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Aim of the Study

Recruitment and selection is a multifaceted concept. The relevance of recruitment and selection is to determine the number of personnel required. The HR proceeds with the identification of sources of recruitment and finding suitable candidates for employment. Both internal and external sources of manpower are used depending upon the types of personnel needed. The aim of the selection policy is the selection of suitable candidate for a suitable job. The selection procedure starts only when the recruitments are done, that is, the various suitable candidate pools is made available. The selections are done from this pool. The project has the following aims: To understand the nature of recruitment and selection policy for acquiring suitable personnel.

To understand the variables of recruitment and selection in HDFC SIL

To identify the sources of manpower supply with a view to acquire the best possible candidate.

To understand the procedure of recruitment and selection in HDFC SIL To understand the procedure of Recruitment and Selection in HDFC SIL

Finally to bring out the challenges ahead with respect to recruitment and selection of advisors.


Importance of the Study

Considering the importance and relevance of the subject, selection of this topic is very obvious. Basically recruiting is the discovering of potential candidates for actual or anticipated organizational vacancies. It also can be said in another way that it refers to bringing together those with jobs to fill and those seeking jobs. It is important to study Recruitment and Selection because through it we can identify our human resource needs. We can know what kind of people must be selected to fill up the specified vacancies. The ideal recruitment effort will attract a large number of qualified applicants who will take the job if it is offered. It should also provide information so that unqualified applicants can self select them out of job candidacy, that is, a good recruiting program should attract the qualified and not attract the unqualified. In this project, study is done on recruitment and selection process of HDFC Standard Life Insurance. To find out actual recruitment and selection process of the company is my main objective of study. Earlier, various studies were made in automobiles industries, pharmaceuticals industries and others. But this time, the insurance industry has been chosen by the researcher to understand the image of the organization, attractiveness of the job, internal policies, about the union (if any), Govt. requirement recruiting budgets etc

Managerial usefulness of the study: By studying this crucial topic the managerial level of employees can get various useful information like: By finding the key result areas of employees, the skilled and potential employees can be recruited. To find the best match between job and employees so that best recruitment can be achieved with respect to position. To find the best candidate or employee for decreasing the rate of accidents in the places of various jobs. To build a contended workforce for the organization by giving employee jobs they are capable of doing.



The primary objective of recruitment and selection policy is to find and acquire the suitable candidates. The objective of this study is to measure the importance or relevance of recruitment and selection in HDFC Standard Life Insurance Ltd. The primary objective measures the overall perception and importance of recruitment and selection in the organization. The domain of this study will include the selection of financial advisors of the company only. The questionnaire has been framed to determine the importance and effectiveness of recruitment and selection procedure as perceived by the employees of the company.


Scope of the Study:

The scope of this study is to observe the degree of satisfaction levels of the employer as well as the employees towards the Recruitment and Selection Techniques adopted by the company. The deviations if any, towards this effect have also been studied. Apart from getting an idea of the techniques and methods in the recruitment procedures a close look will be taken at the insight of corporate culture prevailing out there in the organization. This would not only help to be familiar with the corporate environment but it would also enable the researcher to get a close look at the various levels authority responsibility relationship prevailing in the organization. This study also focuses on studying the various techniques adopted by the organization to retain the new recruits.


Research Methodology:
DATA SOURCE: In this study Primary data and secondary data have been used. Secondary data have been collected from Internet.


For our primary research we had the tools as:

Questionnaire (affixed in the annexure) Interview with employees.

SECONDARY DATA The secondary research is basically getting important information from a lot of data stored in the books and different sites. So, here the secondary data has been obtained from books. I also have taken help of various websites to collect secondary data

RESEARCH APPROACH: Primary data have been collected through surveys. Personal interview technique has been used for conducting the survey. Data collection has been done through the use of structured questionnaire. SAMPLE SIZE Out of total universe, 36 respondents have been taken for convenience. Here, employees are selected randomly and interviewed. An in-depth interview is also conducted SAMPLING DESIGN: We would use the Probability Sampling method in designing of sample. This is simple random line of sampling. Any one of the lot can be chosen. Here, everyone has a fair and equal chance of being selected. In probability sampling, the randomly selected people were given a questionnaire for filling the desired information.


Limitations of the Study:

Analysing the recruitment and selection procedure of an organization takes a lot of time. The organization hesitates in sharing the sensitive information about its employees. Hence the survey would not give the real image of recruitment and selection policy of the company. Although serious efforts were made to collect the authentic and maximum information from respondents, even then this study is subject to various limitations: First of all, the scope of sample size was confined to one department

only, which would have other wise made the study and observations more effective. Secondly, all the results and conclusions are drawn on the basis of

whatever information has been provided by employees working in HDFC Standard Life Insurance so there are chances of individual biasness as well. Thirdly, the stipulated time for the project is insufficient to undergo an

exhaustive study about the topic assigned and moreover the scope of the topic (Recruitment and Selection) is wide enough, so it is difficult to cover all the topics within the stipulated time. The researcher had to visit a number of times to all the working staff

for collecting the information. The employees were not able to give all the data at one particular time.





With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. Its 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 countrys 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, health insurance and non-life insurance continue 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 a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project implementation, including geological risks, maintenance, commercial and political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non- recourse basis. Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long-term debt and equity for infrastructure projects. With long-term liability, they get a good asset- liability match by investing their funds in such projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International Insurance companies also invest their funds in such projects. Insurance is a federal subject in India. There are two legislations that govern the sectorThe Insurance Act- 1938 and the IRDA Act- 1999. Two types of insurance: Life insurance: Life insurance is a contract for payment of a sum money to the person assured on the happening of the event insured against . usually the contract also provides for the payment of premium periodically to the corporation by the assured. General insurance: General insurance includes many areas of insurance like maraine, motor, eng, health, fire etc the contract provides for the payment of an amount on

the happening of some contingency .These types of contracts are annual in nature.


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 underinsured 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 life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players have tripled to Rs.1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen. Innovative products, smart marketing and aggressive distribution- 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 growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back

policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unitlinked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatization was around Rs.50, 000. That has risen to about Rs.80, 000. But the private insurers are ahead in this game and the average size of their policies is around Rs.1.1 lakhs to Rs.1.2 lakhsway bigger than the industry average Few of the Life insurance policies are:

Whole life policies - Cover the insured for life. The insured does not receive money while he is alive; the nominee receives the sum assured plus bonus upon death of the insured.

Endowment policies - Cover the insured for a specific period. The insured receives money on survival of the term and is not covered thereafter.

Money back policies - The nominee receives money immediately on

death of the insured. On survival the insured receives money at regular intervals during the term. These policies cost more than endowment with profit policies.

Annuities / Children's policies - The nominee receives a guaranteed

amount of money at a pre-determined time and not immediately on death of the insured. On survival the insured receives money at the same predetermined time. These policies are best suited for planning children's future education and marriage costs.

Pension schemes - are policies that provide benefits to the insured

only upon retirement. If the insured dies during the term of the policy, his nominee would receive the benefits either as a lump sum or as a pension every month. Since a single policy cannot meet all the insurance objectives, one should have a portfolio of policies covering all the needs.

Growth and Present Status of the Industry The Indian insurance has finally opened up. The first move towards liberalization came with Amphora committee report in 1993. Which recommended the privatisation of insurance .Indian stands to gain witty the following major advantages

Better products with more reasonable and affordable pricing.

Quick servicing Increased saving rate

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

Large inflows of foreign capital. It is debated that the insurance business does not produce profit in the first five year. Cross subsidization is a feature of the Indian market. Event the fire portfolio which is considered profitable, cross subsidizes the other department. Tariff reductions are likely to reduce further. Insurer will have to institute proper claims management process in order to extract proficiencies. The government is soon to present the new model for tax saving life insurance companies at internationally competitive advantage and sketch their alliances accordingly.

Infect alliances related to distribution rather than to product or technology will prove most valuable in the long run. Brokers will come into the market for first time and there is bound to be intense competition As a result of this in the multi channels of distribution. Since beginning of the world, man has always felt insecurity for his assets and even life. There is uncertainty in every aspect of life; its an old saying that only death and tax are certain. An uncertainty in every aspect of life is exposs to our assets to losses and consequently endless problems. A fire in the factory may burn everything and owner only of income with huge capital is finished but insurance will come for rescue if its taken. Insurance does not only provide reimbursement but some suggestive measures also to reduce the effect of hazards and losses .earthquake, flood , riot, strike, theft, explosion etc. Some of the common dangers to our assets. Moreover life insurance besides providing financial assistance to the insured, these policies provides investment opportunities and even pension plans at market interest rate. Future of the Industry In Indian market, the opportunity for insurance companies is huge. The efforts of government companies have lacked sincerity, as there is large untapped market even after 61 years of nationalization. According to sources 30 cores people of India can afford insurance however only 8 cores of them have taken away. Life insurance in a year is collected is only 2% of GDP in India with that of 12 % in USA. Total non life insurance premium is mere of 0.6% of GDP which is almost negligible. On the basis of this it can be sold that there is huge scope for insurance in India. The latest foreseen in Indian market and the success of liberalized market in emergent economies to make this opportunity. To avail this many international players including the world leaders have set up their business in India form the last so many years. I.e. Hdfc-slic, Icici Prudential life, Max life insurance corporation, Bajaj-allianz

The Major Insurance Companies in India are



HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias leading housing finance institution and one of the subsidiaries of Standard Life plc, leading providers of financial services in the United Kingdom. Both the promoters are well known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry all important factors to consider when choosing your insurer. HDFC Standard Life Insurance HDFC Standard Life Insurance Company is a joint venture between India's largest housing finance provider, HDFC and Europe's largest mutual life assurance company - The Standard Life Assurance Company (U. K).HDFC Standard Life Insurance Company Limited is the First Private Sector Life Insurance Company to be granted a license.


Standard Life, UK Standard Life, UK, founded in 1825, has been at the forefront of the UK insurance industry for 175 years by combining sound financial judgments with integrity and reliability. It is the Largest Mutual Life company in Europe and has total assets of Rs. 5, 50,000 crore. It is one of the very few insurance companies in the world to have received 'AAA' rating from two of the leading international credit rating agencies, Moody's and Standard & Poor's. Standard Life was recently voted 'Company of the Decade' in U.K. by the Independent Brokers called IFAs.

THE PARTNERSHIP: HDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. Towards the end of 1999, the opening of the market looked very producing and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a

hand picked team from HDFC to form the core project team, based in Mumbai. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank. In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000.

Incorporation of HDFC Standard Life Insurance Company Limited: The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited.Their ambition since October 1995, was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realised when HDFC Standard Life was the only life company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values

and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance company's in India are measured. Their HDFCsion: They aim to be the top new life insurance company in the market.This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like

Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share Their Values:

SECURITY: Providing long term financial security to our policy holders will be our constant endeavour. We will be do this by offering life insurance and pension products.

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

INNOVATION: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs. Their HDFCsion is to be the best new life insurance company in India and these are the values that will guide us in this MISSION

We aim to be the top insurance company in the market. This does not just mean to be the largest or the most productive company in the market; rather it is a combination of several things like: Customer service of the highest order. Value for money for customers. Professionalism in carrying out business


'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'.The most obvious choice for all'. OUR VALUES

Values that we observe while we work:

Integrity Innovation Customer centric People Care One for all and all for one Team work Joy and Simplicity INCORPORATION OF HDFC SIL CO. LTD.

The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited.Their ambition since October was the only life insurance company to be granted the certificate of registration.HDFC are the main share holders in HDFC Standard Life Insurance Co. Ltd. With 83% and Standard Life owns 17% AWARDS AND ACCOLADES Indias best managed company by Asia money magazine - 1995 and 1996 Most competitive Indian company by Euro money 1997 One of the 5 best Indian Boards by Business Today -1997 Best presented accounts 1994-95 and 1996-97 (3rd place) - in the SAARC region by the South Asian Federation of Accounts in the financial sector category

Rated as one of the best companies in India for strategy & management and investor relations by Asia money 1998

Excellence in service industry by the Indian Institute of Marketing Management & Top Management Club (Pune) -1998

Shield for the best presented accounts for banks and financial institutions over 11 times (8 years in a row)

1999 IMC Ramakrishna Bajaj National Quality Award in the service category

CII-EXIM Bank Commendation Certificate for commitment to Total Quality Management 2000

Asia money declared HDFC as the second best managed company in India 2001

Euro money identified HDFC as one of Asias top 10 best managed companies in the finance sector 2001

Rated as the Best Non-Banking Financial Company in Asia by Institutional Investor Research Group.

Products offered:

Life is unpredictable. But in face of adversity, our responsibilities towards our parents, children and loved ones need not be compromised. Insurance planning equips you to smooth out the uncertainties and adversities that life might send your way, so that the best that life has to offer, secure in the knowledge that your beloved ones are well provided for. HDFC Standard Life Insurance offers a complete range of insurance products:

Protection Plans: HDFC Term Assurance Plan HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection Plan Savings and Investments Plans Regular Premium Single Premium/ Investment Limited Premium Payment

Childrens Plan: HDFC YoungStar Super\ HDFC YoungStar Supreme HDFC YoungStar Super Suvidha HDFC YoungStar Supreme Suvidha HDFC SL YoungStar Champion Suvidha

Retirement Plans

HDFC Pension Super HDFC Pension Supreme HDFC SL Pension Champion HDFC SL Unit Linked Pension Maximiser II Group Plans Group Term Insurance Plan Group Variable Term Insurance Plan Group Gratuity Solutions Group Superannuation Solution Group Leave Encashment Solution

Health Plans: HDFC Critical Care Plan HDFC Surgi Care Plan

SWOT Analysis of the HDFC Standard Life Insurance Company

STRENGTH HDFC has one of the highest brand recalls of around

80% (source: AC Neilson ORG MARG). HDFC has different types of training methods for their

FCs, Agents or Advisor. For Example Disha training, IRDA training, Basic training and induction, Advanced training. Financial Expertise. Range of solutions. Having good network. One of the most aggressive marketing strategies. Training provided to all people associated with the bank

provides services like checking the plan or policies online. Free switching options online informing customers

about the performance of their investment by sending monthly reports and statements Have around 145000 financial advisor


They are unable to target rural area as compare to LIC. Poor awareness for new products in consumers Poor Distribution network. Negligence to customers after the investment is sold. Very Huge Premium of policies compared to major rival LIC. Target Upper class people only. All Brochures are in English only. Sometimes right advice is not given to the customers. The full charges are not revealed to the customers

OPPORTUNITIES In India still there is a big market for insurance field. 75% of Indian market is still untapped. Attract more people by providing more customer centric products. Strong brand of the bank helps to boost sales in market. No.1 in adapting new technologies like online search etc. Tie up with brokers also having a large data base of the customers. Getting leads from the branch members.

THREATS Many private players are coming into the market. Some brands in the market gives there product with more features. .LIC, ICICI & Bajaj Allianz is the major competitor with better network. Threats from other banks selling same types of investments. Change in the policies of IRDA. Change in the mentality of people Fear of the market to crash down. Employee attrition.






Recruiting is the discovering of potential applicants for actual or anticipated organizational vacancies. In other words, it is a linking activity bringing together those with job and those seeking jobs. As Yodel and others point out: Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force. Recruitment has been regarded as the most important function of personnel administration, because unless the right type of people are hired, even the best plans, organization charts and control systems would not do much goods. Edwin B. Flippo views recruitment and selection as positive and negative activities respectively. He says: Recruitment is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. It is often termed positive in that it stimulates people to apply for jobs to increase the hiring ration, i.e., the number of applicants for a job. Selection, on the other hand tends to be negative because it rejects a good member of those who apply, leaving only the best to be hired. Thus recruitment is the development and maintenance of adequate manpower resources. It involves creation of a pool of available labor upon whom the organization can draw when it needs additional employees.


Most of the organizations, whether large or small, do engage in recruiting activity, though not to the same extent. This differs with:

The size of the organization; The employment conditions in the community where the organization is located; The effects of past recruiting efforts which show the organizations ability to locate and keep good performing people; Working conditions and salary and benefit packages offered by the organization which may influence turnover and necessitate future recruiting; The rate of growth of organization; The level of seasonally of operations and future expansion and production programs; Cultural, economic and legal factors, etc.

Factors governing recruitment may broadly be divided as internal and external factors. The internal factors include: Recruiting policy of the organization; Human resource planning strategy of the company; Size of the organization and the number of employees employed; Cost involved in recruiting employees, and finally; Growth and expansion plans of the organization.

The external factors include:

Supply and demand of specific skills in the labor market; Political and legal considerations such as reservation of jobs for SCs, STs, etc. Companys image-perception of the job seekers about the company.

RECRUITMENT POLICY A recruitment policy asserts the objectives of the recruitment and provides a framework of implementation of the recruitment program of an organization in the form of procedures. As Yoder and others observe: Such a policy may involve a commitment to broad principles such as filling vacancies with the best qualified individuals. It may embrace several issues such as extent of promotion from within, attitudes of enterprise in recruiting its old employees, handicaps, minority groups, women employees, part-time employees, friends and relatives of present employees. It may also involve the organization system to be developed for implementing recruitment program and procedures to the employed. Therefore, a well considered and pre-planned recruitment policy based on corporate goals, study of environment and the corporate needs need to be developed which may avoid hasty or ill-defined procedure and may go a long way to cater the organization with the right type of personnel. A good recruitment policy must contain these elements: Organizations objectives - both in the short-term and long-term -must be taken into consideration as a basic parameter for recruitment decisions and needs of the personnel -area-wise, job-family-wise.

Identification of the recruitment needs to take decisions regarding the balance of the qualitative dimensions of the would be recruits, i.e., the recruiters should prepare profiles for each category of workers and accordingly work out the main specifications, decide the sections, departments or branches where they should be placed and identify the particular responsibilities which may be immediately assigned to them. Preferred sources of recruitment, which would be tapped by the organization, e.g., for skilled or semi-skilled manual workers, internal sources and employment exchanges may be preferred; for highly specialized categories and managerial personnel, other sources besides the former, may be utilized. Criteria of selection and preferences: These should be based on conscious thought and serious deliberations. In some cases trade unions may be consulted in working out the recruitment policy. In others, management may take the unilateral decision. The cost of recruitment and financial implications of the same.

A recruitment policy, in its broadest sense, involves a commitment by the employer to such general principles as: To find and employ the best qualified persons for each job; To retain the best and most promising of those hired; To offer promising opportunities for life-time working careers; and To provide programs and facilities for personal growth on the job.

According to Yoder, the recruitment policy is concerned with quality and qualifications (viz., and Q1 and Q2) of manpower. It establishes broad guidelines for the staffing process. Generally, the following factors are involved in a recruitment policy. To carefully observe the letter and spirit of the relevant public policy on hiring, and, on the whole, employment relationship; To provide individual employees with the maximum of employment security, avoiding, frequent lay-off or lost time; To provide each employee with an open road and encouragement in the continuing development of his talents and skills; To assure each employee of the organization interest in his personal goals and employment objectives; To assure employees of fairness in all employment relationships, including promotions and transfers; To avoid cliques which may develop when several members of the same household or community are employed in the organization; To encourage one or more strong, effective, responsible trade unions among the employees.


The recruitment policy of an organization must satisfy the following conditions: It should be in conformity with its general personnel policies; It should be flexible enough to meet the changing needs of an organization;

It should be so designed as to ensure employment opportunities for its employees on a long-term basis so that the goals of the organization should be achievable; and it should develop the potentialities of employees; It should match the qualities of employees with the requirements of the work for which they are employed; and

It should highlight the necessity of establishing job analysis.

METHODS OR TECHNIQUES OF RECRUITMENT Dunn and Stephens summarize the possible recruiting methods into three categories: Direct, Indirect and Third party.

DIRECT METHODS These include sending travelling recruiters to educational and professional institutions, employees contacts with public and manned exhibits. One of the widely used direct methods is campus selection which involves sending of recruiters to colleges and technical schools. Most college recruiting is done in cooperation with the placement committee of a college. The placement committee usually provides help in attracting students, arranging interviews, furnishing space, and providing student resumes. For managerial, professional and sales personnel, campus recruiting is an extensive operation. For this purpose, carefully prepared brochures, describing the organization and the jobs it offers, are distributed among students, before the interviewer arrives. Sometimes, firms directly solicit

information from the concerned professors about students with an outstanding record. Many companies have found employees' contact with the public a very effective method. Other direct methods include sending recruiters to conventions and seminars, setting up exhibits at fairs, and using mobile offices to go to the desired centres.

INDIRECT METHODS Indirect methods involve mostly advertising in newspaper, on the radio, in trade, and professional journals, technical magazines and brochures. Advertising in newspapers and/or trade journals and magazines is the most frequently used method, when qualified or experienced personnel are not available from other sources. Senior posts are largely filled by such methods when they cannot be filled by promotion from within. Advertising is very useful for recruiting blue-collar and hourly workers, as well as scientific, professional, and technical employees. Local newspaper can be a good source of blue-collar workers, clerical employees, and lower-level administrative employees. The main point is that the higher the position is in the organization, or the more specialized the skills sought, the more widely dispersed advertisement is likely to be. The search for top executive might include advertisements in a national periodical; while the advertisement of bluecollar jobs is usually confined to the daily newspaper or regional trade journals.

THIRD PARTY METHODS (TPMs) The best management policy regarding recruitment is to look first within the organization. If that source fails, external recruitment must be tackled. These include the use of commercial or private employment agencies, state agencies,

recruiting firms, management consulting firms and recommendations or referrals by friends and relatives. Private employment agencies are widely used. They charge a small fee from an applicant. They specialize in specific occupations: general office help, salesmen, technical workers, accountants, computer staff, engineers and executives. These private agencies are brokers who bring employers and employees together. State or public employment agencies also known as Employment or Labor Exchanges are the main agencies of public employment. They provide a clearing house for jobs and job information. Employers inform them of their personnel requirements, while job-seekers get information for them about the types of jobs that are referred to by employers. These agencies provide a wide range of services -counseling, assistance in getting jobs, information about the labor market, labor and wage rates. Friends and relatives of present employees are also a good source from which employees may be drawn. When the labor market is very tight, large employers frequently offer their employees bonuses or prizes for any referrals that are hired and stay with the company for a specific length of time. Some companies maintain a register of former employees whose record was good to contact them when there are new job openings for which they are qualified. This method of recruitment, however, suffers from a serious defect that it encourages nepotism, i.e., persons of one's community are employed that may or may not be fit for the job. 3.2 SELECTION


Selection involves a series of steps by which the candidates are screened for choosing the most suitable person for vacant posts. The process of selection leads to employment of persons who possess the ability and qualifications to perform the jobs which have fallen vacant in an organization. The selection procedure is concerned with securing relevant information about an applicant. The objective of selection process is to determine whether an applicant meets the qualifications for a specific job and to choose the applicant who is most likely to perform well in that job. Selection is a long process, commencing from the preliminary interview of those applicants and ending with the contract of employment. The hiring procedure is not a single act but it is essentially a series of methods or steps or stages by which additional information is secured about the applicant. At each stage, facts may come to light, which may lead to the rejection to the applicant. A procedure may be compared to a series of successive hurdles or barriers, which an applicant must cross. These are intended as screens, and they are designed to eliminate an unqualified applicant at any point in the process. This technique is known as the successive hurdles technique. Not all selection processes include all these hurdles. The complexity of a process usually increases with the level and responsibility of the position to be filled. According to Yoder, the hiring process is of one or many go, no-go gauges. Candidates are screened by the application of these tools. Qualified applications go on to the next hurdle, while the unqualified are eliminated. Thus, an effective selection program is a non-random process because those selected have been chosen on the basis of the assumption that they are more likely to be better employees than those who have been rejected. Selection processes or activities typically follow a standard pattern, beginning with an initial screening interview and concluding with the final employment

decision. The traditional selection process includes: preliminary screening interview; completion of application form; employment tests; comprehensive interview; background investigations, physical examination and final employment decision to hire.


There is no shortcut to an accurate evaluation of a candidate. The hiring procedures are, therefore, generally long and complicated. Many employers make use of such techniques and pseudo-sciences as phrenology, physiognomy, astrology, graphology etc., while coming to hiring decisions. However, in modern times, these are considered to be unreliable measures. The following is a popular procedure though it may be modified to suit individual situation: Preliminary interview: It is generally brief and does the job of eliminating the totally unsuitable candidates. It offers advantages not only to the organization but also to the applicant.

Receiving applications: Application form is useful for several reasons. It gives a preliminary idea about the candidate to the interviewer and helps him in formulating questions to have more information about the candidate.

Screening of applications: After receiving the applications they are screened by a screening committee and a list is proposed of the candidates to be interviewed.

Employment tests: Before deciding upon the job or jobs suitable for a particular individual, one should know the level of his ability and knowledge. This will require the use of employment tests. The employment test areas are as follows: Intelligence tests Aptitude tests Personality tests Interest tests Proficiency tests

Employment interview: The several purposes of an employment interview are: To find out suitability of the candidate To seek more information about the candidate To give him an accurate picture of the job with details of terms and conditions and some idea of the organization as well.

Physical examination: The pre employment physical examination or medical test of a candidate is an important step in selection procedure. It discloses the physical abilities of a candidate.

Checking references: Prior to the final selection, the prospective employer normally makes an investigation on the reference provided by the applicant and undertakes more or less a research through searching into candidates past employment, education, personal, reputation, etc..

Final selection: After a candidate has cleared all the hurdles in the selection procedure, he is formally appointed by issuing him an appointment letter by concluding with him a service agreement.






























In todays rapidly changing business environment, a well defined recruitment policy is necessary for every organization so as to respond to its human resource requirements in time. HDFC SLI thus believes that it is important to have a clear and concise recruitment policy in place, which can be executed effectively to recruit the best talent pool for the selection of the right candidate at the right place quickly. Recruitment policy of any organization is derived from the personnel policy of the same organization. In other words the former is a part of the latter. However, recruitment policy by itself should take into consideration the governments reservation policy, policy regarding sons of soil, etc., personnel policies of other organizations regarding merit, internal sources, social responsibility in absorbing minority sections, women, etc. Recruitment policy should commit itself to the organisations personnel policy like enriching the organisations human resources or servicing the community by absorbing the retrenched or laid-off employees or casual/temporary employees or dependents of present/former employees, etc. A clear and concise recruitment policy helps ensure a sound recruitment process. It specifies the objectives of recruitment and provides a framework for implementation of recruitment program. It may involve organizational system to be developed for implementing recruitment program and procedures by filling up vacancies with best qualified people. HDFC SLI has formulated its recruitment policy giving consideration to the following factors:


Organizational objectives Personnel policies of the organization and its competitors. Government policies on reservations. Preferred sources of recruitment. Recruitment costs and financial implications


FORM OF RECRUITMENT The recruitment process of an organization can be centralized or decentralized in nature. Centralized Recruitment The recruitment practices of an organization are centralized when the HR / recruitment department at the head office performs all functions of recruitment. Recruitment decisions for all the business verticals and departments of an organization are carried out by the one central HR (or recruitment) department. Centralized from of recruitment is commonly seen in government organizations. Benefits of the centralized form of recruitment are: Reduces administration costs Better utilization of specialists Uniformity in recruitment Interchangeability of staff Reduces favouritism Every department sends requisitions for recruitment to their central office Decentralized Recruitment Decentralized recruitment practices are most commonly seen in the case of conglomerates operating in different and diverse business areas. With diverse and geographically spread business areas and offices, it becomes important to understand the needs of each department and frame the recruitment policies and procedures accordingly. Each department carries out its own recruitment. Choice between the two will depend upon management philosophy and needs of particular organization.

HDFC SLI follows a Centralized mode of Recruitment as it offers various benefits as indicated above.



Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organization 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 recruitment. HDFC SLI Ltd accomplishes most of its recruitment needs via external sources. These involve the following:

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. HDFC SLI recruits almost 65 % of its workforce via campus placements. Students are selected from various universities and college and are trained to meet the job requirements.

EXECUTIVE SEARCH AGENCIES, PLACEMENT AGENTS OR HEAD HUNTERS HDFC has contracts with several third-party recruiters who seek out candidates for the company. Headhunters are generally considered more aggressive than in-house recruiters or may have preexisting industry experience and contacts. HDFC has contracts with Marvell Associates, A J Placement Consultants, ABC Consultants etc.

E-Recruitment Also known as Online recruitment, it is the use of technology or the web based tools to assist the recruitment process. Job website like naukri.com, Monster. Com, timesjob.com are made use of. HDFC SLI makes wide use of the Internet as a source of recruitment. The Co advertises job vacancies through worldwide web. The job seekers send their applications or curriculum vitae (CV) through an e-mail using the Internet. Alternatively job seekers place their CVs in worldwide web, which can be drawn by prospective employees depending upon their requirements. The internet penetration in India is increasing and has tremendous potential. There are more than 18 million resume floating online across the world. Job sites provide a 24*7 access to the database of the resumes to the employees facilitating the just-in-time hiring by the organizations. Also, the jobs can be posted on the site almost immediately and is also cheaper than advertising in the employment newspapers. Sometimes companies can get valuable references through the passers-by applicants. Online recruitment helps the organizations to automate the recruitment process, save their time and costs on recruitments. 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. One advertisement in a leading daily can cover millions of person throughout the country. Cost per person is very low. This method is used in HDFC SLI for advertising for clerical, managerial and technical jobs.

Employee Referrals/ Recommendations Many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization. Also, the office bearers of trade unions are often aware of

the suitability of candidates. 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 job evaluation of the vacancy is done so as to understand to understand the skills required in the candidate. Recruitment when done via external sources generally follows the following process in HDFC SLI: CV Submission Information regarding the vacancies and required eligibility criteria is published in the newspapers, websites, employment magazines etc. Potential candidates interested in joining the Co are required to send their complete curriculum vitae. An acknowledgement of receipt is sent for all submitted applications to the candidate's email.

Application Evaluation The Human Resources department evaluates all incoming applications, against prerequisite abilities and skills set for all current openings. All applications are kept based on strengths and specialization, for future reference. . Ability Tests Potential candidates will be invited to participate in aptitude tests i.e. numerical, verbal, English and psychometric, when deemed necessary. Capability Based

To ensure that our recruitment process is fair and consistent, all candidates who are successful at the exams are invited for a capability based interview. Interviews are based against capabilities, required for each position for which the candidate is interviewed for. A capability or competency is an ability described in terms of skills & behaviors that are essential to effectively perform within a job.Apart from the educational and academic capability, the chief attributes HDFC SLI looks out for in a candidate are as follows:

We look out for a candidate who values Integrity Has a zeal for Excellence Is focused on Results Is Self driven and Enthusiastic Is a good Learner and Team Player Is dedicated to Customer Satisfaction

Reply Letters At all stages of the process candidates are kept informed of the status of their application with an email reply letter. 6. Job Offer If a candidate successfully reaches the final stage, a position offering is made in conjunction with a competitive reward package.





From the analysis it is clear that more than 91% of the employees are working in the company, for a period of less than 3 years. Only 8.33% of the employees are working in the company having completed more than 3 years. So it is evident that the employees of the ICICI PRUDENTIAL LIFE INSURANCE are much younger. It indicates the recent trend of recruiting fresh candidates by the organization.

Most of the employees (28%) have mentioned the salary package as a reason for joining the organization. 16% of the employees have mentioned or pointed it out the working environment as the reason for joining the organization. 17% talked about the reputation of company and 23% mentioned about career growth opportunity. So it can be said that the salary package and career growth opportunity are the more attractive to the employees.

Almost every respondent said that they had got specified job offered to them. So it can be concluded that the organization follows job specification in case of recruiting the candidates.

Every employee is satisfied about recruitment and selection procedure prevailing out there. They also think the process as fair enough. It also shows the credit of the company. The organization has developed such a policy of which every one is satisfied.

The company has no trade union. So all the employees have either directly contact the management for sorting their individual problems or through a particular channel of span of control. It develops a better relationship between the employees and management which is the main criteria of effective working environment.

For the last couple of years company is going more for Campus Recruitment which indicates that the company prefers more fresh candidates who are much more enthusiastic and dedicated to their job.

People dont want to choose this profession because of distributing the commission with the clients and also because of their busy schedule.

People are sometimes rude and unapproachable that makes difficult to communicate with them.

When we talk of popularity no doubt that LIC is on top but ICICI Prudential is No.1 among the private players.

People still have inhibition about private players in insurance sector. Training and test centers are limited so its difficult for people to commute. Since ICICI is a brand name among people so it is an advantage for ICICI prudential in making a good position in the market.


After looking at and analyzing all the criteria, its found that the company lacks little bit in job security. The employees also not very much satisfied with job security. So to gain the confidence of the employees the company should improve job security. It is important to create awareness about the Insurance sector and its liberalization because even now people know only about LIC and also dont have much faith in the private insurance players. Training and test centers are limited so it is difficult for people who stay away from these places to commute, so the company should open new training centers located centrally accessible by people from all location. Company should go more for Campus Recruitment as the company will have more fresh candidates who are more enthusiastic and dedicated to their job. The inhibition of people about private players in insurance should be removed.


In todays scenario there is a lot of potential for the growth of insurance sector as people are becoming more and more concerned about the safety and security of themselves and their loved ones. This increasing awareness and concern about the need for insurance requires the presence of expert people who can guide and advise people about insurance and suggest them the products that fit their needs perfectly.

An insurance advisor is the one who can take up this responsibility and help people in this. It will not only be beneficial for the society but will also give the person a golden opportunity to grow, learn and achieve more. And with a back up of a reputed company like ICICI Prudential Life Insurance Ltd. there seems no barrier in achieving this.


1. How candidates are recruited in the company? (Tick any one) (i) (ii) (iii) (iv) Written exam Written exam and interview Written exam, GD and interview References

2. What is the working period of employees in the company? (Tick any one) (i) (ii) (iii) (iv) Within 1 year Between 1-2 years Between 2-3 years Between 3-5 years

3. What are the reasons for the candidate to join the company? (Tick all that apply) (i) Reputation of the company

(ii) (iii) (iv) (v) (vi)

Salary package Working environment Job prospects Location of the company Career growth opportunity

4. Did you get the same job specification as offered during the interview? Yes No

5. What are the eligibility criteria for recruitment? Graduation Post graduation (freshers) Chartered Accountant Post graduation(with minimum 2years of experience) 6. Which method is used for bulk recruitments? Advertisement Campus recruitments Govt. agency References

7. Is the organization doing anything to reduce the employee turnover ratio? (Tick all that apply)

Better salary package More benefits Changing / Improving working conditions Better promotion / Career Development Opportunity

8. Are you satisfied with the salary and job security provided by the company? Yes No

9. Is your company providing better career prospects for its employees? Yes No


DeCenzo, David A and Robbins, Stephen P,: Human resource Management Prentice Hall India Private Limited (2000) Chabbra, T.N, Human Resource Management (2004); pp 161-191 Mamoria, C.B and Gankar, S.V: Personnel Management- Text and Cases Himalaya Publishing House, ICICI company manual http://www.iciciprulife.com/