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PROJECT REPORT

ON

Recruitment and SelectionIN

AEGON RELIGARE LIFE INSURANCE

COMPANY LTD, LUCKNOW

Under the Guidance of:

MR. RAKESH SRIVASTAVA


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PREFACE

Management is essentially flair for approaching and tackling with a highdegree 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

situation.

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.


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ACKNOWLEDGEMENT

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

work..

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 amalso 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.

PANKAJ GAUTAM


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TABLE OF CONTENTS

Preface

Acknowledgement

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

Appendix/Annexure


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EXECUTIVE SUMMERY

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 thatcan 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.


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INTRODUCTION

HUMAN RESOURCE MANAGEMENT

Human resource management is a process of bringing people and organization togetherso 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

OBJECTIVES OF HRM

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 employees 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.


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HUMAN RESOURCE MANAGEMENT FUNCTIONS

HRM is concerned with two sets of functions namely-

1. Managerial Functions

2. Operative Functions

.Managerial Functions

a) Planning- The HR manager is expected to determine the personnel programme

regarding Recruitment,Selection and Training of employees.

b) Organising- This function is concerned with proper grouping of personnel

activities, assigning of different groups of activities to different individuals and

delegation of authority

c) Directing-This involves guiding and supervising the personnel.

d) Controlling-It involves measuring the employees performance, correcting negative

deviation and industrial assuring an efficient accomplishment of plans.


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Operative Functions-

a) Procurement-it is mainly concerned with procuring and employing people who

possess necessary skills, knowledge and aptitude. It includes job analysis, manpower

planning, recruitment, selection, placement, induction and internal mobility.

b) Development-It is the process of improving ,moulding,changing and developing

the skills, knowledge ,creative ability, aptitude based on present and future requirement

both at the individuals and organizations level.

c) Motivation and Compensation-it is a process which inspires people to give their

best to the organization through the use of intrinsic (achievement, recognition,

responsibility) and extrinsic (job design, work scheduling , appraisal based incentives,

rewards).

d) Maintenance-It aims at protecting and preserving the physical and psychological

health of employees through various welfare measures. It includes Health and Safety

programmes, employee welfare and social security measures.

e) Integrated Functions-This tries to integrate the goals of an organization with

employee aspirations through various employee-oriented programmes ,like redressing

grievances promptly, instituting proper disciplinary measures, empowering people to

decide things independently ,encouraging a participative culture, offering constructive

help to trade unions etc.


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IMPORTANCE OF HRM

1.At the enterprise level-

Good human resource practices help in attracting and relating with best

people in organization.

It helps in training people for challenging roles, developing right attitude

towards the job and the company.

2.At the individual level-

It promotes teamwork and team spirit among employees.

It offers excellent growth opportunities to people who have the potential to

grow.

It allows people to work with diligence and commitment.

3.At the society level

Employment opportunities multiply.

Scarce talents are put to best use.

4.At the international level

Effective uses of human resources help in exploitation of natural, physical

and financial resources in a better way. People with right skills, 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.


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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.

Finance Subsystem

Product Subsystem Technical Subsystem

Marketing Subsystem

A system is a set of interrelated but separate elements or parts working towards a

common goal. An enterprise operations can be viewed in terms of interacting and

independent elements. The enterprise procure and transforms inputs such as physical

,financial and human resources into outputs such as products services and satisfaction

offered to people at a large. To carry out its operation, each enterprise has certain

departments known as subsystems such as production subsystem, finance subsystem,

market subsystem and HR subsystem in an enterprise communicating and coordinating

with other departments.

HR SubsystemProcurement

TrainingCompensation

AppraisalRewards


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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.

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


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RESEARCH METHODOLOGY

1.Selecting the sample unit-

The sample unit consisted of representatives from various insurance sector

belonging to different categories, age and income groups.

2 Method of data collection-

a.) Collection of primary data-We collected primary data during the course of our training

by performing surveys in different insurance companies.we organized our meeting with

H.R of various insurance companies to gain enough insight into the recruitment and

attrition tools used by their firm.

b.) Collection of secondary data-we collected secondary data from

1. Companies websites.

2. Magazines and Newspapers.

3. Publication of various associations connected with the business and industry.

3.Instrument used for collecting the data

For our research purpose, instrument used were Questionnaire, Sample surveys

and internet surfing. 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.

The survey method is advantageous because it helps in collecting a great deal of

information about an individual respondent i.e. the person. In the given project the


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questionnaire constructed was structured, non-disguised and mainly had simple and close

end questions.

4.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 .It ensures that we

have all relevant data for making contemplated comparisons and analysis.

5.Processing operations included-

1.) Editingof data collected to detect errors and omissions and to correct these when

possible.

2.) Coding of responses assigning numerals and symbols so that the same can be put into

a limited number of categories or classes.

3.) Classification of data on the basis of attributes like satisfaction with job profile andon the basis of class interval like age and income etc.

4.) Tabulation of classified data for comparison and various statistical computation.

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.

6.) Presentation of results - The scale construction technique of analyzing data helped

to draw inferences. Finally the results of the analysis are presented in the form of charts

and graphs


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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. 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.

It helped us to know-

1. The different areas where the organization has to improve.

2. What changes should be done in Recruitment process.

3. Causes of attrition.

4. Different tools to retain the employees.

For this survey a questionaire was prepared which along

with employees of other organizations along with ARLIC were filled. Companies in

which questionnaire was got filled were:

1. Bharti-Axa

2. SBI- Life Insurance

3. ICICI- Prudential

4. Met Life Insurance

The questionaire for the survey purpose was divided into two sections:

a. First section was common for all the employees, which was made basically

to judge about the satisfaction level of the employees, with their

organizations.


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b. Second section was to be filled only by the HR of the organization. In that

section, Questions were based on the recruitment and attrition tools used by

the HR of different companies.

THE BACKGROUND

Insurance sector and Life Insurance in INDIA

Insurance- Meaning:

A contract whereby for a specified consideration, one party undertakes to compensate theother for a loss relating to a particular subject as a result of the occurrence of designationhazards.A contract is considered to be insurance if it distributes risk among a large number ofpersons through an enterprise engaged primarily in the business of Insurance. Examplesinclude: Car Insurance, Life Insurance, Business Insurance, etc.

Functions of Insurance:

The functions of Insurance can be bifurcated into two parts:1. Primary Functions2. Secondary Functions3. Other Functions

Primary Functions includes:a. Providing Protection

b. Collective bearing of riskc. Assessment of riskd. Provide certainty

Secondary Functions includes:a. Prevention of lossesb. Small capital to cover larger risks.c. Contribution towards the development of larger industries


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Other functions comprises:a. Means of saving an investmentb. Source of earning foreign exchangec. Risk free trade

HISTORY OF INSURANCE

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kautilya ( Arthasastra ). The writingstalk in terms of pooling of resources that could be re-distributed in times of calamitiessuch as fire, floods, epidemics and famine. This was probably a pre-cursor to modern dayinsurance. Ancient Indian history has preserved the earliest traces of insurance in theform of marine trade loans and carriers contracts. Insurance in India has evolved overtime heavily drawing from other countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment of theOriental Life Insurance Company in Calcutta. This Company however failed in 1834. In1829, the Madras Equitable had begun transacting life insurance business in the MadrasPresidency. 1870 saw the enactment of the British Insurance Act and in the last three

decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) andEmpire of India (1897) were started in the Bombay Residency. This era, however, wasdominated by foreign insurance offices which did good business in India, namely AlbertLife Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indianoffices were up for hard competition from the foreign companies.

In 1914, the Government of India started publishing returns of Insurance Companiesin India. The Indian Life Assurance Companies Act, 1912 was the first statutory measureto regulate life business. In 1928, the Indian Insurance Companies Act was enacted toenable the Government to collect statistical information about both life and non-lifebusiness transacted in India by Indian and foreign insurers including provident insurancesocieties. In 1938, with a view to protecting the interest of the Insurance public, theearlier legislation was consolidated and amended by the Insurance Act, 1938 withcomprehensive provisions for effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, therewere a large number of insurance companies and the level of competition was high.There were also allegations of unfair trade practices. The Government of India, thereforedecided to nationalize insurance business.


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An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sectorand Life Insurance Corporation came into existence in the same year. The LIC absorbed154 Indian, 16 non-Indian insurers as also 75 provident societies245 reopened to theprivate sector.

The history of general insurance dates back to the Industrial Revolution in the westand the consequent growth of sea-faring trade and commerce in the 17th century. It cameto India as a legacy of British occupation. General Insurance in India has its roots in theestablishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by theBritish. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the firstcompany to transact all classes of general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the InsuranceAssociation of India. The General Insurance Council framed a code of conduct forensuring fair conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimumsolvency margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalisation) Act,general insurance business was nationalized with effect from 1st January, 1973. 107insurers were amalgamated and grouped into four companies, namely National Insurance

Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance CompanyLtd and the United

India Insurance Company Ltd. The General Insurance Corporation of India wasincorporated as a company in 1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending to nearly200 years. The process ofre-opening of the sector had begun in the early 1990s and thelast decade and more has seen it been opened up substantially. In 1993,

the Government set up a committee under the chairmanship of RN Malhotra, formerGovernor of RBI, to propose recommendations for reforms in the insurance sector.Theobjective was to complement the reforms initiated in the financial sector. The committeesubmitted its report in 1994 wherein , among other things, it recommended that theprivate sector be permitted to enter the insurance industry. They stated that


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foreign companies are allowed to enter by floating Indian companies, preferably a jointventure with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, theInsurance Regulatory and Development Authority (IRDA) was constituted as anautonomous body to regulate and develop the insurance industry. The IRDA wasincorporated as a statutory body in April, 2000. The key objectives of the IRDA includepromotion of competition so as to enhance customer satisfaction through increased

consumer choice and lower premiums, while ensuring the financial security of theinsurance market.

The IRDA opened up the market in August 2000 with the invitation for applicationfor registrations. Foreign companies were allowed ownership of up to 26%. TheAuthority has the power to frame regulations under Section 114A of the Insurance Act,1938 and has from 2000 onwards framed various regulations ranging from registration ofcompanies for carrying on insurance business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of Indiawere restructured as independent companies and at the same time GIC was converted into

a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC inJuly, 2002.


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Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian soilstarted functioning.

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

started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulatethe life insurance business.

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

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

1956: 245 Indian and foreign insurers and provident societies are taken over by thecentral government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act,1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to theTriton Insurance Company Ltd., the first general insurance company established in theyear 1850 in Calcutta by the British.


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INSURANCE REGULATORY DEVELOPMENT ATHOURITY

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, Insurance Regulatory and DevelopmentAuthority (IRDA, which was constituted by an act of parliament) specify the compositionof Authority

The Authority is a ten member team consisting of

(a) a Chairman;

(b) five whole-time members;

(c) four part-time members,

(all appointed by the Government of India)


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ABOUT IRDA

The government of India opened the insurance sector to the private players on

October 24, 2000, thus unraveling a new chapter in this field. This new policy of GOI isan outcome of Indias policy of liberalization and also the result of its obligation to theWTO to confirm to its principles and guidelines relating to the reduction of barriers totrade in services.

The insurance returns committee under chairmanship of R.N. Malhotra in its April1993 report suggested reforms in the insurance sector including improvements in thefunctioning of LIC, GIC, liberalizing and developing a strengthening the regulatorysystem. The committee submitted its report on 07-01-1994 to Union Finance Minister.The bill was passed regarding this in 1998. 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 hastransgressed four decades of complete control of the public sector over the private sector.

IRDA allowed the private insurers to transact insurance business in India. IRDAstarted accepting applications from new private insurers from 19th April 2000.The firstbatch of licenses was given in October 2000.

Till date licenses have been issued to 13 insurers including LIC. IRDA drafted therules of the game, selected the players who would enter the market. Having achieved this,it now performs referees role of ensuring that the players play by the rule. Besides, theIRDA is also entrusted with the task of developing the market that calls for generating

insurance awareness in the country.IRDAs basic function is to protect consumer interest. This means ensuring proper

disclosure, keeping prices affordable but also insisting on some mandatory products, andmost importantly making sure that the insurers pay the customer. Further ensuring thatthe solvency of the insurer is a very important function of the regulatory authority IRDAhas evolved a set of operational guidelines. To deal with maintaining the solvency of theinsurers. It has evolved guidelines for the entry and proper functioning of the Agents,Insurance consultants intermediaries.


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The critical aspects of IRDA in governing insurance sector are:

a) The number and role of private sector operates including intermediaries.

b) Regulate covering investments, solvency norms etc.c) Product ranged) Accounting practicese) Consumer protection normsf) Ensuring that the rural health and insurance are developedg) Fixing of licenses.

While insurance regulatory and development authority (IRDA) has had a significant roleto play towards development and growth of private insurers in India, the regulator needs

to be a little more proactive in taking initiatives. Due to certain regulations like thecommission structure, the cost of operating in India is nearly 25% higher that othercountries.

The product clearance takes a long time causing slowdown in the industry growthHowever, IRDA has encouraged development of modern, innovative products, flexible premium payments, new distribution channels, improved customer services andintroduced proper regulation to protect policy holders interest.

LIBERALIZATION OF INSURANCE SECTOR

Liberalization commitment of the country to help in disciplining future economicpolicies will include the insurance reforms. When world over insurance market has beenopen up, Indian market cannot remain in isolation. History has shown that it is verydifficult for a country to remain in isolation.

Globalization is the new economic reality, which is here to stay, heralding a newera of insurance in India.

With the opening of the insurance industry, India stands to gain with thefollowing major advantages:

Globalization will provide opportunities to the customers. Better production with more reasonable and affordable prices.

The customer will get better services.

It will enhance the saving rate.

Long term funds for infrastructure development will be available to the country.

It will secure for India larger inflow of foreign capital need to sustain our GDPgrowth.


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WHY INSURANCE IN INDIA?

We live in the information age. People are becoming more aware of the importance ofinsurance in their life. However, there is a paradox in the form of a growing need to

educate people to buy insurance.

Today, natural disasters on a large scale occur regularly and even terrorism is increasingday by day. Specialized software is used in actuarial science to accurately predict lifeexpectancy and mortality. But natural disasters are difficult to predict.

This has highlighted to the world that insurance is a basic and fundamental need for thesafety and security of the family. Only a larger insurance cover can guarantee a better

future.

However insurance claims for natural disasters are very low. This is because insurancecoverage was too low, and those who really needed insurance had not taken it. There isthe need to push insurance as a social responsibility for those who really need it.

Business and Social Objectives

When LIC was formed in 1956 through the amalgamation of 225 private companies, itsbusiness objectives complemented its social objectives. The main objective is to spreadlife insurance to every nook and corner of the country especially rural areas, to sociallyand economically backward classes and provide them reasonably priced financial coveragainst death.

Other objectives include encouraging people to save for the future by making insurancelinked savings more attractive and secure. The funds created are then utilized and

invested for nation building. The insurance business is conducted with the full realizationthat LIC is only a trustee of the insured public and priority is given to meet the needs thatarise due to change in the social and economic environments.

Even today after 50 years, the core value of social commitment has not changed. Whathave changed in recent times are customers expectations and the environment in whichthe life insurance sector operates. This is due to globalization, which has opened up theinsurance sector to private.


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AEGON RELIGARE LIFE INSURANCE COMPANY LIMITED

AEGON, an international life insurance, pension and investment company, Religare, aglobal financial services group and Bennett, Coleman & company, Indias largestmedia house, have come together to launch AEGON Religare Life InsuranceCompany Limited (ARLI).

This venture is dedicated to build a profitable customer-centric business with scale,providing a work environment that fosters excellence and innovation. This joint venture

will balance a local approach with the power of an expanding global operation.

ARLI launched its pan-India operations in July, 2008 following a multi-channeldistribution strategy with a vision to help people plan their life better. The fulfillment ofthis vision is based upon having a complete product suite, providing customised adviceand enhancing the overall customer experience through superior service.

ARLI has launched a suite of products that are focused on providing the customer withthe means to meeting their long-term financial goals. At the same time productdevelopment has been founded on the tenet of providing the customer with great value.ARLIproducts such as AEGON Religare iTerm Plan and AEGON Religare FutureProtect Plan have been ranked among the best in terms of value and have attracted manyexternal accolades.

THE PARTNERSHIP

About AEGON

As an international life insurance, pension and investment company, AEGONhas businesses in over twenty markets in the Americas, Europe and Asia. Withheadquarters in The Hague, the Netherlands,


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AEGON companies employ approximately 28,000 people and serve some 40million customers across the globe.

The companys common shares are listed on three stock exchanges:Amsterdam, New York and London. AEGON has more than 160 years of

experience with its roots going back to 1844. AEGON holds 26% equity in ARLI.

About Religare Enterprises Limited

Religare Enterprises Limited (REL) is a global financial services group with apresence across Asia, Africa, Middle East, Europe and the Americas.

In India, Religares largest market, the group offers a wide array of productsand services ranging from insurance, asset management, broking and lendingsolutions to investment banking and wealth management.

The group has also pioneered the concept of investments in alternative asset

classes such as arts and films. With over 10,000 employees across multiplegeographies, Religare serves over a million clients, including corporates andinstitutions, high net worth families and individuals, and retail investors. RELhold 44% equity in ARLI.

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, and to


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promote home ownership. 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

.

BOARD MEMBERS

MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER

Rajiv Jamkhedkar


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CHIEF FINANCIAL OFFICER & APPOINTED ACTUARY

K S Gopalakrishnan

CHIEF INVESTMENT OFFICER

Saibal Ghosh

CHIEF MARKETING OFFICER

Yateesh Srivastava

HEAD - AUDIT RISK & COMPLIANCE

Debmalya Maitra

ARLIs MISSION

We aim to be the top life insurance company in the market.

This does not just mean being the largest or the most productive company in the market;

rather it is a combination of several things like:

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standards


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Increasing market share

ARLI VALUES

SECURITY: Providing long term financial security to our policyholders will be our

constant endeavor. We will be doing this by offering life insurance and pension products.

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

INNOVATION:Recognizing the different needs of our customers, we will be offering a

range of innovative products to meet these needs

KEY STRENGTHS

Financial Expertise: As a joint venture of leading financial services groups,

HDFC Standard Life has the financial expertise required to manage your long-term

investments safely and efficiently.


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Range of Solutions: We has a range of individual and group solutions, 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.

Track Record so far: Our cumulative premium income, including the first year

premiums and renewal premiums is Rs. 1532.21 Crores Apr-Mar 2008 - 09.

We have covered over 1.6 million individuals out of which over 5, 00,000 lives

have been covered through our group business tie ups


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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. The penetration of life insuranceproducts 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. The new business premiums of the 12 private

players have tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned

LIC's new premium business has fallen.

Innovative products, smart marketing and aggressive distribution. Thats the triple

whammy combination that has enabled fledgling private insurance companies to sign up

Indian customers faster than anyone ever expected.

The growing popularity of the private insurers shows in other ways. They are coining

money in new niches that they have introduced. The state owned companies still

dominate segments like endowments and money back policies. But in the annuity or

pension products business, the private insurers have already wrested over 33 percent of

the market. And in the popular unit-linked insurance schemes they have a virtual

monopoly, with over 90 percent of the customers.

The private insurers also seem to be scoring big in other ways- they are persuading

people to take out bigger policies. For instance, the average size of a life insurance policy

before privatization was around Rs 50,000. That has risen to about Rs 80,000. But the

private insurers are ahead in this game and the average size of their policies is around Rs

1.1 lakh to Rs 1.2 lakh- way bigger than the industry average.


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INSURANCE AND LIFE INSURERS

There exists huge scope of investment in the insurance sector in India. India has

an enormous middle-class that can afford to buy life, health and disability and pension

plan products. Further, insurance is one of the most important tax saving instrument in

the country.

Insurance sector has been opened up for competition from Indian private insurance

companies with the enactment of Insurance Regulatory and Development Authority Act,

1999 (IRDA Act). As per the provisions ofIRDA Act, 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, promote and ensure orderly growth

of the insurance industry. IRDA Act 1999 paved the way for the entry of private players

into the insurance market, which was hitherto the exclusive privilege of public sector

insurance companies/ corporations. Under the new dispensation Indian insurance

companies in private sector were permitted to operate in India on the fulfillment of

certain prerequisites. A large number of public and private players are competing today inboth life and general insurance segments. 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.


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INSURANCE COMPANIES

IRDA has so far granted registration to 14 life insurance companies and 8 general

insurance companies. If the existing public insurance companies are included, there are

currently 15 insurance companies in the life side and 154 companies operating in the

general insurance business. General Insurance Corporation has been approved as the

Indian reinsure for underwriting only reinsurance business. Particulars of the life

insurance companies including their web addresses is given below:

LIFE INSURERS WEBSITES

PUBLIC SECTOR

1. Life insurance corporation of India www.licindia.com

PRIVATE SECTOR

2. Bajaj Allianz Life insurance Co. Ltd. www.bajajallianz.co.in

3. Birla Sunlife Insurance Co. Ltd. www.birlasunlife.com

4. HDFC Standard Life Insurance Co. Ltd. www.hdfcinsurance.com

5. ICICI Prudential Life Insurance co. Ltd. www.iciciprulife.com

6. ING Vyasya life Insurance co. www.ingvysyalife.com

7. Max New York Life Insurance co. ltd. www.maxnewyorklife.com

8. Kotak Mahindra Life Insurance co. Ltd. www.omkotakmahindra.com

10. SBI Life Insurance Company Ltd. www.sbilife.com

11. TATA AIG Insurance Company Ltd. www.tata-aig.com

12. Aviva Life Insurance Co. Pvt. Ltd. www.avivaindia.com

13.Sahara India Life Insurance Co. Ltd www.saharalife.om


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PRODUCT PROFILE

INDIVIDUAL PRODUCTS

We at Arli realise that not everyone has the same kind of needs. Keeping this in mind

we have a varied range of Products that you can choose from to suit all your needs. These

will help secure your future as well as the future of your family.

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. These plans offer valuable peace

of mind at a small price

Protection range includes

Term Assurance Plan

Loan Cover Term Assurance Plan

Investment Plans


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Our Single Premium Whole of Life plan is well suited to meet your long term investment

needs. 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.

Our Pension range includes our

Personal Pension Plan,

Unit Linked Pension,

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 childrens immediate and future needs.

Our Savings range includes

Endowment Assurance Plan,

Unit Linked Endowment,

Unit Linked Endowment Plus,

Money Back Plan,

Childrens Plan,

Pensions Plan

INDIVIDUAL PRODUCTS: COMPREHENSIVE DETAILS


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PROTECTION PLANS

ARLI TERM ASSURANCE PLAN

You have always ensured that your loved ones keep living a respectable life with their

heads held high. But life can be uncertain. As a prudent family man, you need to secure

your family's future and protect your pride and your family's self respect. You need to

have a plan to take care of your family if something unfortunate were to happen to you.

With our Protection Plans, you can protect your family from uncertainties in life such as

your unfortunate death or critical illness. And ensure that your family lives a life of self-

respect and dignity even in your absence.

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.

A choice of two plans depending on your requirements:

ARLI Term Assurance Plan: A pure risk cover plan, which gives you protection against

the uncertainties of life.

ARLI Loan Cover Term Assurance Plan: An ideal way to cover your home loan or

other loan liabilities.


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Choice of premium payment options-regular premium or a single one-time

premium.

Choice of taking the plan on a single life basis or a joint life (first claim) basis.

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 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. One can choose the lump sum that would replacethe income lost to one's family in the unfortunate event of one's death.

INVESTMENT PLANS

ARLI Single Premium Whole of Life Plan

Secure your financial independence

Money is like manure. You have to spread it around or it smells. -J. Paul Getty

The well-informed rightly said and proves how important investments are in todays

date and age. 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


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ARLI Single Premium Whole of Life Insurance Plan is a tailor-made plan well

suited to meet your long-term investment needs. 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, this participating (With

Profits) insurance plan will pay your family the Sum Assured and compound

Reversionary Bonuses, which are usually added annually. 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 asat the date of surrender

PENSION PLAN

ARLI PERSONAL PENSION PLAN

Today, you are busy climbing the ladder of success and realizing your dreams. Today,

time is with you. 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. Hence, the ARLI Persona

Pension Plan is an insurance policy that is designed to provide a post - retirement income

for life with the freedom to choose your retirement date.


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You can choose your premium, the Sum Assured and your retirement date. At the end of

the policy term, you will receive the Sum Assured plus any attaching bonus, which will

provide your post - retirement income.

The ARLI Personal Pension Plan is an insurance policy, 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, which are usually added annually. At

the end of the term an additional Terminal Bonus may be paid depending on the

performance of the underlying investment.

ARLI UNIT LINKED PENSION





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. Strideinto your golden years of retirement with dignity and pride.

The ARLI Unit Linked Pension gives you:


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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. We will then invest

your premium, net of premium allocation charges in your chosen funds in the proportion

you specify. At the end of the policy term, you will receive the accumulated value of your

funds, which will be used to provide your pension income.

In the event of your unfortunate demise during the policy term, your spouse will receive a

cash lump sum to help him or her manage the retirement years.

ARLI UNIT LINKED PENSION PLUS





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. Stride

into your golden years of retirement with dignity and pride

The ARLI Unit Linked Pension Plus gives you


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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 specify. At the end of the policy term, you will receive the accumulated value of yourfunds, which will be used to provide your pension income.

SAVINGS PLANS

ARLI Endowment Assurance Plan

You have given your family the very best. And there is no reason why they shouldn't get

the very best in the future too. As a judicious family man, your priority is to secure the

well-being of those who depend on you. Not just for today, but also in the long term.

More importantly, you have to guard your loved ones against any eventuality. How will

they sustain their way of life, so lovingly built by you, in your absence?

With our ARLI Endowment Assurance Plan, you can ensure that your family remains

financially independent, even if you are not around. You can ensure that they live a life of

respect and dignity. Always.


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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, this participating ('With

Profits') insurance plan will pay your family the Sum Assured (together with the attached

bonuses) you had chosen.

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. With ARLI Unit Linked Endowment, you can ensure that

your family remains financially independent, even if you are not around. You can ensure

that they live a life of respect and dignity Always

The ARLI Unit Linked Endowment Plan gives you:



Valuable protection to your family in case you are not around

Flexible benefit combinations and payment options


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Flexible additional benefit options such as critical illness cover

Access to your accumulated fund before maturity




funds.

In case of your unfortunate demise during the policy term, 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.

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. With ARLI

Unit Linked Endowment Plus, you can ensure that your family remains financially

independent, even if you are not around. You can ensure that they live a life of respect

and dignity.

The ARLI Unit Linked Endowment Plus gives you:



Regular Loyalty Units to boost your fund value every year


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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




funds.

In case of your unfortunate demise during the policy term, 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.

ARLI Money Back Plan

You have always believed in living life on your own terms. 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.

The table below will help you identify and classify some of your financial goals. You can

prioritize these goals and set your objectives accordingly (see indicative table given

below


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LONG-TERM GOALS SHORT TERM GOALS

Provide adequate cover for

Life, Critical Illness or

disability

Saving for big-ticket assets like

your house

Saving for your children's

education

Having a regular system for

savings

Buying a car

Saving for your marriage

Vacation abroad

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- term as well as short-term financial goals.

A lump sum payment on survival up to maturity date.

Valuable protection to your family by way of lump sum payment in case of your

unfortunate death within the policy term. This is over and above any earlier

payouts.


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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. Our Money Back Plan

gives you a wide range of terms and cash benefit schedules to choose from. A summary

of Key Benefits including the cash lump sum payments, expressed as a percentage of

Sum Assured is shown below.

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, your priority is your child's future and being able to meet your child's dreamsand aspirations.

Today, providing a good education, establishing a professional career or even a modest

wedding is expensive. Costs are increasing fast. Just imagine how much you'll need when

your child takes these important steps in life!


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Plan today to ensure a bright future for your child. Start building savings today with our

HDFC Children's Plan.

So that your child is able to lead a life of respect and dignity with a secured financial

future.

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, on maturity or in case of your unfortunate

demise, early in the policy term. The company to give you good long-term returns invests

the premiums, paid by you.

ARLI health insurance plan

1. Full payment even if your claim is lower

2. All surgeries are covered. Even day care ones

3. Guaranteed renewability till age of 85.

4. Cashless facility in over 3,000 hospitals across India.

5. No increase in premium for 3 years even if claim is made.

6. No claim benefit is 10% - one of the most attractive.

7. There are 4 types of plans - Silver, Gold, Diamond and Platinum.


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TAX BENEFITS

HOWMU

CHTAXCA

NYOUSAV

INCOME TAX SECTION


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E?A

R

L

I

P

L

A

N

S

Sec.80CGROSSANNUAL

SALARY

Across Allincome Slabs.

Upto Rs. 33,660saved oninvestment of

Rs. 1,00,000.

All the life insurance plans.

Sec. 80 CCCAcross allincome slabs.

Upto Rs. 33,660saved onInvestment ofRs.1,00,000.

All the pension plans.

Sec. 80 D*Across allincome slabs.

Upto Rs. 3,366saved onInvestment ofRs. 10,000.

All the health insuranceriders available with theconventional plans.

S

ec.10(10)D

UnderSec.10

TOTAL SAVINGS POSSIBLE **


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(10D),t

hebenefitsy

oureceivear

ecompletely

tax-free,su


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bjectto

theconditio

nslaiddownt

herein.*App

licabletopr


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emiumsp

aidforCriti

calIllnessB

enefit,Acce

leratedSum


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Assured

andWaiverof

PremiumBen

efit.**Thes

ecalculatio


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nsareil

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ttaxleg

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xactcal

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Rs. 37,026Rs. 33,660 under Sec. 80C and under Sec. 80 CCC , Rs.3,366 under Sec. 80 D, calculated for a malewith gross annual income not exceeding Rs. 10,00,000.


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GENERAL PROCESS OF RECRUITMENT

DEFINITION:

Recruitment is a process of locating and encouraging potential applicants to apply for

existing or anticipated job openings.

RECRUITMENT MAINLY AIMS TO-

1.) To determine the present and future requirement of the organization in conjunction

with the personnel planning and job analysis activities.

2.) Increase the pool of job candidates with minimum cost.

3.) Help to increase the success rate of selection process by reducing the number of

obviously underqualified or overqualified job applicants.

4.) Help to reduce the probability that job applicants , once recruited and selected,will

leave the organization only after a short period of time.

5.) Increase organizational and individual effectiveness in the short and long run.


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FACTORS AFFECTING RECRUITMENT PROCESS

1.External Factors-

It includes

a.Socio-economic factors

b.Supply and demand factors.

c.Unemployment rate

d.labour market condition.

e.Political,legal and governmental factors.

f.Information system like employment exchanges

.

2.INTERNAL FACTORS It includes

a.Companys pay package.

b.Quality of work life.

c.Organizational culture.

d.Career planning and growth.

e.Companys size.

f. Companys name and fame.

g.Cost of recruitment.


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METHODS OF RECRUITMENT

The following are the most commonly used methods of recruiting people.

1.INTERNAL METHODS-They include:

a.)Promotions and transfers: Many organisations prefer to fill vacancies

through transfers from within wherever possible.Promotions involve

movement of an employee from a lower level position to a

higher level position accompanied by changes in duties,responsibilities,status and

value.

A Transfer,on the other hand ,involves lateral movement

within the same grade,from onew job to another.

b.)Job posting: It is another way of hiring people from within.In this method,the

organisation publicises job openings on bulletin boards ,electronic media and

similar outlets.

c.)Employee referrals: Employee referral means using personal contacts to locate

job opportunities.It is a recommendation from a current employee regarding a job

applicant.

2.DIRECT METHOD-It include:

a.)Campus recruitment-It is a mehod of recruitment by visiting and participating

in college campuses and their placement centres.Here the recruiters visit reputed


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educational institutions and universities with a view to pick up job aspirants

having requisite technical or professional skills.

3. INDIRECT METHODS- Direct methods of recruitment include-

a.)Advertisements : These include advertisement in newspapers,trade,professional

and technical journals; radio and television; etc.

4.THIRD PARTY METHODS-These include:

a.) 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.

b.) Employment Exchanges-as a statutory requirement,companies are also expected

to notify their vacancies through the respective Employment Exchanges,created

for helping unemployed youth.

c.) Unsolicited Applicants/Walk ins-Companies generally receive unsolicited

applications from job seekers at various points of time. The no of such applications

depends on economic conditions, the image of the company, and the job seekers

perception of the types of jobs that might be available etc.

e) Internet Recruiting- In recent years most companies have found it is useful to

develop their own website and list job openings on it.


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RECRUITMENT PROCESS IN ARLI :

In ARLI recruitment of employees consist of many steps. Here they invite the candidates

through various sources. 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


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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 has six sources through which candidates come. 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 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.

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.


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3)INTERVIEW PROCESS:

After the job description the interview is conducted. The interview process has

three rounds.

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.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.

4) SELECTION CRITERIA:-

In ARLI candidates are selected on basis of-

Personality

Communication skill

Past record (related to character) or attitude.

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.


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6 )INFORMING CANDIDATES ABOUT DOCUMENTS REQUIRED:-

After getting confirmation that the candidate is medically fit he is asked to submit

the documents required. These documents are:-

educational certificate and mark sheets ( X

th,Xllth,graduation,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

personal details of the candidate,CTC ie cost to company,1st

& 2nd

reporting,rating scale on which basis the candidate has been selected & the

comments of BM,TM & HR. This offer request sheet is filled by the HR manager

& this is sent to the head office of the organization.


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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. 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. After

getting the offer letter the candidate can join the organization.

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.it 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. 40A) / transfer form (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


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EXPLANATION:

1) INFORMATION SYSTEM USAGE FORM:-

It is a guideline form & policy,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.-mediclaim 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.this form is to be submitted on the

joining day by the employee.

4) PROVIDENT FUND NOMINATION(FORM NO.40)/TRANSFER FORM

(FORM NO.13):-

FORM NO.40A:-It is a nomination form for ARLI provident fund trust.

FORM NO.13:-It is PF transfer form transferring to PF accumulation from previous

employer to ARLI PF TRUST.It is for PF transfer from your last organisation to the

current organisation.


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5) SALARY A/C OPENING & REIMBURSEMENT A/C OPENING

FORM:-

In this bank a/c no.is required by all employees of ARLI for direct credit of

salary.salary a/c is opened with HDFC bank.employees can either continue with the

existing HDFC bank salary a/c or can open a new a/c.

A second bank a/c form is to be filled for opening of reimbursement a/c.

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.

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.

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.The card is issued on receiving the ID CARD creation form as attached in

the kit.

The ID card contains:-

NAME

DESIGNATION

DEPARTMENT


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BLOOD GROUP

LOCATON OF BRANCH

PAN NO.

PHOTOGRAPH

10 )SENDING APPOINTMENT LETTER:-

After the candidate had filled the joining kit , an appointment letter is sent to him by theHR manager. Two appointment letters are generally made as one of them is sent to the

head office & the other one is sent to the candidate.

1 1 )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.


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ATTRITION

DEFINITION:

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.

HISTORY OF ATTRITION

Attrition is not a new phenomenon. It has existed all along in the 1980s and early

1990s people still believed in shibboleths like job for life , career within a company.

But in the late 1990s the pendulum started to swing wildly. Corporate culture was on the

cusp of major transformation. Employees got the defining message that no one is

indispensable and doing a good job is not a protection enough. Employee retention was


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the last thing on radar screen of the companies. Somewhere along the way a tectonic shift

happened in the minds of the employees.

MAIN CAUSES OF ATTRITION

1.)Job Satisfaction:

Employees seek a job, which offers them stratosphere level of responsibility and high

growth trajectory. If the organizations do not deliver on these expectations, employ

exodus cannot be contained.

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. Now-a-days companies have started wooing the best of the talents

with mind-boggling salary levels and attractive designations.

3.)Work environment:

An employee may leave an organization if the fairness of the system does not inspire

his/her confidence. Organisations, which pay scant regards towards employee safety and

care, will also have to face the mounting attrition levels.

4.)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. In

such situation employees will be constrained to rethink their priorities and join an

organization that promises a relaxed piece of work.

5.)Relationship with supervisors and co-workers:

If the supervisor lacks competence, empathy and trust in employees, they will fail to

command the respect of the subordinates. Similarly lack of cordial relationship with co-

workers also cause high rate of attrition.

6.)Miscellaneous:


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In addition to all above factors some of the other causes of attrition can be Health

condition of the person, Geographical location and Competency in the working

environment.

MEASURES TO COMBAT ATTRITION

Low attrition results in the fewer day to day problems, lesser delays, greater flow of

work, enhanced service delivery and a heightened strategic focus. Some of these

measures are:

1.)Strengthen the recruitment process:

For an organization it is necessary to have a clear, accurate and a very transparent

recruitment process. It is equally important to be frank and realistic with potential hires.

2.)Making Induction program a pleasant experience:

Companies should ensure that an employees first introduction with them is quite

memorable and pleasant experience. It will make the new hire feel welcome and the

employee stickiness factor with an organization will enhance.

3.)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 employees

perspective and experience. Training should help employees acquire new skills in

addition to replenishing their old skills.

4.)Involving employees in the decision making process:


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Employees like to be a part of an organization where their voices are heard and opinions

really matter. The greater an employees involvement in decision making process ,better

is the organization ability to retain its talent.

5.)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.

6.)Conducting employee satisfaction surveys:

Companies should conduct employee satisfaction survey at periodical intervals. Such

survey may throw up the potential flash points; so much so that an organization can

galvanize itself into action and take remedial measures forthwith.

7.)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.

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.

Thus, It has been found that retaining employees has always been fruitful

across many industries rather than search for new and efficient talent. Companies need to


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identify the routes to ensure employees feel they are growing with the industry and are

not being exploited for a few bucks.

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 .In ARLI Management believes in

retaining employees through:

1.) Secure careers.

2.) Benefits.

3.) Perks.

4.) Transparent communication in the HR policies.

ARLI believes that attrition battle could be won by focusing on retention, making the

environment a fun place and providing career growth prospectus for employees.

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 OF ATTRITION:


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Attrition is not bad always if it happens in a controlled manner. Some attrition is always

desirable and necessary for organizational growth and development. The only concern is

how organizations differentiate good attrition from bad attrition. The term healthy

attrition or good attrition signifies the importance of less productive employees

voluntarily leaving the organization. This means if the ones who have left fall in the

category of low performers, the attritionin considered being healthy.

Attrition rates are considered to be beneficial in some ways:

If all employees stay in the same organization for a very long time, most of them

will be at the top of their pay scale which will result in excessive manpower costs.

When certain employees leave, whose continuation of service would have

negatively impacted productivity and profitability of the company, the company is

benefited.

New employees bring new ideas, approaches, abilities & attitudes which can keep

the organization from becoming stagnant.

There are also some people in the organization who have a negative and

demoralizing influence on the work culture and team spirit. This, in the long-term,

is detrimental to organizational health.

Desirable attrition also includes termination of employees with whom the

organization does not want to continue a relationship. It benefits the organization

in the following ways:

o It removes bottleneck in the progress of the company
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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, lack potential for future or need disciplinary action. 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, SBI LIFE INSURANCE, ICICI

PRUDENTIAL AND METLIFE:-

FOR EMPLOYEES

Different aspects on which survey was done for employees of different Insurancecompanies and their results are as follows-

1.Work experience of employees.- survey analysis of these four companies showedthe following results in form of percentage

Experience ofemployees in years

0-5 years 5-10 years 10-15 years

Percentage ofEmployees

50% 25% 25%

2.Satisfaction with job profile-survey studies revealed that only 30% of employeeswere highly satisfied with their job profile and rest 70% were satisfied with their jobprofile.

HighlysatisfiedSatisfiedDissat

Highlysatisfied

Satisfied Percentage of employees
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isfiedHighlydissatisfiedState ofemployees

3.)Jobsatisfaction

on the basis

of salary,

working

condition

etc.-With thehelp ofquestionnaire, satisfaction

level of theemployees inothercompanieswasmeasured onthe basis oftheir salary,working

condition,companysterms andconditions,opportunitiesfor growth,relationshipwith co-workers andsuperiors,

Workinghours,appraisalsand traininganddevelopment.The resultwere asfollows-


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State ofemployees

30

%70%

Percentage ofemployees

44% 48% 7% 1%

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

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

Highly

satisfiedSatisfiedDissatisfied 5-10 yearsPercentage of

Employees70%30%0-5years25%State of

employees

2.Satisfaction with jobprofile-survey studiesrevealed that only 10% of

employees were highlysatisfied with their jobprofile, 50% weresatisfied , and the rest 40%were dissatisfied with theirjob profile.

State of employees

Satisfied Dissatisfied


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RESULTS:With the help of this

survey it was found that

basically employees were

Satisfied with:

1. Job Profile2. Organizations taking

care of their personalproblems.

3. Relationship with

superiors and co-workers.

4.5.6. Dissatisfied with:

7. 1. Appraisals8. 2. Training andDevelopment9. 3. Salary, Etc10.

11.12.Highly Dissatisfied

with:

13.1. Working Hours.

2.

3.

4.

5.

6.

7.

8. FINDING &

DATA

ANALYSIS

9.

10.

11. SURVEY


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ANALYSIS OF

ARLI:12.

13.

14. FOR

EMPLOYEES15.16. 1.Work

experience of

employees.- surveyanalysis of ARLIshowed thefollowing results inform of percentage

17.

18.Experience ofemployees in years

Percentage ofemployeesPercentage ofemployees75%

10% 50% 40%

3.) Jobsatisfaction on the basis of salary, working condition etc.-With thehelp of questionnaire, satisfaction level of the employees in ARLI was measured on the

basis of their salary, working condition ,companys terms and conditions, opportunitiesfor growth ,relationship with co-workers and superiors, working hours, appraisals andtraining and development.The result were as follows-

State ofemployees

Highlysatisfied

Satisfied Dissatisfied Highlydissatisfied

Percentage ofemployees

11% 72% 11% 6%

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

problem.

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


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Before giving offerletterAfter giving offer

letterPreferDo notpreferPercentage of HR

managers75%25%75%25%State of employees

Graphical

Representation

2.)Preference for

doing Reference

check before or

after giving offer

Satisfied Dissatisfied

0%

20 %

40 %

60 %

80 %

100%

Preference for cam pu s recrui

Do n o t p r e f

P r e f e r

Do not prefe r 25

Prefer 75

Perc entage of HR managers


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letter to a

candidate-It has beenfound 50% of the HRmanagers prefer doingReference check

before giving offerletter and 50% aftergiving offer letter.

State

RESULTS:

With the help of thissurvey it was foundthat basicallyemployees were

Satisfied with :

1. WorkingConditions.

2. Companysterms andconditions.

3. Relationshipwith superiorsand co-workers.

4. Job Profile

5.6. Dissatisfied

with :

7.8. 1. Growthopportunities9. 2. Training andDevelopment10.


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11.12.Highly

Dissatisfied

with :13.1. Salary

2. Working Hours3. Appraisal

System4.

5. GRAPHICAL

REPRESENTA

TION OF

COMPARATI

VE

6. STUDY FOREMPLOYEES OFARLI AND OTHER

7.

8.

9. INSURANCE

COMPANIES

10.

11.1.On the basis ofwork experience :In

comparative study ithas been found that inARLI 70% of theemployees have workexperience , ranging0-5 years and the rest30% have workexperience rangingfrom 5-10 years.In

other Insurancecompanies about 50%of the employees haveexperience ,rangingfrom 0-5 years,25%have experienceranging from 5-10years and theremaining 25% have


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experience rangingfrom 10-15 years.12.

13.Graphical

presentation.

14.

15.

16.

17.

18.

19.

20.2. On the basisof job profile:

21.

22.It was revealedfrom surveystudy that inARLI that only10% of theemployees arehighly satisfiedwith their job

0%

20%

40%

60%

80%

100%

Work experience of employe

10-15 years

5-10 years

0-5 years

10-15 years 25 0

5-10 years 25 30

0-5 years 50 70

Others HDFC


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profile, while50%weresatisfied and also40% of theemployees weredissatisfied with

their jobprofile.While inother insurancecompanies only30% ofemployees werehighly satisfiedwith their jobprofile and rest

23.70% weresatisfied withtheir job profile.

24.

25.Graphical

presentation.

0%

20%

40%

60%

80%

100%

Satisfaction with job profi

Dissatisfied

Satisfied

Highly satis fied

Dissatisfied 0 40

Satisfied 70 50

Highly satisfied 30 10

Others HDFC


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26.27.28.29.30.31.

32.33.

34.

35.36.3. Job satisfactionon the basis of

salary, working

condition etc :

37.

38.Comparative studyrevealed that in ARLI44% of employeeswere highly satisfied,48% were satisfiedwhile 7% weredissatisfied and only1% were highlydissatisfied with theirjob. In other Insurance

companies only 11%of employees werehighly satisfied, 72%were satisfied while11% were dissatisfi

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