A CASE STUDY ON

Submitted by:Group 4de la Cruz, Bianca Danielle Ann C.Gan, Mark Mario P.Hipolito, RafhLadores, Louise Anne R. Lorenzo, Mark Kim

Submitted to:Maam Almarose Villapando

EMG141/B1

Mapua Institute of Technology

March 3, 2014

IntroductionThe importance of recruitment and selection has become increasingly apparent to many organizations across the world. Organizations are no longer just match individuals to immediate job requirement. Instead, organizations are driven by the desire for a multi-skilled, flexible workforce, and an increased emphasis on teamwork. Therefore, selection decisions are concerned more with behaviour and attitudes. Last but not least, the process of recruitment and selection is likely to be more strategic and the notion of strategic selection is caused by the emphasis between corporate strategy and people management. This implies that recruitment and selection are linked with the overall organizational strategy and aimed to match the flow of people to emerging business strategies (Dessler, 2009).

The objective of this study is to provide a framework with the basic function of recruitment and selection process of Pru Life UK.

Company Profile

HistoryPru Life UK is one of the leading life insurance companies in the Philippines, with over 15 years of excellence in providing relevant and innovative life insurance products designed to meet the specific needs of the public. The pioneer and expert in investment-linked insurance products, Pru Life UK is driven by its commitment to always listen to and understand the financial protection and wealth management requirements of the Filipino.

Pru Life UK started its operations in the Philippines in 1996. It is a subsidiary of British financial services giant Prudential plc. Established in 1848, Prudential plc has an extensive network of life insurance and mutual funds operations around the world, active in the United Kingdom (UK), Europe, the United States (US) and 13 markets in Asia. It has 26 million customers worldwide and manages 351 billion in assets as of 31 December 2011.

In the Philippines, Pru Life UK serves over 100,000 customers with a team of over 3,000 financial consultants offering an increasing portfolio of ordinary life, endowment, personal accident and investment-linked products. In 2010, Pru Life UK was recognized as the fastest growing Prudential company in Asia by regional headquarters Prudential Corporation Asia (PCA).

Mission and VisionWe take the risk out of peoples lives.We are the trusted leaders who listen and respond to the financial needs of the Filipino people.We are committed to: dealing honestly and fairly with our public; exceeding customer expectation in services and products; caring for the well-being and development of our people; giving a fair return to our stakeholders; and contributing to the development of the Filipino community.

Guiding Principles We maintain and develop the Companys reputation for integrity, fair dealing and security. We work as a team, as a family, unified in purpose, treating each other with respect and care in an atmosphere of mutual trust and in a happy working environment. We promote the art of listening as it is only in listening to the needs of our customers that we can know and understand their specific needs. We communicate openly and constantly with our customers and our own people. We develop ourselves continually to our fullest potential to keep improving the quality of everything we do. We maintain a strong financial position to meet our promise of financial stability to all our customers. We are accurate and timely. We have a strong sense of responsibility and will work toward the achievement of the Philippines economic goal. PruFIRST

ProductsProtection Pru Personal Accident (PA) is a packaged plan designed to cover injury or death due to an accident. It is a non-participating, yearly renewable term product. Different packages are available to suit various ages, income brackets, occupations and lifestyles. PruShield protects you from the financial loss that can result from these distressing situations. It is a yearly renewable term insurance product with Daily Hospital Income benefit. The package gives daily cash benefits to help the insured cover the cost of hospitalization due to injury or illness, and should death occur, provides the designated sum assured. PRUWellness is a comprehensive hospitalization product that provides you daily and lump sum cash benefits to help cover the cost of hospitalization due to injury or illness. Every day you are confined is covered with a cash benefit that is doubled for stays due to critical illness, with extra funds given to cover for surgery and ICU confinement. PruTerm 15 is a fifteen (15) year term insurance product which is automatically renewed every 15 years, payable in fifteen (15) years. It is a simple and straightforward life insurance product which pays a lump sum benefit to the beneficiary if the insured dies within the specified term. PruLife is a lifetime traditional protection plan that gives the policy owner savings through cash value and dividends.

Investment-Linked Products PruLink Assurance Account Plus provides a minimum death benefit equivalent to the sum assured plus fund value (assuming no other transactions are made) less policy debt, if any. It also includes a built-in disability benefit that advances up to 100% of the basic sum assured in the event that the life insured is totally and permanently disabled. It also has a built-in loyalty bonus which increases your fund value and is given starting the 11th through the 20th policy year, subject to certain conditions. PruLink Exact Protector Starts with a minimum premium of PhP3,000/month for the 5 -year payment period or PhP2,750/month for 7, 10, and 15year payment periods. A low-premium variant of this starts at PhP1,500/month for 10- and 15-pay. Enjoys life protection benefit equivalent to sum assured plus fund value. Pru Life UK introduced the PruLink Investor Account (PIA) to the Philippines in 2002, the first of its kind unit-linked insurance product in the country. PIA is a single-pay variable life product that gives both life insurance coverage and investment. An option to top-up or add to the investment is allowed, which will also increase the sum assured of the policy. PIA is available in both peso and dollar denominations. PruMillionaire is a single-premium unit-linked insurance product that maximizes the value of investment through a significantly lower upfront charge of 0.5% and a superior selection of investment funds.

The Recruitment Process in GeneralThe recruitment and selection process is concerned with identifying, attracting and choosing suitable people to meet an organizations human resource requirements describes the recruitment process as a positive one, building a roster of potentially qualified applicants. So, a useful definition of recruitment is searching for and obtaining potential job candidates in sufficient numbers and quality so that the organization can select the most appropriate people to fill its job needs (Dale, 2004, p. 123) whereas selection is more concerned about predicting the candidates that will make the most appropriate contribution to the organization (Martin, et al 2002).

Several personnel texts discuss an approach to recruitment and selection based on a systematic analysis of the requirements of an individual job (Torrington, et al 2005). The key stages of a systematic approach can be summarized as: defining the vacancy, attracting applicants, assessing candidates and making the final decision (IPD, 1995; Beaumont, 1993).

Recruitment ProcessThe company policy of the Pru Life UK on recruitment is to go out of their way to attract, retain and develop a diverse pool of talent. The recruitment is carried in a transparent manner, paving no room for malpractices/unprofessionalism.

The recruitment and selection process is conducted by the HR Manager and the Recruitment Office Head. The HR department would set the recruitment norms for the organization. The process is aimed at defining the series of activities that needs to be performed by different persons involved in the process of recruitment, the checks and control measures to be adopted and information that has to be captured.

Sourcing of Suitable CandidatesThe Recruitment Office would tap various sources to find the right people for the job. Usually the Recruitment Office conducts direct recruitment on different locations. It is called the Build Your Business. The Build Your Business is a mini-seminar/recruitment for people who are interested in being career agents of Pru Life UK. From there, the applicants would be assisted by Branch managers/Unit managers depending on their location. If the applicant is from the Makati area, he/she will be directed to the manager of the Makati branch.

Applicants can be referred by current career agents of Pru Life UK and also the staff. The applicants can also apply through the internet by sending their resumes via e-mail. They could also walk-in the Main Office and inquire.

ScreeningThe screening is about completing all necessary requirements. Agent Application Form Personal Information Sheet Notarized Application for Insurance Agents License ID Information Sheet TIN 4 pcs. 1x1 pictures with red backgroundThe second part of the screening consists of: Paying Php 640 Training and Licensing Fee (1 License)/ Php 970 Training and Licensing Fee (2 Licenses) Completing the Basic Training Course 101 Passing the Pru Life UK Non-Medical Authorization Exam Passing the CGM/AMLA Exam Submitting Prospect 30 Conduting SSP Graded Role Play Php 550 Insurance Commission Exam Fee (1 exam)/ Php 1100 Insurance Commission Exam Fee (2 exams) Passing the Insurance Commission Licensing Exam

Career Agents Master Agreement (CAMA)It embodies the terms and conditions of your contract with Pru Life UK. It is signed by the Deputy-Chief Agency Officer and by the applicant together with various witnesses. Appointment LetterIt is the Branch manager/HR managers duty to ensure that the appointment letter will be forwarded to the applicant. The letter will consist of the Agent Code, a copy of the CAMA, PruText Enrolment Form, Webmail Enrolment Form, Agency Standards Acknowledgement Form, Identification Card and Enrolment form for the Agent Savings Fund.

Once the agent receives the appointment letter, he/she needs to return the following: Signed Identification Card Agency Standards Acknowledgement Form Duly filled-up Agent Savings Fund

Objective of TrainingEvery company must have a plan which makes a high investment in human resources. Training makes people develop their abilities and capabilities in specific areas or topics. They have understood the need not just to improve, but also to increase the value transferred to the customers. Training makes learning easier to behave according to the companys expectation; this is why the content of the training program must fulfill the companys requirements. Experts can help to identify knowledge, abilities and personal traits that have to be taught to achieve the final objective. Workers can become more competent and skillful through training. Thus, the whole organization becomes stronger, more productive and profitable.

Pru Life UKs Training ProgramsBasic Training Course 101It is a two-part training course for new agents. It is a four day training course. The first part consists of introducing the agent to the company and its products. The first part of the training also includes teaching the Essence of Life Insurance, Basic Sales process, Graded Role Play, Underwriting, Non-Medical Authority exam, Business ethics relating to Corporate Governance, Fraud, Anti-bribery and Anti-money Laundering and Business Ethics exam. The second part consists of Foundation of Life Insurance, discussion of Traditional Plans and Riders, Policy Provisions, Overview of Variable Life Insurance and Mock exams.

The last the day of the training is the Insurance Commission Licensing Exam.

Php 640 Training and Licensing Fee (1 License)/ Php 970 Training and Licensing Fee (2 Licenses)

Agent's Recruiter WorkshopIt is a workshop that encourages all agents to recruit new agents because the company believes The bigger army wins. The bigger army grows bigger faster.

Compliance Refresher CourseAgents working for the company for 1 year and above must take this refresher course. It is a refresher course for Business ethics relating to Corporate Governance, Fraud, Anti-bribery and Anti-money Laundering.

Other seminars and trainingsThe company also provides Leadership and Development Trainings, Inspirational Seminars and other seminars. These seminars are not conducted constantly and the agent pays a fee or it is rewarded to agents reaching a certain net premium.

Incentive Pay and RewardsIncentive may be defined as any reward or benefit given to the employee over and above his wage or salary with a view to motivate him to excel in his work. An incentive is most frequently built on monetary rewards (incentive pay or a monetary bonus), but also may include a variety of non-monetary rewards or prizes.

Wage incentives are extra financial motivation. They are designed to stimulate human effort by rewarding the person, over and above the time rated remuneration, for improvements in the present or targeted results.

There are two types of incentives plan. The first plan is a system of payment under which the amount payable to his output usually a one-time lump sum. Such a payment is also called payment-for-performance. Thus, payment-for-performance refers to a method which provides for the "direct linking of workers earnings to a measure of their performance. The second plan is the piecework plan in which the worker is paid a sum (called a piece rate) for each unit he or she produces.

Pru Life UK Agents IncentivesPru Life UKs incentives plan are performance-based. There are rewards that correspond to the amount of the agents net annualized premium. Net annualized premium (NAP) is the net total of all premiums paid through that agent. The more the agent sells insurance, the higher the NAP goes then resulting to more rewards and incentive pays.

Non-monetary IncentivesNet Annualized PremiumRewards

Php 750,000Qualifying Member Recognition Free Health Card Enrollment (agent) and Health Card for family members but it is a salary deduction. Personalized Stationary Silver Cross ballpen

Php 1,000,000Senior Achiever Recognition Free Health Card Enrollment (agent) and Health Card for family members but it is a salary deduction. Personalized Stationary Gold Cross ballpen

Php 1,500,000CEO Circle Recognition Free Health Card Enrollment (agent) and Health Card for family members but it is a salary deduction. Personalized Stationary Gold Cross ballpen and mechanical pencil Domestic All-expense paid travel

Php 3,000,000Star Club Recognition Free Health Card Enrollment (agent) and Health Card for family members but it is a salary deduction. Personalized Stationary Gold Cross ballpen and mechanical pencil International All-expense paid travel

Monetary IncentivesThere are also monetary incentives in Pru Life UK. The incentive plan is still performance based. The amount of one-time lump sum depends on the sales made by the agent. Production BonusFor every agent that reaches the Php 150,000 net premium per quarter, he/she is entitled to 21% additional commission. Persistency BonusPersistency refers to whether people hold on to their existing insurance and their plans do not lapse. Basically, it means good business for the company. Therefore, it is something that is watched and measured closely by insurance companies because of the expenses associated with finding new customers. The higher persistency, the higher the bonus the agent receives. Persistency bonus is given to agents with 85% and higher persistency. He/she is entitled to 10% - 21% additional commission.