which should be kept in mind in the employee retention
strategies are:

1. Hire the right people in the first place.

2. Empower the employees: Give the employees the authority to get things

3. Make employees realize that they are the most valuable asset of the

4. Have faith in them, trust them and respect them.

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

9. Create an environment where the employees want to work and have fun.

These practices can be categorized in 3 levels: Low, medium and high level.

Recruitment and Retention Issues in companies

Recruitment & retention problems on the rise

Recruitment pressures have increased by more than 20 per cent during the past
twelve months, despite the economic slowdown and wave of redundancies.

According to the Chartered Institute of Personnel and Development (CIPD), the

problem exists across all sectors and regions with more than nine out of ten of the
557 organisations surveyed experiencing difficulties.

The CIPD’s survey confirms the trend of the ‘3Rs effect’, where mass redundancy co-
exists alongside recruitment and retention difficulties.

The three main causes of the problem include a lack of specialist skills, poor quality
applicants and pay inflexibility, all of which are particularly acute in the public sector.
The cost of living is also cited as a major reason - in London and the South East in

Meanwhile, the number of organisations reporting retention difficulties has jumped

even more markedly in the past year from half in 2002 to more than seven out of
ten this year.

The problem is even more acute in the public sector, where more than eight out of
ten report problems. Retaining administrative staff is also proving difficult. And more
organisations in London report retention difficulties than in any other UK region.

Angela Baron, CIPD Adviser on Employee Resourcing and the survey's co-ordinator
comments, "Recruiting and retaining staff remains HR's biggest challenge in spite of
the economic downturn. While some may see this as surprising, a combination of low
unemployment and a massive expansion in public sector recruitment has meant that
staff at all levels, in all sectors and in all regions are difficult to recruit and retain.

"The problems are particularly acute in the public sector where the demand for
trained specialist staff currently exceeds supply. However, this should even itself out
over time as more trained staff come on stream."

One result of these recruitment and retention problems is that employers are now
more prepared to train new recruits and lower the level of experience required.
Seven out of ten organisations now say that they will appoint people with potential
who do not currently meet the job requirements, while the use of coaching and
mentoring has also increased sharply.

Although more than a third of organisations have improved their starting salaries to
recruit staff, the number that have increased pay to retain staff has dropped, a
reflection of difficult economic conditions.

But this pay inflexibility has led to almost a half of organisations losing candidates,
with the public sector the biggest loser. More than six out of ten public sector
organisations see pay as a major issue.

On the flip side, however, a greater emphasis on work-life balance has become the
public sector’s key retention weapon. Half of public sector organisations offer flexible
working hours compared with just a quarter of manufacturing and production
organisations. Half of not-for-profit and public service organisations also offer both
family-friendly and work-life balance provisions beyond the legal minimum.

When staff do decide to leave, three-quarters of organisations monitor the findings

from exit interviews and six out of ten use staff attitude surveys. But less than a
third monitor the financial cost of replacing leavers.

R2 = EOC (Recruitment and Retention = Employer of Choice)

Problems with staffing and retention may not be due to bad hires or a low
unemployment rate.
In fact, they may be related to poor management insight by not recognizing your
employees as a core competency in your business strategy. Although employees may
not fit the strictest definition of a core competency, it is a fact that your employees
are the ones responsible for creating many of your core competencies. It is an
undisputable fact that failure to recognize the importance of employee contributions
will lead to failure regardless of your business strategy.

Recruitment and Retention

Creating a strategic plan and definitive initiatives is the easy part of the formula for
success. The difficult part is finding, recruiting and retaining the appropriate talent
combination in today's market to carry out that plan. Recruitment and retention are
major issues in most industries today. These issues are especially critical to the
wholesale distribution industry for two reasons:

First, wholesale distribution is one of our aged-basic industries that doesn't

necessarily project the excitement of the high-tech industries and the dot coms of
the new millennium (even though many have crashed and burned).

Second, the number of employees between the ages of 25 and 44, traditionally the
bulk of the workforce, will continue to decline in the United States for at least the
next five years. The baby-boomers are aging quickly toward retirement.

Under these circumstances, how in the world does a company not only recruit new
talent, but protect the talent they have? Questions about compensation, training,
incentives, benefits and work environment always come to the forefront. The answer
is committing to becoming an employer of choice (EOC) with as much tenacity as
you commit to being a supplier of choice, always wanting the first call and last look.

Many company executives pay far too little attention to this part of their businesses.
Often the mindset is that this is the "touchy-feely" stuff that's a non-revenue
producing necessary evil. Maybe that thought process didn't hurt the company in the
80's or early 90's when unemployment in some areas reached 10%, but that's not
the case today where the labor unemployment rate in many markets is less than 4%.
When unemployment is that low, most people who are unemployed just don't want
to work. As a result, there is a lot of corporate raiding going on. Even with the recent
massive layoff announcements by the automotive industry and some high-tech
industries, unemployment remains at a level that just is not conducive to recruitment
and retention.

Going on midnight raids? Offering BMWs as signing bonuses? Paying way above
market wages? NO, the answer is building a human resource strategy into your

business plan. Get over the old paradigm that human resource departments are too
costly and of little value. In fact, those companies that adopt that philosophy actually
spend more money by having highly compensated managers, particularly sales
managers, running ads, receiving resumes and doing preliminary interviews when
they should be selling. The costs associated with that process as well as the revenue
lost due to extended position vacancies inevitably far exceeds the annual costs of
dedicated human resource professionals. Secondly, a huge percentage of new hires
will jump ship within 18 months if they sense the company is not committed to its
employees. They will jump if the company does not accept them into the fold
properly by offering initial orientation, subsequent training and a culture that treats
the employee as the company's most precious assets.

The question is not, "Can you afford to invest in this soft touchy-feely stuff?" The
question becomes, "Can you afford to not invest in your most important asset, your

The old paradigm creates a bias against paying attention to the human element of
the workforce. Many company executives that do strategic business plans initiate
from the top down instead of the bottom up often ignoring the real value of a
strategic plan. The real value is the involvement and education of your employees in
completing the plan, not in the document itself.

Are you at the mercy of your workforce?

This bias that exists in many companies is almost as though admitting that
employees are the most precious of corporate assets will lead to an anarchy on
which owners and managers will fall at the mercy of the workforce. Well, shake your
head in disbelief if you want to, but the reality of the situation is that you are at the
mercy of your workforce. The rules have to continue to change. If you aren't willing
to admit that and get your head in the game then you won't survive in the new

"People are not profits but without people there are no profits."

Some companies recognized their dilemma years ago. Many of the top performers in
your industry are at the top because they strive to be employers of choice. These are
forward thinking companies that have found solutions to their recruitment and
retention challenges. Following in their footsteps requires an initial "gut check."
Honestly ask yourself how your employees would answer questions like:

Do you receive counseling on a career plan?

Is there a current wage and salary plan in place?

Do performance incentives exist?

Do you receive regular training and instruction?

Do you receive performance updates and recognition beyond a once a year chat with
your boss?

Does customer feedback play a role in performance evaluations?

Are suggestions reviewed and awarded?

Is there both a formal and informal communication channel?

These questions relate to the basic core competencies of human resources: staffing,
training, rewarding, recognizing and organizing. The business strategic plan cannot
succeed without paying attention to this part of the business. You must facilitate
your employees' involvement and feedback into this process. This basic premise in
implementation across steel service centers varies according to size. The same plan
for a $20 million privately held company would not work for a $500 million private or
public company.. EOC

To solve your recruitment and retention problems you must strive to become an
Employer of Choice. To accomplish that objective you must have a Human Resources
strategy that is integrated into your corporate strategic plan that acknowledges and
recognizes the employees as the company's most precious asset. R2 = EOC

Recruitment Policy Of a Company

In today’s rapidly changing business environment, a well defined recruitment policy

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

It specifies the objectives of recruitment and provides a framework for

implementation of recruitment programme. It may involve organizational system

to be developed for implementing recruitment programmes and procedures by
filling up vacancies with best qualified people.

The sort of careers available in HRM are varied. There are generalist HRM jobs such
as human resource assistant. There are careers involved with employment,
recruitment and placement and these are usually conducted by interviewers, EOE
(Equal Opportunity Employment) specialists or college recruiters. Training and
development specialism is often conducted by trainers and orientation specialists.
Compensation and benefits tasks are handled by compensation analysts, salary
administrators, and benefits administrators.

Human resource policies are systems of codified decisions, established by an

organization, to support administrative personnel functions, performance
management, employee relations and resource planning.

Each company has a different set of circumstances, and so develops an individual set
of human resource policies.


 The general recruitment policies and terms of the organisation

 Recruitment services of consultants

 Recruitment of temporary employees

 Unique recruitment situations

 The selection process

 The job descriptions

 The terms and conditions of the employment

A recruitment policy of an organisation should be such that:

 It should focus on recruiting the best potential people.

 To ensure that every applicant and employee is treated equally with dignity
and respect.

 Unbiased policy.

 To aid and encourage employees in realizing their full potential.

 Transparent, task oriented and merit based selection.

 Weightage during selection given to factors that suit organization needs.

 Optimization of manpower at the time of selection process.

 Defining the competent authority to approve each selection.

 Abides by relevant public policy and legislation on hiring and employment


 Integrates employee needs with the organisational needs.


 Organizational objectives

 Personnel policies of the organization and its competitors.

 Government policies on reservations.

 Preferred sources of recruitment.

 Need of the organization.

 Recruitment costs and financial implications.


Eligibility for an Insurance Agent

Every person who has cleared higher secondary examination can become
an Agent other than a minor or the person who is convicted in any court
for crime or any legal proceedings. Men and women both can work as an
Agent. A single person can be associated with other life insurance
A training program is there to train a person who wants to become an
Agent. There is 100 Hrs. training program which can be done either with
the physical appearance in the class room or the interest basis. In the
classroom training the trainee has to be physically present in the training
session. There are difference sessions of training program. A trainee can
attend any session according to his comfort. The training period is of 25
days approx. If the trainee does not have enough time to devote in the
classroom training, then there is another option left that is training on

On the basis of Internet the trainee has provided a login number along
with the password through which he operated his login and completed his
training hrs. as convenient. Each and every hour pass on the net under his
login head will be count on his account. The test for the training program
is also on line. This is only procedure to be an Insurance Agent.
Work of financial consultant:
The FC is the interface between the customer and insurance
company. l The agent should be able to accomplish the following
 Assessing and analyzing the clients risk profile.
 Finding the best product or products available in the market.
 Negotiating the best deal available.
 Continuity of service throughout the period of insurance.

Role of a Financial Consultant

1. Meet people and present service

2. Understand their financial need
3. Customizes life insurance plans
4. Provide efficient after- sales support
5. Helps customers protect their lifestyle, realize their dreams and
enjoy their lives

Opportunity to a Financial Consultant

 Realize their dream.
 Flexible work hours.
 100% self -decide income.
 Financial Independence to live with self respect.
 Be your Boss.

Business Opportunity to a Financial Consultant

Ensuring peace of mind and quality of life for the millions of people
around you.

Offers to a Financial Consultant

An exciting career that can change your life.

Recruitment of Financial consultant (FCs) of a excellent profile and their

retention strategies and what are their benefit that company going to
provided for retention of their FCs.

 What type of people are we looking for ?

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

 Reputation for providing the higher standards of customer

 Financial Strength of the partners.
 Brand value and the reputation of the partners standard life:
 175 years experience in life insurance.
 Largest mutual life insurer in Europe.
 Product innovation.
Strategies: Strategies Employed to achieve the target are as follows:-
 Telecalling
 Contacting the person directly (interview)
 Collect references.
Some important steps to make effective telecalling:-
Open the call in a friendly and positive way.
State the name, position and company name.
Check the prospect has time to speak.

State the reason for the call.
Clearly succinctly explain how the meeting will be benefiting the

Recruited eight financial consultants for company.
Increase in confidence level.
Got the knowledge about, how to differentiate our product form that of
Made more and more people aware about my companies Products
Taken some appointments for policies and got positive response from 8
persons with the help of my BDM.

Steps in recruitment of Insurance Agents
 Approach to the likely person
 Appointment as per condition
 Discuss the topic

 Give the documents which includes:-

1. Prospectus of the company
2. Brochure
3. Company’s plan
4. Questionnaire
 Collect the document after it’s completion
 Forward it to project manager
 Feed it in the computer as the database
 Follow up as per conditions
Modes of Contact
 Personal Contacts
 References
 Phone Calls
 Guidance as per Unit Manager


Financial consultant, the right way to start career:

As a financial consultant the role will be to identify prospective customer.
You will makes presentation, as to how you can help analyses their
financial needs, provide customize financial solution to cater to their
respective needs and conduct reviews on regular basis to keep
customers on thank.

Easy way to start on career:

Zero investment: There is no start-up capital. Be an own boss with a
flexible working environment, unlimited earning potential and the
opportunity to be part of world class sales team.

Flexible work timings, part time or full time: FCs can work
whenever he likes and from whereeve4r he like, FCs can work full time
depending on their convenience its like no other job however, the time.

Sunrise industry: Life insurance in India has a huge potential for

growth Statistics reveal that only 25% of the insurable population in
India is insured and those insured are in need of still higher insurance
cover. The over 100% growth displayed by private life insurers indicates
this hu7ge untapped potential.

Strong Partnership:
A powerful brand – HDFC Standard Life Insurance:

We were the first private life insurance company to be granted a license

by IRDA.

We have been rated by business world magazine. As Indies most

respected private life insurance company 2004.

We have grown over 130% in the last and more than 8 Lakhs policy
holder. HDFC standard life insurance has one of the highest brand recall
of around 80%


At HDFC standard training is an inherent element of our support system

for FCs. Some of our training and support initiative are as:

IRDA Training: Online training of 100 hrs. prepares for career as FCs and
enables to pass the IRDA examination. After the IRDA license, first step
towards a successful career as a FC.

Basic Training and Induction: Independence of work experience, this

training will give perfect knowledge about the insurance industry along
with comprehensive knowledge about the insurance along with
comprehensive knowledge abut HDFC SLIC Product.

Disha training: This is a professional sales skill program eased by us to

one selling skills. Those program enable to understand customer need
and provide need based insurance solution.. A huge step from an
amateur to a true finance professional.

Advance Training: Once Fc have settled down as a FC professional we

will continuously upgrade capability and knowledge through
sophisticated training program, fit for this dynamic world of financial
products and markets.


Insurance Industry is emerging in a big way in both the Indian and

the overseas market and is on a recruitment spree to absorb the
talented, skilled and performance driven individuals for the
industry. There is a tendency among the recruiters to employ
skilled workers. The penchant of the insurance industry to recruit
form Indian can be att ributed to a variety of reasons..

India is a repository of talent and the global corporati ons have
immense confi dence in the skill of the employers recruited from
India. In the past couple of years a sudden growth has been
noti ced in recruitment from India by the insurance companies that
operate globally. This has also helped in the creati on of a
considerable number of job vacancies in the insurance industry.
India has one of the largest Higher Educati on System in the World.
Therefore hiring Indians enable the Insurance Companies to keep
a step ahead of their competi tors. Skilled and competent
employees can be hired by the Insurance Industry at a minimum
cost from India. Infact that Insurance Industry recruitment from
India is closely related to the fact that apart from featuring as one
of the major recruitment markets in the world, India is also a
country that boasts of skill diversity. The Indian professionals are
innovati ve, dedicated and talented individuals who are preferred
all across the globe and across myriad job arenas.

Being an Insurance Agent of HDFC-STANDARD LIFE INSURANCE provides

a legal mean to earn money which protects a person from earning
through a illegal source which is harmful for society as well as himself.
For the youngsters it provides great platform to prove them. On the
basis of their performance they can be recruited as unit manager.
Its recruitment procedure is very easy.


Recruitment helps a company to achieve its objective from time to time

by creating a positive attitude among workers. Reducing wastage and
making maximum use of resources etc.

Allocating the jobs to the right person :-

If proper recruitment and selection methods are followed, the company

will be able to select the right people for the right job. When this
happens the number of people leaving the job will reduce as the will be
satisfied with their job leading to decrease in labour turnover

To know the benefits of Recruitment to the employees with respect to

welfare activities


Some of the limitations of the study include:

 The sample size. We restricted ourselves to samples. And due to this errors
while would have arisen in analyzing the data since important data’s were not

 There was also a time constraint. There was little time given to complete the
project since we were doing our internship as well at the same time.

 Most of the people whom we surveyed did not give out sufficient information
which could have been useful to our project.

 We restricted our research to hyderabad city only. We had taken 40 surveys

of employees of company .



Insurance sector in India is one of the booming sectors of the economy

and is growing at the rate of 15-20 per cent annum. Together with
banking services, it contributes to about 7 per cent to the country's GDP.
Insurance is a federal subject in India and Insurance industry in India is
governed by Insurance Act, 1938, the Life Insurance Corporation Act,
1956 and General Insurance Business (Nationalisation) Act, 1972,
Insurance Regulatory and Development Authority (IRDA) Act, 1999 and
other related Acts.

Historical Perspective

1. In 1818 it was conceived as a means to provide for English

2. The Bombay Mutual Life Insurance Society started its business in

3. It was the first company to charge same premium for both Indian
and non-Indian lives.

4. The Oriental Assurance Company was established in 1880.

5. Till the end of nineteenth century insurance business was almost

entirely in the hands of overseas companies.

6. Insurance regulation formally began in India with the passing of

the Life Insurance Companies Act of 1912 and the provident fund
Act of 1912.

7. Several frauds during 20's and 30's sullied insurance business in


8. By 1938 there were 176 insurance companies.

9. The first comprehensive legislation was introduced with the

Insurance Act of 1938 that provided strict State Control over
insurance business.

10.The insurance business grew at a faster pace after independence.

11.The Government of India in 1956, brought together over 240
private life insurers and provident societies under one nationalized
monopoly corporation and Life Insurance Corporation (LIC) was

12.Nationalization was justified on the grounds that it would create

much needed funds for rapid industrialization.

Insurance sector in India was liberalized 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.
There is a 26 percent equity cap for foreign partners in an insurance
company. There is a proposal to increase this limit to 49 percent. The
opening up of the insurance sector has led to rapid growth of the sector.
Presently, there are 16 life insurance companies and 15 non-life
insurance companies in the market. The potential for growth of
insurance industry in India is immense as nearly 80 per cent of Indian
population is without life insurance cover while health insurance and
non-life insurance continues to be well below international standards.


 Size of Market, Life and Non- Life:

$8 Billion a year

 Rate of Annual Growth :

Average of 20% for Life and 12% for Non-Life (1990-99)

 Geographical Restriction for New Players:

None. Players can operate all over the country.

 Equity Restriction in a New Indian Insurance Company :

Foreign promoter can hold up to 26%.

 Registration Restriction:
Composite Registration not available.

 Market Opening:
August 2000 with invitation for application for registration.

 Number of Registered Companies:

Type of Business Public Sector Private Sector Total

Life Insurance 01 12 13

General Insurance 04 09 13

Reinsurance 01 0 01

Total 06 21 27

 New Registration Awarded:

Twenty-one New Registrations issued:

Life Insurance:
1. Allianz Bajaj Life Insurance Company Limited.

2. *Birla Sun-Life Insurance Company Limited.

3. *HDFC Standard Life Insurance Company Limited.

4. *ICICI Prudential Life Insurance Company Limited.

5. ING Vysya Life Insurance Company Limited.

6. *Max New York Life Insurance Company Limited.

7. Metlife Insurance Company Limited.

8. Om Kotak Mahindra Life Insurance Company Ltd.

9. *SBI Life Insurance Company Limited.

10.*TATA AIG Life Insurance Company Limited.

11. AMP SAN MAR Insurance Company Limited.

12. Dabur CGU Life Insurance Company Private Ltd.

General Insurance
1. Bajaj Allianz General Insurance Company Limited.

2. ICICI Lombard General Insurance Company Ltd.

3. *IFFCO-Tokio General Insurance Company Ltd.

4. *Reliance General Insurance Company Limited.

5. *Royal Sundaram Alliance Insurance Company Ltd.

6. *TATA AIG General Insurance Company Limited.

7. Cholamandalam General Insurance Company Ltd.

8. Export Credit Guarantee Corporation Limited.

9. HDFC-Chubb General Insurance Company Limited.

 Business of New Players:

Expected to take up a market share of 4-5% in three years.


HDFC Standard Life Insurance Company Ltd.

HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC

has since emerged as the largest residential mortgage finance institution
in the country The corporation has had a series of share issues raising its
capital to Rs. 119 crores. The gross premium income for the year ending
March 31, 2007 stood at Rs. 2, 856 crores and new business premium
income at Rs. 1,624 crores. The company has covered over 8,77,000 lives
year ending March 31, 2007.

HDFC operates through almost 450 locations throughout the country

with its corporate head quarters in Mumbai, India. HDFC also has an
International Office in Dubai, UAE, with service associates in Kuwait,
Oman and Qatar.

HDFC is the largest housing Company in India for the last 27 years.

About HDFC, Standard Life & Joint Venture


Standard Life is Europe’s largest mutual life assurance company. Standard
Life, which has been in the life insurance business for the past 175 years
is a modern company surviving quite a few changes since selling its first
policy in 1825. The company expanded in the 19 th century from kits
original Edinburgh premises, opening offices in other towns and
acquitting other similar businesses.

Standard Life Currently has assets exceeding over £ 70 billion under its
management and has the distinction of being accorded “AAA” rating
consequently for the six years by Standard and Poor.


HDFC Standard Life Insurance Company Limited was one of the first
companies to be granted license by the IRDA to operate in life insurance
sector. Reach of the JV player is highly rated and been conferred with
many awards. HDFC is rated ‘AAA ’ by both CRISIL and ICRA. Similarly,
Standard Life is rated ‘AAA’ both by Moody’s and Standard and Poor’s.
These reflect the efficiency with which HDFC and Standard Life manage
their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. Respectively.

HDFC Standard Life Insurance Company Ltd was incorporated on 14 th

August 2000. HDFC is the majority stakeholder in the insurance JV with
81.4 %stale and Standard :of as a staple pf 18.6% Mr. Deepak Satwalekar
is the MD and CEO of the venture.

HDFC Standard Life Insurance Company Ltd. Is one of India’s leading
Private Life Insurance Companies., which offers a range of individual and
group insurance solutions. It is a joint venture between Housing
Development Finance Corporation Limited (HDFC Ltd.) India’s leading
housing finance institution and the Standard Life Assurance Company, a
leading provider of financial services from the United Kingdom. Both the
promoters are will known for their ethical dealings and financial strength
and are thus committed to being a long-term player in the life insurance
industry- all important factors to consider when choosing your insurer.


At HDFC Standard Life, we offer a bouquet of insurance solutions

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

For individuals, we have a range of protection, investment,

pension and savings plans that assist and nurture dreams apart
from providing protection. You can choose from a range of
products to suit your life-stage and needs.

For organisations we have a host of customised solutions that

range from Group Term Insurance, Gratuity, Leave Encashment
and Superannuation Products. These affordable plans apart from
providing long term value to the employees help in enhancing
goodwill of the company.

HDFC Standard Life – Achievements

 Inaugurated on 14th Aug 2000

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

 “Intelligent Enterprise” Award from Technology Senate

 First Private Life Insurance Co. to declare bonuses
 Bonus Declaration for 6 consecutive years from inception
 First Private Life Insurance Co. to introduce certification to sell Unit
Linked Policies
 First to implement Need Based Selling in insurance
 First Life Insurance Co. to introduce Fund with 100 % exposure to
 First Life Insurance Co. to offer 24 free switches to their Unit
Linked Policyholders


The most successful and admired life insurance company, which means
that we are the most trusted company, the easiest to deal with, offer
the best value for money, and set the standards in the industry. In short,

“The most obvious choice for all”

Values of HDFCSL

- Integrity - Innovation

- Customer Centric - People Care

- Team Work - Joy & Simplicity



1. HDFC Standard life insurance offers a range of individual
and group insurance solutions.

2. HDFC Standard Life has the financial expertise required to

manage your long-term investments safely and efficiently.

3. The company has covered over 8,77,000 lives year ending

March 31, 2007

4. Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive

year for High service standards

5. Life insurance industry is a rapid growing and a nobler

service industry.


1. LIC is prevalent and sustains even today a major source of


2. Low number of offices and network and number of life

insurance agents.

3. Lack of knowledge and expertise.


1. Life insurance has captured its mere15 – 20% growth

therefore a wide open untapped market is open to the
company to develop, grow and measure its success.

2. Still the number of companies are few and company has

every capabilities to grow and forward its performance
areas to the widest


1. People are hesitant to invest and put their hard earned

money to the private life insurance company with the fear
of getting lost.

2. Belief towards LIC as it is a government corporation phobia
is continue to surmount the people of India despite lots of
flaws and development and liberalization of life insurance.

3. Alternative financial services such as mutual fund, banking

services, share and securities also pose problems and
threats to the working of the life insurance sector.

4. Illiteracy and unemployment also pose threat.

5. Rising real estate industry also pose threat as people are

investing a bulk of their money over to that industry.


Research: - is a process of collecting, analyzing, interpreting and

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

Objective of training: - To understand life insurance and

recruitment of capable life insurance advisors for growth

Process: Methodology or process involving in the Research

followed during the course of summer training is as follows: -

a) Collection of data: - This is an important aspect in formulating

the objective of research process where the data is collected
via two process: - i) Primary Sources and ii) Secondary sources
i) Primary sources: - Where the data is collected primarily by
interviewing and personal observation and is original in
nature and accurate to the considerable extent.

ii) Secondary sources: -Where the data is obtained from some

published and printed sources such as newspaper,
magazines, websites and so on.

b) Analyzing of collected data: - The data collected through

market survey and published sources is then processed to
obtained necessary inferences and findings for the purpose of
achieving the objective as well as to derive necessary
conclusion. A considerable skill and knowledge is involved in
analyzing the data for the purpose of interpreting thereof.

c) Interpreting of data: - it is the significant step where the data

collected and analyzed is interpreted in the forms of graphs
and figures is depicted in the report called Project report.

d) Summarizing of data: - Thereby necessary summary is

prepared which is essential in the project report of the
summer training being done under an organization.

Helpful Arms of Research Methodology: -

Questionnaire is a set or group of questions being framed for the
purpose of obtaining market perspective about a particular
aspect or topic.

There are two types questionnaire bing carried necessary for the
market survey of the summer training being undertaken and put
for the by the trainee to the sample people taken as a base for
entire population:

a) Open ended Questionnaire: - where the people (also called

respondents) are required freedom to present their views and
suggestions for the benefits and success of the organization.

b) Close ended questionnaire: - where the respondents is limited

to the choice of answer being delivered by the interviewer
itself so that quick and fast means of responses be derived
out without wasting much time. Here close ended

questionnaire being followed by me during the course of the
summer training market survey.

Sampling: - Sampling is a process of obtaining a number of

individuals taken a base for the entire population since entire
population can not be asked about the necessary objective upon
which a questionnaire is put forth needed for the responses to be
derived for the purpose of generation of facts and customer view
point regarding their perception of particular product or services.

There are two type of sampling – i) Random Sampling and ii)

Systematic sampling.

i) Random sampling: - Random sampling is a process of

selecting the sample size randomly and no choice or
preference to be made about the selection of respondents
for the market survey and questionnaire to be put forth
against him. Here, Random sampling being adopted by me.

ii) Systematic sampling: - it is a sampling where the limited

number of selected respondents is figured out based on
some criteria so that only those respondents can be asked
for the purpose of filing questionnaire. Sample Size: -For
1to6 is 50 then is 150 respondents




The first question in the survey was to find out how many people were aware of the
recruitment policy of the organization. And this is the result as shown below.

 As shown in the pie graph above(in percentage) most of the people who said
yes make up 97% of the total people shown in.

 While 3% of the total people said they have no idea of the recruitment policy
of their organization.

 Most of the employees are aware of the recruitment policy of their

organization i.e.


There are different ways by which organizations recruit their employees. And an
analysis was made according to this after taking the surveys.

 The x-axis shows different ways, the company use to recruit their employees.

 The y-axis shows numbers (not in percentage) of how employees get

recruited in .

 29 respondents said their immediate boss recruits them , 22 respondents said

it was the recruitment agency, 21 respondents said it was a consultancy firm
and 12 said it was the panel of directors who recruits them.

 Only 1 respondent specified others i.e. he was the person responsible for
recruiting employees .


 The next question deals with the accuracy of the recruitment and retention
policy in the company.

This was split up into three different sectors--- 45%-50% ---- 55%-75% -----

 An accuracy of 75% was registered by 43% of the respondents which came

in top.

 An accuracy of between 55%-75% was registered by 20% of the


 An accuracy of between 45%-50% was registered by 37% of the


 This shows that the compny accuracy in their recruitment and retention
process is more than 75% by majority (43%).


 The next question deals with how much awareness the employees working in
a software company have about the retention policies of their organization.
 It seems that the respondents who were not aware of the retention policy
made up 55% of the total respondents.

 Respondents who were aware of the retention policy were less than those
who were aware of it. They made up 45% of the total respondents.


The next question deals with the different methods by which employees are retained
in the company.

 The bar graph shows that most of thecompany go for increasing the salary annually.

 The next popular one refers to the company perks.

 The third one is the frequent job rotations.

 The fouth one is bonuses.

 The fifth one is giving training to employees.

 The least popular among the 40 respondents working in different company were
methods like incentives and appraisals used in order to retain their employees.


 The next question was asked to find out whether the employees working in
the company think that the recruitment and retention policy are interrelated.

 As indicated by the pie chart 77% of the total respondents said “yes, the
recruitment and retention policy were indeed interrelated”.

 But 23% of the total respondents said “recruitment and retention policy were
not interrelated”.


 Next the respondents was asked to rate their organizations retention policy
as compared to the industry.

 40% agreed that it was about 60%

 52% agreed that it was about 50%

 And 8% agreed that it was rated above 70%


 Next the respondents were asked how successful the retention policy is in
their organization.

 Most of the respondents said that their retention policy were satisfactory as
opposed to it being good and very good.

 52% of the people said it(i.e. the retention policy) was satisfactory.

 43% of the people said it(i.e. the retention policy) was good.

 5% of the people said it(i.e. the retention policy) was very good.


 Next we asked respondents whether their recruitment system was centralized
or was it local.

 55% of the total respondents said the recruitment system is local.

 45% of the total respondents said the recruitment system is centralized.





GOOD 22 16

POOR 12 16

TOTAL 50 50


The above table shows that out of 50 respondents 16 told that the working environment
before Recruitment is average and 22 said it was good and remaining 12 said it was poor
after Recruitment only 16 respondents said that working environment in the company is


It can be observed that working environment was good before Recruitment, but the
difference is not much.




HEAVY 26 29

NORMAL 24 21

TOTAL 50 50


The above table shows that out of 50 respondents 26 told that the workload before
Recruitment was heavy and 24said that it was normal.

After Recruitment 29 respondents said that workload in the company is heavy.


It can be observed that there is no much change workload after Recruitment




YES 17 27

NO 33 23

TOTAL 50 50


The above table shows that out of 50 respondents 17 were satisfied & 33 were not satisfied
regarding welfare activities before Recruitment.

After Recruitment 27 respondents said that they are satisfied and remaining are not


It can be observed that the satisfaction regarding the welfare activities is more after
Recruitment.46%of employees after Recruitment are satisfied.


Is there the changes in terms of authority & freedom ?


YES 39

NO 11



The above table shows that out of 50 respondents 39 told that the authority & freedom is

Only 11 respondents said that authority and freedom in the company is changed.


It can be observed that there is a change in authority & freedom after


Is there changes in symbol of status



YES 28

NO 22



The above table shows that out of 50 respondents 28 told that the symbol of status is
changed. Only 22 respondents said that the symbol of status is not changed.


Regarding status symbol 44%of employees are felt that there is no change in it after


Are extra benefits enjoyed by the employees after recruitment?

table showing extra benefits enjoyed by the employees after



YES 32

NO 18



The above table shows that out of 50 respondents 32 told that they are enjoying extra

Only 22 respondents said that they are not getting any extra benefits.


64% employees said that they are benefited with the Recruitment. It means Recruitment
brought some extra benefits to the major portion of the employees.


Do you have the eligibility age?


Further, the age qualification for agency recruitment, it was found that 39%
respondents were belonging to 18 – 25 age group, 35% were belonging to 25 – 35
age group where as 20% to 35 -45 age group and remaining 6% to above 45 age
group. Also depicted in the following tale mentioned below: -

18-25 age group 41

25 – 35 age group 37

35 – 45 age group 21

Above 45 age group 6


What dissatisfied you most in your occupation?


Respondents had different views about the dissatisfaction from
the present status of working or occupation. Dissatisfaction has
been depicted in a table below and graphically above:

Low employment 24 Low earning 36 Huge capital investment 17

Low status 18 All of the above 10


Would you like to know about a career in life insurance advisor ship
where you can fulfill every desire of your life?


When asked about whether they would like to know about a

glorified career in life insurance agency where they can fulfill any
and every desire of their life, 59 respondents agreed while 46
respondents said No and will see later sometime in future. It has
been depicted that life insurance sector should be promoted at
the wide extent as it contribute to the economy as a useful
source beneficial for both nation as well as is citizens.


Would you like to become or opt for life insurance advisor under
esteemed and prospering organization HDFC Standard Life


From the 59 respondents who agreed to know about the life

insurance as a career, 18 of them agreed to join HDFC Standard
life insurance for agency and come to the company fore more
information whereas 41 still took time to think and postponed to
some future date. People are highly dissatisfied from the earning,
status and living standard they are sustaining at present and
would definitely like to make some additional source of earning
and for this agency for life insurance would prove a boon.


1- Candidates are less aware about recruitment in the private
insurance company in market.
2- HDFC is too selective in making a FC rather than to appoint any
one like LIC.
3- Candidates don’t want to join as financial consultant because it’s
on commission basis they want job on salary basis.
4- Candidates are joining HDFC the segment is more of tax
consultant, investment for consultant and other people who are
engaged in investment business that is because they want to
diversify their portfolio.
5- HDFC SLIC is having good retention strategies for their financial
 Reason for not joining HDFC SLIC.
 Associated with an other company.
 Do not have time
 Low sales.
 Private Player.
 Lack of awareness.


Following are suggestions made for the benefits and augmentation of

the sound working of the company – HDFC Standard life insurance:

1. Need to train and develop life insurance agents with more

comprehensive knowledge and skills to counter every
queries of the customer.

2. It is suggested that company should not left any stone

unturned towards sound advertisement and promotional
measures on every section whether it is printed, media or
or air via radio.

3. It is also suggested that skilled management graduates

need to be places on sales and marketing of financial
servies who can render their best ideas for the
accomplishment of the company goals and objectives to
the best extent.

4. Also, care need to be taken that every customer’s grievance

should be met with delight whether before purchase or
after sales.

5. Customers should be made aware of the brand name of

Insurance company through advertisement.

6. The fear in the customer mind should be removed by




 HUMAN RESOURCE MANAGEMENT by Cynthia D. Fischer, Lyle F. Schoenfeldt,

James B. Shaw.







(Recruitment and retention issues)




No. of years:__________________


1] Are you aware of the recruitment policy of the organization?

Yes / No

2] Who recruits in your organization?

(a) Recruitment agency

(b) Consultancy

(c) Immediate boss

(d) Panel of directors

(e) Others_________________

3] What is the percentage of accuracy of the recruitment policy and recruitment

process of your organization?

(a) 45% - 50% (b) 55% - 75% (c) 75% >

4] Are you aware of the retention policy of your company?

Yes / No

5] What are the different methods by which employees are retained?

State any 3: _____________________________



6] Do you think the recruitment and retention policy are interrelated?

Yes / No

7] How do you rate your organization with respect to its retention policy as
compared to the industry?

(a) 50% (b) 60% (c) 70% >

8] How successful have the retention policy been in your organization?

(a) Satisfactory

(b) Good

(c) Very good

9] Is the recruitment system

(a) Centralized (b) Local

10] How many employees are their in your organization?

(a) 0-300 (b) 301-600 (c) 600 and above

11. Is the working environment good?

Yes No

12. Is the jobs are having the work load ?

Yes No

13. The satisfaction regarding welfare activities is

considerd ?
Yes No

14. Is there the changes in terms of authority &

Yes No

15. Is there changes in symbol of status

Yes No

16. Are extra benefits enjoyed by the employees after


Yes No
17. Do you have the eligibility age

1 8-25 age group

25 – 35 age group
35 – 45 age g roup
Above 45 age group

18.What dissatisfied you most in your occupation

a) Low employment 

b) Low earning / income 

c) Low status 

d) Huge capital investment 

e) All of the above 

19.Would you like to know about a career in life insurance advisor
ship where you can fulfill every desire of your life?

a) Yes 

b) No 

20.Would you like to become or opt for life insurance advisor

under esteemed and prospering organization HDFC Standard
Life insurance?

a) Yes 

b) No 

Suggestions: -

1. ……………………………………………………………

2. ……………………………………………………………

3. ……………………………………………………………

4. ……………………………………………………………

5. ……………………………………………………………