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Term Paper Mukesh Rana, Roll No.26
Term Paper Mukesh Rana, Roll No.26
ACKNOWLEDGEMENT
Introduction
The best way to improve employee retention is to understand what employees want and need from the workplace and provide it. Companies must meet employee demands within limits, of course. Management cannot just dish out indiscriminate amounts of money to employees or give them a four day work week in many cases. Yet surprisingly, many employee retention practices do not have to cost a cent. Promoting from within whenever possible often means greater employee retention. Moreover, many employees are better motivated to succeed in the firm if they feel they have a possibility of being promoted. Professional development of workers can easily be worked into managers' review processes. Professional development works best as an employee retention practice when the employee is involved in planning his or her growth plan. The best employee retention practice of all may be to take the time to hire the right person for the job in the first place. But when employees do resign, conducting exit interviews can help in future employee retention. Employers find out useful information during exit interviews, allowing them to make changes that may retain other employees thinking of leaving for similar reasons.
In the last decade, Indian organizations have experienced competition from a number of multinational corporations who started operating in various sectors like banking, insurance, manufacturing, hotels, airlines, mutual funds etc. Before 1991-92, most public and priv1ate sector companies of India worked in a secure/controlled business environment. In the last decade, however, a number of major changes have been observed in Indian industry. Firstly, Indian consumers are exposed to world class products and services provided by MNCs. Secondly, huge amounts of foreign investment have flowed to local industries. Thirdly, a number of mergers and acquisitions have taken place like TOTAL-FINA ELF, GLAXO SMITH KLINE/BEECHAM, HINDUSTAN LEVER AND BROOKE BOND INDIA LTD., JENSEN NICHOLSON, ICICI LTD. AND ICICI BANK, etc. Multinationals like Hyundai and LG have set up new plants, which have better technology as compared to the earlier Indian manufacturers. Government is slowly opening more and more sectors of the economy.
Though India's insurance sector accounted for 4.1 per cent of GDP in 2006-07 and the insurance companies recorded a 19.9 per cent growth in premium as compared to the worl0d market growth rate of 2.9 per cent; on world averages India ranks 78th in terms of insurance density and 54th in terms of insurance penetration. Insurance business in India is divided into four classes: Life Insurance, Fire Insurance, Marine Insurance, and Miscellaneous Insurance. The Life Insurers transact life insurance business while General Insurers transact the rest. The market size of the insurance sector is estimated to reach a size of Rs 2000 billion by 2009-10. The domestic insurance industry in India is estimated to be around US$ 60.5 billion by 2010, of which US$ 35 billion will come from rural and semi-urban areas. The life insurance market is expected to grow to
India occupies third position globally in terms of employment with 42% of employers having robust hiring plans for FY2008. The insurance sector employers are likely to indulge into aggressive recruitments (42 per cent). With around 15 million new policies being sold every year, the insurance sector is picking up fast in India. Due to its robust growth there is a need of skilled professionals in the sector. The employers are looking forward to hire freshers at junior levels as they are quite flexible and ready to work as part time employees as well. Apart from hiring actuaries and underwriters, the industry is focusing on hiring agents. These agents 2
The sector offers attractive packages to agents and unit managers. In order to curb high attrition rates, the variable pay offered is nearly 100 per cent of the fixed pay. The attrition is seen highest in the insurance sector, touching 35.2 per cent in 2007. Though the salaries are attractive, at the same time, the attrition rates also are high, because insurance sector jobs are highly demanding, target oriented and competitive. There are rural and non-metropolitan markets that are yet to b tapped by private insurance players. The key players in Life Insurance business are Life Insurance Corporation of India, HDFC Standard Life Insurance, Max New York Life Insurance, ICICI Prudential Life Insurance, ING Vysya, Bajaj Allianz Life Insurance, Metlife India Insurance, Aviva Life Insurance, Bharti AXA Life Insurance and Reliance Life Insurance. In General Insurance business some major players are Oriental Insurance, New India Assurance, National Insurance Company Limited, Royal Sundram Alliance Insurance, IFFCO Tokio General Insurance, ICICI Lombard General Insurance and Cholamandalam General Insurance. NaukriHub Rankings attempt to rank companies on basis of various HR practices, procedures and policies prevalent in Insurance industry . Ten companies are selected on random basis and ranked on various parameters like recruitment practices, retention rates, compensation policies, work culture, recognition for good work, flexible work timings, et al. The scores are consolidated on the basis of data collected through recent surveys and
HR professionals all over the world, working is Insurance and BPO industry are breaking their heads to formulate Retention Strategies but nothing is working in their favor. The average attrition rate in this sector is still 35-40%. No perks, no rewardsjust nothing is working.
Companies
1.
This insurance scheme is to provide adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy in case of female employees or spouse of male employees. All employees and their dependent family members are eligible. Dependent family members include spouse, non-earning parents and children above three months
2.
This scheme is to provide adequate insurance coverage for Hospitalization expenses arising out of injuries sustained in an accident. This covers total / partial disablement / death due to accident and due to accidents.
3.
The organizations provide transportation facility to all the employees from home till office at subsidized rates. The lunch provided is also subsidized.
4.
Some of the companies provide shared accommodation for all the out station employees, in fact some of the BPO companies also undertakes to pay electricity/water bills as well as the Society charges for the shared accommodation. The purpose is to provide to the employees to lead a more comfortable work life balance.
5.
The recreation facilities include pool tables, chess tables and coffee bars. Companies also have well equipped gyms, personal trainers and showers at facilities.
6.
Some of the Insurance/BPO'S provides the facility for extensive health checkup. For employees with above 40 years of age, the medical check-up can be done once a year.
8. Loans:
Many BPO/Insurance companies provide loan facility on three different occasions: Employees are provided with financial assistance in case of a medical emergency. Employees are also provided with financial assistance at the time of their wedding. And, the new recruits are provided with interest free loans to assist them in their initial settlement at the work location.
9.
Educational Benefits:
Many BPO/Insurance companies have this policy to develop the personality and knowledge level of their employees and hence reimburse the expenses incurred towards tuition fees, examination fees, and purchase of books subject, for pursuing MBA, and/or other management qualification at India's top most Business Schools
10.
11.
Flexi-time:
The main objective of the flextime policy is to provide opportunity to employees to work with flexible work schedules and set out conditions for availing this provision. Flexible work schedules are initiated by employees and
Spread life insurance and provide life insurance protection to the masses at reasonable cost. Mobilize peoples' saving through insurance-linked savings schemes.
Invest the funds to serve the best interests of both the policy holders and the nation. Conduct business with maximum economy, always remembering that the money belongs to the policy holders Act as trustees of the policy holders and protect their individual and collective interests. Innovate and adapt to meet the changing life insurance needs of the community. Involve all the people working in the corporation to ensure efficient and courteous service to the insured public. Promote amongst all agents and employees of the Corporation a sense of pride and job satisfaction through dedicated service to achieve the corporate objective. Managing people to succeed in todays highly competitive global environment is important. They offer the key ingredients for making Human Resources an active contributor for their organizational success. The areas which their virtual university focuses on are: HR Practices
HR PRACTICES
These have a continuing and significant influence on employment productivity. And look at the best practices in the industry to cope with an increasing number of employees encountering new working environments, cultures, restructuring and the pervasive and often deleterious effects of technology.
ORGANISATIONAL BEHAVIOUR
Takes a micro-view on emphasising behaviour in organisation of individuals and small groups. Individual behaviour includes perception, values, learning, motivation, personality, while group behaviour includes group dynamics, communication, power and politics.
PEOPLE MANAGEMENT
All about the skill in getting diverse workforces to work together towards achieving organisational goals and objectives.
PERFORMANCE MANAGEMENT
Future-oriented continuous process to which managers and employees need to devote time, all the time. It encompasses performance appraisal, selfassessment, reward systems and Total Quality Management.
Function 1: Manpower planning:The penalties for not being correctly staffed are costly. Understaffing loses the business economies of scale and specialization, orders, customers and profits. Sales and production forecasts The effects of technological change on task needs Variations in the efficiency, productivity, flexibility of labor as a result of training, work study, organizational change, new motivations, etc. Changes in employment practices (e.g. use of subcontractors or agency staffs, hiving-off tasks, buying in, substitution, etc.) Variations, which respond to new legislation, e.g. payroll taxes or their abolition, new health and safety requirements Changes in Government policies (investment incentives, regional or trade grants, etc.)
Publicizing the purposes of the exercise and explaining to staff how the system will be used. Organizing and establishing the necessary training of managers and supervisors who will carry out the actual evaluations/ appraisals. Not only training in principles and procedures but also in the human relations skills necessary. (Lack of confidence in their own ability to handle situations of poor performance is the main weakness of assessors.) Monitoring the scheme - ensuring it does not fall into disuse, following up on training/job exchange etc. recommendations, reminding managers of their responsibilities. Basically an evaluation / appraisal scheme is a formalization of what is done in a more casual manner anyway. Most managers approve merit payment and that too calls for evaluation. Made a standard routine task, it aids the
Discovery as the result of working party, project team membership or attendance at meetings; Job swaps within and without the organization;
Undertaking planned reading, or follow from the use of selfteaching texts and video tapes;
Lectures and talks by senior or specialist managers; Discussion group (conference and meeting) activities; Briefing by s enior staffs; Role-playing exercises and simulation of actual conditions; Video and computer teaching activities;
METHODOLOGY
The insurance sector is marked with a high level of attrition and therefore recruitment process becomes a crucial function of the organization. At ICICI Prudential Life Insurance, recruitment is all time high during May-June and Oct-Nov. The attrition is high among the sales managers, unit mangers mostly in the sales profile. The recruitment is high during these months due to the fact that March and September are half year closing and business is high during Jan-Mar. Thus it is only after March that people move out of the companies. Since my summer training was in the months of May-June, it gave me the opportunity of involving myself directly with the recruitment process and
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Articles No.04 Ethics institutionalization, quality of work life, and employee job-related outcomes: A survey of human resource managers in Thailand Kalayanee Koonmee, Anusorn Singhapakdi, Busaya Virakul, Dong-Jin Lee. Journal of Business Research. New York: Jan 201 Abstract (Summary)
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The fierce competition for qualified workers results from a number of workplace trends, including: A robust economy Shift in how people view their careers Changes in the unspoken "contract" between employer and employee Corporate cocooning A new generation of workers Changes in social mores Life balance
Concurrent with these trends, the emerging work force is developing very different attitudes about their role the workplace. Today's employees place a high priority on the following: 1. Family orientation
To hold onto your people, you have to work counter to prevailing trends causing the job churning. Smart employers make it a strategic initiative to understand what their people want and need -- then give it to them.
Retention Strategies
This is not an exhaustive list, one can add or delete any of the below mentioned strategies. Secondly, the need of the hour is to have "right basics". Every individual is different, his needs are different, and his emotions, his problems are different. So, dear HR-Professionalssit down and concentrate on your basics. I have classified retention strategies into two parts: Main and Ancillary.
Clarity.
Expectations should focus on outcomes, not activities. In other words, you achieve clarity when you identify the expected results rather than the method for achieving them. Managers often make the mistake of attempting to direct the process that an employee will use rather than being clear about results. The advantage of identifying the outcome is that you, the manager, focus only on the goal; after all, the employee will develop the method for achieving the desired results.
Proper Rewarding
A research reports says that in today's scenario, 1.70% of your employees are less motivated today than they used to be. 2.80% of your employees could perform significantly better if they wanted to. 3.50% of your employees only put enough effort into their work to keep their job. As you might be aware of Employee Reward covers how people are rewarded in accordance with their value to an organization. It is about both financial and non-financial rewards and embraces the strategies, policies, structures and processes used to develop and maintain reward systems. The ways in
Financial times are tough. In the insurance industry, competition has never been fiercer. Customer retention has become a primary concern for insurance companies, and these leading insurance providers are looking for new ways to increase customer retention. Otherwise, they face the real prospect of outright failure. Those insurance organizations with the greatest forethought are bolstering their customer service offerings at the tactical level of contact center operations, applying corporate customer retention strategies. For providers of insurance, customer retention is a successful tool for competitive leverage. Many insurance providers have prioritized customer retention practices throughout their contact center operations. But, in addition to customer retention, contact center operations in the insurance industry still face operational issues, including efficiency, productivity and customer service representative (CSR) satisfaction.
Customer Industry
Retention
Solutions
for
the
Insurance
Jacada has been successful in implementing customer retention solutions for many insurance providers. Our approach to the customer retention issue is focused on the unified customer service desktop. Implementing a unified desktop in the contact center helps insurance providers overcome inefficiencies, inflexible systems and CSR churn by providing the CSR with a complete view of the customer, leading to increased customer retention while reducing operating expenses. Jacada solutions dramatically simplify the processes and workflow required by CSRs in the insurance market, resulting in reduced operational costs and improved customer retention. Our unified service desktop solution, Jacada, provides an "intelligent" point of access to all the mission-critical applications and contact center tools required to effectively handle positive customer interactions and drive customer retention for insurance providers.
SUGGESTIONS:1. Employee should be provided with proper training. 2. Employee should be appreciated for good work. 3. Employee should be motivated to welcome the change.
4.
If any changes are brought in to software or any module is added then proper.
Recommendations:-
3.
Be Flexible:Be flexible in terms of work-life balance. Workers more and more value a balance between work and life. They want more flexible ways to engage with their employer. To attract and retain workers with different work and career expectations, organizations have to be more flexible in structuring work and its expectations. It calls for a different managerial mindset and practices that involve letting go of old ways of controlling workers time and attendance in favor of result criteria such as output, productivity and quality.
4.
Train managers to be effective. Exit interviews consistently show that poor and bad management practices greatly contribute to an employees decision to leave a company.
Conclusion:Retention is an important concept that has been receiving considerable attention from academicians, researchers and practicing HR managers. In its
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