RECRUITMENT & SELECTION PROCESS IN ICICI PRUDENTIAL INSURANCE COMPANY Ltd Hyderabad. Project Report Submitted To JNT University, Hyderabad In partial fulfillment of the award of the degree of MASTER OF BUSINESS ADMINISTRATION By xxxxxxxxxxxxxxx DEPARTMEMT OF BUSINESS MANAGEMENT K B R ENGINEERING COLLEGE (AFFILIATED TO JNT UNIVERSITY) PAGIDIPALLY (VI), BIBINAGAR (M), NALGONDA (DIST). 1
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RECRUITMENT & SELECTION
PROCESS
IN
ICICI PRUDENTIAL INSURANCE COMPANY Ltd
Hyderabad.
Project Report
Submitted To JNT University, Hyderabad
In partial fulfillment of the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
xxxxxxxxxxxxxxx
DEPARTMEMT OF BUSINESS MANAGEMENT
K B R ENGINEERING COLLEGE
(AFFILIATED TO JNT UNIVERSITY)
PAGIDIPALLY (VI), BIBINAGAR (M), NALGONDA (DIST).
2009-2011
1
ABSTRACT
Human resources are the most valuable assets of an organization. An organization performance
and resulting productivity are directly proportional to the quality of its human resource, hence it is very
important to select individuals with required knowledge, desired skills, creative abilities, talents and
aptitudes and then train them according to their skills they are interested in and then check their
performance. Hence RECRUITMENT AND SELECTION plays a very important role in every
organization.
This paper draws attention to the potentially focal role that appropriate people management
practices can and do play in facilitating knowledge management within the context of a specialist
consulting firm that sustains its competitive advantage through processes of knowledge creation. The
paper highlights the way in which traditional approaches to people management issues such as
recruitment and selection, professional development etc. are not necessarily appropriate or relevant when
managing an expert workforce that expects and demands considerable levels of autonomy.
This study examined the effects of four 'careers' website content features (pictures, testimonials,
organizational policies, and awards won) on viewers' perceptions of nine organizational culture attributes.
Eight of these culture attributes were more strongly conveyed by culture-specific website content features
than by culture-neutral website content features. This study also found support for a partial mediated-
moderation model. This model illustrated that participants with weak culture preferences formed less
favorable person–organization (P–O) fit perceptions as they perceived an organization to more strongly
convey the culture attribute under investigation. Conversely, participants with strong culture preferences
formed more favorable P–O fit perceptions as they perceived an organization to more strongly portray the
culture attribute in question. Respondents with stronger P–O fit perceptions in turn reported stronger
organizational attraction
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Declaration
I here by declare that this Project Report titled “RECRUITMENT AND SELECTION
PROCESS” at ICICI Prudential Life Insurance is a bonafide work undertaken by me, for the partial
fulfillment for the award of the degree in MASTER OF BUSINESS ADMINISTRATION, JNT
UNIVERSITY,HYDERABAD, and is not submitted to any other university or institution to the best of
my knowledge.
Name & Address of the Student Signature of the Student
3
ACKNOWLEDGEMENT
I would like to thank ICICI PRUDENTIAL LIFE INSURANCE Pvt.Ltd, Hyderabad for giving me an
opportunity to undergo a project study in this organization.
My honest thanks to SRI.S.RAMACHANDRA REDDY, HR Manager who inspire of
their busy schedule could always spent time for giving me in doing project study in ICICI
PRUDENTIAL LIFE INSURANCE.
A special thanks to Mr.BAYYAPU REDDY (Principal) K B R ENGINEERING COLLEGE,
Pagidipally and Sri.J. CHANDRA SEKHAR (HOD) and my Faculty and also I would like to thank my
friends and other who have helped me to complete my project.
xxxxxxxxxxxxx
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Recruitment and selection of Insurance Companies
PREFACE
People are a company’s most important assets. They can make or break the fortunes of a business. In
today’s highly competitive business environment placing the right people in the right position is very
critical for the success of any organization.
The recruitment and selection decision is of prime importance as it is the vehicle for obtaining the best
possible person-to-job fit that will, contribute significantly towards the Company's effectiveness. It is also
becoming increasingly important, as the Company evolves and changes, that new recruits show a
willingness to learn, adaptability and ability to work as part of a team. The Recruitment & Selection
procedure ensures that these criteria are addressed
In this project I have studied Recruitment and Selection process of ICICI Prudential Life Insurance and
attempted to provide some ways so as to make recruitment more effective and to reduce the cost of hiring
an employee.
I am privileged to be one of the students who got an opportunity to do my training with ICICI Prudential
Life Insurance. My involvement in the project has been very challenging and has provided me a platform
to leverage my potential in the most constructive way.
ICICI Prudential Life insurance is one of India's leading financial institutions offering complete financial
solutions that encompass every sphere of life. In a short span of time,ICICI has set an example by having
a steady and confident journey to growth and success.
During the training period I have studied deeply the process of hiring in ICICI Prudential Life insurance
and did a SWOT analysis of ICICI Prudential Life Insurance to find out the existing shortcomings and
potential threats and thereby recommended suggestions.
This project however is an attempt to share as best as possible my experience in corporate world with all
my colleagues and my faculty.
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I would be delighted to receive reader’s comments which maybe valuable lessons for my future projects.
EXECUTIVE SUMMARY
In today’s rapidly changing business environment, organizations have to respond quickly to requirements
for people. The Financial market has been witnessing growth which is manifold for last few years. Many
private players have entered the economy thereby increasing the level of competition. In the competitive
scenario it has become a challenge for each company to adopt practices that would help the organization
stand out in the market. The competitiveness of a company of an organization is measured through the
quality of products and services offered to customers that are unique from others. Thus the best services
offered to the consumers are result of the genius brains working behind them. Human Resource in this
regard has become an important function in any organization. All practices of marketing and finances can
be easily emulated but the capability, the skills and talent of a person cannot be emulated. Hence, it is
important to have a well-defined recruitment policy in place, which can be executed effectively to get the
best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn
out to be costly mistakes for the organization. Therefore a recruitment practice in an organization must be
effective and efficient in attracting the best manpower.
Coverage –The extent and limitation
With largest number of life insurance policies in force in the world, insurance happens to be a
mega opportunity in India. Its business is growing at 15-20% annually and presently is of the order of Rs.
450m. Together with banking sector it adds about 7% to the GDP.
Like in the case of BPO’s, Insurance sector too faces the problem of attrition. Thus, recruitment is
an ongoing process carried through out the year. The project is based on the study of recruitment process.
The various recommendations suggested have been the result of the study. The idea is to generate ways of
dealing with high attrition and making hiring process manageable and efficient.
Data Used
There were mainly two sources of data collection
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Ø Primary data:
Ø Survey method
Ø Personal interview with candidates
Ø In depth conversation with the placement agency
v Secondary data:
Ø Study of recruitment policy
Ø Websites
Ø Published articles
Research methodology used
v Study of recruitment and selection at ICICI Prudential Life Insurance by the manual provided
by the HR department;
v Web sites
v Journals
v Magazines
v Books
Findings
v Recruitment is done throughout the year more during the months of May-June and Oct-Nov;
v Huge investment of time;
v Huge recruitment cost;
7
To pursue these, I would be going through the recruitment policies of the company. By active
participation in the recruitment process, the areas where improvement can be bought about can be
identified.
Thus the whole research would be done under the guidance of external guide. It will also involve
recruitment and selection processes, reading the material provide internally by the organization,
information from the new employees.
Introduction
1.1 Introduction of the Insurance Industry
Overview
The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern
businessmen today to secure themselves against loss and disaster existed in primitive men also. They too
sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort
of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the
recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost
6000 years.
The first two decades of the twentieth century saw lot of growth in insurance business. From 44
companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-
force as Rs.298 crore in 1938. The Insurance Act 1938 was the first legislation governing not only life
insurance but also non-life insurance to provide strict state control over insurance business.
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 soil started
functioning.
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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 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.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the central government
and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of
Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance
Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general
insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct
for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the
Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the
general insurance business in India with effect from 1st January 1973.
With largest number of life insurance policies in force in the world, Insurance happens to be a mega
opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the
order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the country’s GDP.
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Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8
per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and
non-life insurance continues to be below international standards. And this part of the population is also
subject to weak social security and pension systems with hardly any old age income security. This itself is
an indicator that growth potential for the insurance sector is immense.
A well-developed and evolved insurance sector is needed for economic development as it provides long
term funds for infrastructure development and at the same time strengthens the risk taking ability. It is
estimated that over the next ten years India would require investments of the order of one trillion US
dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to
sustain economic growth of the country.
India has come a full circle from being an open competitive market to nationalization and back to a
liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree
turn witnessed over a period of almost two centuries.
Present Scenario
The Government of India liberalized the insurance sector in March 2000 with the passage of the
Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private
players and allowing foreign players to enter the market with some limits on direct foreign ownership.
The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and
this may also include restructuring and revitalizing of the public sector companies. In the private sector 14
life insurance and 8 general insurance companies have been registered. A host of private Insurance
companies operating in both life and non-life segments have started selling their insurance policies..
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 insurance products was 19 percent of the total
400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a
product giving protection. Most customers were under- insured with no flexibility or transparency in the
products. With the entry of the private insurers the rules of the game have changed.
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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 has tripled to Rs 1000
crore in 2002- 03 over last year. Innovative products, smart marketing and aggressive distribution. That's
the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian
customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new innovative products on
offer.
The private insurers also seem to be scoring big in other ways- they are persuading people to take out
bigger policies. Buoyed by their quicker than expected success, nearly all private insurers are fast-
forwarding the second phase of their expansion plans.
Major Insurance Players
Licenses have been issued for the following companies
Ø ICICI Prudential Life Insurance Limited
Ø ICICI Prudential Life Insurance Company Limited
Ø HDFC Standard Life Insurance Company Limited
Ø Birla Sun Life Insurance Company Limited
Ø TATA AIG Life Insurance Company Limited
Ø Max New York Life Insurance Company Limited
Ø SBI – Cardiff Life Insurance Company Limited
Ø ING Vysya Life Insurance Company Limited
Ø Bajaj Allianz Life Insurance Company Limited
Ø MetLife Life Insurance Company Limited
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Ø Aviva Life Insurance Company Limited
Ø AMP Sanmar Life Insurance Company Limited
Ø Sahara India Life Insurance Limited
Ø Sri Ram Life Insurance Limited
Protection of the interests of policyholders:
IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this
objective, the Authority has taken the following steps:
v IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for:
policy proposal documents in easily understandable language; claims procedure in both life
and non-life; setting up of grievance redressal machinery; speedy settlement of claims; and
policyholders' servicing. The Regulation also provides for payment of interest by insurers for
the delay in settlement of claim.
v The insurers are required to maintain solvency margins so that they are in a position to meet
their obligations towards policyholders with regard to payment of claims.
v It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms
and conditions under the policy. The advertisements issued by the insurers should not mislead
the insuring public.
v All insurers are required to set up proper grievance redress machinery in their head office and
at their other offices.
The Authority takes up with the insurers any complaint received from the policyholders in
connection with services provided by them under the insurance contract.
1.2 COMPANY PROFILE
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ICICI Prudential Life Insurance
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial
powerhouse and Prudential plc, a leading international financial services group headquartered in the
United Kingdom.
ICICI was established in 1955 to lend money for industrial development. Today, it has diversified into
retail banking and is the largest private bank in the country. Prudential plc was established in 1848 and is
presently the largest life insurance company in UK.
ICICI Prudential is currently the No. 1 private life insurer in the country. For the financial year ended
March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of
Rs 13,780 crore and wrote nearly 615,000 policies.
The Company recognizes that the driving force for gaining sustainable competitive advantage in this
business is superior customer experience and investment behind the brand. The Company aims to achieve
this by striving to provide world class service levels through constant innovation in products, distribution
channels and technology based delivery. The Company has already taken significant steps to achieve this
goal.
India's Number One private life insurer, ICICI Prudential Life Insurance Company is a joint venture
between ICICI Bank-one of India's foremost financial services companies-and Prudential plc- a leading
international financial services group headquartered in the United Kingdom. Total capital infusion stands
at Rs. 23.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.
ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating
of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's
Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most
Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly
uphold our commitment to deliver world-class financial solutions to customers all over India.
FACT SHEET
THE COMPANY
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ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial
powerhouse, and Prudential plc, a leading international financial services group headquartered in the
United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin
operations in December 2000 after receiving approval from Insurance Regulatory Development Authority
(IRDA).
ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and Prudential plc holding 74% and
26% stake respectively. For the first quarter ended June 30, 2007, the company garnered Rs. 987 crore of
weighted retail + group new business premiums and wrote over 450,000 retail policies in the period. The
company has assets held to the tune of over Rs. 18,400 crore.
ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial
Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear
assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or
claims.
For the past six years, ICICI Prudential has retained its position as the No. 1 private life insurer in the
country, with a wide range of flexible products that meet the needs of the Indian customer at every step in
life.
Distribution
ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. It has
a strong presence across India with over 680 branches and over 235,000 advisors.
The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank, Federal Bank, South
Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank, Jalgaon Peoples Co-
operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored Regional
Rural Banks (RRBs), Sangli Urban Co-operative Bank, Baramati Co-operative Bank, Ballia Kshetriya
Gramin Bank, The Haryana State Co-operative Bank and Imphal Urban Cooperative Bank Limited.
Products Insurance Solutions For Individuals
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ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the
needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to create a
customized solution for each policy holder.
Savings Solutions
Save’n’Protect is a traditional endowment savings plan that offers life protection along
with adequate returns.
CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a
child’s marriage, expenses for a child’s higher education or purchase of an asset.
LifeTimeSuper offer customers the flexibility and control to customize the policy to meet
the changing needs at different life stages. Each offer 4 fund options — Preserver,
Protector, Balancer and Maximiser.
LifeLink Super is a single premium Unit Linked Insurance Plan which combines life
insurance cover with the opportunity to stay invested in the stock market.
Premier Life Gold is a limited premium paying plan that offers customers life insurance
cover till the age of 75.
InvestShield Life New is a unit linked plan that provides premium guarantee on the
invested premiums and ensures that the customer receives only the benefits of fund
appreciation without any of the risks of depreciation.
· InvestShield Cashbak is a unit linked plan that provides premium guarantee on the
invested premiums along with flexible liquidity options.
Protection Solutions
LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3
options – level term assurance, level term assurance with return of premium and single
premium.
HomeAssure is a mortgage reducing term assurance plan designed specifically to help
customers cover their home loans in a simple and cost-effective manner.
Child Plans
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· SmartKid education plans provide guaranteed educational benefits to a child along
with life insurance cover for the parent who purchases the policy. The policy is designed
to provide money at important milestones in the child’s life. SmartKid plans are also
available in unit-linked form – both single premium and regular premium.
Education Insurance Plans
· Education insurance under the SmartKid brand provides guaranteed educational
benefits to a child along with life insurance cover for the parent who purchases the
policy. The policy is designed to provide money at important milestones in the child's
life. SmartKid plans are also available in unit-linked form - both single premium and
regular premium
Retirement Solutions
ForeverLife is a retirement product targeted at individuals in their thirties.
Market-linked retirement products
LifeTime Super Pension is a regular premium market-linked pension plan.
Golden Years: is a limited premium paying retirement solution that offers tax benefits up
to Rs 100,000 u/s 80C, with flexibility in both the accumulation and payout stages.
Health Solution
Health Assure and Health Assure Plus: Health Assure is a regular premium plan which
provides long term cover against 6 critical illnesses by providing policyholder with
financial assistance, irrespective of the actual medical expenses. Health Assure Plus
offers the added advantage of an equivalent life insurance cover
· Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well
as at different stages in the treatment of various cancer conditions.
· Diabetes Care and Diabetes Care Plus*: 1st ever critical illness insurance cover for
diabetics.
· Hospital Care*: Hospital Care offers a Cashless hospitalization facility in more then
3000 network hospitals
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· Crisis Cover : is a 360-degree product that will provide long-term coverage against 35
critical illnesses, total and permanent disability, and death
Note (*) products Re-launched on 1st July 2006
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their
employees.
ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their statutory
gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can
provide benefits beyond the statutory obligations.
ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation
scheme to provide a retirement kitty for each member of the group. Employees have the option of
choosing from various annuity options or opting for a partial commutation of the annuity at the time of
retirement.
ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps provide affordable cover to
members of a group. The cover could be uniform or based on designation/rank or a multiple of salary.
The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.
Flexible Rider Options
ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending
on the specific needs of the customer.
1. Accident Benefit: If death occurs as the result of an accident during the term of the policy,
the beneficiary receives an additional amount equal to the rider sum assured under the policy.
If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary
will be entitled to twice the sum assured as additional benefit.
2. Accident & Disability Benefit: This rider option pays 10% the sum assured under the rider
every year till next 10 years on Accidental Permanent Disability of 2 Organs.
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3. Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified
critical illnesses. Benefits are payable to the insured for medical expenses prior to death.
4. Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in
the event of the death of the life assured. It is available on SmarKid, SecurePlus and CashPlus
5. Waiver of Premium: In case of total and permanent disability due to an accident, the premiums are
waived till maturity. This rider is available with SecurePlus and CashPlus.
Choice of Six Investment Options :-
ICICI prudential offers you the opportunity of selecting between investment options to match your
investment priorities.
1) Protector:-
An Investment Option with investment indebt and money market instruments.
2) Maximiser :-
An investment option with investment in equity and equity related instruments.
3) Balancer :-
An investment option with investment in a mix of equity and debt oriented instruments.
4) Preserver :-
An investment option with investment in low-risk instruments like cash and call
money markets.
5) Flexi Growth:-
New Fund (NFO) launched in March 2007, Long term returns from an equity portfolio
lare,mid and small cap companies.
6) Flexi balanced:-
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Balance of capital appreciation and stable returns from an equity (large,mid & small cap
companies) & debt portfolio.
Vision and Mission
Their vision is to make ICICI Prudential Life Insurance Company the dominant new insurer in the life
insurance industry. This they hope to achieve through their commitment to excellence, focus on service,
speed and innovation, and leveraging our technological expertise.
The success of the organisation will be founded on its strong focus on values and clarity of purpose.
These include:
· Understanding the needs of customers and offering them superior products and service
· Building long lasting relationships with their partners
· Providing an enabling environment to foster growth and learning for their employees
And above all building transparency in all our dealings.
They believe that they can play a significant role in redefining and reshaping the sector. Given the quality
of their parentage and the commitment of their team, they feel that tere will be no limits to their growth.
DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having
commenced operations in 150 cities and towns in India, stretching from Bhuj in the west to Guwahati in
the east, and Jammu in the north to Trivandrum in the south.
The company has 9 bank partnerships for distribution, having agreements with ICICI Bank, Bank of
India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some co-operative banks, as well as
over 300 corporate agents and brokers. It has also tied up with NGOs, MFIs and corporates for the
distribution of rural policies.
ICICI Prudential has recruited and trained more than 1, 90,000 insurance advisors to interface with and
advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of
service to customers
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RegisteredOffice :
ICICI Towers 9thfloor, Bandra-Kurla Complex
Mumbai - 400 051.
Tel: 494 3232
Regional Office :
8th floor EROS Coorporate Tower,Nehru place,
New Delhi-110011.Tel:46554405
Delhi office :
3rd floor
Videocon Towers
E-1, Rani Jhansi Road
New Delhi - 110055. Tel: 601 3232
ICICI Prudential Life Insurance opens office in Dubai
In a move to consolidate its position in the Gulf region, ICICI Prudential Life Insurance (ICICI
Prudential), India's No. 1 private life insurance company, today opened its representative office in Dubai,
becoming the first private life insurer from India to open an office in the Emirate.
At ICICI Prudential we offer pragmatic, world-class solutions. Put simply, solutions with a lot of
common sense. Solutions that take care of your four basic financial needs - Earning, Saving, Investing
and Spending. So you live your life to the fullest, sans worries.
Project Report Recruitment-Selection Process Insurance Companies
OBJECTIVES OF THE PROJECT
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Every task is undertaken with an objective. Without any objective a task is rendered meaningless.
The main objectives for undertaking this project are:
To understand the internal Recruitment process at ICICI Prudential Life Insurance
To identify areas where there can be scope for improvement
To give suitable recommendation to streamline the hiring process
METHODOLOGY
The insurance sector is marked with a high level of attrition and therefore recruitment process
becomes a crucial function of the organization. At ICICI Prudential Life Insurance, recruitment is all time
high during May-June and Oct-Nov. The attrition is high among the sales managers, unit mangers mostly
in the sales profile. The recruitment is high during these months due to the fact that March and September
are half year closing and business is high during Jan-Mar. Thus it is only after March that people move
out of the companies.
Since my summer training was in the months of May-June, it gave me the opportunity of
involving myself directly with the recruitment process and analyzing the process so that suitable
recommendations can be given. This project is centered on identifying best hiring practices in the
insurance industries. It therefore requires great amount of research work. The methodology adopted was
planned in advance so as to collect data in the most organized way.
My area of focus was the recruitment and selection particularly at ICICI Prudential Life
Insurance. I was directly involved with the recruitment for candidates for the sales profile. I was
particularly involved with the sourcing of candidates for the regions outside Delhi such as M.P, U.P and
Rajasthan.
Before any task was undertaken, we were asked to go through the HR policies of ICICI
Prudential Life Insurance so that we get a better understanding of the process followed by them.
The first task was to understand the various job profiles for which recruitment was to be done.
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The next step was to explore the various job portals to search for suitable candidates for the job
profile.
Once the search criteria were put, candidates went through a telephonic interview to validate the
information mentioned in their resume.
A candidate matching the desired profile was then lined for the first round of Face to Face interview
in their respective cities.
Firstly the candidate had filled up the personal data form(pdf).
Then the candidates INTERVIEW EVALUATION SHEET which is provided by interviewer was
crosschecked by the HR team. If they think that the candidate was good to hire or not.
When a candidate cleared his first round, he is then made to take an online aptitude test. We created
the online aptitude test. It the HR department, which has the exclusive rights to assign test, codes to
the candidates. Each code was unique and could be used only once by a candidate.
I was involved in assigning codes and administering the test
Once the candidate completed his first assessment, his scores were checked. If he cleared his cut-off
he was given another test.
I had the responsibility to make sure that candidates complete all formalities and had to regularly
follow up with them.
Since we received many resumes, it was essential that a database be maintained to keep a track. It
was convenient method than to stock up piles of papers. ICICI has their own database named as
“PACE”, I update all the records of the new joinees in that tracker. PACE containes all the
information of a candidate such as name, contact number, location etc.
The external guide maintained a regular updating of the database.
Understanding what kinds of database are maintained and how they help in keeping a record.
I was also involved in maintaining a track of test codes given, the database for employee referrals,
Database for the resumes received through mails and response of advertisement.
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RESEARCH METHODOLOGY
Date Source
Primary :- Through Questionnaires
Secondary :- Through Internet, Journals, News papers and Misc.
Data Collection Procedure :- Survey
Research Instrument :- Structured Questionnaire.
Sample Size : - 80
Sample Area : - work done in Delhi regional Office.
Sample procedure :- Random sampling.
PROJECT SCHEDULE :-
First 1 week :-Training program from the company.
Second week :-Collecting the primary and secondary data.
Third Fourth week :- Study Recruitment & Selection Process
Fifth week :-Designing the questionnaire .
Sixth week :-Conducting the survey in RO.
Seventh week :-Analysis of Data Collection.
Eighth week :-Final Report preparation and presentation.
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Limitations of the study
Every task is undertaken with an objective and accomplishment of this objective determines our success.
Task:
The recruitment at ICICI Prudential Life Insurance involved a lot search from the database and calling up
candidates to check whether they fit the job specification.
Difficulties:
Candidates were reluctant to talk at times;
Candidates who were contacted were not interested in Insurance on many occasions;
Candidates who were scheduled for interview would not turn up;
Run out of database many times since most of them would have already been contacted;
Task:
Candidates were to be searched from the job portals and called up to be scheduled for an interview.
Difficulties:
A summer trainees we could not separate systems to work on;
At times many people had for couple of hours to work on the computer;
Since STD calls had to be made, the availability of phone was limited, so there was greater
coordination required with respect to its usage and maintains a time slot so that other person has a
chance to use.
Task:
Inter company analysis through survey and questionnaire filling.
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Difficulties:
Did not secure cooperation easily;
People asked lot of counter question so convincing them was a major task;
People did not disclose much about their employee details.
Topic Information
RECRUITMENT AND SELECTION
“The art of choosing men is not nearly so difficult as the art of enabling those one has chosen to
attain their full worth”.
Recruitment is the process by which organizations locate and attract individuals to fill job
vacancies. Most organizations have a continuing need to recruit new employees to replace those who
leave or are promoted in order to acquire new skills and promote organizational growth.
Recruitment follows HR planning and goes hand in hand with selection process by which
organizations evaluate the suitability of candidates. With successful recruiting to create a sizeable pool of
candidates, even the most accurate selection system is of little use
Recruiting begins when a vacancy occurs and the recruiter receives authorization to fill it. The next step is
careful examination of the job and enumeration of skills, abilities and experience needed to perform the
job successfully. Other steps follow:
Creating an applicant pool using internal or external methods
Evaluate candidates via selection
Convince the candidate
And finally make an offer
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Scope: To define the process and flow of activities while recruiting, selecting and appointing personnel
on the permanent rolls of an organization.
Authorization:
S.No. Authorized Signatory
1 Head- Human resource
2 Managing director
Amendments and deviations:
Any amendments to and deviations from this policy can only be authorized by the Head-human
Resources and the Managing Director.
Exclusions:
The policy does not cover the detailed formalities involved after the candidate joins the organization.
ACTIVITY FLOWACTIVITY FLOW
The organization philosophy should be kept in mind while formulating the recruitment procedure.
The HR department would set the recruitment norms for the organization. However, the onus of
effective implementation and compliance with the process rests with the heads of the respective functions
and departments who are involved in the recruitment and selection process.
The process is aimed at defining the series of activities that needs to be performed by different
persons involved in the process of recruitment, the checks and control measures to be adopted and
information that has to be captured.
Recruitment and Selection is conducted by:
HR & Branch Manager
Functional Head
RECRUITMENT PLANNING
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Recruitment planning on the basis of budget
A. The manpower planning process for the year would commence with the company’s budgeting
activity. The respective Functional heads would submit the manpower requirements of their
respective functions/ departments to the board of Directors as part of the annual business plan
after detailed discussion with the head of human Resource Function along with detailed notes in
support of the projected numbers assumptions regarding the direct and indirect salary costs for
each position.
B. A copy of the duly approved manpower plan would be forwarded by the HR department for their
further actions during the course of the year. The annual budget would specify the manpower
requirement of the entire organization, at different levels, in various functions/departments, at
different geographical locations and the timing of the individual requirements. It would also
specify the requirement budget, which is the cost allotted towards the recruitment of the budgeted
staff and the replacement of the existing employees. The manpower plan would also clearly
indicate the exact time at which the incumbent should be on board in such a way that the
Regional HR has adequate notice for the time lapses involved in sourcing any other activities.
C. The Regional HR’s would undertake the planning activity and necessary preparations in advance
of the anticipated requirements, as monthly and quarterly activities on the basis of the approved
budget, estimated separations and replacements therefore.
D. The vacancies sought to be filled or being filled shall always be within the approved annual
manpower budget and no recruitment process shall be initiated without the formal concurrence of
the Head of the Regional HR under any circumstance. Head of the Regional HR shall also have
the responsibility to monitor the appointments being considered at any point of time with specific
respect to the duly approved manpower budgets.
Review of Manpower Plans and Additional Manpower
A. Review of manpower budgets shall take place on a quarterly basis. In the event of any new
position or any deviations to the original plans, details of the positions maybe forwarded to the
VP-HR along with the adequate supporting information. The recommendations would normally
require a formal approval of the Managing Director. Alternately, VP-HR may record the
summary of his discussion with the Managing Director and the MD’s approval on the
recommendations, to signify the final decision taken regarding the recommendations.
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SOURCING OF SUITABLE CANDIDATES
Selection of Sources
Regional HR would tap various sources/channels for getting the right candidate. Depending on
the nature of the position/grade, volumes of recruitment and any other relevant factors, the Regional HR
would use any one multiple sources such as:
Existing database (active application data bank);
Employee referral as per any company scheme that may be approved from time to time;
Advertisement in the internet/newspapers/magazines/company’s sites/job sites or any other media;
Placement Agencies (particularly for positions of Managers and above);
Headhunting firms particularly for senior positions, specialist positions and critical positions;
Direct recruitment from campuses/academic institutes;
Job websites and
Any other appropriate sources.
The norms for using any of the sources are not water tight. Number of positions, criticality of
positions and the urgency of the positions, confidentiality requirements, relative efficacy and cost
considerations would play a role in the choice of the appropriate sourcing mechanism.
ADVERTISEMENTS
All recruitment advertisements (in any form and any medium) shall always conform to the KLI
compliance norms and would not be released by any department or branch without the approval of the
VP-HR. depending on the specifics of each position for which recruitment advertisements are to be
released, Regional HR may obtain assistance from the company’s marketing department and/or any
external advertising agencies for the preparation of the contents. Key features of the positions as
notified by the Functional Heads would normally form a part of the advertisement text.
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The media for releasing advertisement would depend on the level of the position being considered
and the urgency of the requirements.
The advertisement mode that could be broadly specified as newspapers (local or mainline depending
on requirements), internet sites and business magazines.
Placement Agencies/Headhunting Agencies
Depending upon the vacancies, fresher fitting different description listed above may be recruited
from time to time, from academic institutes of appropriate standards/reputation/grade, in the requisite
numbers and at the compensation/stipend amounts to be formally approved of the VP-HR. Plans for
such recruitment need specific special approval of VP-HR. norms regarding the identification of the
appropriate institutes, constitution of the selection panels, timings of the recruitment, number of
candidates to be recruited into different positions, choice of the appropriate selection process and the
tools thereof shall be decided by the Head of the Regional HR in consultation with the VP-HR,
depending on the specific features of the position.
Screening the candidates
First level screening
The Candidates would be screened by the HR Manager/Branch Manager for the respective
locations. Screening would be on the basis of the profile of the candidate and the departmental
requirements.
This assessment will be with respect to:
a. The general profile of the candidate,
b. Personality fit of the candidate into the profile,
c. Aptitude/attitude of the candidate,
d. Motives of the person to join the company and whether focus is in the short term or is a long term
player,
e. Basic skill level on our set of requirements, say numerically ability, networking ability, etc
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f. Establish the annual guaranteed cash compensation of the individual and check whether the
person would fit into the system.
g. Explain the role of Sales manager to the applicant and check the acceptance of the candidate for
the same.
In case of need, the Regional HR may take a Tele interview of the candidate for further assessment
process.
Second Level Screening
Aptitude Test
If the first assessment is positive, the candidates will give the aptitude test, once such test is
selected approved by the company. The scoring, interpretation and the generation of interview probes
from that test will also be done at this time. People who qualify the minimum criteria on this test will be
put up on to the Functional Head (VP’s in case of HO) for functional assessment and suitability into the
role.
Tied Agency Sales Manager candidates short listed by the BM have will then take sales Aptitude
test, once such a test is finalized. For the final selection, the regional Manager (Business Heads for HO)
will meet the candidates short listed by the branch manager/VP. The chart specifying the Minimum
approval level for each level of recruitment is specified below:
Category Branch Manager/Chief
Manager
Area
Manager/AVP/VP
Business Heads Managing
Director
CSE/ADVISORS Yes No No No
BIC Yes Yes No No
BM/CM Yes Yes Yes No
SM Yes Yes Yes Yes
General Norms regarding interview Process:
A. Interviews should consider the entire data provided by the candidate either through the formal CV
or otherwise before coming to a conclusion about the candidate. They may insist on seeing the
proof of the claims made by the candidate regarding qualifications, experience and other
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achievements. They may, at their discretion, decide to meet the candidate on more than one
occasion or to refer the candidate to another panel.
B. Ratings on various attributes of the candidates shall be recorded in the interview evaluation sheet,
soon after the interview is over. Along with these numerical ratings, qualitative observations
about the candidate and overall decision regarding selection or otherwise (including a decision to
defer the induction, referral to another panel, considering for another position) shall be forwarded
to the associated Recruitment Manager/ Head of Regional HR. Individual panel members have
the option of appending their additional remarks/observations. No selection will be treated as
final unless the IES form is filled comprehensively. Suitably appropriate IES formats may be
created for specific positions.
C. Any discrepancies noticed by the panel members regarding the authenticity of the data provided
by the candidate should be specifically and formally recorded on the IES form and suitably high
lightened.
D. Specific points to be probed during the reference check process, if any, must also be clearly
recorded and high lightened on the IES forms.
Administrative Actions Regarding Interviews
A. Scheduling and the venue of the interviews would be handled by the recruitment team in
consultation with the short listed candidate and the selection panel members, after taking mutual
convenience into account. For field positions, respective branch/regional heads would undertake
this co-ordination.
B. After the final round, if the candidate is selected, the complete set of papers Personal Data Form,