Term Paper Mukesh Rana,Roll No.26

8/8/2019 Term Paper Mukesh Rana,Roll No.26

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RETENTION PRACTICES IN INSURANCE SECTOR

ACKNOWLEDGEMENT


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The satisfaction that is generated by the successful completion of a taskwould remain unfulfilled without mentioning people who have encouraged andguided at every step toward the completion of the task.

I express my sincere thanks to Prof.Miss Silky sehdev Lovely School ofManagement; LPU (Phagwara,Jalandhar) for their valuable suggestions andhelp to prepare this project.

I express my deep sense of gratitude to my external guide my class friends foroffering me suggestions and help in successfully completing my projectreport. They have been a constant source of inspiration and motivation.

I would like to express my sincere thank for Miss Silky sehdev & all the classfriends, in the University for giving me relevant information and supportrequired to complete my study.

I humbly acknowledge there is always some scope for further improvement

and to that end sincerely I invite valuable suggestions of your by which myfuture assignments, term paper could be benefited

Introduction The best way to improve employee retention is to understand what

employees want and need from the workplace and provide it. Companies

must meet employee demands within limits, of course. Management cannot

just dish out indiscriminate amounts of money to employees or give them a

four day work week in many cases. Yet surprisingly, many employee

retention practices do not have to cost a cent.

Promoting from within whenever possible often means greater employee

retention. Moreover, many employees are better motivated to succeed in the

firm if they feel they have a possibility of being promoted. Professional

development of workers can easily be worked into managers' review

processes. Professional development works best as an employee retention

practice when the employee is involved in planning his or her growth plan.

The best employee retention practice of all may be to take the time to hire

the right person for the job in the first place. But when employees do resign,conducting exit interviews can help in future employee retention. Employers

find out useful information during exit interviews, allowing them to make

changes that may retain other employees thinking of leaving for similar

reasons.


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Of course, some employees do leave simply because of low pay and/or a lack

of benefits. However, companies can be competitive in these areas and still

stay within budget constraints. Allow employees to choose between the

benefits the company is considering. Staying competitive in wages is an

excellent employee retention practice as it helps one get and keep the top

employees in their fields. These employees are likely to stay if they would get

less money in similar firms of the same size.

OVERVIEW OF HUMAN RESOURCE MANAGEMENT IN

INSURANCE SECTOR

In the last decade, Indian organizations have experienced competition from a

number of multinational corporations who started operating in various sectors

like banking, insurance, manufacturing, hotels, airlines, mutual funds etc.

Before 1991-92, most public and priv1ate sector companies of India workedin a secure/controlled business environment. In the last decade, however, a

number of major changes have been observed in Indian industry. Firstly,

Indian consumers are exposed to world class products and services provided

by MNCs. Secondly, huge amounts of foreign investment have flowed to

local industries. Thirdly, a number of mergers and acquisitions have taken

place like TOTAL-FINA ELF, GLAXO SMITH KLINE/BEECHAM, HINDUSTAN LEVER

AND BROOKE BOND INDIA LTD., JENSEN NICHOLSON, ICICI LTD. AND ICICI

BANK, etc. Multinationals like Hyundai and LG have set up new plants, which

have better technology as compared to the earlier Indian manufacturers.Government is slowly opening more and more sectors of the economy.

Best Employers in InsuranceThough India's insurance sector accounted for 4.1 per cent of GDP in 2006-07

and the insurance companies recorded a 19.9 per cent growth in premium as

compared to the worl0d market growth rate of 2.9 per cent; on world

averages India ranks 78th in terms of insurance density and 54th in terms of

insurance penetration.

Insurance business in India is divided into four classes: Life Insurance, FireInsurance, Marine Insurance, and Miscellaneous Insurance. The Life Insurers

transact life insurance business while General Insurers transact the rest. The

market size of the insurance sector is estimated to reach a size of Rs 2000

billion by 2009-10. The domestic insurance industry in India is estimated to

be around US$ 60.5 billion by 2010, of which US$ 35 billion will come from

rural and semi-urban areas. The life insurance market is expected to grow to


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US$ 35 billion while non-life insurance market will touch an estimated US$ 25

billion. The entry of foreign players has attracted an FDI of US$ 543 million.

Recruitments in the insurance sector:

India occupies third position globally in terms of employment with 42% ofemployers having robust hiring plans for FY2008. The insurance sector

employers are likely to indulge into aggressive recruitments (42 per cent).

With around 15 million new policies being sold every year, the insurance

sector is picking up fast in India. Due to its robust growth there is a need of

skilled professionals in the sector. The employers are looking forward to hire

freshers at junior levels as they are quite flexible and ready to work as part

time employees as well. Apart from hiring actuaries and underwriters, the

industry is focusing on hiring agents. These agents 2

Compensation & Attrition:

The sector offers attractive packages to agents and unit managers. In

order to curb high attrition rates, the variable pay offered is nearly 100 per

cent of the fixed pay. The attrition is seen highest in the insurance sector,

touching 35.2 per cent in 2007. Though the salaries are attractive, at the

same time, the attrition rates also are high, because insurance sector jobs

are highly demanding, target oriented and competitive.

There are rural and non-metropolitan markets that are yet to b tapped byprivate insurance players. The key players in Life Insurance business are Life

Insurance Corporation of India, HDFC Standard Life Insurance, Max New York

Life Insurance, ICICI Prudential Life Insurance, ING Vysya, Bajaj Allianz Life

Insurance, Metlife India Insurance, Aviva Life Insurance, Bharti AXA Life

Insurance and Reliance Life Insurance. In General Insurance business some

major players are Oriental Insurance, New India Assurance, National

Insurance Company Limited, Royal Sundram Alliance Insurance, IFFCO Tokio

General Insurance, ICICI Lombard General Insurance and Cholamandalam

General Insurance.

NaukriHub Rankings attempt to rank companies on basis of various HR

practices, procedures and policies prevalent in Insurance industry . Ten

companies are selected on random basis and ranked on various parameters

like recruitment practices, retention rates, compensation policies, work

culture, recognition for good work, flexible work timings, et al. The scores are

consolidated on the basis of data collected through recent surveys and


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studies conducted by renowned names like Business Today, Hewitt

Associations, IDC Data Quest, NASSCOM and our own study of the

organizations.

Retention Strategies in Insurance/BPO Industry

HR professionals all over the world, working is Insurance and BPO industry

are breaking their heads to formulate Retention Strategies but nothing is

working in their favor. The average attrition rate in this sector is still 35-40%.

No perks, no rewardsjust nothing is working.

Why people are moving?

When there are so many benefits associated with Insurance/ BPO industry.when there are so many privileges for the insurance/ BPO employees thanwhat makes them to change the company/industry?? Is it only MONEY thatmatters or anything else as well? After taking exit-interviews and analyzingthe trend I am able to list out following reasons for a Insurance/BPOprofessional to change his/her job.

1. No growth opportunity/lack of promotion

2. For higher Salary

3. For Higher education

4. Misguidance by the company

5. Policies and procedures are not conducive

6. No personal life

7. Physical strains

8. Uneasy relationship with peers or managers

Lets also see as what are the various benefitsthat have been extended topeople working in this sector.

Employee Benefits Provided By Majority Of the Insurance

Companies


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A part from the legal and mandatory benefits such as provident-fund and

gratuity, below is a list of other benefitsinsurance/BPO professionals are

entitled to the following:

1. Group Medi-claim Insurance Scheme:

This insurance scheme is to provide adequate insurance coverage ofemployees for expenses related to hospitalization due to illness, disease orinjury or pregnancy in case of female employees or spouse of maleemployees. All employees and their dependent family members are eligible.Dependent family members include spouse, non-earning parents andchildren above three months

2. Personal Accident Insurance Scheme:

This scheme is to provide adequate insurance coverage for Hospitalizationexpenses arising out of injuries sustained in an accident. This covers total /partial disablement / death due to accident and due to accidents.

3. Subsidized Food and Transportation:

The organizations provide transportation facility to all the employees from

home till office at subsidized rates. The lunch provided is also subsidized.

4. Company Leased Accommodation:

Some of the companies provide shared accommodation for all the out

station employees, in fact some of the BPO companies also undertakes to

pay electricity/water bills as well as the Society charges for the shared

accommodation. The purpose is to provide to the employees to lead a more

comfortable work life balance.

5. Recreation, Cafeteria, ATM and Concierge facilities:

The recreation facilities include pool tables, chess tables and coffee bars.

Companies also have well equipped gyms, personal trainers and showers atfacilities.

6. Corporate Credit Card:


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The main purpose of the corporate credit card is enable the timely and

efficient payment of official expenses which the employees undertake for

purposes such as travel related expenses like Hotel bills, Air tickets etc.

Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the

employees on the basis of business need. The employee is responsible for themaintenance and safeguarding of the asset.

7. Personal Health Care (Regular medical check-ups):

Some of the Insurance/BPO'S provides the facility for extensive health check-

up. For employees with above 40 years of age, the medical check-up can be

done once a year.

8.Loans:

Many BPO/Insurance companies provide loan facility on three different

occasions: Employees are provided with financial assistance in case of a

medical emergency. Employees are also provided with financial assistance at

the time of their wedding. And, the new recruits are provided with interest

free loans to assist them in their initial settlement at the work location.

9. Educational Benefits:

Many BPO/Insurance companies have this policy to develop the personality

and knowledge level of their employees and hence reimburse the expensesincurred towards tuition fees, examination fees, and purchase of books

subject, for pursuing MBA, and/or other management qualification at India's

top most Business Schools

10. Performance based incentives:

In many BPO companies they have plans for, performance based incentive

scheme. The parameters for calculation are process performance i.e. speed,

accuracy and productivity of each process. The Pay for Performance can be as

much as 22% of the salary.

11. Flexi-time:

The main objective of the flextime policy is to provide opportunity to

employees to work with flexible work schedules and set out conditions for

availing this provision. Flexible work schedules are initiated by employees and


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approved by management to meet business commitments while supporting

employee personal life needs .The factors on which Flexi time is allowed to an

employee include: Child or Parent care, Health situation, Maternity, Formal

education program

12. Flexible Salary Benefits:

Its main objective is to provide flexibility to the employees to plan a tax-

effective compensation structure by balancing the monthly net income, yearly

benefits and income tax payable. It is applicable of all the employees of the

organization. The Salary consists of Basic, DA and Conveyance Allowance. The

Flexible Benefit Plan consists of: House Rent Allowance, Leave Travel

Assistance, Medical Reimbursement, Special Allowance

13. Regular Get together and other cultural programs: Thecompanies organizes cultural program as and when possible but most of the

times, once in a quarter, in which all the employees are given an opportunity

to display their talents in dramatics, singing, acting, dancing etc. Apart from

that the organizations also conduct various sports programs such as Cricket,

football, etc and regularly play matches with the teams of other organizations

and colleges.

14. Wedding Day Gift:

Employee is given a gift voucher of Rs. 2000/- to Rs. 7000/- based on theirlevel in the organization.

15. Employee Referral Scheme:

In several companies employee referral scheme is implemented to encourage

employees to refer friends and relatives for employment in the organization.

16. Employee Stock Option Plan

Now, the actual question, why people are leaving? What types of retention

strategies are required? What is expected from HR Professional and how theycan address this issue?

Some Insurance companies


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LIC (LIFE INSURANCE CORPORATION OF INDIA LTD.)

In 1956, the life insurance business of all companies was nationalized and a

single monolithic organization, the Life Insurance Corporation of India (LIC),

was set up. Today, life insurance is almost entirely in the hands of the LIC.

The Post and Telegraph Department conduct some business in this area for

its employees, but the volume of that business in relation to that of LIC, is

negligible and declining.

The objectives of the LIC are to: .

Spread life insurance and provide life insurance protection to the

masses at reasonable cost.

Mobilize peoples' saving through insurance-linked savings schemes.

Invest the funds to serve the best interests of both the policy holders

and the nation.

Conduct business with maximum economy, always remembering that

the money belongs to the policy holders

Act as trustees of the policy holders and protect their individual and

collective interests.

Innovate and adapt to meet the changing life insurance needs of thecommunity.

Involve all the people working in the corporation to ensure efficient and

courteous service to the insured public.

Promote amongst all agents and employees of the Corporation a sense

of pride and job satisfaction through dedicated service to achieve the

corporate objective.

Managing people to succeed in todays highly competitive global

environment is important. They offer the key ingredients for making

Human Resources an active contributor for their organizational success.

The areas which their virtual university focuses on are:

HR Practices


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Organizational Behaviors

People Management

Performance Management

Recruitment and Retention

Training and Development

HR PRACTICES

These have a continuing and significant influence on employment

productivity. And look at the best practices in the industry to cope with an

increasing number of employees encountering new working environments,

cultures, restructuring and the pervasive and often deleterious effects of

technology.

ORGANISATIONAL BEHAVIOUR

Takes a micro-view on emphasising behaviour in organisation of individuals

and small groups. Individual behaviour includes perception, values, learning,

motivation, personality, while group behaviour includes group dynamics,

communication, power and politics.

PEOPLE MANAGEMENT

All about the skill in getting diverse workforces to work together towards

achieving organisational goals and objectives.

PERFORMANCE MANAGEMENT

Future-oriented continuous process to which managers and employees need

to devote time, all the time. It encompasses performance appraisal, self-

assessment, reward systems and Total Quality Management.

RECRUITMENT & RETENTION

The key area of focus here is getting the right person for the job. This has an

important part in achieving strategic goals and has an impact on employment

stability and turnover.

TRAINING AND DEVELOPMENT


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Provides an insight into the hows and whys of training, right from an

employee's induction to his exit in an organisation.

Function 1: Manpower planning:-The penalties for not being correctly staffed are costly.

Understaffing loses the business economies of scale and specialization,orders, customers and profits.

Sales and production forecasts

The effects of technological change on task needs

Variations in the efficiency, productivity, flexibility of labor as a result of

training, work study, organizational change, new motivations, etc.

Changes in employment practices (e.g. use of subcontractors or agencystaffs, hiving-off tasks, buying in, substitution, etc.)

Variations, which respond to new legislation, e.g. payroll taxes or theirabolition, new health and safety requirements

Changes in Government policies (investment incentives, regional ortrade grants, etc.)

Function 2: Recruitment and selection of employees

Recruitment of staff should be preceded by:

An analysis of the job to be done (i.e. an analytical study of the tasks to be

performed to determine their essential factors) written into a job description

so that the selectors know what physical and mental characteristics

applicants must possess, what qualities and attitudes are desirable and what

characteristics are a decided disadvantage;

In the case of replacement staff a critical questioning of the need to

recruit at all (replacement should rarely be an automatic process).

Effectively, selection is 'buying' an employee hence bad buys can be

very expensive. For that reason some firms (and some firms for particular

jobs) use external expert consultants for recruitment and selection.


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Equally some small organizations exist to 'head hunt', i.e. to attract

staff with high reputations from existing employers to the recruiting

employer. However, the 'cost' of poor selection is such that, even for the

mundane day-to-day jobs, those who recruit and select should be well

trained to judge the suitability of applicants.

The main sources of recruitment are:

Internal promotion and internal introductions (at times desirable for

morale purposes)

Careers officers (and careers masters at schools)

University appointment boards

Agencies for the unemployed

Advertising (often via agents for specialist posts) or the use of other

local media (e.g. commercial radio)

Interviewing can be carried out by individuals, by panels of interviewers

or in the form of sequential interviews by different experts and can vary

from a five minute 'chat' to a process of several days. Ultimately personal

skills in judgment are probably the most important, but techniques to aid

judgment include selection testing for:

Aptitudes (particularly useful for school leavers)

Attainments

General intelligence

Function 3: Employee motivation

To retain good staff and to encourage them to give of their best while at work

requires attention to the financial and psychological and even physiological

rewards offered by the organization as a continuous exercise.

Basic financial rewards and conditions of service (e.g. working hours per

week) are determined externally (by national bargaining or government

minimum wage legislation) in many occupations but as much as 50 per cent

of the gross pay of manual workers is often the result of local negotiations

and details (e.g. which particular hours shall be worked) of conditions of


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service are often more important than the basics. Hence there is scope for

financial and other motivations to be used at local levels.

As staffing needs will vary with the productivity of the workforce (and the

industrial peace achieved) so good personnel policies are desirable. The latter

can depend upon other factors (like environment, welfare, employee benefits,etc.) but unless the wage packet is accepted as 'fair and just' there will be no

motivation.

The former demand better-educated, mobile and multi-skilled employees

much more likely to be influenced by things like job satisfaction, involvement,

participation, etc. than the economically dependent employees of yesteryear.

Hence human resource management act as a source of information about

and a source of inspiration for the application of the findings of behavioral

science. It may be a matter of drawing the attention of senior managers towhat is being achieved elsewhere and the gradual education of middle

managers to new points of view on job design, work organization and worker

autonomy.

Function 4: Employee evaluation

An organization needs constantly to take stock of its workforce and to assess

its performance in existing jobs for three reasons:

To improve organizational performance via improving the performanceof individual contributors (should be an automatic process in the case of

good managers, but (about annually) two key questions should be posed:

What has been done to improve the performance of a person last

year?

And what can be done to improve his or her performance in the year

to come?

To identify potential, i.e. to recognize existing talent and to use that tofill vacancies higher in the organization or to transfer individuals into jobs

where better use can be made of their abilities or developing skills.

To provide an equitable method of linking payment to performance

where there are no numerical criteria (often this salary performance


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review takes place about three months later and is kept quite separate

from 1. and 2. but is based on the same assessment).

On-the-spot managers and supervisors, not HR staffs, carry out evaluations.

The personnel role is usually that of:

Advising top management of the principles and objectives of an

evaluation system and designing it for particular organizations and

environments.

Developing systems appropriately in consultation with managers,

supervisors and staff representatives. Securing the involvement and

cooperation of appraisers and those to be appraised.

Assistance in the setting of objective standards of evaluation /

assessment, for example:

Defining targets for achievement;

Explaining how to quantify and agree objectives;

Introducing self-assessment;

Eliminating complexity and duplication.

Publicizing the purposes of the exercise and explaining to staff how the

system will be used.

Organizing and establishing the necessary training of managers and

supervisors who will carry out the actual evaluations/ appraisals. Not

only training in principles and procedures but also in the human

relations skills necessary. (Lack of confidence in their own ability to

handle situations of poor performance is the main weakness of

assessors.)

Monitoring the scheme - ensuring it does not fall into disuse, following up on

training/job exchange etc. recommendations, reminding managers of their

responsibilities.

Basically an evaluation / appraisal scheme is a formalization of what is done

in a more casual manner anyway. Most managers approve merit payment

and that too calls for evaluation. Made a standard routine task, it aids the


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development of talent, warns the inefficient or uncaring and can be an

effective form of motivation.

Function 6: Employee education, training and development

In general, education is 'mind preparation' and is carried out remote from theactual work area, training is the systematic development of the attitude,

knowledge, skill pattern required by a person to perform a given task or job

adequately and development is 'the growth of the individual in terms of

ability, understanding and awareness'.

Within an organization all three are necessary in order to:

Develop workers to undertake higher-grade tasks;

Provide the conventional training of new and young workers (e.g. asapprentices, clerks, etc.);

Raise efficiency and standards of performance;

Meet legislative requirements (e.g. health and safety);

Inform people (induction training, pre-retirement courses, etc.);

From time to time meet special needs arising from technical, legislative, and

knowledge need changes. Meeting these needs is achieved via the 'training

loop'. (Schematic available in PDF version.)

Designing training is far more than devising courses; it can include activities

such as:

Learning from observation of trained workers;

Receiving coaching from seniors;

Discovery as the result of working party, project team membership or

attendance at meetings;

Job swaps within and without the organization;

Undertaking planned reading, or follow from the use of selfteaching

texts and video tapes;


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Learning via involvement in research, report writing and visiting other

works or organizations.

So far as group training is concerned in addition to formal courses there are:

Lectures and talks by senior or specialist managers;

Discussion group (conference and meeting) activities;

Briefing by s enior staffs;

Role-playing exercises and simulation of actual conditions;

Video and computer teaching activities;

1. Recruitment in ICICI Prudential LifeInsurance

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 identify areas where there can be scope for improvement

To give suitable recommendation to streamline the hiring process

METHODOLOGY

The insurance sector is marked with a high level of attrition and therefore

recruitment process becomes a crucial function of the organization. At ICICI

Prudential Life Insurance, recruitment is all time high during May-June and

Oct-Nov. The attrition is high among the sales managers, unit mangersmostly 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.


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Since my summer training was in the months of May-June, it gave me the

opportunity of involving myself directly with the recruitment process and

analyzing the process so that suitable recommendations can be given. This

project is centered on identifying best hiring practices in the insurance

industries. It therefore requires great amount of research work. The

methodology adopted was planned in advance so as to collect data in the

most organized way.

My area of focus was the recruitment and selection particularly at ICICI

Prudential Life Insurance. I was directly involved with the recruitment for

candidates for the sales profile. I was particularly involved with the sourcing

of candidates for the regions outside Delhi such as M.P, U.P and Rajasthan.

Before any task was undertaken, we were asked to go through the HR

policies of ICICI Prudential Life Insurance so that we get a betterunderstanding of the process followed by them.

The first task was to understand the various job profiles for which

recruitment...

Articles No.01

Healthy Environments

Powell Slaughter. Home Furnishings Business.

Philadelphia: Mar 2010.

Abstract (Summary)

"The front-end people always work in a nice environment, surrounded by

beautiful furniture - in a way it's very much like working in a home," said Dan

Holman, general manager of Cottswood Interiors in Edmonton, Alberta. "The

people in the back end don't always get that 'love.' That's why in our breakareas, we have a computer, games, comfortable furniture - they need their

own get-away."

Articles No.02


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Human resource challenges for small growing companies in

Flanders

Mieke Van De Woestyne, Koen Dewettinck, Kristien Van

Bruystegem. Global Business and Organizational Excellence.

Hoboken: May/Jun 2010.

Abstract (Summary)

For Flemish entrepreneurs, human resource management (HRM) is one of the

biggest challenges for further development and growth. Hence, we aim to

shed light on how successful entrepreneurs in Flanders manage their human

resources. Building on the growth models of Greiner and Ulrich, we conducted

a qualitative study of various human resource practices within Flemish

entrepreneurial firms in different sectors and stages of growth. Weinvestigated the interplay between the focus of HRM and the growth phase of

a small or medium-sized enterprise (SME). The main objective is to better

understand the major challenges entrepreneurs experience when managing

people during the first stages of company growth. Our findings suggest that

HRM within growing SMEs shifts from an operational focus on people to a

more strategic focus on procedures. Throughout the process of evolution,

entrepreneurs need to find the right balance of HR practices, paying attention

to formalization, delegation, and coach.

Articles No.03

Exploring alternative relationships between perceived

investment in employee development, perceived supervisor

support and employee outcomes

Brd Kuvaas, Anders Dysvik. Human Resource Management

Journal. London: Apr 2010

Abstract (Summary)The purpose of this study was to explore alternative relationships between

perceived investment in employee development (PIED), perceived supervisor

support (PSS), and employee outcomes in the form of attitudes (affective

commitment and turnover intention) and work performance (work effort,

work quality and organisational citizenship behaviour). A cross-sectional


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survey among 331 employees from a Norwegian telecommunications

organisation showed that the relationship between PSS and employee

attitudes was partially mediated by PIED. In addition, PSS was found to

moderate the relationship between PIED and three self-report measures of

work performance. The form of the moderation revealed a positive

relationship only for high levels of PSS. These findings suggest that line

managers are of vital importance in implementing developmental HR

practices, either because they influence how such practices are perceived by

employees, which, in turn, affects employee attitudes, or because positive

experiences with both line managers and HR practices seem to be needed in

order for developmental HR practices to positively influence employee

performance

Articles No.04

Ethics institutionalization, quality of work life, and employee

job-related outcomes: A survey of human resource managers in

Thailand

Kalayanee Koonmee, Anusorn Singhapakdi, Busaya Virakul,

Dong-Jin Lee. Journal of Business Research. New York: Jan 201

Abstract (Summary)

This research investigates the association between institutionalization ofethics, quality of work life (QWL), and employee job-related outcomes in the

Thai work place. The data were collected by means of questionnaires mailed

to human resource managers of 514 Thai companies listed on the Stock

Exchange of Thailand. The response rate was 31.9%. Our survey results

reveal a positive relationship between implicit form of ethics

institutionalization and both lower-order and higher-order aspects of QWL.

The results also indicate that the implicit form of ethics institutionalization

and the two aspects of QWL have positive impacts on the three employee

job-related outcomes: job satisfaction, organizational commitment, and teamspirit. The research findings not only validate the research findings in the U.S.

but also verify the importance of ethics institutionalization and QWL

programs for business organizations in Thailand.

Articles No.05


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nomenclature reflects a change in the nature of the work: from an employee-

centred role to a management-centred role. In this paper we examine the

relationship between these two roles, with a particular emphasis on their

compatibility. Using interview data we find that HR managers devote

considerable time to employee-centred activities. HR managers

philosophically reconcile these activities with their responsibilities as a

strategic partner by identifying the benefits of their employee-centred efforts

for management. HR managers do, however, experience some operational

challenges when they attempt to be a strategic partner and simultaneously

promote employee well-bein

Retention - A Big Challenge

Fundamental changes are taking place in the work force and the workplace

that promise to radically alter the way companies relate to their employees.

Hiring and retaining good employees have become the chief concerns of

nearly every company in every industry. Companies that understand what

their employees want and need in the workplace and make a strategic

decision to proactively fulfill those needs will become the dominant players in

their respective markets.

The fierce competition for qualified workers results from a number of

workplace trends, including:

A robust economy

Shift in how people view their careers

Changes in the unspoken "contract" between employer and employee

Corporate cocooning

A new generation of workers

Changes in social mores

Life balance

Concurrent with these trends, the emerging work force is developing very

different attitudes about their role the workplace. Today's employees place a

high priority on the following:


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1. Family orientation

2. Quality of life issues

3. Autonomy

To hold onto your people, you have to work counter to prevailing trendscausing the job churning. Smart employers make it a strategic initiative to

understand what their people want and need -- then give it to them.

Retention Strategies

This is not an exhaustive list, one can add or delete any of the below

mentioned strategies. Secondly, the need of the hour is to have "right

basics". Every individual is different, his needs are different, and his

emotions, his problems are different. So, dear HR-Professionalssit down and

concentrate on your basics. I have classified retention strategies into two

parts: Main and Ancillary.

Clarity.

Expectations should focus on outcomes, not activities. In other words, you

achieve clarity when you identify the expected results rather than the

method for achieving them. Managers often make the mistake of attempting

to direct the process that an employee will use rather than being clear about

results. The advantage of identifying the outcome is that you, the manager,


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focus only on the goal; after all, the employee will develop the method for

achieving the desired results.

Defining the objective often requires some thought on the part of the

manager because it is easy to fall into the "activities trap." While developing

a strategic plan for a department or division is a worthy activity, it does notrepresent an outcome. In the activities trap, developing a plan is the goal,

rather than increasing your market share.

Relevance. The principle of relevance helps define the "why" of the

assignment. If your employees have a full understanding of the project's

importance, they can make adjustments as unanticipated factors crop up

within the process. They probably also will be more committed to the result

because they can see more easily how it fits into the big picture and how

their efforts impact the company.This understanding typically is accomplished through dialogue between the

manager and subordinate, which allows for a more thorough review of the

situation and for feedback and discussion. This process builds good will with

the employee and sets the stage for additional responsibilities.

Simplicity. Simplicity creates a sense of grounding for employees as they

endeavor to carry out assignments. If managers identify the work in simple,

straightforward terms, employees will find it much easier to follow through on

managers' wishes. To accomplish this, a manager must identify the keymessage in a fashion that the employee can embrace.

Proper Rewarding

A research reports says that in today's scenario,

1. 70% of your employees are less motivated today than they used to be.

2. 80% of your employees could perform significantly better if theywanted to.

3. 50% of your employees only put enough effort into their work to keep

their job.

As you might be aware of Employee Reward covers how people are rewarded

in accordance with their value to an organization. It is about both financial


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and non-financial rewards and embraces the strategies, policies, structures

and processes used to develop and maintain reward systems. The ways in

which people are valued can make a considerable impact on the

effectiveness of the organization, and is at the heart of the employment

relationship.

The aim of employee reward policies and practices, if any in your

organization is to help attract, retain and motivate high-quality people.

Getting it wrong can have a significant negative effect on the motivation,

commitment and morale of employees. Personnel and development

professionals will be involved frequently in reward issues, whether they are

generalists or specialize in people resourcing, learning and development or

employee relations. Keep following parameters in mind, while designing a

reward policy:

Build a high degree of recognition value into every reward you offer.

Recognition is the most cost-effective motivator there is. While the high cost

of other rewards forces us to give them sparingly, recognition can be given

any time, at very little cost.

Some very ordinary items and events can be imbued with extraordinary

motivational significance, far in excess of their monetary value. I am

constantly amazed at how motivating a pizza or movie tickets can be if is

given with sufficient appreciation. A sincere thank you can be delivered atany place and at any time, costs absolutely nothing and can be more

motivationally powerful than a substantial monetary bonus. Organizations

can provide innovative recognition in an infinite number of ways.

For example, (A Hypothetical Incident) a small manufacturing company

made its employees feel like heroes when they attained a major safety

milestone - 100 days without a single accident. On the morning of day 100, it

was announced that a catered lunch would be served the next day, if they

made it to the 5:30 shift without an accident. At 5:15 anticipating was

building. Managers took confetti and streamers to the balcony overlookingthe shop floor. When the 5:30 whistle blew, there were congratulations all

around, confetti flew through the air and banners were unfurled. It was a

great moment for everyone - and one that was not soon forgotten. The

recognition value of this celebration was extremely high, while the monetary

cost was relatively low.


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Highly motivating organizations even celebrate small successes. A health-

conscious company distributes fruit bowls to employees' work areas when

key personal milestones are attained. Another company uses a more

fattening approach: fresh-baked chocolate-chip cookies to say thank you.

Industry Solutions: Insurance & Customer Retention

Financial times are tough. In the insurance industry, competition has never

been fiercer. Customer retention has become a primary concern for insurance

companies, and these leading insurance providers are looking for new ways

to increase customer retention. Otherwise, they face the real prospect of

outright failure. Those insurance organizations with the greatest forethought

are bolstering their customer service offerings at the tactical level of contact

center operations, applying corporate customer retention strategies.

For providers of insurance, customer retention is a successful tool for

competitive leverage. Many insurance providers have prioritized customer

retention practices throughout their contact center operations. But, in

addition to customer retention, contact center operations in the insurance

industry still face operational issues, including efficiency, productivity and

customer service representative (CSR) satisfaction.

Customer Retention Solutions for the Insurance

Industry

Jacada has been successful in implementing customer retention solutions for

many insurance providers. Our approach to the customer retention issue is

focused on the unified customer service desktop. Implementing a unified

desktop in the contact center helps insurance providers overcome

inefficiencies, inflexible systems and CSR churn by providing the CSR with a

complete view of the customer, leading to increased customer retention while

reducing operating expenses.

Jacada solutions dramatically simplify the processes and workflow required by

CSRs in the insurance market, resulting in reduced operational costs and

improved customer retention. Our unified service desktop solution, Jacada,

provides an "intelligent" point of access to all the mission-critical applications

and contact center tools required to effectively handle positive customer

interactions and drive customer retention for insurance providers.


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Understand why employees leave Insurance sector:-

Why employees leave often puzzles top management. Because now a world

is competitive world. And every insurance organization wants to flourish or

establish and that is why companies set high targets which is almost not

achievable or very tough. So many times employees leave their job because

of pressure of the targets or competitions. Exit interviews are an ideal way of

recording and analyzing the factors that have led employees to leave the

organization. They allow an organization to understand the reasons for

leaving and underlying issues. However employees never provide appropriate

response to the asked questions. So an impartial person should be appointed

with whom the employees feel comfortable in expressing their opinions.

How to Improve Employee Retention?

People want to enjoy their work so make work fun and enjoyable. Understand

that employees need to balance life and work so offer flexible starting times

and core hours. Provide 360 feedback surveys and other questionnaires to

foster open communication. Consider allowing anonymous surveys

occasionally so employees will be more honest and candid with their

opinions. Provide opportunities within the company for career progression

and cross-training. Offer attractive, competitive benefits.

Organizations should target job applications for employees who have

characteristics that fit well with the organizational culture. Upon conductingan interview, seek out traits, such as loyalty. Also, ask the potential employee

what motivates them on the job. Having more information about the potential

employees expectations can help retain them, should they get hired into the

company.

SUGGESTIONS:-

1. Employee should be provided with proper training.

2. Employee should be appreciated for good work.

3. Employee should be motivated to welcome the change.

4. If any changes are brought in to software or any module is added then

proper.

5. training should be given.


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Recommendations:-

1.Create a total reward structure that includes more than compensation.

Every company should have all the normal compensation mechanisms

common to their type of employment. yet, total rewards packages go farbeyond money. While money might temporarily retain employees, it

does not always equate with engagement. People want a chance to

make a difference and realize themselves. That self-realization is multi-

dimensional and different for each employee. The total reward structure

should include, in addition to compensation, support for employees to

attain their personal objectives aligned with the goals of their

organization.

2. Give feedback on employee performance on a regular basis.

Most managers and employees are not enamored with the

performance appraisalprocess in their organization. yet, an effective

performance management process serves many purposes. Ongoing

performance feedback allows employees to better know where they

stand, gives them a formal means to provide input, indicates that their

managers pay attention to them and that their performance matters.

This feedback contributes to employee engagement and retention.

3. Be Flexible:-Be flexible in terms of work-life balance. Workers more and more value

a balance between work and life. They want more flexible ways to

engage with their employer. To attract and retain workers with different

work and career expectations, organizations have to be more flexible in

structuring work and its expectations. It calls for a different managerial

mindset and practices that involve letting go of old ways of controlling

workers time and attendance in favor of result criteria such as output,

productivity and quality.

4. Train managers to be effective. Exit interviews consistently show that

poor and bad management practices greatly contribute to an employees

decision to leave a company.

Conclusion:-


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Retention is an important concept that has been receiving considerable

attention from academicians, researchers and practicing HR managers. In its

essence,Retention comprises important elements such as the need or

content, search and choice of strategies, goal-directed behaviour, social

comparison of rewards reinforcement, and performance-satisfaction. The

increasing attention paid towards Retention is justified because of several

reasons. Motivated employees come out with new ways of doing jobs. They

are quality oriented. They are more productive.

Any technology needs motivated employees to adopt it successfully. Several

approaches to Retention are available. Early theories are too simplistic in

their approach towards Retention. For example, advocates of scientific

Management believe that money is the motivating factor. The Human

Relations Movement posits that social contacts will motivate workers. Mere

knowledge about the theories of Retention will not help manage their

subordinates. They need to have certain techniques that help them change

the behavior of employees.One such technique is reward. Reward,

particularly money, is a motivator according to need-based and process

theories of Retention. For the behavioral scientists, however, money is not

important as a motivator. Whatever may be the arguments, it can be stated

that money can influence some people in certain circumstance. Being an

outgrowth of Herzbergs, two factor theory of Retention, job enrichment is

considered to be a powerful motivator. An enriched job has added

responsibilities. The makes the job interesting and rewarding. Job

enlargement refers to adding a few more task elements horizontally. Taskvariety helps motivate job holders. Job rotation involves shifting an incumbent

from one job to another.

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Term Paper Mukesh Rana,Roll No.26