Recruitment Process in Insurance Industry

“Recruitment Process in an Insurance Industry” A study of Recruitment process in HDFC Life

Bachelor of Commerce in Banking & Insurance Semester VI 2013-2014 Submitted by Alton Anthony Lobo Roll No - 17

Project Guide: Mrs Heleena .M. Alphanso

St. Gonsalo Garcia College of Arts & Commerce Vasai, Thane – 401201

“Recruitment Process in an Insurance Industry” A study of Recruitment process in HDFC Life

Bachelor of commerce in Banking & Insurance Semester VI 2013-2014 Submitted In the Partial Fulfilment of the requirements for the Award of the Degree of Bachelor of Commerce – Banking and Insurance By Alton Anthony Lobo Roll No-17 Project Guide: Mrs Heleena .M. Alphanso

St. Gonsalo Garcia College of Arts & Commerce Vasai, Thane – 401201

DECLARATION

I Alton Anthony Lobo Student of B.Com Banking & Insurance Semester VI (2013-2014) hereby declare that I have completed the Project on “Recruitment Process in Insurance Industry: A study of Recruitment process in HDFC Life” Wherever the data or information has been taken from any book or sources, the same have been mentioned in bibliography. The information submitted is true & original to the best of my knowledge.

----------------------------------SIGNATURE OF STUDENT (ALTON LOBO) ROLL.NO: 17

St. Gonsalo Garcia College of Arts & Commerce Vasai, Thane – 401202 CERTIFICATE This is to certify that Mr Alton Anthony Lobo Roll No – 17 of B.Com. Banking & Insurance Semester VI (2013-2014) has successfully completed the Project on Recruitment Process in Insurance Industry: A study of Recruitment process in HDFC Life under the guidance of Mrs Heleena .M. Alphanso.

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(Mr (Dr) Velerian Rodrigues) Course Co-ordinator

-------------------------INTERNAL EXAMINER

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(Ms (Dr) Cecilia Carvalho) Principal

---------------------EXTERNAL EXAMINER

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(Mrs Heleena .M. Alphanso) Project Guide

ACKNOWLEGEMENT I had a great pleasure in presenting my project on “Recruitment in Insurance Industry: A study of Recruitment process in HDFC Life”. I am sincerely thankful with deep sense of gratitude to Mrs Heleena .M. Alphanso, our guide for her kind cooperation for the fulfilment of this project. I am highly indebted to our Principle Ms (Dr) Cecilia Carvalho & our Vice- Principle Mr (Dr) Dominic Lopes who took keen interest & allowed us to perform this project. I would like to thank our senior librarian who sincerely helped me getting this information & last but not the least our college for big reason that we are here in front of you presenting this project. I would also like to thank Mr Marshel Fernando (Regional of Human Resource Management Dept.) for providing me all the information needed to complete this project.

----------------------------------SIGNATURE OF STUDENT (ALTON LOBO) ROLL NO: 17

Recruitment Process in Insurance Industry

Index SR.NO

TOPIC

PAGE NO

1.

Executive Summary

1

2.

Objective

2

3.

Chapter 1: Overview of Insurance

3

4.

Chapter 2: Recruitment

22

5.

Chapter 3: Selection

34

6.

Chapter 4: Company Profile

55

7.

Chapter 5: Recruitment In HDFC Life

67

8.

Chapter 6: Selection Process in HDFC Life

76

9.

Conclusion

88

10.

References

89

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

Human Resource in this regard has become an important function in any organization. All practices of marketing and finances can be easily emulated but the capability, the skills and talent of a person cannot be emulated. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Therefore a recruitment practice in an organization must be effective and efficient in attracting the best manpower. HDFC Standard Life insurance is India's premier insurance enabling company. HDFC Standard Life insurance is the one-stop-shop for requirements of services in the areas of insurance, optimum investment, financial coverage and losses, mortality benefit, and health option etc.

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Objective The main objective of the project is to understand the recruitment and selection of employees at HDFC Life This is backed by HDFC Standard life insurance service support infrastructure - the widest in the country. The objective of the project is to understand how Human Resource Department play an important role for insurance company like HDFC STANDARD LIFE in recruiting good employees. So to understand the process of Recruitment of financial consultant in HDFC STANDARD LIFE. This project enlightens the management skills used for the advancement of the employees. It brings out the lowest input and maximum output to give maximum efficiency. The Other objectives are: To find out the sources of recruitment  The process of recruitment and the  To know the Selection process at HDFC life.  To identify the segment of people for recruitment.  To find out the different ways to find the prospects for recruitment.  To find the reason behind individual decisions in joining life insurance company.  To find probable individual for recruitment for the organization.  To know difficulties in recruitment

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Chapter 1: Overview of Insurance 1.1 What Is Insurance? Insurance is a contract between two parties whereby one party agrees to undertake the risk of another in exchange for a consideration known as premium.

Insurance is an economic device whereby the individual can substitute a small relatively definite cost (premium) for a large financial loss (the contingency insured against) that would have to be borne if insurance was not available. The party which undertakes the risk is called insurer and the other one, whose risk is transferred is known as the insured. The insurer promises to pay a fixed sum of money to the insured on the happening of an uncertain event (death) or after the expiry of a certain period in case of life insurance. The insurer agrees to indemnify the insured on the happening of an uncertain event in case of non-life (general) insurance.

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1.2

Basic Concepts

The concept behind insurance is that a group of people exposed to similar risk come together and make contributions towards formation of a pool of funds.

In case a person actually suffers a loss on account of such risk, he is compensated out of the same pool.

Insurance has two fundamental characteristics:

•

Risk is transferred or shifted from one individual to a group.

•

Losses are shared, on some equitable basis, by all members of the group.

1.3 Fundamental Principles of Insurance Insurable Interest: •

Insurable Interest is defined as the legal right to insure arising out of a financial relationship recognized under law, between the insured and the subject matter of insurance.

•

The Principle of Insurable Interest states that the insured must be in position to lose financially if a loss occurs.

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Utmost Good Faith: •

A positive duty voluntarily to disclose, accurately and fully, all

facts material to the risk being proposed, whether requested or not.

•

Higher degree of honesty is imposed on both parties to an

insurance contract than any other contract, because- Insurance product is intangible one.

Principle of Indemnity: •

It states that the insurer agrees to pay no more than the actual

amount of loss.

•

In other words, the insured should not make profit from a loss.

•

The principle applies to non-life (property and liability)

insurance contracts only.

Principle of Subrogation: •

It is the right of one person, having indemnified another under

a legal obligation to do so, to stand in the place of that other and avail himself of all the rights and remedies of that other.

•

In other words, it is the substitution of the insurer in place of

the insured for the purpose of claiming indemnity from a third person for a loss covered by insurance.

•

It avoids a situation where an insured might profit from an

insured event.

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1.4

History of Indian Insurance Industry

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. However, later with the efforts of eminent people like Babu Mutty lal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates.

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Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crores, it rose to 176 companies with total business-in-force as Rs.298 crores in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. 7|Page

The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January 1956 that life insurance in India was nationalized.

About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long-term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation.

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It may be seen that from about 200.00 Crores of New Business in 1957 the corporation crossed 1000.00 Crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crores mark of new business. But with reorganization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crores Sum Assured on new policies. Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the corporate office. LIC’s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centers have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families. 9|Page

1.5) Important milestones in the life insurance business in India A) 1850 - Non life insurance debuts with triton insurance company. B) 1870 - Bombay mutual life assurance society is the first Indian owned life insurer. C) 1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. D) 1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

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

F) 1956 - 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of

Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crores from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British

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

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

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

J) 1972The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies’ viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

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1.6 Insurance sector reforms In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…” In 1994, the committee submitted the report and some of the key recommendations included.

1997 - Insurance regulator IRDA set up 2000 - IRDA starts giving licenses to private insurers: Kotak Life Insurance ICICI prudential and HDFC Standard Life insurance first private insurers to sell a policy 2001 - Royal Sundaram Alliance first non-life insurer to sell a policy 2002 - Banks allowed to sell insurance plans.

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1.7 The Insurance Regulatory and Development Authority (IRDA) The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a strong and powerful supervisory and regulatory authority for insurance. Post nationalization, the role of Controller of Insurance diminished considerably in significance since the Government owned the insurance companies.

But the scenario changed with the private and foreign companies foraying in to the insurance sector. This necessitated the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation.

The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business). The act extends to the whole of India and will come into force on such date as the Central Government may, by notification in the Official Gazette specify. Different dates may be appointed for different provisions of this Act. 13 | P a g e

The Act has defined certain terms; some of the most important ones are as follows:  Appointed day means the date on which the  Authority is established under the act.  Authority means the established under this Act.  Interim Insurance Regulatory Authority means the Insurance Regulatory Authority set up by the Central Government through Resolution No. 17(2)/ 94-lns-V dated the 23rd January, 1996.

Words and expressions used are not defined in this Act but defined in the Insurance Act, 1938 or the Life Insurance Corporation Act, 1956 or the General Insurance Business (Nationalization) Act, 1972 shall have the meanings respectively assigned to them in those Acts

A new definition of "Indian Insurance Company" has been inserted. "Indian insurance company" means any insurer being a company which is formed and registered under the Companies Act, 1956

a) In which the aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed twenty-six per cent. Paid up capital in such Indian insurance company.

b)Whose sole purpose is to carry on life insurance business, general insurance business or reinsurance business.

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1.8 LIST OF LIFE INSURERS Apart from Life Insurance Corporation, the public sector life insurer, there are 20 other private sector life insurers, most of them joint ventures between Indian groups and global insurance giants.

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SL Insurers

Foreign Partners

Regis Date of

Year of

.

tratio Registration Operation

NO

n.

.

No.

1

HDFC Standard Life

Standard Life

Insurance Co. Ltd.

Assurance,

101

23.10.2000

2000-01

104

15.11.2000

2000-01

UK 2

3

Max New York Life

New York Life,

Insurance Co. Ltd.

USA

ICICI-Prudential Life

Prudential , UK

105

24.11.2000

2000-01

Kotak Life Insurance

Old Mutual, South

107

10.01.2001

2001-02

Co. Ltd.

Africa

Birla Sun Life

Sun Life, Canada

109

31.01.2001

2000-01

Tata-AIG Life

American

110

12.02.2001

2000-01

Insurance Co. Ltd.

International

111

29.03.2001

2001-02

114

02.08.2001

2001-02

116

03.08.2001

2001-02

Insurance Co. Ltd. 4

5

Insurance Co. Ltd. 6

Assurance Co., USA 7

SBI Life

BNP Paribas

Insurance Co. Ltd.

Assurance SA, France

8

ING Vysya Life

ING Insurance

Insurance Co. Ltd.

International B.V., Netherlands

9

Bajaj Allianz Life

Allianz, Germany

Insurance Co. Ltd.

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10

11

Metlife India

Metlife International 117

06.08.2001

2001-02

Insurance Co. Ltd.

Holdings Ltd., USA

AVIVA

Aviva International

122

14.05.2002

2002-03

Sahara Life

…………………… 127

06.02.2004

2004-05

Insurance Co. Ltd

………

Shriram Life

Sanlam, South

128

17.11.2005

2005-06

Insurance Co. Ltd.

Africa

Bharti AXA Life

AXA Holdings,

130

14.07.2006

2006-07

Insurance Co. Ltd.

France

Reliance Life

…………………… 121

03.01.2002

2001-02

Insurance Co. Ltd.

………

133

04.09.2007

2007-08

135

19.12.200

2007-08

Holdings Ltd., UK 12

13

14

15

(Earlier AMP Sanmar Life Insurance Co. from 3.1.02 to 29.9.05) 16

Future Generali India

Pantaloon Retail

Life Insurance Co. Ltd. Ltd.; Sain Marketing Network Pvt. Ltd. (SMNPL), Generali, Italy 17

IDBI Fortis Life

Fortis, Netherlands

Insurance Co. Ltd. 18

Canara HSBC OBC Life Insurance Co.

7 HSBC, UK

136

08.05.200

2008-09

8

Ltd.

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19

20

Aegon Religare Life

Religare,

Insurance Co. Ltd.

Netherlands

DLF Pramerica Life

Prudential of

Insurance Co. Ltd.

America,

138

27.06.200

2008-09

8 140

27.06.200

2008-09

8

USA

1.9 Types of insurance: Generally, insurance is divided into two categories and is named as;

• General Insurance • Life Insurance

FRAME WORK ANALYSIS OF INSURANCE

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1.10 What are the benefits one get from insurance:  Safeguards oneself and one's family for future requirements.  Life cover.  Peace of mind in case of financial loss.  Encourage saving.  Tax rebate.  Protection from the claim made by the creditors.  Security against a personal loan, housing loan or other types of loan.  Provide a protection cover to industries, agriculture, women and child.

1.11 Distribution Channels in Insurance Introduction An insurance cover is an intangible product evidenced by a written contract known as the ‘policy’. Insurers market various insurance covers either directly or through various distribution channels—individual agents, corporate agents (including Banc assurance) and Brokers. The marketer in the distribution network is in direct interface with the prospect and the customer.

Life insurance products are sold through individual agents and many of them have this as their only career occupation. General insurance products are sold through individual agents, corporate agents and brokers. Distribution channels such as agents are licensed by the IRDA. To get an agency license, one has to have certain minimum qualifications; practical training in insurance subjects and pass an examination conducted by the Insurance Institute of India. 19 | P a g e

IRDA regulations on licensing of agents/brokers lay down the code of conduct for individual agents, corporate agents and brokers. Thus it is seen that the dos and don’ts for these intermediaries are given clearly at the point of sale as well as in the event of a claim. Service does not end with the customer receiving his document; it in fact only begins here. After sales service is as important or even more important – like when a refund has to be made or when a claim has to be made. One of the issues that are of great concern affecting professionalism in insurance activities is resorting rebating by intermediaries. Rebating is prohibited as per Section 41 of the Insurance Act, 1938 and the public are advised not to deal with intermediaries offering rebate of any kind. Rebating means a share of commission receivable by the agent/broker is given to the prospect/client. This is done to attract the client in the purchase of insurance contract by offering cash. Competition among agents/brokers is so cut-throat, some agents indulge in such unethical practices. Public are advised not to ask for any prohibited rebates in premium since commission payment to an agent is the only income for some to take care of their families. Similarly, agents are also advised not to indulge in such practices which could cause them loss of agency income.

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Alternate Distribution Channels: The insurance marketplace is undergoing a transformation that may eventually lead to significant changes in how consumers purchase insurance products. A variety of distribution channels are currently used in this market place and some insurers utilize a combination of distribution channels. Such as:

• Direct Sales • Brokers • Corporate Agents • Telemarketing • Online Marketing • Retail Chains • Franchisee

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Chapter 2: Recruitment

The acquisition of human resources for the organisation takes place through the process of recruitment and selection. After the human resource needs of the organisation are identified through human resource planning, the next step is that of recruitment and selection. One of the most difficult tasks of the human resource manager is that of recruiting and selecting the right kind of people for the organisation. Recruitment is the first step towards procuring qualified manpower for the organisation. The process of acquiring human resources begins with recruitment, continues with selection and ceases with placement. Recruitment is the process of identifying and attracting potential candidates from within and outside an organization to begin evaluating them for future employment. Once candidates are identified, an organization can begin the selection process. This includes collecting, measuring, and evaluating information about candidates’ qualifications for specified positions. Organizations use these processes to increase the likelihood of hiring individuals who possess the right skills and abilities to be successful at their jobs.

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2.1 Definitions: DeCenzo and Robbins describe recruitment as “the process of discovering potential candidates for actual or anticipated organizational vacancies.” It is a linking activity aimed at bringing together those with jobs to fill and those seeking jobs. According to Edward Flippo, recruitment “is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organisation.” A number of factors such as the size of the organisation, the employment conditions in the community, reputation of the organisation, working conditions and salary and benefits offered by the organisation affect the recruitment process. Ideally, the recruitment process should ensure that for every position available in the organisation, there are sufficient number of qualified applicants. In very large organization, recruitment is a complex and continuing process that demands extensive planning and effort.

RECRUITMENT

SELECTION

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2.2 Sources of recruitment The various sources of recruitment may be broadly classified in two broad categories: Internal and External sources. Some organizations draw their human resources internally i.e. from within the organisation while others draw externally i.e. from outside the organization. Both the sources have their advantages and limitations.

2.2) A) Internal Sources of recruitment The internal sources of recruitment focus on finding qualified applicants within the organization. The organization itself is the best source of applicants for positions above the entry level. The internal sources of recruitment may be of the following type: (1) Promotions: Vacancies in the organization may be filled by promoting qualified and experienced employees. Promotion refers to shifting an employee to a higher position carrying higher status, responsibilities and pay. Promotions may be based on performance or seniority depending upon the organization’s promotional policies.

(2) Transfers: Another common way of filing up vacancies is through internal transfers. An existing employee who is experienced and capable is transferred from one department in the organization to another. In transfers, the shifting of the employee occurs without any major changes in his status and responsibilities. 24 | P a g e

(3) Job postings (internal advertisements):

A popular method of finding applicants is through job postings or internal advertisements. Job posting involves announcing job opening to all current employees through notices on the bulletin boards or through the company newsletters. Some organizations have developed computerized job posting systems so that employees can obtain information on their computer screens. Job postings carry information about the nature of the position and qualifications needed, and any employee who is interested in the job may apply for the same. Job announcements ensure that employees are aware of opportunities to move up in the organization.

(4) Recall of retired and ex-employees:

When an organization is not able to find a suitable candidate for a vacancy, former employees of the organization who have retired or had quit the organization may be recalled.

(5) Skills Inventories: Many firms have developed computerized skills inventories of their employees. Information on every employee’s skills, educational background, work history, and other important factors is stored in the organization’s database. The skills inventory is used to identify employees with the attributes needed for a particular job. 25 | P a g e

A new development in this area is the Human Resource Information System (HRIS). It is a computerized system that assists in processing of HRM information. It provides skill inventory information. The HRIS is designed to quickly fulfil the personnel information needs of the organization. It permits the organization to track most information about an employee and about jobs and retrieve that when it is needed. HRIS is extremely useful for storing employment, training and compensation information on each employee.

2.3) B) External Sources of Recruitment Organization turn to external sources of recruitment when the internal sources fall short. New organization rely largely on external sources to meet their recruitment needs. However even well-established organizations turn to external sources when candidates with the desired skills, knowledge and qualifications are not available in the organization or in order to introduce new blood in the organization. The external sources of recruitment are:

(1) Campus recruitment: Educational and training institutions like the IIMs, IITs and other professional colleges are a good source of recruitment qualified and trained personnel. Many educational institutions have placement departments who forward the names of graduating students to interested organization and invite them to conduct campus interviews. 26 | P a g e

(2) Advertisements: Advertisements in journals, newspapers and magazines with wide circulation is a very popular source of recruitment. However care should be taken in preparing the advertisements so that only qualified applicants respond.  The advantage of this method is that:  A single advertisement can reach millions of potential recruits.  The cost per person is very low.  As more and more people surf the internet, the internet as a medium of advertising is becoming increasingly popular.

(3) Employment agencies: Private consulting firms carry out recruiting functions on behalf of the organizations. Firms of such kinds are also referred to as head hunting firms. These firms carry out all the functions of recruitment and selection and provide organizations with candidates as per their requirements. The employment agencies charge a fee for their services. S. B. Billimoria, ABC consultants, Personnel Search are some of the top employment consultants in India.

(4) Employee recommendations: A very good external source of recruitment is a recommendation from a current employee. An employee will rarely recommend someone unless he is certain that the individual will perform adequately. This is because recommendations reflect on the recommender and his reputation is at stake. 27 | P a g e

(5) Professional Bodies: Professional bodies like the institution of Chartered Accountants, Institute of Company Secretary maintain a record of qualified persons in their specialized fields. Organizations can approach such bodies to meet their specific needs.

(6) Deputation: In deputation the services of an experienced employee of another organization are borrowed for a fixed period of time. This source of recruitment is usually for senior positions in the organization. The person on deputation serves the borrower for a period of time and returns to lender organization.

(7) Poaching: Poaching involves attracting talented and competent persons from rival organization by offering better terms and conditions of employment with regard to salary, designations, working conditions, additional perks and benefits. Poaching is considered to be unethical as employees often carry with them sensitive information that could hurt the interests of their former organization.

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(8) Unsolicited or casual applications: Often organizations receive unsolicited applications for jobs in the form of telephone calls, letters, e-mail or walk-ins. Organizations do not throw such application but maintain a record of these applications as they serve as a prospective source of manpower.

(9) E-recruitment /Online recruitment: Online recruitment has seen explosive growth in recent years. The internet has become an extremely important and useful tool of recruitment. The internet allows:

(A) Employees to post or advertise vacancies on their own website or specialist online recruitment sites (B) Prospective employees with information about employer’s recruitment policies and jobs. (C) Database searches matching employer’s requirements and job seeker’s CV’s.

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2.3 Recruitment Process

Personnel Planning

Job Analysis

Recruitment Planning

Strategy

Development

Searching

Screening

Evaluation

Selection

and control 30 | P a g e

PROCESS OF RECRUITMENT It passes through the following stages: 1) Recruitment process begins when personnel department receives requisition for recruitment from any department of the company. 2) Locating and developing the sources of required number and type of employees. 3) Identifying the prospective employees with required characteristics. 4) Developing the techniques to attract the desired candidates. 5) The next stage in the process is to stimulate as many candidates as possible. 6) Evaluating the effectiveness of recruitment process.

2.4 Evaluation of recruitment process There are several metrics that organisations can use to evaluate their recruitment process. These include:

• Cost per hire • Applicant volume • Time to fill • Quality of hire • Human capital ROI • Tenure • Hiring manger and employee attitudes • Turnover costs • Career path ratio and more… 31 | P a g e

Organisations can use some or all of the metrics to measure against depending on their needs and the driving focus behind recruitment strategy. Four common metrics include:

1) Cost Per Hire - (Advertising costs + Consultancy Fees + Total Interview Costs/ Total Hires) Cost per hire measures how much a company is spending on hiring individuals. It helps organisations to understand how much they are currently spending and if they are using enough resources. It measures the effectiveness of recruitment efforts and helps organisations to understand how much they are spending per hire and which recruiting sources are working the best. Once the total cost per hire is known organisation can then plan and set a budget for the future.

2) Time to Fill – (Total Days to Fill/ Total Hires) Time to fill analyses the average time it takes to fill a vacancy and uses this to measure the efficiency of the recruitment process. The rationale here is that vacant positions cost money and the faster a position is filled the better the organisation is being served.

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3) Quality of Hire - (Average performance score of headcount within 0-1 years of services/Average performance rating of total headcount [exc. temp staff]) Tracking performance of new hires against other employees in similar positions, quality of hire helps to set performance benchmarks and measures the return on investment. Reviewing performance also identifies training needs and development pathways for employees.

Turnover The biggest indicator that the recruitment strategy is failing is high turnover of new hires. Turnover can be measured in two ways: A) Voluntary - (Total Voluntary Separations [exc. temp staff] within 0-1 years of service/ Total Headcount [exc. temp staff]) B) Poor Quality Hire Rates- (Total Separation [exc. temp staff] with less than 1 years of Service/Total New hires [exc. temp staff] within 1 year) When employees leave within their first year can point to poor hiring decisions. Such voluntary turnover rates could also be an indicator that an organisation is lacking in benefits, support, career development opportunities and more. To stay competitive organisations should implement robust on-boarding programs to reduce turnover rates. Evaluating your recruitment strategy can sometimes be difficult and time consuming. However, understanding which methods are delivering results helps pinpoint the policies and recruitment strategies to adopt in order to secure and retain high performing candidates. 33 | P a g e

Chapter 3: Selection

The size of the labour market, the image of the company, the place of posting, the nature of job, the compensation package and a host of other factors influence the manner of aspirants are likely to respond to the recruiting efforts of the company. Through the process of recruitment the company tries to locate prospective employees and encourages them to apply for vacancies at various levels. Recruiting, thus, provides a pool of applicants for selection.

3.1 Definition To select mean to choose. Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organisation. The basic purpose is to choose the individual who can most successfully perform the job from the pool of qualified candidates. Dale Yoder defines selection as “the process in which candidates for employment are divided in to two classes – those are to be offered employment and those who are not.” According to Thomas Stone, “selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success on the job”

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3.2 Purpose The purpose of selection is to pick up the most suitable candidate who would meet the requirements of the job in an organisation best, to find out which job applicant will be successful, if hired. To meet this goal, the company obtains and assesses information about the applicants in terms of age, qualifications, skills, experience, etc. the needs of the job are matched with the profile of candidates. The most suitable person is then picked up after eliminating the unsuitable applicants through successive stages of selection process. How well an employee is matched to a job is very important because it is directly affects the amount and quality of employee’s work. Any mismatched in this regard can cost an organisation a great deal of money, time and trouble, especially, in terms of training and operating costs. In course of time, the employee may find the job distasteful and leave in frustration. He may even circulate ‘hot news’ and juicy bits of negative information about the company, causing incalculable harm to the company in the long run. Effective election, therefore, demands constant monitoring of the ‘fit’ between people the job.

3.3 Selection Procedure: Selection procedure employs several methods of collecting information about the candidates qualifications, experience, physical and mental ability, nature and behavior, knowledge and aptitude for judging whether a given applicant is suitable or not for the job. Therefore the selection procedure is not a single act but is essentially a series of methods or stages by which different types of information can be secured through various selection techniques.

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At each step facts may come to light, which are useful for comparison with the job requirement and employee specifications. Steps in Scientific Selection Procedure:

•

Job analysis

•

Recruitment

•

Application form

•

Written examination

•

Preliminary interview

•

Tests

•

Medical examination

•

Reference checks

•

Line manager s decision

(A) Job Analysis: Job analysis is the basis for selecting the right candidates. Every organization should finalize the job analysis, job description, job specification and employee specifications before proceeding to the next step of selection.

(B) Human Resource Plan: Every company plans for the required number of and kind of employees for a future date. This is the basis for recruitment function.

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(C) RECRUITMENT: Recruitment refers to the process of searching for prospective employees and stimulating them to apply for jobs in an organization. It is the basis for the remaining technologies of the screening the candidates in order to select the appropriate candidates for the jobs.

(D) DEVELOPMENT OF BASES FOR SELECTION: The company has to select the appropriate candidates from the pool of applicants. The company develops or borrows the appropriate bases/techniques for screening the candidates in order to select the appropriate candidates for the jobs.

(E) APPLICATION FORM: Application form is also known as application blank. The techniques of application blank are traditional and widely accepted for securing information from the prospective candidates. It can also be used as a device to screen the candidates at the preliminary level. Many companies formulate their own style of application forms depending upon the requirement of information based on the size of the company, nature of business activities, type and level of the job etc. Information is generally required on the following items in the application forms:

•

Personal background information

•

Educational qualifications

•

Work experience

•

Salary (drawing and expecting)

•

Personal attainments including likes and dislikes

•

References

37 | P a g e

(F) WRITTEN EXAMINATION: Organizations have to conduct written examination for the qualified candidates after they are screened on the basis of the application blanks so as to measure the candidate s ability in arithmetical calculations, to know the candidate s attitude towards the job, to measure the candidate s aptitude, reasoning, knowledge in various disciplines, general knowledge and English language.

(G) PRELIMINARY INTERVIEW: The preliminary interview is to solicit necessary information from the prospective applications and to assess the applicant s suitability to the job. An assistant in the personnel department may conduct this preliminary interview. The information thus provided by the candidate may be related to the job or personal specifications regarding education, experience, salary expectations, attitude towards job, age, physical appearance and other requirements etc. Thus, preliminary interview is useful as a process of eliminating the undesirable and unsuitable candidates. If a candidate satisfies the job requirements regarding most of the areas, he may be selected for further process. Preliminary interviews are short and known as stand up interviews or sizing up of the applicants or screening interviews. However, certain required amount of care is to be taken to ensure that the desirable workers are not eliminated. This interview is also useful to provide the basic information about the company to the candidate.

(H) BUSINESS GAMES: Business games are widely used as a selection technique for selecting management trainees, executive trainees and managerial personnel at junior, middle and top management positions. 38 | P a g e

Business games help to evaluate the applicants in the areas of decision-making, identifying the potentialities, handling the situations, problem solving skills, human relations skills etc. participants are placed in a hypothetical work situation and are required to play the role situations in the game. The hypothesis is that the most successful candidate in the game will be most successful one on the job.

GROUP DISCUSSION is used in order to secure further information regarding the suitability of the candidate for the job. Group discussion is a method where groups of the successful applicants are brought around a conference table and are asked to discuss either a case study or subject matter. The candidates in the group are required to analyze, discuss, find alternative solutions and select the sound solution. A selection panel then observes the candidates in the areas of initiating the discussion, explaining the problem, soliciting unrevealing information based on the given information and using common sense, keenly observing the discussion of others, clarifying controversial issues, influencing others, speaking effectively, concealing and mediating arguments among the participants and summarizing or concluding aptly. The selection panel, based on its observation, judges the candidate s skill and ability and ranks them according to their merit. In some cases, the selection panel may also ask the candidates to write the summary of the group discussion in order to know the candidate s writing ability as well.

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3.4 Types of test: Tests are classified into six classes, each class is again divided into different types of tests. They are:

APTITUDE TESTS: These tests measure whether an individual has the capacity or latent ability to learn a given job if given adequate training. Aptitudes can be divided into general and mental ability or intelligence and specific aptitudes such as mechanical, clerical, manipulative capacity etc. General aptitude test is of two types namely intelligence quotient (IQ) and emotional quotient (EQ).

(1) Skill tests: These tests measure the candidate s ability to do a job perfectly and intelligently. These tests are useful to select the candidates to perform artistic jobs, product design, design of tools, machinery etc. The candidates can be selected for assembly work, testing and inspection also.

(2) Mechanical aptitude tests: These tests measure the capabilities of spatial visualization, perceptual speed and knowledge of mechanical matter. These tests are useful for selecting apprentices, skilled, mechanical employees, technicians etc.

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(3) Psychomotor tests: These tests measure abilities like manual dexterity, motor ability and eyehand coordination of candidates. These tests are useful to select semi-skilled workers and workers for repetitive operations like packing and watch assembly.

(4) Clerical aptitude tests: These types of tests measure specific capacities involved in office work. Items of this tests include spelling, computation, comprehension, copying, word measuring etc.

ACHIEVEMENT TESTS: These tests are conducted when applicants claim to know something as these tests are concerned with what one has accomplished. These tests are more useful to measure the value of a specific achievement when an organization wishes to employ experienced candidates. These tests are classified into (a) job knowledge test and (b) work sample test. Thus, the candidate s achievement in his career is tested regarding his knowledge about the job and actual work experience.

SITUATIONAL TESTS: This test evaluates a candidate s in a similar real life situation. In this test the candidate is asked either to cope with the situation or solve critical situations of the job. (1) Group discussion: This test is administered through the group discussion approach to solve a problem under which candidates are observed in the areas of initiating, leading, proposing 41 | P a g e

valuable ideas, conciliating skills, oral communicating skills, coordinating and concluding skills. (2) In basket: Situational test is administered through in basket method. The candidate in this test is supplied with actual letters, telephone and telegraphic message, reports and requirements by various officers of the organization, adequate information about the job and organization. The candidate is asked to take decisions on various items based on the in basket information regarding requirements in the memoranda.

INTEREST TESTS: These tests are inventories of the likes and dislikes of candidates in relation to work, job, occupations, hobbies and recreational activities. The purpose of this test is to find out whether a candidate is interested or disinterested in the job for which he is a candidate and to find out in which area of the job range/occupation the candidate is interested. The assumption of this test is that there is a high correlation between the interest of a candidate in a job and job success. Interest inventories are less faked and they may not fluctuate after the age of 30.

PERSONALITY TESTS: These tests prove deeply to discover clues to an individual s value system, his emotional reactions and maturity and characteristic mood. They are expressed in such traits like self-confidence, tact, distrust, initiative, emotional control, optimism, decisiveness, sociability, conformity, objectivity, patience, fear, judgment dominance or submission, impulsiveness, sympathy, integrity, stability and self-confidence.

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(1) Objective tests: Most personality tests are objective tests as they are suitable for group testing and can be scored objectively.

(2) Projective tests: Candidates are asked to project their own interpretation of certain standard stimulus basing on ambiguous pictures, figures etc. under these tests. Personality tests have disadvantages in the sense that sophisticated candidates can fake them and most candidates give socially acceptable answers. Further, personality inventories may not successfully predict job success. A number of corrective measures tried as personality inventories are widely subject to faking. They are:

•

Forced choice of Edward s personnel preference schedule.

•

Gordon personal profile.

•

The Minnesota Multi-phasic Inventory offers different methods

for identifying faking. The faking can be countered by repeating the same question in different parts to measure consistency.

MULTI-DIMENSIONAL TESTING: However, the need for multi-skills is being felt be most of the companies consequent upon globalization, competitiveness and the consequent customercentered strategies. Organization have to develop multi-dimensional testing in order to find out whether the candidates possess a variety of skills or not, candidate s ability to integrate the multi-skills and potentiality to apply them based on situational and functional requirement. 43 | P a g e

INTERVIEW: Final interview follows after tests. This is the most essential step in the process of selection. In this step the interviewer matches the information obtained about the candidate through various means to the job requirements and to the information obtained through his own observation during the interview. The different types of interviews are:

44 | P a g e

PRELIMINARY INTERVIEW: (1) Informal interview: This is the interview, which can be conducted at any place by the person to secure the basic and non-job related information. The interaction between the candidate and the personnel manager when the former meets the latter to enquire about the vacancies or additional particulars in connection with the employment advertisement is an example of the informal interview.

(2) Unstructured interview: In this interview, the candidate is given the freedom to tell about himself by revealing his knowledge on various items/areas, his background, expectations, interest etc. Similarly, the interviewer also provides information on various items required by the candidate.

CORE INTERVIEW: It is normally the interaction between the candidates and the line executive or experts on various areas of job knowledge, skill, talent etc. This interview may take various forms like: (1) Back ground information interview: This interview is intended to collect the information which is not available in the application blank and to check that information provided in the application blank regarding education, place of domicile, family, health, interest, hobbies, likes, dislikes and extra-curricular activities of the applicant.

45 | P a g e

(2) Job and probing interview: This interview aims at testing the candidate s job knowledge about duties, activities, methods of doing the job, critical/problematic areas, methods of handling those areas etc.

(3) Stress interview: This interview aims at testing the candidate s job behavior and level of understanding during the period of stress and strain. The interviewer tests candidate by putting him under stress and strain by interrupting the applicant from answering, criticizing his opinions, asking questions pertaining to unrelated areas, keeping silent for unduly long periods after he has finished speaking etc. Stress during the middle portion of the interview gives effective results. Stress interview must be handled with utmost care and skills. This type of interview is often invalid, as the interviewer s need for a job and his previous experience in such type of interviews may inhibit his actual behavior under such situations.

(4) Group discussion interview: There are 2 methods of conducting group discussion interviews, viz. group interview method and discussion interview method. All the candidates are brought into one room and are interviewed one by one under group interview. This method helps a busy executive to save valuable time and gives a fair account of the objectivity of the interview to the candidates. Under the discussion interview method, one topic is given for discussion to the candidates who assemble in one room and they are asked to discuss the topic in detail. This type of interview helps the interviewer in appraising certain skills of the candidates like initiative, inter-personal skills, dynamism, presentation, leading, comprehension, collaboration etc. Interviewers are at ease in this category of interview because of its informality and flexibility. 46 | P a g e

(5) Formal and structured interview: In this type of interview, all the formalities, procedures like fixing the value, time, panel of interviewers, opening and closing, intimating the candidates officially etc. are strictly followed in arranging and conducting interview. The course of the interview is preplanned and structured, in advance, depending on job requirements. (6) Panel interview: A panel of experts interview each candidate, judges his performance individually and prepares consolidated judgements. This type of interview is known as panel interview. Interviewers for middle level and senior level managers are normally conducted are the panel of experts.

(7) Depth interview: In this interview, the candidate would be examined extensively in core areas of job skills and knowledge. Experts test the candidate s knowledge in depth. Depth interviews are conducted for specialist jobs.

DECISION-MAKING INTERVIEW: After the experts including the line managers of the organization in the core areas of the job examine the candidates, the head of the department/section concerned interviews the candidates once again, mostly through informal discussion. The interviewer examines the interest of the candidate in the job, organization, reaction/adaptability to the working conditions, career planning, promotional opportunities, work adjustment and allotment etc. The personnel manager also interviews the candidates with a view to find out his reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities etc. The head of the department and the personnel manager exchange the view and then they jointly inform their decision to the chairman of the interview board, which finally makes 47 | P a g e

the decision about the candidate s performance and their ranks in the interview. Most of the organizations have realized that employee s positive attitude matters much rather than employee s skill and knowledge. Employees with positive attitude contribute much to the organization. Hence, interviewers look for the candidates with the right attitude while making final decision. (K) MEDICAL EXAMINATION: Certain jobs require certain physical qualities like clear vision, perfect hearing unusual stamina, tolerance of hardworking conditions, clear tone etc. Medical examination reveals whether or not a candidate possesses these qualities. Medical examination can give the following information:  Whether the applicant is medically suited for the specific job  Whether the applicant has health problems or psychological attitudes likely to interfere with work efficiency or future attendance.  The offer. Whether the applicant suffers from bad health which should be corrected before he can work satisfactorily applicant s physical measurements and

It reveals the

It is used to check the

special senses of the candidates.’

(L) REFERENCE CHECKS: After completion of the final interview and medical examination, the personnel department will engage in checking references. Candidates are required to give the names of references in their application forms. These references may be from the individuals who are familiar with the candidate’s academic achievement or form the applicant s previous employer, who is well versed with the applicant s job performance, and sometimes from coworkers. In case the reference check is from the previous employer; information for the following areas may be obtained. 48 | P a g e

They are job title, job description, and period of employment, pay and allowances, gross emoluments, benefits provided, rate of absence, willingness of the previous employer to employ the candidate again and soon. Further, information regarding candidate s regularity at work, character, progress etc. can be obtained. Often a telephone call is much quicker. The method of mail provides detailed information about the candidate s performance, character and behavior. However, a personal visit is superior to the mail and telephone methods and is used where it is highly essential to get the detailed, actual information, which can also be secured by observation. Reference checks are taken as a matter of routine and treated casually or omitted entirely in many organizations. But a good reference check used sincerely will fetch useful and reliable information to the organization.

(M) FINAL DECISION BY THE LINE MANAGER: The line manager concerned has to make the final decision whether to select or reject a candidate after soliciting the required information through techniques discussed earlier. The line manager has to take much care in taking the final decision not only because of economic implications but also because of behavioral and social implications. A careless decision of rejecting would impair the morale of the people and they would suspect the selection procedure and the basis of selection of this organization. A true understanding between line managers and personnel managers should be established to take proper decisions.

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(N) JOB OFFER: Thus, after taking the final decision, the organization has to intimate this decision to the successful as well as unsuccessful candidates. The organization offers the job to the successful candidates either immediately or after some time depending upon its time schedule. The candidate after receiving job offer communicates his acceptance to the offer or requests the company to modify the terms and conditions of employment or rejects the offer.

(O) EMPLOYMENT: The company may modify the terms and conditions of employment as requested by the candidate. The company employs those candidates who accept the job offer with or without modification of terms and conditions of employment and place them on the job. With the employment of the candidate the recruitment and selection process is completed.

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3.6 Problems in Selection Process Barriers to Effective Recruitment and Selection Respondents were asked to choose five factors that present the largest barriers to effectively recruiting and selecting candidates for employment.

Finding and competing for qualified applicants are the main barriers to effective recruiting and selection practices. It appears that there are fewer qualified candidates available for organizations to choose from. First, as the baby boom generation approaches retirement, fewer applicants are in the job market; second, those who are available might lack the skills organizations are looking for. Thus, it is difficult for organizations to identify and eventually hire potential qualified candidates.

Most candidates who refuse job offers do so for reasons related to compensation. Once an organization has identified a strong candidate and made a job offer, there is still no guarantee that the candidate will accept. When asked to indicate the most common reasons why candidates refuse offers, most respondents cited problems with compensation. However, this does not mean that candidates are interested only in compensation. Previous research has shown that individuals who leave their positions often do so for reasons other than money (Bernthal & Wellins, 2001). However, one’s starting salary can have major implications for long-term earning potential, and candidates often use salary to help decide among similar competing offers. 51 | P a g e

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0 Financial

Productivity

Quality

Customer Satisfaction

Employee Satisfaction

Retention

Organizational Performance in Past Year Poorly Performing Organizations

High Performance Organizations

52 | P a g e

Barriers

Response (%)

Hard to find candidates with specialized skill sets.

68.4%

Other organizations competing for the same

64.7%

applicants. Difficulty in finding and identifying applicants.

49.0%

Fewer qualified applicants available.

45.6%

Job roles are increasing in scope.

42.3%

Selection process is slow or cumbersome.

37.8%

Obtaining management buy-in for selection

25.2%

systems or tools. Insufficient number of human resource staff.

23.3%

Developing or choosing valid selection tools.

22.6%

Other reason (miscellaneous).

12.9%

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Reasons for refusing jobs:

Refusal Reasons

Response (%)

Pay not competitive.

53.7%

Other offer made

33.0%

first. Relocation too

23.8%

disruptive. Poor cultural fit.

21.3%

Lack of growth

18.0%

opportunity.

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Chapter 4: Company Profile

HDFC STANDARD LIFE INSURANCE 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 one of the subsidiaries of Standard Life plc. Leading providers of financial services in the United Kingdom. Both the promoters are well 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. HDFC Standard Life Insurance HDFC Standard Life Insurance Company is a joint venture between India's largest housing finance provider, HDFC and Europe's largest mutual life assurance company - The Standard Life Assurance Company (U. K). HDFC Standard Life Insurance Company Limited is the First Private Sector Life Insurance Company to be granted a license.

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4.1 FOREIGN PARTNER: Standard Life, UK Standard Life, UK, founded in 1825, has been at the forefront of the UK insurance industry for 175 years by combining sound financial judgements with integrity and reliability. It is the Largest Mutual Life Company in Europe and has total assets of Rs. 5, 50,000 crores. It is one of the very few insurance companies in the world to have received 'AAA' rating from two of the leading international credit rating agencies, Moody's and Standard & Poor's. Standard Life was recently voted 'Company of the Decade' in U.K. by the Independent Brokers called IFAs.

4.2 THE PARTNERSHIP: HDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. Towards the end of 1999, the opening of the market looked very pro HDFC and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand-picked team from HDFC to form the core project team, based in Mumbai. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank. 56 | P a g e

In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000.

4.3 Incorporation of HDFC Standard Life Insurance Company Limited: The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited. Their ambition since October 1995, was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realized when HDFC Standard Life was the only life company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance company's in India are measured.

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4.4 The HDFC Vision: They aim to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like

Customer service of the highest order



Value for money for customers



Professionalism in carrying out business



Innovative products to cater to different needs of different customers



Use of technology to improve service standards



Increasing market share

4.5 The Values: 

SECURITY: Providing long term financial security to our policy holders will be our constant endeavor. We will be do this by offering life insurance and pension products.



TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust.



INNOVATION: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs.

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4.6 INCORPORATION OF HDFC STANDARD LIFE INSURANCE CO. LTD. The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited. Their ambition since October was the only life insurance company to be granted the certificate of registration. HDFC are the main shareholders in HDFC Standard Life Insurance Co. Ltd. With 83% and Standard Life owns 17%

4.7 AWARDS AND ACCOLADES 

India’s best managed company by Asia money magazine - 1995 and 1996



Most competitive Indian company by Euro money – 1997



One of the 5 best Indian Boards by Business Today -1997



Best presented accounts 1994-95 and 1996-97 (3rd place) - in the SAARC region by the South Asian Federation of Accounts in the financial sector category



Rated as one of the best companies in India for strategy & management and investor relations by Asia money – 1998



Excellence in service industry by the Indian Institute of Marketing Management & Top Management Club (Pune) -1998



Shield for the best presented accounts for banks and financial institutions over 11 times (8 years in a row)



1999 IMC Ramakrishna Bajaj National Quality Award in the service category 59 | P a g e



CII-EXIM Bank Commendation Certificate for commitment to Total Quality Management – 2000



Asia money declared HDFC as the second best managed company in India – 2001



Euro money identified HDFC as one of Asia’s top 10 best managed companies in the finance sector – 2001



Rated as the Best Non-Banking Financial Company in Asia by Institutional Investor Research Group.

4.8 POLICIES IN HDFC STANDARD LIFE INSURANCE Insurance Products 1. Endowment Assurance Plan This plan is a with profits saving plan and is well suited for saving money for your long term financial goals. This plan also helps provide for the needs of your family in your absence by paying out a lump sum in the event of your unfortunate death during the term of the policy. Indicative Premium* Age (yrs.)

Basic Policy

Additional Premium for optional benefits (Rs.)

Premium (Rs.)

CI

DSA

ADB

WOP

20

4771

304

322

136

236

30

4835

442

388

144

300

40

5098

925

641

156

475

50

5813

-

1357

-

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

The above quoted premium is for a male life assured for a period of 20 years and a sum assured of Rs. 1lakh. The premium quoted above may vary as a result of underwriting. The premium relatable to all the optional benefits put together should not exceed 30% of the premium of the basic policy.

- Single Life Endowment Plan - Joint Life Endowment Plan

2. Money Back Plan This plan helps you plan for future anticipated expenses by paying periodic cash lump sums to you at regular intervals. This plan also helps provide for the needs of your family in your absence by paying them the basic sum assured plus any bonus additions in the event of your unfortunate death during the term of the policy. Indicative Premium* for the basic policy Age (yrs.)

Basic Policy

Additional Premium for optional benefits (Rs.)

Premium (Rs.) CI

DSA

ADB

WOP

20

7491

304

322

136

352

30

7585

442

388

144

443

40

7925

925

641

156

672

50

8815

1890

1357

-

-

- Single Life Endowment Plan - Joint Life Endowment Plan 61 | P a g e

3. Single Premium Whole of Life Plan Single Premium Whole of Life Insurance Plan is well suited to meet your long term investment needs. This participating (with profits) plan offers you the following benefits:  A sound investment  Flexibility of term  Surrender value  In case of unfortunate death  No medical requirements

Indicative Premium Minimum sum assured

: Rs. 25,000

Maximum sum assured

: Rs. 5,00,000

Premium: Rs. 950 per thousand of sum assured.

4. Term Assurance Plan If you have a family that you care for, you should consider what would happen in case of your unfortunate death. The emotional void cannot be filled, but financial insecurity can be avoided. By taking this affordable life insurance plan, you can provide for the well-being of your family in case of your unfortunate death. This plan comes to you at a minimal cost and is well-suited for the value-conscious customer.

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Indicative Premium Premium* (Rs.)

Age of Life Assured

Quarterly Half-yearly

Single Yearly

Premium (Rs.)

20 yrs.

467

862

1566

11970

25 yrs.

495

914

1662

13110

30 yrs.

529

979

1782

15726

35 yrs.

579

1074

1956

18216

40 yrs.

790

1473

2688

26400

* The premium quoted is for a healthy male, paying premiums for a 15 year term for a sum assured of Rs. 6, 00,000. The exact premium may vary as a result of underwriting.

5. Loan Cover Term Assurance If you are taking a loan to buy a house for your family, this plan can help you ensure that life's uncertainties do not affect their shelter. It is an affordable plan that has been designed to help your family repay the outstanding loan in case of your unfortunate death.

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Indicative Premium* for the basic policy Annual Premium**

Single Premium

(Rs. p.a.)

(Rs.)

Term of loan (in yrs.)

Term of loan (in yrs.)

Age of Life Assured

10

15

10

15

30 yrs.

1592

1634

5781

7993

35 yrs.

1757

1799

6324

9152

40 yrs.

2114

2163

8515

12991

45 yrs.

2782

2915

10636

16663

50 yrs.

3955

4175

15921

25038

* The premium quoted above may vary as a result of underwriting. The above rates are for a male life assured for an initial sum assured of Rs. 3.5 lakh. ** In case of annual premium payment, the premium is to be paid for only the first 2/3 rd of the term while the cover continues for the full term. Types of series - Single Life Protection Series - Joint Life Protection Series

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6. Personal Pension Plans This participating (with profits) plan is basically a savings contract, which is designed to provide an income for life from retirement. It does this by providing a notional lump sum on retirement, comprising of sum assured plus any attaching bonus. Subject to the prevailing regulations, part of this lump sum can be taken in form of cash and the rest converted to an annuity at the rate then offered by HDFC Standard Life. Alternatively, if it is permitted by the prevailing regulations, the notional lump sum can be used to buy an annuity with any other insurance company who will accept such business. On earlier death after the first year, for Regular Premium policies all premiums paid to date will be returned with interest at 8% per annum, subject to a maximum of the sum assured plus bonuses declared to date. For Single premiums, it is sum assured plus bonuses declared to date. Normally, they will declare a reversionary bonus once a year. Once added, it cannot be reduced. Reversionary bonus will take the form of a simple addition to your policy benefits. In addition, on maturity, a terminal bonus might be payable. On death, an interim bonus, reflecting the period since the last addition of reversionary bonus, might also be payable.

How much will it cost? The cost of the plan depends on your age, the amount of benefit you have chosen, the premium paying frequency and the term of the policy. To give you an idea, here are the annual premiums in Rupees, payable on a policy with sum assured of Rs. 100,000.

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Term Age

10

15

20

30

n/a

n/a

4,309

35

n/a

6,098

4,327

40

9,577

6,117

4,357

For Single premium policies, the premium payable with respect to the basic benefit is equal to the basic sum assured as required by the policyholder.

Am I eligible? The age and term limits for taking out a Personal Pension Plan are: Minimum Maximum Minimum Maximum Minimum Term3

Term

RP1 SP2 RP 10

5

40

Age at

Age at

Entry

Entry

SP

RP

SP

15

18

35

60

Age at

Maximum Age at

Retirement Retirement

50

70

RP: Regular Premium 2 SP: Single Premium 3 Term to Retirement

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Chapter 5: Recruitment in HDFC Life “Recruit the best” HDFC Life has a well-articulated equal opportunity policy, which lays strong emphasis on hiring of individuals irrespective of age, race, caste or gender. As a best practice in recruitment, they deploy identified psychometric tools such as SHL and Belbin and designate ability tests to eliminate any biases in the resourcing process and facilitate hiring of diverse profiles (vis-à-vis gender, background, experience levels and competencies). The focus is on competencebased credentials rather than past experience or length of service. “HDFC does not follow a very descriptive hierarchy – you have transparency at each level, unlike most other organizations, where managers and senior management don’t look after their subordinates. Here you feel comfortable talking with your seniors”

At HDFC they have an Employee Referral Programme, which seeks to encourage employees to be brand ambassadors of the Company and actively contribute to the resourcing process by recommending candidates with relevant competencies and potential, thereby facilitating

in

strengthening

domain

expertise

within

the

Organization.

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They have a robust Campus Programme, which is aimed at hiring students fresh from key B-Schools and providing them with structured inputs and an environment for their personal and professional growth. The Summer Trainee Program is designed to expose people to the vibrancy of a complex and competitive business environment, challenge you intellectually and encourage people to find innovative solutions. They aim at providing a business perspective and Summer Trainees work on live projects, which form the core of our business strategy. Not only do they get the freedom to experiment and make decisions, but also spend quality time with their Project Guide or mentor, who provides them the perspective of the 'bigger picture'. The Programme thus gives them a unique opportunity to integrate their classroom learning with the realities of real business, in a live yet safe environment.

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Recruitment Process The actual steps involved in recruitment follow a well-defined path:

Application shortlist: In this step, we shortlist the resume received from various sources based on the suitability for the requirement.

Preliminary Assessment: The short listed candidates go through a preliminary round of interviews. This interview lays more emphasis on functional competencies. To have more data on the functional skills, the candidates may be given a business case for analysis and presentation (This is done for certain positions only).

Final interview: Here the candidates who successfully clear the first round of interview go through another round of interview with one or more of the functional heads.

Medical Evaluation: Candidates who are selected by Colgate are asked to undergo a medical test.

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Question: What are the sources for recruitment and selection?

Internal 9%

External 18 %

Both 73 %

About 75% of the manager say that they prefer both internal as well as external source for recruitment and selection whereas only 9% go for internal source and 18% go for external sources.

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Question: Which method do you mostly prefer for recruitment and selection preferred way of recruitment? Third

party 3%

Indirect 32%

Direct 65%

About 65% of the mangers go for direct recruitment and selection and 32% go for indirect and only 3 % go for third party recruitment way.

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Question: When do you prefer to go for manpower planning?

20% 30%

Yearly Quarterly No fixed Time

50% Around 50% of the managers go for Quarterly manpower planning and 20 % do not follow any pattern they don’t have any fixed time where as 20% go for yearly.

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Question: What sources are preferred for external recruitment?

25% 34%

33%

8%

Campus interviews Placement agencies Data bank Casual applicants

In HDFC Life 34% of manager go for campus interviews, 33% go for data bank, 25% from the casual application that are received and only 8% go for any placement agencies.

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Question: What form of interview did you prefer?

10 %

20 %

40 %

Personal Interviews Telephonic interview Video Conferencing Other

30 %

Most of the manager Prefer Personal interviews, 30% prefer to take telephonic interviews whereas only 20% go for video conferencing and rest 10% adopt some other means of interviews

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Recruitment Process in HDFC Life: 1) Recruitment is the process of attracting prospective candidates who are likely to get selected. Recruitment process starts with the drafting of advertisement for the required post mentioning the name of the post, qualifications required, and place of posting etc. the advertisement is released in all major and national newspaper across the country. 2) Not only print media, but other media like internet is also used for posting the advertisement. 3) Placement agencies and educational institutions are considered if the requirements are for fresh graduates. 4) Employee references by are also encouraged. 5) After receiving the applications, it is initially screened by HR division based on minimum requirements and qualifications prescribed for the post. 6) Screened applications from HR division are posts sent to respective divisional heads for their screening in case of applications for higher Posts.

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Chapter 6: Selection Process in HDFC Life 6.1 Actual Process in HDFC 1) Selection process involves tests, interviews, group discussions, psychometric tests or a combination of these depending on the nature or sensitivity of the level and the post.

2) For technical posts, tests are used as elimination means while for some other posts like management trainee, tests are not used as elimination means.

3) The shortlisted candidates are called for the final interview. Regret letters are sent to those who are not shortlisted. Background checking of the shortlisted candidates is done to ensure that they will fit with the culture of the organization.

4) Job offers are made to the selected candidates and they are asked to give their confirmation that they accept the job offer. 5) On receiving their confirmation, appointment letter is prepared by personnel and administration division and given to the candidate at the time of joining. 6) Salary offer is a part of Human resource division while personnel and administration division handles salary administration.

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6.2 Percentage of Selection practices used in HDFC Life Selection Practices

Practices used %

Behavior-based interviews—asking candidates to describe specific examples of their skills

49

Resume screening—computerized

48

Knowledge tests—tests that measure job-specific knowledge

40

Performance/Work sample tests—for example, writing a computer program under structured testing conditions

40

Motivational fit inventories—candidate preferences for the job, the organization, and location qualities

36

Ability tests—mental, clerical, mechanical, physical, or technical

36

Personality inventories—MMPI®, Hogan, Myers-Briggs®

36

Assessments—role plays and simulations 33 Training and experience evaluations—providing a checklist of specific skills and/or experiences

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HDFC Life Selection Process in Details 6.3 Screening the candidates’ First level screening The Candidates would be screened by the H R Manager/ Branch Manager for the respective locations. Screening would be on the basis of the profile of the candidate and the departmental requirements. This assessment will be with respect to: a.) The general profile of the candidate, b.) Personality fit of the candidate into the profile, c.) Aptitude / attitude of the candidate, d.) Motives of the person to join the company and whether focus is in the short term or is a long term player, e.) Basic skill level on our set of requirements, say numerically ability, networking ability etc. f.) Establish the annual guaranteed cash compensation of the individual and check whether the person would fit into the system. g.) Explain the role of Sales manager to the applicant and check the acceptance of the candidate for the same.

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In case of need, the Regional HR may take a Tele interview of the candidate for further assessment process.

Second Level Screening Aptitude Test If the first assessment is positive, the candidates will give the aptitude test, once such test is selected approved by the company. The scoring, interpretation and the generation of interview probes from that test will also be done at this time. People who qualify the minimum criteria on this test will be put up on to the Functional Head (VP's in case of HO) for functional assessment and suitability into the role. Tied Agency Sales Manager candidates short listed by the BM have will then take sales Aptitude test, once such a test is finalized. For the final selection, the regional Manager (Business Heads for HO) will meet the candidates short listed by the branch manager/VP. The chart specifying the Minimum approval level for each level of recruitment is specified below:

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

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Category

Branch/Chief

Area

Business

Managing

Manager

Manager/AVP/VP

Heads

Director

Yes

No

No

No

BIC

Yes

Yes

No

No

BM/CM

Yes

Yes

Yes

No

SM

Yes

Yes

Yes

Yes

CSE/ ADVISORS

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

C) Any discrepancies noticed by the panel members regarding the authenticity of the data provided by the candidate should be specifically and formally recorded on the IES form and suitably high lightened. 80 | P a g e

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

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

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

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

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Negotiations of the terms and conditions and other preappointment formalities A.) In the case of sales-Tied Agency functions, the branch managers will be allowed to fix the salary and grade of the incoming sales manager, provided the compensation does not exceed 20% of the candidate’s current cash salary. Any fitment beyond this norms will need the approval of Head-HR. HR will forward a worksheet to support the BM’s to evaluate the appropriate cash CTC of the incumbent. For all other functions, the compensation and grade would be fixed post a discussion between the Head of the Regional HR and the associated AVP / VP. Any candidate being offered a CTC of more than 4lacs will need the sign off from HEAD-HR. In appropriate cases, at the discretion of the VP-HR, a deviation may be referred to the Managing Director, for the MD's formal approval. B) Responsibility for negotiations and finalization of the terms shall rest with the best Branch Manager / Associated Manager. They may seek the assistance of the recruitment managers, whenever required. Reference checks process should not normally be initiated unless the candidate has indicated his firm acceptance of the offer being made by us.

Reference checks A. Normal, reference checks should be undertaken with at least one reference. A second reference check will be done if considered necessary. Responsible officials from the former employers, academic institutes and / or any other eminent personalities can be considered as appropriate references. Close relatives and friends cannot be considered as references. Wherever feasible and considered appropriate, a reference should be made with a senior official of the candidate's current employer. 82 | P a g e

In case the candidate is currently un-employed, reference should be made with the latest employer. The format of reference check is to be used as a framework for conducting the process. B. Where the minimum two reference checks are not possible (particularly with the current employer) or where there is a mixed response from different sources, the matter may be to the VP-HR for a final decision. Depending on the seniority and any other considerations about the positions, VP-HR would normally consult the functional head concerned, before coming to conclusions. Any candidate whose credentials are doubtful shall not be recruited. C. In case of recruitment of Management trainees, fresher and life advisors as sales Managers no reference checks will be required. Employment offer letter A. When a recruitment Manager is fully satisfied about the selection of the right candidate and about completion of all the formalities connected with the appointment of candidate including requisite documentation, satisfactory reference check reports and medical fitness, he / she would forward the relevant papers listed below to the head of recruitment.  Personal Data form  Employee requisition form duly filled by the regional Head / Branch Manager  Interview evaluation sheet filled by the regional head / Branch manager / interviewer with his / her comments.  Latest and updated resume of the candidate  Photocopy of the appointment letter of the last employer or latest salary slip.  Employment details. 83 | P a g e

 Two Professional references.  Language Proficiency.

Document check list for every grade is as follows:  Authorization Release Form.  Background check Form.  Higher Education certificate.  Higher Education mark sheet.  1 Month Salary Slip of Current Employer.  1 Month Salary Slip of Last Employer.  Relieving Letter of last Employment.  Proof of Residence.  Passport Size Photograph.

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

D)

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

E) It would be the responsibility of the Branch Manager/ HR Manager to ensure that the accepted copy of the offer letter is forwarded to the employee service team within a week of receipt of the offer letter. Till this letter is issued, the ’offer' has not taken place in formal sense. 84 | P a g e

A copy of the offer letter shall be duly signed and returned to the candidate. Candidate would be expected to fulfil various joining formalities, which are also formally communicated to hi m/ her in the form of a checklist that is attached to the letter of offer. The Regional HR head shall have the overall responsibility and accountability to maintain the templates of the offer letters and also for drafting of suitable non-standard terms to any specific candidate.

F) The employee service team will follow up Branch Manager / Regional HR Manager for the joining of the candidate and will collect all relevant documents from the candidate including the joining report, before issuing the appointment letter. The employee service team may enlist the help of the Branch Manager to ensure that all necessary documents within ten days 0 the person joining. After the all necessary documents, the employee service team will send the appointment letter to the new joiner.

G)

Once the documentation is complete for the new joiner (including the accepted appointment letter), people who may have joined before 20th of the month but have not been included in the payroll 1 for the month because of delay in receipt of papers will be given ad-hoc salary advance (up to maximum of 65% of the prorated salary). This advance will be adjusted once the person gets included in the subsequent month's payroll.

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H) If the person does not submit the relieving letter from the previous organization, where required to be submitted as per the table given above, within three months of joining, the employee service manager can put their salary on hold till such time as the said documents are received.

Key tasks of Regional HR Head Regional H R Head will have the authority and responsibility to administer/ implement the recruitment and selection process as outlined. An illustrative list of the key deliverables of these incumbents is listed below.  Ensuring inductions as per quality, numbers, time and cost consideration of the company in accordance with the approved manpower budget.  Creation of appropriate sourcing mechanism along with tracking the performance of these mechanisms.  Creation of quarterly and monthly recruitment plans  Effective coordination with external parties such as candidates, placement agencies, consultants, academic / professional institutes and any other including the custody of the formal agreements, tracking timely payments and adjusted thereto.  Creation of comprehensive and appropriate tools, linkage s, documents, templates and any other mechanisms to ensure smooth execution of the process requirement, along with timely improvements thereto.  Assistance to user department and line managers including in Interviewing / selection support, scheduling etc.  Effective internal communication with user departments and line managers including making the standard recruitment formats and other templates

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easily available to such users and notifying the modifications to such formats and templates.  Creation and maintenance of qualitative information base regarding candidates, placement agencies, campuses, institutes, and any other employment-market information.  Creation and maintenance of appropriate and high-quality Ml S for current and future needs of the organization, including publication / circulation of appropriate reports there from to the relevant users within the company.  Monitoring recruitment costs  Complete documentation for the entire recruitment and selection process for easy and quick retrieval in a readily auditable format.  Timely and effective communication with all internal and external parties including the candidates.  Tracking the progress of the selected candidates including resignation, extensions of probation periods/ training period, etc. for the purpose of improvement to recruitment and selection process.  Effective coordination with the post recruitment arm of the Human Resource function  Documentation and creating MIS regarding waiver, deviation, etc. and identifying the key areas for improvement in the formal recruitment and selection process document.

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Conclusion

With introduction of the foreign sector in the field of Insurance, it has become extremely competitive. Insurance involves tiring field work and tele-contacting, the prospective customers – to persuade them and convince them about future benefits of the insurance scheme. The HDFC Life, a multinational insurance concern, is busy in recruiting and selecting employees tactfully, skillfully and with expertise. In view of the competition, especially in the private sector, the HDFC Life, makes efficient sales team effort with expertise and acumen to create excellent customer relationship management with great online support and personal contacts. The HDFC Life is one of the most prominent insurance companies with international expertise and experience.

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References Webliography:  www.hdfclife.com  www.irda.com  Bing Finance Application for Windows 8  www.economictimes.com  www.wallstreet.com  www.scribd.com  www.glassdoor.com  www.likedin.com

Bibliography Books:  HRM in Banking and Insurance – Vinay Prabhu & Bharat Pithadia  Development Dimensional International Survey Reports 2014  The Indian Insurance Industry Performance Reports  HDFC Life Employee Manual.  HR policies in HDFC  Manual of Insurance by Bharat Law House

Magazines: • Insurance World. • The Outlook Money. • India Today • Business World 89 | P a g e