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.
I would be delighted to receive reader’s comments which maybe valuable lessons for my
future projects.
OBJECTIVES OF THE PROJECT -

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 know the sources and methods of Recruitment at ICICI Prudential
-To know the need for training.
-To identify areas where there can be scope for improvement .
- To give suitable recommendation to streamline the hiring process
-To understand future of ICICI prudential.

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.

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.
v The first task was to understand the various job profiles for which recruitment
was to be done.
v The next step was to explore the various job portals to search for suitable
candidates for the job profile.
v Once the search criteria were put, candidates went through a telephonic
interview to validate the information mentioned in their resume.
 v A candidate matching the desired profile was then lined for the first round of
Face to Face interview in their respective cities.
v Firstly the candidate had filled up the personal data form.
v 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.
v 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.
v I was involved in assigning codes and administering the test
v Once the candidate completed his first assessment, his scores were checked. If he
cleared his cut-off he was given another test.
v I had the responsibility to make sure that candidates complete all formalities and
had to regularly follow up with them.
v 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.
v The external guide maintained a regular updating of the database.
v Understanding what kinds of database are maintained and how they help in
keeping a record.
v 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.

MY EXPERIENCE IN ICICI PRUDENTIAL:

My summer internship started with flying colors. Mr. Deepak Chaudhary (Branch
Manager) of ICICI Prudential Life Insurance, Jodhpur gave an excellent presentation
about their organization and about Life insurance market in India. My summer
internship structure for 1 ½ months was developed by Deepak Sir. As per his plan, we
were given practical exposure of Life Insurance Industry. From the day one itself, I
started calling customers.

In the beginning , It was difficult for me to explain the policies but later on, I managed
it. Many of the customers asked me “Is it an insurance firm?” as soon as I said that “I
am calling from ICICI PRUDENTIAL” I cannot tell them anything rather than “yes
sir” as soon as tell yes they said that “I am not interested”.

Some people will hear the whole story and will say that “I am little busy with my work
and call me later or tomorrow”. “Many people were asking why I should take life
policies”. I answered that “to overcome risk sir” their next question was “what risk?” I
cannot tell them that “if u die it will be financial support to your family sir”

A) STEPS FOLLOWED IN TELEMARKETING OF POLICIES:

· Firstly, I would make a call to the customer.

§ I request the customer to share a few minutes with me to know about the insurance
plans available.

§ Depending on the age of the customer I inform him about the various plans that
would suit him.

§ If he has any children I also explain him about the child plans available.

§ I clearly explain him about the Tax benefits which he will receive.

§ I also explain about the short term and the long term plans.

§ If he is interested I tell him that I would like to have an appointment with him at any
convenient place to give more detailed information about the plans.

§ This is my personal experience in ICICI prudential life insurance .

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.
DATA SOURCES 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

INDUSTRY PROFILE -
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 India Insurance market despite having a
highly elaborate history spanning almost two centuries, has come of age only in last 50
years after the formation of the Life Insurance Corporation (LIC) of India in 1956 and
the entry of private companies into the market in 2000.
Traditionally the Indian Insurance Market had centered on the life insurance until
recently, a host of other insurance policies covering a diverse range of issues and objects
like Medical Insurance, Accident Insurance, Fire Insurance, Automobile Insurance and
other policies which fall under the category of general insurance are being provided by
various private insurance companies.
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.
The insurance sector in India has come a full circle from being an open competitive
market to nationalisation and back to a liberalised market again. Tracing the
developments in the Indian insurance sector reveals the 360-degree turn witnessed over
a period of almost two centuries.
A BRIEF HISTORY OF INSURANCE SECTOR-
The business of life insurance in India in its existing form started in India in the year
1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in India are:
· 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 taken over by
the central 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 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.
INSURANCE SECTOR REFORMS:
In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor
R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend
its future direction.
The Malhotra committee was set up with the objective of complementing the reforms
initiated in the financial sector. The reforms were aimed at "creating a more efficient
and competitive financial system suitable for the requirements of the economy keeping
in mind the structural changes currently underway and recognizing that insurance is an
important part of the overall financial system where it was necessary to address the
need for similar reforms…"
In 1994, the committee submitted the report and some of the key recommendations
included:
1) Structure
· Government stake in the insurance Companies to be brought down to
50%.
· Government should take over the holdings of GIC and its subsidiaries so
that these subsidiaries can act as independent corporations.
· All the insurance companies should be given greater freedom to operate.
2) Competition
· Private Companies with a minimum paid up capital of Rs.1bn should be
allowed to enter the industry.
 · No Company should deal in both Life and General Insurance through a
single entity.
· Foreign companies may be allowed to enter the industry in collaboration
with the domestic companies.
· Postal Life Insurance should be allowed to operate in the rural market.
· Only One State Level Life Insurance Company should be allowed to
operate in each state.
3) Regulatory Body
· The Insurance Act should be changed.
· An Insurance Regulatory body should be set up.
· Controller of Insurance (Currently a part from the Finance Ministry)
should be made independent.
4) Investments
· Mandatory Investments of LIC Life Fund in government securities to be
reduced from 75% to 50%.
· GIC and its subsidiaries are not to hold more than 5% in any company
(There current holdings to be brought down to this level over a period of time).
5) Customer Service
· LIC should pay interest on delays in payments beyond 30 days.
· Insurance companies must be encouraged to set up unit linked pension
plans.
· Computerisation of operations and updating of technology to be carried out
in the insurance industry The committee emphasized that in order to improve
the customer services and increase the coverage of the insurance industry should
be opened up to competition.
But at the same time, the committee felt the need to exercise caution as any failure on
the part of new players could ruin the public confidence in the industry. Hence, it was
decided to allow competition in a limited way by stipulating the minimum capital
requirement of Rs.100 crores.
The committee felt the need to provide greater autonomy to insurance companies in
order to improve their performance and enable them to act as independent companies
with economic motives. For this purpose, it had proposed setting up an independent
regulatory body.
MAJOR POLICY CHANGES -

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 of IRDA 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 with the following conditions:
· Company is formed and registered under the Companies Act, 1956;
· The aggregate holdings of equity shares by a foreign company, either by
itself or through its subsidiary companies or its nominees, do not exceed 26%,
paid up equity capital of such Indian insurance company;
· The company's sole purpose is to carry on life insurance business or general
insurance business or reinsurance business.
· The minimum paid up equity capital for life or general insurance business
is Rs.100 crores.
· The minimum paid up equity capital for carrying on reinsurance business
has been prescribed as Rs.200 crores.
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. 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.
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.

INSURANCE -PREFACE -
The 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 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.
The 12 private insurers in the 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.
Risks and uncertainties are part of life's great adventure- accidents, illness, theft,
Natural disasters- they are all built into working of the universe waiting to happen. So
far that there is a solution – insurance and to provide with the knowledge of this
insurance benefits to the customers, the Financial Consultant plays an important role in
this field.

To overcome these risks and uncertainties , insurance comes into existence. Now days a
lot is being done to create awareness among the insuring Public about the need and
importance of insurance in the field of human being.

In this direction IRDA has planned to create awareness through electronic and print
media. Recruitment of Financial Consultants is done to ensure the smooth serving of
insurance sector. The project deals with the procedure of recruitment and training of
Financial Consultant and agents in ICICI Prudential.

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:
- 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.
- 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.
- 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.
- 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.

BENEFITS OF INSURANCE -
Insurance policy vouchsafes security for our dependents after our demise. They can
eek out their living even at the absence of other active source of income. Moreover the
amount that we are going to get at the end of the policy period in a term life policy also
makes it a rewarding investment.

The following reasons substantiate why an insurance policy should be taken:

A) Early Deaths

The mortality rate is experiencing a declining trend in many parts of the world.
However it is also important to note that the age at which People die is also ever
decreasing. Some reasons for this include unhealthy living style, stress, pollution, and
some natural calamities. This necessitates people to make adequate measures to yield
income for their family and dependents. This could be a serious concern if the insured
happens to be the sole bread winner. Some individuals see this as an option to plan their
retirement.

B) Advancements in Health Care

The mortality rate has declined rapidly even though the fact remains that the number
of people who die at an early age is on the increase. This is mainly due to the
advancement in healthcare and the awareness on medical facilities. This results in an
increased spending at an old age.

This increased spending is also due to increase in the costs of living apart from paying
expensive medical bills. Unless they invest in Life insurance or other forms of insurance
like health insurance it becomes next only to impossible to meet the financial demands
especially during the old days.

C) Increase in the Cost of Living and Spending Power

The purchasing power of the consumers and the standard of living has experienced a
steep rise over the years. The increase in National Income and gross domestic product
are partly responsible for this. Individuals incur many unexpected expenses due to the
growing needs. Insurance comes in handy to meet such an unexpected expense. It also
makes sure that an individual is able to meticulously plan his finances.

Insurance option is more or less an interest free loan. An individual can cancel his
insurance policy and obtain a huge amount if it is imperative in meeting an urgent
expenses and he does not have alternative sources for finance. Life insurance companies
therefore do the needful to consumers.

D) Tax Concessions

Income tax concessions are available to individuals and corporate houses who adopt
insurance policies. Many have been making investments in Insurance with the sole aim
of enjoying tax benefits. This naturally increases spending power. Since the investments
increases the economic activities in the country automatically increases.

ORGANISATION PROFILE -

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. 47.80 billion, with ICICI Bank holding a stake of 74% and
Prudential plc holding 26%.

ICICI Prudential began operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). Today, company’s nation-wide
team comprises of 2074 branches (inclusive of 1,116 micro-offices), over 225,000
advisors; and 7 bancassurance partners.
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.
ICICI Prudential is 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'.
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.

MANAGEMENT PROFILE OF ICICI PRUDENTIAL -

BOARD OF DIRECTORS:
Mr. K.V. Kamath, Chairman
Ms. Chanda Kochhar, Director
Mr. Barry Stowe, Director
Prof. Marti G. Subrahmanyam, Director
Mr. Mahesh Prasad Modi, director
Ms Rama Bijapurkar, Director
Mr. Keki Dadiseth, Director
Ms. Shikha Sharma, Managing Director
Mr. N.S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director

MANAGEMENT TEAM:

The ICICI Prudential life Insurance Company Limited Board comprises reputed people
from the finance industry both from India and abroad.

Ms. Shikha Sharma, Managing Director & CEO

Mr. N.S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
MS. Anita Pai, Executive Vice president – Customer Service & Technology
Dr. Avijit Chatterjee, Appointed Actuary

VISION AND MISSION -

Organisation’s 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 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.

ICICI PRUDENTIAL PRODUCTS AND SERVICES -

ICICI Prudential has a wide array of insurance plans that have been designed with the
philosophy that different individuals are bound to have differing insurance needs.

The ideal insurance plan is one that addresses the exact insurance needs of the
individual that will depend on the age and life stage of the individual apart from a host
of other factors.

LIFE INSURANCE PLANS-

 Under Life insurance plans, ICICI Prudential offers plans under the following
major need categories:
· Education Insurance Plans
· Wealth Creation Plans
· Premium Guarantee plans
· Protection Plans
RETIREMENT SOLUTIONS-
The primary objective of a retirement plan is to help you provide for your
financial needs in your post retirement years. Click here to know more about our
retirement solutions
· ForeverLife
· LifeTime Super Pension
· LifeLink Super Pension
HEALTH SOLUTIONS-

Under Health Product Suite, ICICI Prudential offers plans under the following major
need categories:
· HealthAssure Plus
· Hospital Care
· Cancer Care
· Cancer Care Plus
· Crisis Cover
· Diabetes Care
· Diabetes Care Plus

RECRUITMENT-MEANING-

The most valuable asset of any large-scale organizationis the high- caliber
employees.Finding right people and putting them at right job is the most important
challenge for any organization.Keeping in mind the forecast the function of attracting
the best available talent is carried out by an organization.It involves functions like;
Recruitment,Selection,Induction and Training.
“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.

Recruitment is the process of searching the candidates for employment and stimulating
them to apply for jobs in the organisation”. Recruitment is the activity that links the
employers and the job seekers. A few definitions of recruitment are:

· A process of finding and attracting capable applicants for employment. The process
begins when new recruits are sought and ends when their applications are submitted.
The result is a pool of applications from which new employees are selected.

· It is the process to discover sources of manpower to meet the requirement of staffing

schedule and to employ effectivemeasures for attracting that manpower in adequate
numbers to facilitate effective selection of an efficient working force.

Recruitment of candidates is the function preceding the selection, which helps create a
pool of prospective employees for the organisation so that the management can select
the right candidate for the right job from this pool. The main objective of
the recruitment process is to expedite the selection process.

Recruitment is a continuous process whereby the firm attempts to develop a pool of

qualified applicants for the future human resources needs even though specific
vacancies do not exist. Usually, the recruitment process starts when a manger initiates
an employee requisition for a specific vacancy or an anticipated vacancy.

RECRUITMENT IN INSURANCE SECTOR -

In this is competitive global world and increasing flexibility in the labour market,
recruitment is becoming more and more important in every business. Therefore,
recruitment serves as the first step in fulfilling the needs of organisations for a
competitive, motivated and flexible human resource that can help achieve its objectives.

Recruitment is an important part of an organization’s human resource planning and

their competitive strength. Competent human resources at the right positions in the
organisation are a vital resource and can be a core competency or a strategic advantage
for it.

The objective of the recruitment process is to obtain the number and quality of
employees that can be selected in order to help the organisation to achieve its goals and
objectives. With the same objective, recruitment helps to create a pool of prospective
employees for the organisation so that the management can select the right candidate
for the right job from this pool.
 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:
v Creating an applicant pool using internal or external methods
v Evaluate candidates via selection
v Convince the candidate
v And finally make an offer
Recruitment acts as a link between the employers and the job seekers and ensures the
placement of right candidate at the right place at the right time. Using and following
the right recruitment processes can facilitate the selection of the best candidates for the
organisation.Careful recruitment is a must because volume and nature of recruitment
varies with the size,nature and environment of organization.

OBJECTIVE OF RECRUITMENT -

· Attract and encourage more and more candidates to apply in the organisation.

· Create a talent pool of candidates to enable the selection of best candidates for the
organisation.

· Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.

· recruitment is the process which links the employers with the employees.

· Increase the pool of job candidates at minimum cost.

· Help increase the success rate of selection process by decreasing number of visibly
under qualified or overqualified job applicants.

· Help reduce the probability that job applicants once recruited and selected will leave
the organization only after a short period of time.

· Meet the organizations legal and social obligations regarding the composition of its
workforce.

· Begin identifying and preparing potential job applicants who will be appropriate
candidates.

· Increase organization and individual effectiveness of various recruiting techniques

and sources for all types of job applicants

RECRUITMENT PROCESS -
The recruitment and selection is the major function of the human resource department
and recruitment process is the first step towards creating the competitive strength and
the recruitment strategic advantage for the organisations. Recruitment process involves
a systematic procedure from sourcing the candidates to arranging and conducting the
interviews and requires many resources and time. A general recruitment process is as
follows:

* Identifying the vacancy:

The recruitment process begins with the human resource department receiving
requisitions for recruitment from any department of the company. These contain:

• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required
* Preparing the job description and person specification.
* Locating and developing the sources of required number and type of employees
(Advertising etc).
* Short-listing and identifying the prospective employee with required characteristics.
* Arranging the interviews with the selected candidates.
* Conducting the interview and decision making

ACTIVITY 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:
v HR & Branch Manager
v Functional Head

RECRUITMENT PLANNING
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.

CHANNEL OF RECRUITMENT
Every organisation has the option of choosing the candidates for its recruitment
processes from two kinds of sources: internal and external sources. The sources within
the organisation itself (like transfer of employees from one department to other,
promotions) to fill a position are known as the internal sources of recruitment.
Recruitment candidates from all the other sources (like outsourcing agencies etc.) are
known as the external sources of the recruitment. 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 of the source.
 CHANNEL OF RECRUITMENT

(A)- INTERNAL SOURCES OF RECRUITMENT -

1. TRANSFERS
The employees are transferred from one department to another according to their
efficiency and experience.

2. PROMOTIONS
The employees are promoted from one department to another with more benefits and
greater responsibility based on efficiency and experience.

3. Others are Upgrading and Demotion of present employees according to their

performance.

4. Retired and Retrenched employees may also be recruited once again in case of
shortage of qualified personnel or increase in load of work.recruitment such people save
time and costs of the organisations as the people are already aware of the organisational
culture and the policies and procedures.

5. The dependents and relatives of Deceased employees and Disabled employees are also
done by many companies so that the members of the family do not become dependent
on the mercy of others.

(B)– EXTERNAL SOURCES OF RECRUITMENT

1.PRESS ADVERTISEMENTS
Advertisements of the vacancy in newspapers and journals are a widely used source of
recruitment. The main advantage of this method is that it has a wide reach.

2. EDUCATIONAL INSTITUTES
Various management institutes, engineering colleges, medical Colleges etc. are a good
source of recruiting well qualified executives, engineers, medical staff etc. They provide
facilities for campus interviews and placements. This source is known as Campus
Recruitment.

3. PLACEMENT AGENCIES
Several private consultancy firms perform recruitment functions on behalf of client
companies by charging a fee. These agencies are particularly suitable for recruitment of
executives and specialists.
Many job seekers visit the office of well-known companies on their own. Such callers
are considered nuisance to the daily work routine of the enterprise. But can help in
creating the talent pool or the database of the probable candidates for the organisation.
Many organisations have structured system where the current employees of the
organisation can refer their friends and relatives for some position in their organisation.
Also, the office bearers of trade unions are often aware of the suitability of candidates.
Recruitment Management can inquire these leaders for suitable jobs. In some
organizations these are formal agreements to give priority in recruitment to the
candidates recommended by the trade union.

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.
SELECTION -MEANING AND NATURE -
Selection is the process of evaluating the qualifications, experience, skill, knowledge, etc,
of an applicant in relation to the requirements of the job to determine his suitability for
the job. The selection procedure is concerned with securing relevant information from
applicants and selecting the most suitable among them, based on an assessment of how
successful the employee would be in the job, if he were placed in the vacant position.

The selection process has two basic objectives: (a) To predict which applicant would
be the most successful if selected for the job, and (b) To sell the organization and
the job to the right candidate. The selection process is based on the organizational
objectives, the job specification and the recruitment policy of the organization. The
various selection processes are initial screening, application forms, selection tests, group
discussions, interviews and reference checks.

To facilitate a near accurate prediction of an applicant's success on the job, the selection
methods should meet several generic standards of reliability, validity, generalizability,
utility and legality. The application form is a formal record of an individual's application
for employment. It is usually used in the preliminary screening of job applicants.

The filled-in application forms provide pertinent information about the individual and
are used in the job interview and for reference checks to determine the applicant's
suitability for employment. There are two methods of evaluating these forms – the
clinical method and the weighted method. Selection tests, which are widely used include
intelligence tests, aptitude tests, achievement tests, situational tests, interest tests, and
personality tests.

Interviews help managers to fill the gaps in the information obtained through the
application blanks and tests. Interviews also enable the management to make an impact
on the job applicant's view of the organization, apart from assessing his job-related
behavior and attitude. Interviews may be classified as preliminary, selection and
decision-making, based on their timing and purpose.

The process of interviewing consists of several steps such as preparation for the
interview, ensuring a setting, and conducting, closing and evaluating. The selection
process also uses background investigation or reference checks to check the authenticity
of the information provided by the applicant. Finally, after an applicant is selected, the
offer is made to him and on acceptance, the placement process starts.

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