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Recruitment and Selection


Under the Guidance of:


Management is essentially flair for approaching and tackling with a high
degree of sensitivity, sophistication and style. To work, learn and to feel the pulse of
corporate world and its interface with the environment setting, Management student are
required to undertake training in the corporate sector. The training gives student an
opportunity to apply their conceptual and practical skills in the ‘real life’ business

I deem it as a privilege to do Summer Training in HRM. The study was undertaken with
the view to get a closer view of the RECRUITMENT AND ATTRITION TOOLS
used in insurance sector and analyzing the situation.

Together with strengthening the recruitment process, reduction in attrition rate can
help an organization to grow in its respective fields. It is an area in which an HR can take
a lead by recruiting right people, measuring attrition, seeking its causes, and setting out
the solution and target performance.

In the following project an attempt has been made to analyze the existing as well
as potential employee behavior and their expectation and satisfaction level and highlight
all the important areas along with the recommendations and strategy for consideration.


It was a great learning experience working on this project. There are some people who
helped me a lot by providing their valuable suggestions and time during this project

I feel great pleasure to acknowledge my deepest gratitude to my esteemed company
Guide Mr. Rakesh Kumar Srivastava for their constant support and mentoring. I am
also grateful to the entire HR department who had constantly helped me in spite of their
busy schedule.

My special thanks to all the employees and HR managers of the different Insurance
companies for their active guidance and support for this project.

I also, thankful to my friends for giving me the moral support and advice wherever
needed It seemed difficult for me to complete my project if they had not
helped and cooperated with me.

However, I take the responsibility of all my shortcomings.





Table of Contents

Executive Summary

 Introduction

 Objectives of the study

 Research Methodology

• Meaning and Definition

 The Background

 Investors & Promoters

 Company Profile

• Introduction

• Objectives of the organization

 Products of the Company

 Features of the product

 Competitor

 Government Policies

 About the project

 Findings and Data Analysis

 Conclusion

 Bibliography



Attrition may be defined as the members of employees leaving the organization, which
includes voluntary and involuntary separation. It is the gradual reduction in membership
or personnel as through retirement, resignation or death.

Staff attrition and absenteeism represent significant costs to most organisations. Many
organizations appear to accept them as part of the cost of doing business –a sign of
increasing mobility and decreasing staff loyalty perhaps, a matter to be regretted but just
one of those things.

However, it seems to be one of the area in which HR can make a difference and one that
can be measured in quatifiable, financial terms against targets.

Research Instrument use was questionnaire Interview and observation techniques The
questionnaire had closed ended question .Secondary data collected through published and
unpublished material ,management literature research journals internet etc.The sample
size is 115 employees of banking sector using random sampling.

Banking Sector has its unique working strategies comprising of 3Ds i.e Discipline,
Dedication and Devotion .Its main motto is to provide quality service and consumer
satisfaction .

Accountability and responsibility for action including performance incentives based on
fair and transparent easement and compensation in the best and an increase sense of
security based on increased success of the organization.



Human resource management is a process of bringing people and organization together
so that the goals of each are met.

It may be defined as an art of procuring, developing and maintaining competent
workforce to achieve the goals of an organization in an effective and efficient manner


• To help the organisation reach its goals.
• To employ the skills and abilities of the workforce efficiently.
• To provide the organisation well trained and motivated employees.
• To increase to the fullest the employee’s job satisfaction and self actualisation.
• To develop and maintain the quality of work life.
• To communicate HR policies to all employees.
• To be ethically and socially responsive to the needs of society.

Managerial Functions a) Planning.This function is concerned with proper grouping of personnel activities. . HUMAN RESOURCE MANAGEMENT –FUNCTIONS HRM is concerned with two sets of functions namely- 1. assigning of different groups of activities to different individuals and delegation of authority c) Directing-This involves guiding and supervising the personnel.The HR manager is expected to determine the personnel programme regarding Recruitment. Operative Functions . d) Controlling-It involves measuring the employee’s performance.Selection and Training of employees. correcting negative deviation and industrial assuring an efficient accomplishment of plans. Managerial Functions 2. b) Organising.

manpower planning.creative ability. It includes Health and Safety programmes. redressing grievances promptly. . rewards). selection. d) Maintenance-It aims at protecting and preserving the physical and psychological health of employees through various welfare measures. aptitude based on present and future requirement both at the individual’s and organization’s level. work scheduling . recognition. appraisal based incentives. e) Integrated Functions-This tries to integrate the goals of an organization with employee aspirations through various employee-oriented programmes .changing and developing the skills.moulding.Operative Functions- a) Procurement-it is mainly concerned with procuring and employing people who possess necessary skills. employee welfare and social security measures. c) Motivation and Compensation-it is a process which inspires people to give their best to the organization through the use of intrinsic (achievement. b) Development-It is the process of improving . empowering people to decide things independently . responsibility) and extrinsic (job design. recruitment. induction and internal mobility. It includes job analysis. knowledge .encouraging a participative culture. offering constructive help to trade unions etc. knowledge and aptitude. instituting proper disciplinary measures.

3.At the enterprise level- • Good human resource practices help in attracting and relating with best people in organization.At the individual level- • It promotes teamwork and team spirit among employees.At the international level – • Effective uses of human resources help in exploitation of natural. . physical and financial resources in a better way. proper attitudes and appropriate values help the nation to go ahead and compete with the best in the world leading to better standard of living and better employment. developing right attitude towards the job and the company. People with right skills. 2.At the society level – • Employment opportunities multiply. • It offers excellent growth opportunities to people who have the potential to grow. IMPORTANCE OF HRM 1. • It allows people to work with diligence and commitment. • It helps in training people for challenging roles. 4. • Scarce talents are put to best use.

ROLE OF HR DEPARTMENT IN AN ORGANISATI0N The human resource department has staff relationship with other department/managers in the total organization. . The personnel department is responsible for advertising management from Managing Director to the lowest line supervisor on all area relating to the personnel management and industrial relation. market subsystem and HR subsystem in an enterprise communicating and coordinating with other and human resources into outputs such as products services and satisfaction offered to people at a large. The enterprise procure and transforms inputs such as physical . An enterprise operations can be viewed in terms of interacting and independent elements. finance subsystem. Finance Subsystem ↕ HR Subsystem Procurement Training Compensation Product Subsystem ↔ Appraisal Rewards ↔ Technical Subsystem ↕ Marketing Subsystem A system is a set of interrelated but separate elements or parts working towards a common goal. each enterprise has certain departments known as subsystems such as production subsystem. To carry out its operation.

 To understand the procedure of recruitment and selection of life insurance advisors  To know about life insurance its benefit and needs  To find out possible advantages of insurance advisors in ARLIC Ltd.  To find the suitable person for recruitment of insurance advisor . Objective of the study To gain knowledge about the different recruitment and attrition tools being used in various insurance companies and comparing it with that of ARLIC.

Publication of various associations connected with the business and industry.We collected primary data during the course of our training by performing surveys in different insurance companies. The survey method is advantageous because it helps in collecting a great deal of information about an individual respondent i. 2 Method of data collection- a. Magazines and Newspapers.) Collection of primary data.) Collection of secondary data-we collected secondary data from – 1. 3.R of various insurance companies to gain enough insight into the recruitment and attrition tools used by their firm.Selecting the sample unit- The sample unit consisted of representatives from various insurance sector belonging to different categories.we organized our meeting with H.Instrument used for collecting the data – For our research purpose. b. 3. Sample surveys and internet surfing. age and income groups. instrument used were Questionnaire. The idea was to gain enough insight into the recruitment and attrition tools used in insurance sector and analyze the characteristic of population under study. RESEARCH METHODOLOGY 1.e. Companies websites. the person. 2. In the given project the .

3.) Classification of data on the basis of attributes like satisfaction with job profile and on the basis of class interval like age and income etc. 5.The scale construction technique of analyzing data helped to draw inferences.) Tabulation of classified data for comparison and various statistical computation.Processing operations included- 1. 6.Processing and analysis of data- The data after collection need to be reprocessed and analyzed in accordance with the outline laid for the purpose at the time of developing research plan .) Editing of data collected to detect errors and omissions and to correct these when possible.questionnaire constructed was structured. 2.It ensures that we have all relevant data for making contemplated comparisons and analysis.) Presentation of results . 4. 4. non-disguised and mainly had simple and close end questions. In Analysis we did the computation of certain indices or measures along with certain indices or searching measures for patterns of relationship that exist among the data group. Finally the results of the analysis are presented in the form of charts and graphs .) Coding of responses assigning numerals and symbols so that the same can be put into a limited number of categories or classes.

which was made basically to judge about the satisfaction level of the employees. For this survey a questionaire was prepared which along with employees of other organizations along with ARLIC were filled. 4. with their organizations. What changes should be done in Recruitment process. ICICI. The basic aim of the survey was to find out the satisfaction level of the employees working in the company and recruitment and attrition tools used by HR managers in Insurance sector. 3.SURVEY ANALYSIS REPORT- During the time of summer training a study was done in which I did a survey with the help of my HR Managers. 2. First section was common for all the employees. Met Life Insurance The questionaire for the survey purpose was divided into two sections: a. . Companies in which questionnaire was got filled were: 1.Prudential 4. The different areas where the organization has to improve.Life Insurance 3. Bharti-Axa 2. Different tools to retain the employees. SBI. It helped us to know- 1. Causes of attrition.

Prevention of losses b. Collective bearing of risk c. Other Functions Primary Functions includes: a. c. Small capital to cover larger risks. Functions of Insurance: The functions of Insurance can be bifurcated into two parts: 1. THE BACKGROUND Insurance sector and Life Insurance in INDIA Insurance. Second section was to be filled only by the HR of the organization. In that section. b.Meaning: A contract whereby for a specified consideration. etc. Providing Protection b. one party undertakes to compensate the other for a loss relating to a particular subject as a result of the occurrence of designation hazards. Examples include: Car Insurance. Contribution towards the development of larger industries . Questions were based on the recruitment and attrition tools used by the HR of different companies. Life Insurance. A contract is considered to be insurance if it distributes risk among a large number of persons through an enterprise engaged primarily in the business of Insurance. Primary Functions 2. Secondary Functions 3. Assessment of risk d. Business Insurance. Provide certainty Secondary Functions includes: a.

The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire. there were a large number of insurance companies and the level of competition was high. In 1829. It finds mention in the writings of Manu ( Manusmrithi ). However.Other functions comprises: a. Royal Insurance. floods. The Indian Life Assurance Companies Act. In 1938. the Bombay Mutual (1871). This Company however failed in 1834. namely Albert Life Assurance. Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. 1912 was the first statutory measure to regulate life business. Means of saving an investment b. the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. Risk free trade HISTORY OF INSURANCE In India. In 1928. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers’ contracts. In 1914. the Madras Equitable had begun transacting life insurance business in the Madras Presidency. Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). This was probably a pre-cursor to modern day insurance. The Insurance Amendment Act of 1950 abolished Principal Agencies. therefore. England in particular. 1938 with comprehensive provisions for effective control over the activities of insurers. Insurance in India has evolved over time heavily drawing from other countries. the Government of India started publishing returns of Insurance Companies in India. Source of earning foreign exchange c. 1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. There were also allegations of unfair trade practices. insurance has a deep-rooted history. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century. This era. Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. the earlier legislation was consolidated and amended by the Insurance Act. was dominated by foreign insurance offices which did good business in India. . however. epidemics and famine. with a view to protecting the interest of the Insurance public. The Government of India. decided to nationalize insurance business.

in the year 1850 in Calcutta by the British. to propose recommendations for reforms in the insurance sector.. namely National Insurance Company Ltd. The Tariff Advisory Committee was also set up then.. In 1972 with the passing of the General Insurance Business (Nationalisation) Act. was set up. 107 insurers were amalgamated and grouped into four companies. general insurance business was nationalized with effect from 1st January. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. former Governor of RBI. The LIC absorbed 154 Indian. In 1993. it recommended that the private sector be permitted to enter the insurance industry.The objective was to complement the reforms initiated in the financial sector. the Insurance Act was amended to regulate investments and set minimum solvency margins. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17 th century.An Ordinance was issued on 19th January. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd. The committee submitted its report in 1994 wherein . It came to India as a legacy of British occupation. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973. This was the first company to transact all classes of general insurance business. 1973. 1957 saw the formation of the General Insurance Council. the Government set up a committee under the chairmanship of RN Malhotra. 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. In 1968. They stated that . the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. among other things. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. In 1907. the Indian Mercantile Insurance Ltd.. a wing of the Insurance Association of India. 16 non-Indian insurers as also 75 provident societies—245 reopened to the private sector. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. the New India Assurance Company Ltd.

the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. The Authority has the power to frame regulations under Section 114A of the Insurance Act. 2000. 2000. In December. The IRDA was incorporated as a statutory body in April. The IRDA opened up the market in August 2000 with the invitation for application for registrations. while ensuring the financial security of the insurance market. Parliament passed a bill de-linking the four subsidiaries from GIC in July. Foreign companies were allowed ownership of up to 26%. the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. . Following the recommendations of the Malhotra Committee report. 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders’ interests. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums. in 1999. preferably a joint venture with Indian partners.foreign companies are allowed to enter by floating Indian companies. 2002.

1956. can trace its roots to the Triton Insurance Company Ltd. LIC Act. the first Indian life insurance company started its business. with a capital contribution of Rs. 1870: Bombay Mutual Life Assurance Society. the first general insurance company established in the year 1850 in Calcutta by the British. the first life insurance company on Indian soil started functioning. 5 crore from the Government of India. LIC formed by an Act of Parliament. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. viz. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company. on the other hand. The General insurance business in India. ..

1999 As per the section 4 of IRDA Act' 1999. (c) four part-time members. (all appointed by the Government of India) . (b) five whole-time members. which was constituted by an act of parliament) specify the composition of Authority The Authority is a ten member team consisting of (a) a Chairman. Insurance Regulatory and Development Authority (IRDA. INSURANCE REGULATORY DEVELOPMENT ATHOURITY Composition of Authority under IRDA Act.

1993 report suggested reforms in the insurance sector including improvements in the functioning of LIC. The insurance returns committee under chairmanship of R. The bill was passed regarding this in 1998. the IRDA is also entrusted with the task of developing the market that calls for generating insurance awareness in the country. Malhotra in its April. . and most importantly making sure that the insurers pay the customer. IRDA drafted the rules of the game. liberalizing and developing a strengthening the regulatory system. Having achieved this. thus unraveling a new chapter in this field.N. it now performs referee’s role of ensuring that the players play by the rule. IRDA’s basic function is to protect consumer interest. IRDA started accepting applications from new private insurers from 19th April 2000. Further ensuring that the solvency of the insurer is a very important function of the regulatory authority IRDA has evolved a set of operational guidelines. Besides. Till date licenses have been issued to 13 insurers including LIC. Insurance consultants intermediaries. ABOUT IRDA The government of India opened the insurance sector to the private players on October 24. IRDA allowed the private insurers to transact insurance business in India. This means ensuring proper disclosure. keeping prices affordable but also insisting on some mandatory products. To deal with maintaining the solvency of the insurers. GIC. 2000. The committee submitted its report on 07-01-1994 to Union Finance Minister.The first batch of licenses was given in October 2000. It has evolved guidelines for the entry and proper functioning of the Agents. This new policy of GOI is an outcome of India’s policy of liberalization and also the result of its obligation to the WTO to confirm to its principles and guidelines relating to the reduction of barriers to trade in services. Finally Insurance Regulatory and Development authority (IRDA) gained statutory status in April 2000. This epoch making decision of the GOI has ushered in anew era that has transgressed four decades of complete control of the public sector over the private sector. selected the players who would enter the market.

. When world over insurance market has been open up.  It will secure for India larger inflow of foreign capital need to sustain our GDP growth. c) Product range d) Accounting practices e) Consumer protection norms f) Ensuring that the rural health and insurance are developed g) Fixing of licenses. History has shown that it is very difficult for a country to remain in isolation. improved customer services and introduced proper regulation to protect policy holder’s interest. the cost of operating in India is nearly 25% higher that other countries. LIBERALIZATION OF INSURANCE SECTOR Liberalization commitment of the country to help in disciplining future economic policies will include the insurance reforms. With the opening of the insurance industry. b) Regulate covering investments. Due to certain regulations like the commission structure.The critical aspects of IRDA in governing insurance sector are: a) The number and role of private sector operates including intermediaries. While insurance regulatory and development authority (IRDA) has had a significant role to play towards development and growth of private insurers in India. Indian market cannot remain in isolation. innovative products.  Long term funds for infrastructure development will be available to the country. new distribution channels. However. solvency norms etc. flexible premium payments. which is here to stay. India stands to gain with the following major advantages:  Globalization will provide opportunities to the customers. IRDA has encouraged development of modern.  The customer will get better services. heralding a new era of insurance in India. The product clearance takes a long time causing slowdown in the industry growth. Globalization is the new economic reality. the regulator needs to be a little more proactive in taking initiatives.  Better production with more reasonable and affordable prices.  It will enhance the saving rate.

What have changed in recent times are customers’ expectations and the environment in which the life insurance sector operates. The funds created are then utilized and invested for nation building. Today. This is due to globalization. The insurance business is conducted with the full realization that LIC is only a trustee of the insured public and priority is given to meet the needs that arise due to change in the social and economic environments. There is the need to push insurance as a social responsibility for those who really need it. Specialized software is used in actuarial science to accurately predict life expectancy and mortality.WHY INSURANCE IN INDIA? We live in the information age. The main objective is to spread life insurance to every nook and corner of the country especially rural areas. natural disasters on a large scale occur regularly and even terrorism is increasing day by day. . there is a paradox in the form of a growing need to educate people to buy insurance. its business objectives complemented its social objectives. Even today after 50 years. This has highlighted to the world that insurance is a basic and fundamental need for the safety and security of the family. which has opened up the insurance sector to private. to socially and economically backward classes and provide them reasonably priced financial cover against death. But natural disasters are difficult to predict. People are becoming more aware of the importance of insurance in their life. Only a larger insurance cover can guarantee a better future. Other objectives include encouraging people to save for the future by making insurance linked savings more attractive and secure. and those who really needed insurance had not taken it. Business and Social Objectives When LIC was formed in 1956 through the amalgamation of 225 private companies. However insurance claims for natural disasters are very low. the core value of social commitment has not changed. This is because insurance coverage was too low. However.




AEGON RELIGARE LIFE INSURANCE COMPANY LIMITED AEGON. The fulfillment of this vision is based upon having a complete product suite. a global financial services group and Bennett. providing customised advice and enhancing the overall customer experience through superior service. This joint venture will balance a local approach with the power of an expanding global operation. have come together to launch AEGON Religare Life Insurance Company Limited (ARLI). ARLI launched its pan-India operations in July. THE PARTNERSHIP About AEGON As an international life insurance. Europe and Asia. . the Netherlands. This venture is dedicated to build a profitable customer-centric business with scale. pension and investment company. With headquarters in The Hague. AEGON has businesses in over twenty markets in the Americas. India’s largest media house. ARLI has launched a suite of products that are focused on providing the customer with the means to meeting their long-term financial goals. ARLI products such as AEGON Religare iTerm Plan and AEGON Religare Future Protect Plan have been ranked among the best in terms of value and have attracted many external accolades. providing a work environment that fosters excellence and innovation. pension and investment company. Coleman & company. At the same time product development has been founded on the tenet of providing the customer with great value. Religare. an international life insurance. 2008 following a multi-channel distribution strategy with a vision to help people plan their life better.

Africa. asset management. and to . The company’s common shares are listed on three stock exchanges: Amsterdam. broking and lending solutions to investment banking and wealth management. The group has also pioneered the concept of investments in alternative asset classes such as arts and films. Middle East. Religare serves over a million clients. BUSINESS OBJECTIVES The primary objective of ARLI is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner. With over 10. AEGON has more than 160 years of experience with its roots going back to 1844.AEGON companies employ approximately 28.000 employees across multiple geographies. New York and London. REL hold 44% equity in ARLI. Religare’s largest market. In India. Europe and the Americas. the group offers a wide array of products and services ranging from insurance. high net worth families and individuals. About Religare Enterprises Limited Religare Enterprises Limited (REL) is a global financial services group with a presence across Asia. and retail investors. including corporates and institutions.000 people and serve some 40 million customers across the globe. AEGON holds 26% equity in ARLI.

BOARD MEMBERS MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER Rajiv Jamkhedkar . Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial market ORGANIZATIONAL GOALS • Develop close relationship with individual households • Maintain its position as a premier housing finance institution • Transform ideas into viable and creative solutions • Provide consistently high returns to share holders • To grow through diversification by leveraging off the existing client base .promote home ownership.

AUDIT RISK & COMPLIANCE Debmalya Maitra ARLI’s MISSION We aim to be the top life insurance 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 .CHIEF FINANCIAL OFFICER & APPOINTED ACTUARY K S Gopalakrishnan CHIEF INVESTMENT OFFICER Saibal Ghosh CHIEF MARKETING OFFICER Yateesh Srivastava HEAD . This does not just mean being the largest or the most productive company in the market.

Hence we will aim to manage their investments very carefully and live up to this trust. . INNOVATION: Recognizing the different needs of our customers. TRUST: We appreciate the trust placed by our policy holders in us. we will be offering a range of innovative products to meet these needs KEY STRENGTHS • Financial Expertise: As a joint venture of leading financial services groups.  Increasing market share ARLI VALUES SECURITY: Providing long term financial security to our policyholders will be our constant endeavor. HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. We will be doing this by offering life insurance and pension products.

21 Crores Apr-Mar 2008 .6 million individuals out of which over 5.000 lives have been covered through our group business tie ups . 00. including the first year premiums and renewal premiums is Rs. 1532. • Track Record so far: Our cumulative premium income. • We have covered over 1. which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.• Range of Solutions: We has a range of individual and group solutions.09.


000.way bigger than the industry average. with over 90 percent of the customers. That’s the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. the private insurers have already wrested over 33 percent of the market.LIFE INSURANCE MARKET The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. state owned LIC's new premium business has fallen. The new business premiums of the 12 private players have tripled to Rs 1000 crore in 2002. But in the annuity or pension products business.000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1. They are coining money in new niches that they have introduced.1 lakh to Rs 1.2 lakh. The growing popularity of the private insurers shows in other ways. For instance. The state owned companies still dominate segments like endowments and money back policies.they are persuading people to take out bigger policies. . The penetration of life insurance products was 19 percent of the total 400 million of the insurable population The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. Innovative products. the average size of a life insurance policy before privatization was around Rs 50. Meanwhile. That has risen to about Rs 80. And in the popular unit-linked insurance schemes they have a virtual monopoly. smart marketing and aggressive distribution. The private insurers also seem to be scoring big in other ways.03 over last year.

INSURANCE AND LIFE INSURERS There exists huge scope of investment in the insurance sector in India. 1999. Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India on the fulfillment of certain prerequisites. 1999 (IRDA Act). IRDA Act 1999 paved the way for the entry of private players into the insurance market. India has an enormous middle-class that can afford to buy life. Further. As per the provisions of IRDA Act. Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act. . promote and ensure orderly growth of the insurance industry. The FDI cap/ Equity in the insurance sector is 26 percent under the automatic route subject to licensing by the insurance regulatory and development authority. which was hitherto the exclusive privilege of public sector insurance companies/ corporations. insurance is one of the most important tax saving instrument in the country. A large number of public and private players are competing today in both life and general insurance segments. health and disability and pension plan products.

Pvt. HDFC Standard Life Insurance Co. Particulars of the life insurance companies including their web addresses is given below: LIFE INSURERS WEBSITES PUBLIC SECTOR 1. Life insurance corporation of India 13. ltd. www. INSURANCE COMPANIES IRDA has so far granted registration to 14 life insurance companies and 8 general insurance companies. Aviva Life Insurance Co. Ltd. Kotak Mahindra Life Insurance co.avivaindia.hdfcinsurance. www.iciciprulife. If the existing public insurance companies are included.maxnewyorklife.licindia. SBI Life Insurance Company Ltd. 4. Max New York Life Insurance 11. 12. www. www. PRIVATE SECTOR 2.omkotakmahindra.bajajallianz. www. ING Vyasya life Insurance 3. Ltd 10. . 7. Sahara India Life Insurance Co. Ltd. www. General Insurance Corporation has been approved as the “Indian reinsure” for underwriting only reinsurance business. Bajaj Allianz Life insurance www. Ltd.sbilife. Birla Sunlife Insurance Co. ICICI Prudential Life Insurance co. TATA AIG Insurance Company 8.birlasunlife. Ltd. there are currently 15 insurance companies in the life side and 154 companies operating in the general insurance business.

Keeping this in mind. These plans offer valuable peace of mind at a small price • Protection range includes • Term Assurance Plan • Loan Cover Term Assurance Plan Investment Plans . These will help secure your future as well as the future of your family. we have a varied range of Products that you can choose from to suit all your needs. PRODUCT PROFILE INDIVIDUAL PRODUCTS We at Arli realise that not everyone has the same kind of needs. Protection Plans You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise. disability or sickness.

• Unit Linked Endowment. • Unit Linked Pension Plus Savings Plans Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your children’s immediate and future needs. • Our Pension range includes our • Personal Pension Plan. • Pension’s Plan INDIVIDUAL PRODUCTS: COMPREHENSIVE DETAILS . We provide you with attractive long term returns through regular bonuses Pension Plans Our Pension Plans help you secure your financial independence even after retirement. • Unit Linked Endowment Plus. • Unit Linked Pension.Our Single Premium Whole of Life plan is well suited to meet your long term investment needs. • Money Back Plan. • Children’s Plan. Our Savings range includes • Endowment Assurance Plan.

Our Protection Plans give you: • An ideal way to secure the financial future of your loved ones. • High cover at a very nominal cost plus an option of adding optional benefits to cover for other eventualities. .PROTECTION PLANS ARLI TERM ASSURANCE PLAN You have always ensured that your loved ones keep living a respectable life with their heads held high. you can protect your family from uncertainties in life such as your unfortunate death or critical illness. You need to have a plan to take care of your family if something unfortunate were to happen to you. you need to secure your family's future and protect your pride and your family's self respect. As a prudent family man. With our Protection Plans. And ensure that your family lives a life of self- respect and dignity even in your absence. ARLI Loan Cover Term Assurance Plan: An ideal way to cover your home loan or other loan liabilities. But life can be uncertain. which gives you protection against the uncertainties of life. • A choice of two plans depending on your requirements: ARLI Term Assurance Plan: A pure risk cover plan.

ARLI Term Assurance Plan The ARLI Term Assurance Plan is an insurance policy that is designed to help secure your family's financial needs. The question that we all fear is – What about the risks attached? Good news for all the people who are anxious the same way! AEGON RELIGARE Life Insurance brings to you a safe investment plan that would take care of your savings and nurture your earnings . You have to spread it around or it smells. One can choose the lump sum that would replace the income lost to one's family in the unfortunate event of one's death. Paul Getty The well-informed rightly said and proves how important investments are in today’s date and age.” -J. The plan does this by providing a lump sum to the family of the life assured in case of death or critical illness (if option is chosen) of the life assured during the term of the contract. • Choice of taking the plan on a single life basis or a joint life (first claim) basis. INVESTMENT PLANS ARLI Single Premium Whole of Life Plan Secure your financial independence “Money is like manure. • Choice of premium payment options-regular premium or a single one-time premium.

Hence.retirement income for life with the freedom to choose your retirement date. . the ARLI Personal Pension Plan is an insurance policy that is designed to provide a post . This participating plan offers you the following benefits: Whole of life plan aimed at providing long-term real growth of your money Single premium investment plan In case of your unfortunate demise during the policy term. Today. An additional Terminal Bonus may be paid depending on the performance of the underlying investments During Guaranteed Surrender Periods you get the Sum Assured and all bonuses vested as at the date of surrender PENSION PLAN ARLI PERSONAL PENSION PLAN Today. which are usually added annually.ARLI Single Premium Whole of Life Insurance Plan is a tailor-made plan well suited to meet your long-term investment needs. time is with you. you are busy climbing the ladder of success and realizing your dreams. this participating (‘With Profits’) insurance plan will pay your family the Sum Assured and compound Reversionary Bonuses. Just take a moment and think. Will you be able to continue at the same pace? Will your income be the same forever? Will you be able to live life on your own terms even after you retire? ARLI Personal Pension Plan We understand your need to build a secure future for yourself.

The ARLI Unit Linked Pension gives you: . Stride into your golden years of retirement with dignity and pride. At the end of the policy term. The ARLI Personal Pension Plan is an insurance policy. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment.retirement income. which can benefit you in the following ways: • Provides a post retirement income in your golden years • Gives you the flexibility to plan your retirement date • Gives you tax benefits on your premiums The plan receives simple Reversionary Bonuses.You can choose your premium. you are busy climbing the ladder of success and realizing your dreams. time is with you. which will provide your post . Just take a moment and think. Will you be able to continue at the same pace? Will your income be the same forever? Will you be able to live life on your own terms even after you retire? The ARLI Unit Linked Pension is an insurance policy that is designed to provide a retirement income for life with the freedom to maximize your investment returns. Today. the Sum Assured and your retirement date. ARLI UNIT LINKED PENSION Today. which are usually added annually. you will receive the Sum Assured plus any attaching bonus.

Will you be able to continue at the same pace? Will your income be the same forever? Will you be able to live life on your own terms even after you retire? The ARLI Unit Linked Pension Plus is an insurance policy that is designed to provide a retirement income for life with the freedom to maximize your investment returns. We will then invest your premium. ARLI UNIT LINKED PENSION PLUS Today. Just take a moment and think. At the end of the policy term. net of premium allocation charges in your chosen funds in the proportion you specify. In the event of your unfortunate demise during the policy term. which will be used to provide your pension income. time is with you. Today. you will receive the accumulated value of your funds. Stride into your golden years of retirement with dignity and pride The ARLI Unit Linked Pension Plus gives you . you are busy climbing the ladder of success and realizing your dreams. your spouse will receive a cash lump sum to help him or her manage the retirement years. • An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments • A post retirement income for life • Flexibility to plan your retirement date • Freedom to invest premiums as per your preference You can choose your premium and the investment fund or funds.

You can ensure that they live a life of respect and dignity. but also in the long term. We will then invest your premium. As a judicious family man. Not just for today. At the end of the policy term. you have to guard your loved ones against any eventuality. you can ensure that your family remains financially independent. which will be used to provide your pension income. so lovingly built by you. How will they sustain their way of life. • An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments • Regular Loyalty Units to boost your fund value every year • A post retirement income for life • Flexibility to plan your retirement date • Freedom to invest premiums as per your preference You can choose your premium and the investment fund or funds. you will receive the accumulated value of your funds. your priority is to secure the well-being of those who depend on you. in your absence? With our ARLI Endowment Assurance Plan. More importantly. Always. even if you are not around. . net of premium allocation charges in your chosen funds in the proportion you specify. And there is no reason why they shouldn't get the very best in the future too. SAVINGS PLANS ARLI Endowment Assurance Plan You have given your family the very best.

ARLI UNIT LINKED ENDOWMENT You have given your family the very best and there is no reason why they should not get the very best in the future too.The ARLI Endowment Assurance Plan gives you: • An ideal way to secure your long-term finanial goals • Valuable protection to your family by way of lump sum payment in case of your unfortunate demise within policy term • Lump sum payment (basic Sum Assured plus any bonus additions) on survival up to maturity date • Very flexible benefit options and payment options In case of your unfortunate demise during the policy term. you can ensure that your family remains financially independent. You can ensure that they live a life of respect and dignity Always The ARLI Unit Linked Endowment Plan gives you: • An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments • Valuable protection to your family in case you are not around • Flexible benefit combinations and payment options . even if you are not around. With ARLI Unit Linked Endowment. this participating ('With Profits') insurance plan will pay your family the Sum Assured (together with the attached bonuses) you had chosen.

we will pay the greater of your Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family. In case of your unfortunate demise during the policy term. We will then invest your premium. net of premium allocation charges in your chosen funds in the proportion you specify. The ARLI Unit Linked Endowment Plus gives you: • An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments • Regular Loyalty Units to boost your fund value every year . you can ensure that your family remains financially independent. even if you are not around. you will receive the accumulated value of your funds. You can ensure that they live a life of respect and dignity. At the end of the policy term. With ARLI Unit Linked Endowment Plus. ARLI UNIT LINKED ENDOWMENT PLUS You have given your family the very best and there is no reason why they should not get the very best in the future too. • Flexible additional benefit options such as critical illness cover • Access to your accumulated fund before maturity You can choose your premium and the investment fund or funds.

So why let the changing realities of everyday life overwhelm you and make your aspirations take a back seat? You can plan now to ensure that you have the necessary funds to meet your future financial needs. You can prioritize these goals and set your objectives accordingly (see indicative table given below . ARLI Money Back Plan You have always believed in living life on your own terms. you will receive the accumulated value of your funds. The table below will help you identify and classify some of your financial goals. we will pay the greater of your Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family. net of premium allocation charges in your chosen funds in the proportion you specify. In case of your unfortunate demise during the policy term. We will then invest your premium. • Valuable protection to your family in case you are not around • Flexible benefit combinations and payment options • Flexible additional benefit options such as critical illness cover • Access to your accumulated fund before maturity You can choose your premium and the investment fund or funds. At the end of the policy term.

term as well as short-term financial goals. • Valuable protection to your family by way of lump sum payment in case of your unfortunate death within the policy term. Critical Illness or • Saving for your marriage disability • Vacation abroad • Saving for big-ticket assets like your house • Saving for your children's education • Having a regular system for savings ARLI Money Back Plan The ARLI Money Back Plan is a ‘With Profit’ Plan that gives you: • A proportion of the basic Sum Assured as Cash lump sums at regular 5-year intervals within the policy term (see the table given below) an ideal way to secure your long. This is over and above any earlier payouts. . • A lump sum payment on survival up to maturity date. LONG-TERM GOALS SHORT TERM GOALS • Provide adequate cover for • Buying a car Life.

your priority is your child's future and being able to meet your child's dreams and aspirations. Our Money Back Plan gives you a wide range of terms and cash benefit schedules to choose from. Maturity Value On maturity you receive survival benefit due at that point of time along with attaching bonuses for the full Sum Assured calculated for the full term ARLI CHILDREN'S PLAN As a parent. establishing a professional career or even a modest wedding is expensive. providing a good education. A summary of Key Benefits including the cash lump sum payments. Today. Just imagine how much you'll need when your child takes these important steps in life! . expressed as a percentage of Sum Assured is shown below. Costs are increasing fast.Making the right kind of investment will enable you to achieve your objectives-be it your immediate expenses or else securing your future financial needs.

Plan today to ensure a bright future for your child. 7. early in the policy term. Guaranteed renewability till age of 85. No increase in premium for 3 years even if claim is made.000 hospitals across India. . ARLI health insurance plan 1. Gold. on maturity or in case of your unfortunate demise. paid by you. The company to give you good long-term returns invests the premiums. 4. Cashless facility in over 3. The ARLI Children's Plan gives you: • Invaluable financial support to your child • A choice to customise an ideal plan for your child • Multiple options for multiple benefits The ARLI Children's Plan is designed to secure your child's future by giving your child (the beneficiary) a guaranteed lump sum. Start building savings today with our HDFC Children's Plan. No claim benefit is 10% . There are 4 types of plans . 5. Even day care ones 3. Diamond and of the most attractive. Full payment even if your claim is lower 2.Silver. 6. All surgeries are covered. So that your child is able to lead a life of respect and dignity with a secured financial future.


investment of SALARY Rs. 1. 10. Upto Rs. Rs.366 All the health insurance Across all saved on Sec. 1 0 . 33.00.000. 80 CCC All the pension plans. Upto Rs.00.1. Upto Rs.000.000. 1 0 ( 1 0 ) D U n d e r S e c . Investment of conventional plans. income slabs. Investment of Rs. 3. 33. STOTAL SAVINGS POSSIBLE ** e c .E ? A R L I P L A N S Sec. ANNUAL income Slabs. 80 D* riders available with the income slabs.660 80CGROSS Across All saved on All the life insurance plans.660 Across all saved on Sec.

t h e b e n e f i t s y o u r e c e i v e a r e c o m p l e t e l y t a x - f r e e . s u .( 1 0 D ) .

b j e c t t o t h e c o n d i t i o n s l a i d d o w n t h e r e i n . * A p p l i c a b l e t o p r .

A c c e l e r a t e d S u m .e m i u m s p a i d f o r C r i t i c a l I l l n e s s B e n e f i t .

* * T h e s e c a l c u l a t i o .A s s u r e d a n d W a i v e r o f P r e m i u m B e n e f i t .

n s a r e i l l u s t r a t i v e a n d b a s e d o n o u r u n d e r s t a n d i n g o f c u r r e n .

t t a x l e g i s l a t i o n s . P l e a s e c o n t a c t y o u r t a x c o n s u l t a n t f o r e .

026 Rs.3. . Rs.x a c t c a l c u l a t i o n o f y o u r t a x l i a b i l i t i e s . 37.000. 80C and under Sec. Rs.660 under Sec. calculated for a male with gross annual income not exceeding Rs. 10.366 under Sec. 80 CCC .00. 80 D. 33.

RECRUITMENT MAINLY AIMS TO- 1.) Help to reduce the probability that job applicants .) Help to increase the success rate of selection process by reducing the number of obviously underqualified or overqualified job applicants.) Increase organizational and individual effectiveness in the short and long run.GENERAL PROCESS OF RECRUITMENT DEFINITION: Recruitment is a process of locating and encouraging potential applicants to apply for existing or anticipated job openings. 2.will leave the organization only after a short period of time. once recruited and selected. 3.) To determine the present and future requirement of the organization in conjunction with the personnel planning and job analysis activities. 5. . 4.) Increase the pool of job candidates with minimum cost.

c. b. g.Information system like employment exchanges .Political.Organizational culture. Company’s name and fame. e.Quality of work life.Cost of recruitment.Supply and demand factors.Socio-economic factors b. f.Unemployment rate d. e.Company’s size. 2. f. d.INTERNAL FACTORS – It includes a.labour market condition.Career planning and and governmental factors. .FACTORS AFFECTING RECRUITMENT PROCESS 1.Company’s pay package.External Factors- It includes a. c.

2.status and value. b.)Employee referrals: Employee referral means using personal contacts to locate job opportunities.)Campus recruitment-It is a mehod of recruitment by visiting and participating in college campuses and their placement centres.It is a recommendation from a current employee regarding a job applicant. c.on the other hand .)Job posting: It is another way of hiring people from within.DIRECT METHOD-It include: a.Promotions involve movement of an employee from a lower level position to a higher level position accompanied by changes in duties.the organisation publicises job openings on bulletin boards .responsibilities.Here the recruiters visit reputed .electronic media and similar outlets.METHODS OF RECRUITMENT The following are the most commonly used methods of recruiting people.)Promotions and transfers: Many organisations prefer to fill vacancies through transfers from within wherever possible. 1.from onew job to another.INTERNAL METHODS-They include: a.involves lateral movement within the same grade. A Transfer.In this method.

b. and the job seeker’s perception of the types of jobs that might be available etc.professional and technical journals. radio and television.In recent years most companies have found it is useful to develop their own website and list job openings on it.) Private Employment Search Firms-A search firm is a private employment agency that maintains computerised lists of qualified applicants and suppliers these to employers willing to hire people from the list for a fee.Direct methods of recruitment include- a. the image of the company. c. educational institutions and universities with a view to pick up job aspirants having requisite technical or professional skills.) Unsolicited Applicants/Walk ins-Companies generally receive unsolicited applications from job seekers at various points of Employment Exchanges-as a statutory requirement.created for helping unemployed youth.)Advertisements : These include advertisement in newspapers. 4. etc. INDIRECT METHODS.companies are also expected to notify their vacancies through the respective Employment Exchanges. 3.THIRD PARTY METHODS-These include: a. e) Internet Recruiting. The no of such applications depends on economic conditions. .

Here they invite the candidates through various sources.RECRUITMENT PROCESS IN ARLI : In ARLI recruitment of employees consist of many steps. The whole process includes the following steps:- 1)Calling candidates from various sources 2)Giving job description of profile 3)Interview process 4)Medical check up 5)Informing candidates about documents required 6)Preparation of offer request sheet 7)Sending offer letter 8)Filling of joining kit 9)Sending appointment letter 10)Providing training after joining .

1)CALLING CANDIDATES FROM VARIOUS SOURCES:- In ARLI candidates for interview are invited from various sources so that they can save the time & cost. It saves their time as they don't have to spend on candidates who are not fit for the profile & it saves their cost as the consultants & direct candidates are contacted through e-mail which is quiet cheaper. these are: Direct Parichay Consultants Reference Advertisements Educational institutes through these sources company is able to get good quality candidates & not just in good quantity. It has six sources through which candidates come. . 2)PROVIDING JOB DESCRIPTION FOR THE PROFILE:- The organization provides job description for the particular profile to the candidate that the interview is for what profile & what is the qualification required for the same & how much experience is required for being eligible.

The interview process has three rounds. Then after clearing the second round he is supposed to go for the third round in which the interview is taken by the Regional HR. • Past performance 5)MEDICAL CHECK UP:- If after interview the candidate gets selected then he is supposed to go through the medical check up & he is allowed to join the organization only when he is declared medically fit.3)INTERVIEW PROCESS: After the job description the interview is conducted. Firstly the interview is taken by the branch manager under which the candidate would be supposed to work. Then if he/she clears the first round he is supposed to appear for the second round in which the interview is taken by the territory manager. 4) SELECTION CRITERIA:- In ARLI candidates are selected on basis of- • Personality • Communication skill • Past record (related to character) or attitude. .

These documents are:- • educational certificate and mark sheets ( X th.rating scale on which basis the candidate has been selected & the comments of BM.CTC ie cost to company.6 )INFORMING CANDIDATES ABOUT DOCUMENTS REQUIRED:- After getting confirmation that the candidate is medically fit he is asked to submit the documents required.Xllth. .post graduation) • resignation letter duly acknowledged • relieving letter from the last employer • experience certificate from the last employer • four photographs • age proof • last drawn salary slip • acknowledged copy of ARLI offer letter 7)PREPARATION OF OFFER REQUEST SHEET:- After submission of all the documents an offer sheet is prepared which contains st nd personal details of the candidate. This offer request sheet is filled by the HR manager & this is sent to the head office of the organization.1 & 2 reporting.graduation.TM & HR.

8)SENDING OFFER LETTER:- After sending the offer request sheet an offer letter is made by the HR manager & it is sent to the candidate. 9)FILLING OF JOINING KIT:- It is a kit which is to be filled by the candidate after he gives his confirmation about joining the company. After getting the offer letter the candidate can join the organization. This letter means that an offer has been made by the company to the candidate & in response it wants confirmation from the candidate that whether he is ready to join the company or not?This offer letter also works as a verification proof for the candidate till he receives his appointment letter. 40A) / transfer form (FORM is a kind of booklet which is to be submitted to the hr representative with the joining forms duly filled in. it contains various forms like- 1) Information system usage & confidentiality agreement 2) Mediclaim dependent form 3) Gratuity form (form F) 4) Provident fund nomination (FORM NO.13) 5) Salary account opening & reimbursement a/c opening form 6) Members information form for group term insurance 7) Identity card creation form .

which documents all the relevant information regarding usage of information system at ARLI 2) MEDICLAIM DEPENDENT FORM: A form for enrolling the dependents as declared by the employees under the employee benefit.EXPLANATION: 1) INFORMATION SYSTEM USAGE FORM:- It is a guideline form & policy. 3) GRATUITY FORM:- Form F is used to declare the details of the employees & nominees as declared by the employee to be eligible for the benefit.40A:-It is a nomination form for ARLI provident fund trust. . 4) PROVIDENT FUND NOMINATION(FORM NO.13):- FORM NO.13:-It is PF transfer form transferring to PF accumulation from previous employer to ARLI PF TRUST.this form is to be submitted on the joining day by the employee.40)/TRANSFER FORM (FORM NO. FORM NO.-mediclaim policy.It is for PF transfer from your last organisation to the current organisation.

The card is issued on receiving the ID CARD creation form as attached in the kit. 7) IDENTITY CARD CREATION FORM:- All the employees of HDFCSL are issued an identity card for all official purpose & are adviced to carry it inside the office & during any official work outside the office premises.salary a/c is opened with HDFC bank. 6) MEMBERS INFORMATION FORM FOR GROUP TERM INSURANCE:- It is a scheme to provide financial support to the family of employees in the event of death while in service.5) SALARY A/C OPENING & REIMBURSEMENT A/C OPENING FORM:- In this bank a/c no. The ID card contains:- NAME DESIGNATION DEPARTMENT . A second bank a/c form is to be filled for opening of reimbursement a/c.employees can either continue with the existing HDFC bank salary a/c or can open a new a/ required by all employees of ARLI for direct credit of salary. In the unfortunate event of death of the employee while in service with us .the nominee of the employee would be paid benefit subject to the conditions of the scheme.

Two appointment letters are generally made as one of them is sent to the head office & the other one is sent to the candidate. BLOOD GROUP LOCATON OF BRANCH PAN NO. an appointment letter is sent to him by the HR manager. . PHOTOGRAPH 10)SENDING APPOINTMENT LETTER:- After the candidate had filled the joining kit . 11)PROVIDING TRAINING AFTER JOINING:- After joining the organization the candidate is given an employee id and he is provided a training from the company so that he can easily understand his job & can work efficiently after training.

it seems to be one of the area in which HR can make a difference and one that can be measured in quatifiable. financial terms against targets. HISTORY OF ATTRITION Attrition is not a new phenomenon. But in the late 1990’s the pendulum started to swing wildly. It has existed all along in the 1980s and early 1990’s people still believed in shibboleths like “job for life” . However. which includes voluntary and involuntary separation. ‘ career within a company’. Employees got the defining message that no one is indispensable and doing a good job is not a protection enough. Employee retention was . Corporate culture was on the cusp of major transformation. resignation or death. Many organizations appear to accept them as part of the cost of doing business –a sign of increasing mobility and decreasing staff loyalty perhaps. It is the gradual reduction in membership or personnel as through retirement. Staff attrition and absenteeism represent significant costs to most organisations.ATTRITION DEFINITION: Attrition may be defined as the members of employees leaving the organization. a matter to be regretted but just one of those things.

)Relationship with supervisors and co-workers: If the supervisor lacks competence. Somewhere along the way a tectonic shift happened in the minds of the employees. Similarly lack of cordial relationship with co- workers also cause high rate of attrition.)Pressure of work: Companies in their zeal to squeeze out every little ounce of productivity from their employees and further increase profitability may opt for less number of employees. 6.)Job Satisfaction: Employees seek a job. 3. employ exodus cannot be contained. If the organizations do not deliver on these expectations. which offers them stratosphere level of responsibility and high growth trajectory. Now-a-days companies have started wooing the best of the talents with mind-boggling salary levels and attractive designations. 5.)Miscellaneous: . empathy and trust in employees. MAIN CAUSES OF ATTRITION 1. 4.)Work environment: An employee may leave an organization if the fairness of the system does not inspire his/her confidence. which pay scant regards towards employee safety and care. 2.)Salary and Perks: There may be any number of reasons as to why an employee leaves and one of the major facts is-the money. will also have to face the mounting attrition levels. In such situation employees will be constrained to rethink their priorities and join an organization that promises a relaxed piece of work.the last thing on radar screen of the companies. they will fail to command the respect of the subordinates. Organisations.

It is equally important to be frank and realistic with potential hires.)Strengthen the recruitment process: For an organization it is necessary to have a clear.)Involving employees in the decision making process: . 4.)Making Induction program a pleasant experience: Companies should ensure that an employee’s first introduction with them is quite memorable and pleasant experience. greater flow of work. accurate and a very transparent recruitment process. lesser delays. It will make the new hire feel welcome and the employee stickiness factor with an organization will enhance.)Training and Development: Companies aiming at retaining employees should keep two key aspects in mind training should be highly relevant and should sufficiently broad based on the employee’s perspective and experience. Geographical location and Competency in the working environment. Training should help employees acquire new skills in addition to replenishing their old skills. Some of these measures are: 1. 3. MEASURES TO COMBAT ATTRITION Low attrition results in the fewer day to day problems. 2.In addition to all above factors some of the other causes of attrition can be Health condition of the person. enhanced service delivery and a heightened strategic focus.

It has been found that retaining employees has always been fruitful across many industries rather than search for new and efficient talent.Employees like to be a part of an organization where their voices are heard and opinions really matter. 7. The greater an employee’s involvement in decision making process .)Providing a balance between work and personal life: Achieving a good balance between work and personal life and responding to the needs and expectations of an employee play a very important role in employee retention. Such survey may throw up the potential flash points. Companies need to .)Conducting employee satisfaction surveys: Companies should conduct employee satisfaction survey at periodical intervals.)Making the organization very transparent: Employees are more comfortable working in a highly transparent organization where much of the details regarding its functioning. development and performance are freely available to the employee.better is the organization ability to retain its talent. so much so that an organization can galvanize itself into action and take remedial measures forthwith. Thus. 8.)Motivating employees when and where required- Motivation should be provided to reward employees psychologically to a great extent and urge them to contribute in a better manner in future assignments. 6. 5.

) Transparent communication in the HR policies. Tools used in ARLI to combat attrition- After the deep study on high rate of attrition in insurance sector it has been found that it is not the money alone that retains the employees .) Secure careers. 3. ARLI believes that attrition battle could be won by focusing on retention. 2.) Perks. Here HR believes in treating the employees or the workforce as customers and maintaining a pleasant organization culture. Moreover here stress is given to recruit the right person for right job at the right time.) Benefits.identify the routes to ensure employees feel they are growing with the industry and are not being exploited for a few bucks.In ARLI Management believes in retaining employees through: 1. BENEFITS OF ATTRITION: . 4. making the environment a fun place and providing career growth prospectus for employees.

The term “healthy attrition” or “good attrition” signifies the importance of less productive employees voluntarily leaving the organization. most of them will be at the top of their pay scale which will result in excessive manpower costs. the company is benefited.Attrition is not bad always if it happens in a controlled manner. is detrimental to organizational health. in the long-term. • When certain employees leave. • Desirable attrition also includes termination of employees with whom the organization does not want to continue a relationship. This. The only concern is how organizations differentiate “good attrition” from “bad attrition”. the attrition in considered being healthy. It benefits the organization in the following ways: o It removes bottleneck in the progress of the company . Attrition rates are considered to be beneficial in some ways: • If all employees stay in the same organization for a very long time. approaches. • There are also some people in the organization who have a negative and demoralizing influence on the work culture and team spirit. whose continuation of service would have negatively impacted productivity and profitability of the company. Some attrition is always desirable and necessary for organizational growth and development. abilities & attitudes which can keep the organization from becoming stagnant. This means if the ones who have left fall in the category of low performers. • New employees bring new ideas.

lack potential for future or need disciplinary action. ICICI PRUDENTIAL AND METLIFE:- FOR EMPLOYEES Different aspects on which survey was done for employees of different Insurance companies and their results are as follows- 1.Work experience of employees.. SBI LIFE INSURANCE.survey analysis of these four companies showed the following results in form of percentage Experience of 0-5 years 5-10 years 10-15 years employees in years Percentage of 50% 25% 25% Employees 2.Satisfaction with job profile-survey studies revealed that only 30% of employees were highly satisfied with their job profile and rest 70% were satisfied with their job profile. o It creates space for the entry of new talents o It assists in evolving high performance teams • There are people who are not able to balance their performance as per expectations. Highly Highly Satisfied Percentage of satisfiedSat satisfied employees isfiedDissat . Furthermore. as the rewards are limited. business pressures do not allow the management to over- reward the performers. SURVEYS & FEEDBACK SURVEY ANALYSIS OF BHARTI AXA.

company’s terms and conditions. working condition etc. working condition. appraisals and training and development. The result were as follows- .)Job satisfaction on the basis of salary. opportunities for growth. satisfaction level of the employees in other companies was measured on the basis of their salary.-With the help of questionnaire .isfiedHighl y dissatisfied State of employees 3. relationship with co- workers and superiors. Working hours.

and the rest 40% were dissatisfied with their job profile. .Survey report had shown that most of the employees were satisfied with their organisation on this account.State of employees 3 Percentage of 44% 48% 7% 1% 0 employees % 7 0 % 4. 50% were satisfied .Satisfaction with job profile-survey studies revealed that only 10% of employees were highly satisfied with their job profile.)Satisfaction on account of organization taking care of employees personal problem. State of employees . Highly Satisfied Dissatisfied satisfiedSatisfiedDissatisfied5- 10 yearsPercentage of Employees70%30%0-5 years25%State of employees 2.

SURVEY . Salary. 4. 10. Job Profile 2. 2. 4. 3. 8. 3. Relationship with superiors and co- workers. Dissatisfied with: 7. 2. 6.RESULTS: With the help of this survey it was found that basically employees were Satisfied with: 1. Working Hours. 1. 11. 12. 7.Highly Dissatisfied with: 13. Etc 10. Appraisals 8. 3. 1. Training and Development 9. 11. Organizations taking care of their personal problems. 6. 5. FINDING & DATA ANALYSIS 9. 5.

14. FOR
16. 1.Work
experience of
employees.- survey
analysis of ARLI
showed the
following results in
form of percentage
18.Experience of
employees in years
Percentage of 10% 50% 40%
employeesPercentage of

3.) Job satisfaction on the basis of salary, working condition etc.-With the
help of questionnaire, satisfaction level of the employees in ARLI was measured on the
basis of their salary, working condition ,company’s terms and conditions, opportunities
for growth ,relationship with co-workers and superiors, working hours, appraisals and
training and development.
The result were as follows-

State of Highly Satisfied Dissatisfied Highly
employees satisfied dissatisfied
Percentage of 11% 72% 11% 6%

4.)Satisfaction on account of organization taking care of employees personal

- Survey report had shown that most of the employees were satisfied with their
organisation on this account.

Before giving offer Satisfied Dissatisfied
letterAfter giving offer
letterPreferDo not
preferPercentage of HR
%State of employees


P re fe ren ce fo r cam p u s re c ru itm en t


80 %

60 % Do n o t p r e fe r
Pr e fe r
40 %

20 %

0% Pe rc en tage o f HR ma nage rs

Do not p ref e r 25
Pref er 75


2.)Preference for
doing Reference
check before or
after giving offer

letter to a
candidate-It has been
found 50% of the HR
managers prefer doing
Reference check
before giving offer
letter and 50% after
giving offer letter.



With the help of this
survey it was found
that basically
employees were

Satisfied with :

1. Working
2. Company’s
terms and
3. Relationship
with superiors
and co-workers.
4. Job Profile
6. Dissatisfied
with :
8. 1. Growth
9. 2. Training and

In other Insurance companies about 50% of the employees have experience . Working Hours 3. 11.ranging from 0-5 years. Appraisal System 4. 11. 8. Salary 2. 9.On the basis of work experience :In comparative study it has been found that in ARLI 70% of the employees have work experience . 5. 12.Highly Dissatisfied with : 13. ranging 0-5 years and the rest 30% have work experience ranging from 5-10 years. 1. GRAPHICAL REPRESENTA TION OF COMPARATI VE 6. INSURANCE COMPANIES 10. STUDY FOR EMPLOYEES OF ARLI AND OTHER 7.1.25% have experience ranging from 5- 10years and the remaining 25% have .

18. 13. 14. 12. 19. 20. 15. On the basis of job profile: 21. 22. 17.2. Work experience of employees 100% 80% 60% 10-15 ye ars 40% 5-10 ye ars 0-5 ye ars 20% 0% Others HDFC 10-15 years 25 0 5-10 years 25 30 0-5 years 50 70 16.Graphical presentation.It was revealed from survey study that in ARLI that only 10% of the employees are highly satisfied with their job .experience ranging from 10-15 years.

while 50%were satisfied and also 40% of the employees were dissatisfied with their job profile. profile.70% were satisfied with their job profile. .While in other insurance companies only 30% of employees were highly satisfied with their job profile and rest 23.Graphical Satisfaction with job profile 100% 80% 60% Dis s atis fie d 40% Satis fie d Highly s atis fie d 20% 0% Others HDFC Dissatisf ied 0 40 Satisfied 70 50 Highly satisf ied 30 10 presentation. 25. 24.

33. working condition etc : 37.Comparative study revealed that in ARLI 44% of employees were highly satisfied. 34. 26. 48% were satisfied while 7% were dissatisfied and only 1% were highly dissatisfied with their job. working condition etc .3. 27. 29. 36. 28. 32. Job satisfaction on the basis of salary. 35. 30. 72% were satisfied while 11% were dissatisfied and 6% were highly dissatisfied with their job on the basis of salary. In other Insurance companies only 11% of employees were highly satisfied. 31. 38.

45. 41. 44. 42. 46.Graphical presentation . 40.w o rkin g co n d itio n etc. 48. 100% 80% 60% Hig h ly d is s atis fie d 40% Dis s atis fie d 20% S atis fie d Hig h ly s a tis fie d 0% O th ers HDFC Highly dis s atis f ied 1 6 Dis s atis f ied 7 11 Satis f ied 48 72 Highly s atis f ie d 44 11 43.39.4. 47. Jo b satisfactio n o n th e b asis o f salary .Satisfaction on account of organization taking care of employees personal problem-Survey analysis reveals that in ARLI and other insurance .

. 58. 50.Graphical presentation. 54. 59. Satisfaction on account of organization taking care of employees personal problem 100% 80% 60% Dis s atis fie d 40% Satis fie d 20% 0% Others HDFC Dissatisf ied 25 25 Satisf ied 75 75 53. 57. 52. companies same results came into light and it was found that about 75% of employees were satisfied and 25 % were dissatisfied on this point. 55. 56. 51. 49.

STRENGTH: 67.   Not very good opportunities for growth. 61.   Proper working hours not present.    OPPORTUNI TIES: . 64.  Healthy work culture. 66.   First private license holding insurance company. 60.SWOT ANALYSIS OF ARLI: 62.   Brand image of the company.   Customer oriented service. 65. 63.    WEAKNESS:   Lack of proper Appraisal system.

  LIC is giving main threats to the private players in the market.    THREAT:   Launching of many big companies   Other companies providing better facilities and opportunities.      SURVEY ANALYSIS REPORT FOR HR MANAGERS OF DIFFERENT INSURANCE COMPANIES.   Good employee retention programmes.   Large number of population in India is still not insured.   During the course of our survey we arranged our meetings with HR managers of .

)Preference for campus recruitment. The results of the survey were as follows-  1. to gain knowledge about the various recruitment and attrition tools they will prefer for their organizations.The result in percentage is as follows-   State . different insurance companies.survey analysis revealed that most of the HR managers prefer campus recruitment for their organization.

)Approximate attrition rate of the organization-survey report shows that in most of the organisation attrition rate range from 0 to 25 %. P re fe re n c e fo r d o in g R e fe re n c e c h e c k b e fo re o r a fter g iv in g o ffe r le tte r to a c a n d id a te 100% A fte r g ivin g o ffe r le tte r 50% Be fo r e g iv in g o ffe r le tte r 0% Pe rc e n tag e of HR ma na ge rs A f te r g iv in g of f e r lette r 25 Be f o re g iv in g of f e r letter 75 3. Percentage of HR 75% 25% managersPercentage of employees Graphical representation. Range of attrion 0-25% 25%-50% 50%-75% rate Percentage 50% 25% 25% .

Graphical representation. Attrition tool Salary Promotion Others like transfer to increment preferred location . Ap p ro xim ate attritio n rate o f th e o rg an izatio n 100 % 50%-75% 50 % 25%-50% 0-25% 0% Range of attrion rate 50% -75% 25 25% -50% 25 0-25% 50 4.)Most fruitful attrition tool rated by HR managers-Survey analysis revealed that most of the HR managers believe that promotion is the best tool to hold employees in the organization while rest of them believe that transfer to preferred location and salary increment are more fruitful attrition tools.

Percentage of 25% 50% 25% HR managers Graphical representation. Most fruitful attrition tool rated by HR managers 100% Others like transfe r to pre ferre d location 50% Prom otion Salary incre m e nt 0% Percentage of HR managers 0-25% Others like transfer to 25 preferred location Promotion 50 Salary increment 25 0-25% 50 CONCLUSION: .

and to entrust someone with our hard earned money and future prospects. we should always be looking at people with highest standards of ethics and values. Moreover proposed hike in stake of the foreign partners (FDI) in life insurance companies up to 49% will further help the company to further expand and consolidate its position in India. better working condition. Every step of the company to increase its marketability should focus on building trust between the present and the future customer. . Steps like better salary. With the help of survey various aspects of the organizations came into light. which also included high attrition rate in insurance sector. . It is because of their values and ethics. good opportunities for growth. better working hours and appraisals etc. can be taken to minimize the attrition rate. we realize that ARLI is a way ahead of other companies. If we compare ARLI with other private sector life insurance companies in the country. Therefore what is important is the trust.Life insurance is a long-term promise between the company and the customer.   www. ANNEXTURE QUESTIONAIRE USED FOR SURVEY ANALYSIS .hdfcinsurance. BIBLIOGRAPHY Websites used  www.P RAO.)Human Resource Management by   BOOKS: a.)Managing Human Resource by Aswathapa.

What is your work experience? 0–5 5 – 10 10 – 15 More than 15 2.Are you satisfied with your job profile? Highly satisfied Satisfied Dissatisfied Highly dissatis 4.Does your organization takes care of your personal problem? Yes No .NAME: AGE: GENDER: QUALIFICATION: COMPANY: DESIGNATION: 1.How will you rate your communication skill on this rating scale? 0 1 2 3 4 5 6 7 8 9 10 3.

Do you prefer campus recruitment for your company? Yes No 2. annual turnover of your company? (in crores) 5 – 10 10 – 15 15 – 20 More than 20 TO BE FILLED ONLY BY HR- 1. 5.What is approx.Is reference check done for the candidates? Yes No . ICICI Prudential Birla Sun Life Reliance life Insurance Tata AIG Max New York Life AVIVA Life Insurance HDFC SLIC Met Life Bajaj Allianz Bharti Axa 6.Rate these organizations (1-10) in order you will prefer to work.Your organization is – Customer oriented Employee oriented Business oriented Other 8.How will you rate your organization on these scales- HIGHLY SATISFIED SATISFIED DISSATISFIEDHIGHLY DISSATISFIED SALARY WORKING CONDITIONCOMPANIES TERMS &CONDITIONS OPPORTUNITIES FOR GROWTHRELATIONSHIP WITH CO-WORKERS RELATIONSHIP WITH SUPERIORS WORKING HOURS APPRAISALS TRAINING AND DEVELOPMENT 7.

50% 50% .With which company do you have anti poaching agreement? ICICI Prudential Reliance life Insurance Max New York Life Met life HDFC SLIC Bharati AXA NONE OTHERS 9.75% more than 75% 7.How will you rate this questionnaire? .To minimize attrition which tool has been fruitful to you? Salary increment Promotion Transfer to preferred location Others 8.You provide training to employees – Every month Every 3 months Half yearly Annually 5.If yes then you will prefer reference check- Before giving offer letter After giving offer letter 4.3.Do you provide any safety drill exercise to employees? Yes No 6. attrition rate in your company? 0 – 25% 25% .What is approx.

Excellent Very good Appreciable Nice approach but can be improved .