RECRUITMENT

Meaning:

Recruitment means to estimate the available vacancies and to make the suitable arrangements for

their selection and appointment. It is prior to selection. In the recruitment process, the available

vacancies are given wide publicity and suitable candidates are encouraged to submit applications

so as to have a pool of eligible candidate for scientific selection. It is the process of searching

and obtaining applications from interested candidates so as to have a pool of job seekers from

whom most suitable persons can be selected for appointment.

In recruitment, information is collected from interested candidates. For this, different sources of

recruitment such as newspaper advertisement, employment exchanges, internal promotions, job

portals, etc. are used. Recruitment represents the first contact that a company makes with

potential employees.

Recruitment is a positive function in which publicity is given to the jobs available in the

organization and interested candidates are encouraged to apply for the same. Recruitment done

well ensures better selection of staff required.

Definition:

According to EDWIN B. FLIPPO, “Recruitment is the process of searching for prospective

employees and stimulating them to apply for jobs in the organization.”

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Features:

1. Recruitment is a searching process involving many activities useful for selection process.

2. It is a linking/connecting activity which brings the job providers (employers) and the job

seekers (employees) together.

3. Recruitment encourages interested candidates to apply for jobs so that a pool of eligible

persons will be available to the employer for selection purpose.

4. Recruitment is a positive and persuasive process.

5. Its purpose is to attract many candidates for available jobs.

6. Recruitment is prior to selection. It creates proper ground work for the selection process.

7. It is a complex process in which attention needs to be given to various factors such as

company’s image, nature of the job, qualifications/qualities required for the job,

compensation payable, labor laws, etc.

8. It is a lengthy process with many elements related to recruitment policy and techniques.

Need for Recruitment:

The need for recruitment may be due to following reasons:

1. Vacancies due to promotions, transfers, retirement, termination, permanent disability,

death and labor turnover.

2. Creation of new vacancies due to growth, expansion and diversification of business

activities. In addition, new vacancies are possible due to job respecification.

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Sources/Methods of Recruitment:

Sources of recruitment are the outlets through which suitable and interested candidates are

available. These sources are divided into two broad categories. These are: 1. Internal sources and

2. External sources. Companies can use any source or both the sources and even a combination

of both the sources is desirable.

A) Internal sources of recruitment:

1. Promotions

2. Transfers

3. Internal notification

4. Retirements

5. Recalls

6. Former employees

1. Promotions:

In order to motivate the existing employees, the management may follow the policy of

internal promotions. Promotion means an improvement in pay, position, authority, status

and responsibilities of an employee within the organization. Many achieve promotion

through hard work and good performance. In non-unionized companies, promotions are

made on the basis of merits because the employers are free from the union pressure.

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2. Transfers:

Whenever a new vacancy is created within the organization, management may fill the

vacancy through transfer of existing employee rather than employing a new hand, e.g.,

transfer from head office to branch office.

3. Internal notification:

Sometimes, management issues an internal notification for the benefit of its existing

employees. Most employees know from their own experience about the requirements of

the job and what sort of person the company is looking for. Often employees have friends

or acquaintances who meet these requirements. Suitable persons are appointed at the

vacant posts.

4. Retirements:

At times, management may not find suitable candidate in place of the one who had

retired, after meritorious service. Under the circumstances, management may decide to

call retired managers with new extensions.

5. Recalls:

When management faces a problem which can be solved only by an employee who has

proceeded on a long leave, it may be decided to recall that person. After the problem is

solved, his leave may be extended.

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6. Former employees:

Individuals, who left for some other job, might be willing to come back for higher wages

and incentives. An advantage with this source is that the performance of the

person/employee is already known.

B) External sources of Recruitment:

1. Campus recruitment

2. Press advertisements

3. Recruitment through Management Consultants and Private Employment Exchanges

4. Deputation of personnel

5. Management training schemes

6. Walk-ins, write-ins and talk-ins

1. Campus recruitment:

The growth of Management institutes, IITs and regional and other engineering colleges

has provided a popular source of recruitment known as Campus recruitment/selection.

Private sector is able to attract many young promising aspirants from colleges. It is an

excellent source of recruiting/selecting management trainees. This method is convenient

to companies and students studying in the final year of degree courses. Placement

services are now provided by all engineering colleges and polytechnics. For campus

selection, the selection committee of business organization may personally visit the

institute campus. It supplies information regarding company and vacancies available.

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Applications are collected from interested students. Such students are interviewed within

the campus and suitable candidates are selected and are asked to join the organization

after the declaration of the result of the final degree examination.

This method of recruitment/selection is easy, quick and economical. It is convenient to

the company as well as candidates. Many colleges and institutions have their own

placement cells to serve as a liaison between students and employers.

2. Press advertisements:

Press advertisement is very widely used for recruitment of all categories of personnel

particularly for the appointment of middle level managers. Though quite costly, it

provides wide choice as it attracts a large number of suitable candidates from all over the

country.

Press advertisement is also called Recruitment advertisement as its purpose is to give

publicity to vacancies available in the organization and also appealing deserving

candidates to submit applications. In the recruitment advertisement, the details of job (i.e.

job description and job specification) are given. In addition, other details such as

information to be supplied, copies of documents to be attached, to whom and on what

address the application is to be submitted are given. This gives convenience to interested

candidates.

Along with press advertisement, internet facility is used for advertising vacancies in

companies. Even application for job can be sent through on-line facility.

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3. Recruitment through Management Consultants and Private Employment

Exchanges:

Management consultants make necessary arrangements and select the suitable staff

required by a business unit. For this, they give advertisement, conduct tests and also

arrange interviews, etc. similar service is provided by private employment exchanges that

keep details of candidates interested in jobs and provide services to employers.

Placement agencies are also useful for recruitment purpose. These agencies are useful for

the recruitment of managers/executives and specialists. They perform all the functions of

recruitment and selection. As a result, the client is relieved from the botheration relating

to recruitment and selection. This source of recruitment is reliable and also professional.

However, this source is costly as agencies charge high commission for the services

rendered.

4. Deputation of personnel:

For executive positions for short period, the services of an executive from another

company can be used on a loan basis. This method is useful only for a temporary period.

The practice of hiring services of personnel is quite common in the case of sister

enterprises. In the public sector enterprises, officers can be transferred from one

enterprise to another.

5. Management training schemes:

Some companies introduce management training schemes for recruitment and selection

of executives (e.g., Hindustan Lever Ltd.). Here, young talented candidates of the age

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group of 20 to 25 are selected as trainee executives in different areas such as accounts,

technical and commercial. After selection, the candidates are sent to their management

training institutes for extensive training. After completion of training, the candidate is

appointed as a regular executive or manager.

6. Walk-ins, Write-ins and Talks-ins:

The most economical approach for recruitment of candidates is direct applications. The

job seekers submit applications or resumes directly to the employer. The advertisement

mentions date, day and timing during which the applicant can ‘walk-in’ for an interview.

From applicant’s point of view, walk-ins are preferable as they are free from the

formalities associated with other methods of recruitment. Write-ins are those who send

written inquiries. These applicants are asked to complete application forms for further

processing. Talk-ins are now becoming popular and the applicants are required to meet

the employer for detailed talks. The applicant is not required to submit any application.

7. Miscellaneous external sources:

a. Giving extension to existing executives after reaching the age of retirement.

b. Appointment of retired officers from civil service or from public sector organizations.

c. Use of professional meetings and conventions for the selection of executives.

d. Use of executive placement agencies.

e. Assistance from professional associations.

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SELECTION

Meaning:

Selection is the most crucial stage in the process of acquiring human resources in an

organization. Selection is next to recruitment. It is the process of choosing the most suitable

candidates out of many interested candidates. It is a process of selecting the best and rejecting

the rest. This selection is also called “Head Hunting”. This means searching right candidate for

the specific job in the organization. In this lengthy selection process, interested candidates are

differentiated in order to identify those with a greater likelihood of success in a job. Selection

process assumes that the applicants are more than the number of candidates to be selected.

Selection is a negative function as it relates to elimination of unsuitable candidates. “Right man

for the right job” is the basic principle in selection. Selection of most suitable candidates is a

responsible type of work as selection of unsuitable candidates for jobs creates new problems

before the business unit. For appropriate selection, scientific procedure needs to be followed. In

addition for scientific selection, job study is essential. Here the features of the job, qualities and

qualifications required for performing the job etc, are studied in detail.

Recruitment and selection are supplementary activities and are also crucial steps in the HR

process. In recruitment, prospective employees are encouraged to apply for the jobs and in the

selection process; the most suitable candidates are selected out of the pool of applicants. The

purpose of both is to have the most suitable and most capable candidates for the organization out

of the pool of available and interested candidates. Such selection is important as it has its impact

on work performance and employee cost. As a result, the objective of ‘right man for the right

job’ is achieved in many organizations.

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Definition:

According to THOMAS H. STONE, “Selection is the process of differentiating between

applicants in order to identify those with a greater likelihood of success in a job.”

Process of Selection and steps involved:

Selection procedure/process is lengthy and time consuming especially in the case of

managerial/supervisory posts. Lengthy procedure is necessary for scientific selection of

candidates. In such procedure, many steps are involved and need to be logically followed.

Selection is generally done by the HR Department often in consultation with the line managers.

The selection process may vary from organization to organization. Brief details of the steps

involved in selection process:

1. Job Analysis:

Job analysis means a process of collecting information about a job. It gives details of a

job to be performed and the human qualities and qualifications required to perform that

job efficiently. It is a scientific and systematic analysis of a job in order to obtain all

relevant facts about the job. Job analysis is divided into two aspects i.e. 1. Job description

(details of job) and 2. Job specification (details of job holder). Job analysis is performed

upon ongoing jobs. Interested candidates are examined with reference to the details

available from the job analysis. Candidates who are not suitable for the job are rejected at

different stages of the selection process. In this sense, selection is like a hurdle race.

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2. Advertisement:

This medium is widely used for recruitment of all categories of personnel. Though quite

costly, it provides a wide choice as it attracts large number of candidates from all over the

country. The qualities and qualifications expected from the candidates are usually

mentioned in the advertisement.

3. Collection of Application blank:

In this step, applications with necessary details are collected from interested candidates.

Some companies give advertisements in the press and ask the interested candidates to

submit applications on a prescribed form.

Application blank is most commonly used to collect information from the applicants. The

information sought and information provided will facilitate the selection process. The

information sought in the application may vary according to the position and the

organization. Mostly applications seek the following type of information: 1. Personal

data, 2. Marital data, 3. Educational data, 4. Physical data, 5. Employment data, 6. Extra-

curricular data and 7. References, 8. Miscellaneous- hobbies, games and sports,

membership of professional bodies, computer knowledge, etc.

When an applicant submits his application blank, he provides a brief bio-data about

himself to the organization. It facilitates comparison among the applicants and serves as a

basis to initiate a dialogue in the interview.

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4. Scrutiny of Applications received:

After the last date fixed for the receipt of applications, officer from the personnel

department starts the scrutiny of applications received. Incomplete applications are

normally rejected. Applicants who do not possess required qualifications, experience, etc.

are also rejected. Along with this the certificates, testimonials and references are also

checked.

5. Written tests:

After the scrutiny of applications, a final list of candidates is prepared for the written test.

The purpose of such test is to judge the knowledge of the candidate and also to find out

his intelligence, aptitude, capacity, interests and suitability for a specific job. Trade test is

particularly necessary for technical jobs. Written tests are also used in banks and financial

corporations. The candidates whose performance in such tests is not upto the mark are

then rejected.

6. Psychological tests:

The psychological tests given to candidates include Intelligence test, aptitude test, interest

test, achievement test, analytical test, performance test, synthetic test and personality test.

Each test needs to be given separately and each test is useful for judging specific quality

of a candidate to be selected for the post.

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7. Personal Interview:

The candidates who show reasonably good performance in the tests are called for

personal interview. The interview is conducted by one interviewer or by a group of

interviewers including the top officers of the company and other professional experts.

The candidate is asked various questions and information on various matters is also

supplied to the candidates during the course of the interview. Interview acts as face to

face appraisal of the candidates. It plays a key role in the final selection. Here, an attempt

is made to judge the overall personality of the candidate. The selection committee notes

the strong and weak points of the candidate and the best candidates are selected for final

appointment by applying certain uniform norms.

8. Reference check:

The candidate is required to give atleast two references which may be educational, social

and employment related. These references help to cross check the information provided

by the candidate.

9. Medical examination:

The purpose of medical examination is to judge the general health and physical fitness of

the candidate. Candidates who are not physically fit for the specific job are rejected even

when they show good performance in the tests and personal interview. Medical test is

taken in case of all candidates before appointment. In case of certain jobs, the test is of a

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general nature. However, medical examination has special importance in the armed

forces.

10. Final slection/ approval for appointment:

The selection procedure comes to an end when the final appointment letter is sent to the

candidate with a request to join the organisation on a particular date. The letter states the

post, title of the job, the salary and terms and conditions of the employment and

probation period, if any. At times, a contract of service is signed by both the employer

and the employee. Initially, the appointment is on a probation and after a year or two, it is

confirmed provided the performance of the candidate is satisfactory.

After dis follow up is done regarding the performance of the selected employee in order

to check whether he is eligible to continue to work in the company as a permanent

employee or not. This follow up is generally done during the probation period before the

employee is appointed permanently by the company.

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CHAPTER 2: COMPANY PROFILE AND BACKGROUND

Profile of Aviva:

Aviva is UK’s largest and the world’s fifth largest insurance group. It is one of the leading

providers of life and pension products to Europe and has substantial businesses elsewhere around

the world. With a history dating back to 1696, Aviva has a 40 million customer base worldwide.

It has more than £377 billion of assets under management.

In India, Aviva has a long history dating back to 1834. At the time of nationalisation, it was the

largest foreign insurer in India in terms of compensation paid by the Governement of India.

Aviva was also the first foreign insurance company in India to set up its representative office in

1995.

In India, Aviva has a joint venture with Dabur, one of India’s oldest and largest group of

companies. A professionaly managed company, Dabur is the country’s leading producer of

traditional health care products.

In accordance with the Government regulations, Aviva holds a 26 percent stake in the joint

venture and the Dabur group holds the balance 74 percent stake.

Dabur74%

Aviva26%

Percentage stake

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With a strong sales force of over 28,000 Financial Planning Advisors (FPA’s), Aviva has

initiated an innovative and differentiated sales approach to the business. Through the “Financial

Health Check” (FHC), Aviva’s sales force has managed to establish its credibility in the market.

The FHC is a free service administered by the FPA’s for a need based analysis of the customer’s

long-term savings and insurance needs. Depending on the life stage and earnings of the

customer, the FHC assesses and recommends the right insurance product for them.

Aviva pioneered the concept of Bancassurance in India, and has leveraged its global expertise in

Bancassurance successfully in India. Currently, Aviva has Bancassurance tie-ups with ABN

Amro Bank, American Express Bank, IndusInd Bank, Centurion Bank of Punjab, The Laxmi

Vilas Bank Ltd. And Punjab & Sind Bank, Co-operative Banks in Gujarat, Rajasthan, Bihar,

Jammu & Kashmir, West Bengal, Andhra Pradesh and Maharashtra and regional banks.

When Aviva entered the market, most companies were offering traditional life products. Aviva

started by offering the more modern Unit Linked and Unitised with Profit products to the

customers, creating a unique differentiation. Aviva’s products have been designed in a manner to

provide customers flexibility, transparency and value for money. It has been among the first

companies to introduce the more modern Unit Linked products in the market. Its products

include: Whole life (Lifelong), Endowment (LifeSaver, Easy Life Plus, LifeSaver Plus), Child

policy (Young Achiever, SaveGuard junior, Aviva little Master), Single Premium (LifeBond and

LifeBond Plus), Pension (Pension plus), Term (LifeShield), Fixed term protection plan (Freedom

LifePlan) and a tax efficient investment plan with limited premium payment term (LifeBond 5).

Aviva products are modern and contemporary unitised products that offer unique customer

benefits like flexibility to choose cover levels, indexation and partial withdrawals.

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Aviva’s Fund management operation is one of its key differentiators. Operating from Mumbai,

Aviva has an experienced team of fund managers and the range of fund options includes Unitised

With-Profits Fund and Four Unit Linked Funds: Protector fund, Secure fund, Balanced fund and

Growth fund.

Aviva has 176 branches in India (including all rural branches) supporting its distribution

network. Through its Bancassurance partner locations, Aviva products are available in close to

500 towns and cities across India.

Aviva is also keen to reach out to the underprivileged that have not had access to insurance so

far. Through its association with Basix (a micro financial institution) and other NGO’s, it has

been able to reach the weaker sections of the society an dprovide life insurance to them.

Aviva has been felicitated with the “Bronze Award for Excellence in People Management” by

Grow Talent Company Ltd. And Businessworld. This honor is given to Aviva based on the ranks

received in Top 25 list of the Great Place to work India studies conducted in the last four years.

Aviva was ranked 12th in 2003, 14th in 2004 and 13th in the year 2005.

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Promoters (Joint Venture):

Dabur:

Founded in 1884, Dabur is one of India’s oldest and largest group of companies with

consolidated annual turnover in excess of Rs. 2,834 crores.

A professionally managed company, it is the country’s leading producer of traditional

health care products.

Aviva:

Aviva is UK's one of the largest insurer and one of Europe's leading providers of life and

general insurance.

Aviva is the world's sixth largest insurance group based on gross worldwide premiums

for 2010 year.

Aviva’s principal business activities are long-term savings, fund management and general

insurance, with worldwide total sales* of £40.6 billion and operating profits of at £2.5

billion at 31 December, 2011.

With a history dating back to 1696, Aviva Group has a 43 million customer base

worldwide.

Competitors of Aviva Life Insurance:

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LIC

ICICI Prudential

BIRLA Sun Life

BAJAJ Allianze

SBI Life Insurance

HDFC Standard Life

TATA AIG

MAX NEW YORK

MET LIFE

Comparison between the share of LIC and other Private Players in Indian

market:

LIC78%

Others22%

Market share

Glimpse of the members of the Management team of Aviva Life Insurance:

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Name Designation

T R Ramachandran Chief Executive Officer & Managing Director

Rishi Piparaiya Director, Marketing & Bancassurance

Ravi Bhadani Company Secretary & Director-Legal & Compliance

Munish Sharda Director, Direct Sales Force

Jyoti Vaswani Chief Investment Officer & Director, Fund

Management

Sanjeeb Kumar Appointed Actuary

Anupam Tyagi Chief Risk Officer

Amit Malik Director, HR

Snehil Gambhir Chief Operating Officer

Vijayalakshmi Natarajan Director, Operations

Jitendra Nayyar Director, Finance

Aviva’s Vision:

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Aviva- where exceeding expectations through innovative solutions is “our” way of Life.

This is the compelling vision that Aviva India has created through the active contribution of its

employees. These lines not only define the way they live and work but also serve as a reminder

to deliver the best to their customers, shareholders, colleagues, partners and employees at all

times.

Embedded in this vision are the core values of Integrity, Customer Centricity, Passion for

winning, Innovation and Empowered team that they have collectively defined and committed to

working towards.

Aviva’s vision is also to be amongst India’s leading life insurers with a quality business model,

focused on sustainable growth. They seek to build a robust product portfolio meeting all

customer lifecycle needs related to – Protection, Retirement, Savings and Investments.

Keeping with their commitment of social responsibility, they have been successful in reaching

out to the underprivileged strata through their Microinsurance initiatives.

Partners:

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Aviva has committed to help its customers get “Kal par control” and make the most out of their

lives. It is their constant endeavour to ensure that their customers have easy access to AVIVA

products and services at all times.

Aviva has pioneered Bancassurance in the country through its tie-up with 22 leading private and

nationalised Banks in the country. Aviva also focusses on Bancassurance worldwide and has a

proven track record of successful bancassurance relationships. It has 40 major partnerships with

leading banks across the globe. Aviva is a leading bancassurer in countries such as France, Italy,

Spain, Australia and New Zealand. Aviva’s partners include:

ABN AMRO Bank

IndusInd Bank

DBS Bank

American Express Bank

The Laxmi Vilas Bank Ltd.

Canara Bank

Punjab & Sind Bank

Centurion Bank of Punjab

Co-operative and Regional Rural Banks

Rajasthan Gramin Bank

Vidharbha Kshetriya Gramin Bank

Prime Co-operative Bank

Sutlej Gramin Bank

Aviva’s guiding Principles:

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1. Recruit the best

2. Accept personality responsibility

3. Build an empowered team

4. Building a shared vision and purpose

5. Leadership development

6. Reward and recognition

Recruit the Best:

Aviva India has a well articulated equal opportunity policy, which lays strong emphasis on hiring

of individuals irrespective of age, race, caste or gender. As a best practice in recruitment, they

deployed identified psychometric tools such as SHL and Belbin and designate ability tests to

eliminate any biases in the resourcing process and facilitate hiring of diverse profiles (vis-à-vis

gender, background, experience levels and competencies). The focus is on competence-based

credentials rather than past experience or length of service.

“Aviva does not follow a very descriptive hierarchy- you have transparency at each level, unlike

most other organizations, where managers and senoor managers don’t ‘look’ after their

subordinates. Here you feel comfortable talking with your seniors.”

At Aviva they have an Employee Referral Programme, which seeks to encourage employees to

be brand ambassadors of the Company and actively contribute to the resourcing process by

recommending candidates with relevant competencies and potentials, thereby facilitating in

strengthening domain expertise within the organization.

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They have a robust Campus programme, which is aimed at hiring students fresh from key B-

schools and providing them with structured inputs and an environment for their personal and

professional growth. The Summer Trainee Program is designed to expose people to the vibrancy

of a complex and competitive business environment, challenge you intellectually and encourage

people to find innovative solutions.

They aim at providing a business perspective and Summer Trainees work on live projects, which

form the core of their business strategy. Not only do they get the freedom to experiment and

make decisions, but also spend quality time with their Project guide or mentor, who provides

them the perspective of the ‘bigger picture’. The programme gives them a unique opportunity to

integrate their classroom learning with the realities of real business, in a live yet safe

environment.

Accept personality responsibility:

“Apart from professional development, Aviva also looks after the personal development of

employees”

They believe that dealing with diversities is an ongoing phenomenon that facilitates the process

for a company to adopt to and capitalize on today’s increasingly complex marketplace. Specific

action plans have been formulated to ensure the mandated gender ratio is achieved at the

recruitment stage for a new position or through job enhancement/job rotation opportunities for

existing roles.

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“The organization has tremendous respect for the individual- which it demonstrates by doing

what it says”

Build an empowered team:

To institutionalize an open and honest environment with shared goals and participative decision-

making, they have various open forums, one such initiative being the Town Hall(s). These are

conducted on a monthly basis by the Managing Director and designate leadership team members.

To share information on celebrations, events and people across locations, a quaterly newsletter

‘Buzz’ is circulated to all members of the Aviva team. It features a message from the Managing

Director, celebrates achievements and milestones of individuals and teams and updates

employees on new and ongoing initiatives and highlights news of past and future events.

“Employees are not working with Aviva, they are living in Aviva”.

In line with their vision statement and one of Aviva’s key values- Innovation, the Company

introduced the popular ‘Ideas 4 Aviva’ scheme. This is an enriching programme in which every

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member of Aviva has an opportunity or open invitation to influence any aspect of business by

giving suggestions and ideas on how to work smatter and better.

Build shared vision and purpose:

“You feel as if you are part of the system when you are included in all the decisions being made

for your function”

As a Company, they encourage self-starters. Given their dynamic environment, one is expected

to deliver from day one. Somewhere between adjusting to new environment and proving their

worth they forget to Ask basic questions.

About the facilities, infrastructure, processes, key people and dynamics of the organization, etc.

information which if provided on time can be very useful. This is how the “Buddy Programme”

was envisaged. Launched in July 2003, it addresses the need of a new employee in terms of

extending a friendly hand apart from the support provided by the Line and the HR Managers.

The objective is simple: To facilitate a seamless transition of the new hire into the Aviva family.

Career management:

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Campus Programme:

They have a robust Campus Programme, which is aimed at hiring students fresh from key B-

schools and providing them with structured inputs and an environment for their personal and

professional growth. The Summer Trainee Programme is designed to expose them to the

vibrancy of a complex and competitive business environment, challenge intellectualy and

encourage them to find innovative solutions.

Leadership Programme:

To strengthen entrepreneurial capabilities required to operate in a fiercely competitive and

dynamic insurance market environment and plan effective succession planning by building

futuristic leadership competencies, various initiatives are taken by the Aviva group.

Reward and recognize performance:

To build a meritocratic environment, they have build and implemented a robust value based

performance management process wherein they recognize significant contributions made in by

their employees in an objective and transparent manner and on demonstrated competence levels.

Further, they also recognize people who ‘walk that extra mile’ in living the Aviva values.

Products and Services:

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They have a full range of transparent, flexible and value for money products that include:

Whole life (Lifelong), Endowment (LifeSaver, Easy Life Plus, LifeSaver Plus), Child policy

(Young Achiever, SaveGuard junior, Aviva little Master), Single Premium (LifeBond and

LifeBond Plus), Pension (Pension plus), Term (LifeShield), Fixed term protection plan (Freedom

LifePlan) and a tax efficient investment plan with limited premium payment term (LifeBond 5).

Aviva products are modern and contemporary unitised products that offer unique customer

benefits like flexibility to choose cover levels, indexation and partial withdrawals.

They also offer customer a choice of investment options. They can choose between their unit

linked fund or their with profit fund.

With profit funds guarantees that the selling price of the units will never fall. The unit value of

this fund is increased by crediting bonuses on a daily compounding basis. The fund provides

investment security to the capital.

The Unit Linked Fund is designed to provide relatively more progressive capital growth wherein

customer automatically receive the benefit related to the investment performance of the fund.

Under Unit Linked Fund, on some of our products they offer a choice of fund options:

Protector fund

Secure fund

Growth fund

Balanced fund

CHAPTER 3: RECRUITMENT AND SELECTION AT AVIVA

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Human Resource Department At Aviva

The HR department looks after the needs and requirements of the present employees. This

Department includes number of function which are as follows:

1. Training and Development –it includes technical, soft skills and process related to training

2. Process and policies –it contains all the rule and regulations that need to be followed by the

employees.

3: Appraisal and increment- it is in the formal feedback to the employees about their

performance and the conduct of work.

4: Induction-involves the information to the new employees about the company, job, departments

etc

5: Motivational activities and entertainment- involves motivating the employees to improve their

productivity.

6: Roles and responsibilities-that every individual employee needs to fulfil

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Functional level

Human Resource Dept.

Recruitment & Selection

Resource allocation

Training & Development

Compensation Management

Employee relations & Grievance

handling

7: Key Result Area (KRA) –it is the measurement quantifiable of output for the roles of

responsibilities.

8: employee separation-includes resignation and dismissal.

9: Joining formalities- take place when a new employee joins the company.

10: Computerization

12: Helpdesk

13: Employee verification-take place at the time of joining of the new employee.

14: Surveys

15: Project trainees

16: Counselling and grievance handling-both are different as counselling is basically helping out

in personal problems whereas, grievances handling involves the handling of complains that the

employees has towards the management.

All the above head are included in the human resource development and involves the over all

development of individual employees which in turn increases the over all profit of the company.

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OVERVIEW OF RECRUITMENT & SELECTION PROCEDURE AT

AVIVA

METHODS OF RECRUITMENT FOLLOWED:

1: Direct method

2: Indirect method

3: Third party method

DIRECT METHOD

The direct method includes sending of the recruiters to different educational and professional

institutions, employees contact with public, and mannered exhibits. Aviva uses this widely used

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MANPOWER REQUISITION FORM

RECRUITMENT PLAN

BUDGET

SOURCING

SELECTION PROCESS

JOINING

POST RECRUITMENT DATA UPDATING

method by sending the recruiters to different colleges and technical schools. This is mainly done

with the cooperation of the placement office of the college.

Other direct methods include sending recruiters to conventions and seminars, setting up exhibits

at fairs, and using mobile offices to go the desired centers.

INDIRECT METHOD

Indirect method involves mainly advertising in newspapers, trade and professional journals,

technical magazines and brochures and most importantly, the internet. The senior posts are largely

filled through such method. Advertising is considered very useful for recruiting blue collar and

hourly worker, as well as scientific, professional and technical employees. Local newspaper are

considered a good source of recruitment for blue collar workers, clerical employees, and lower level

administrative employees. The main point is that the higher the position in the organization the more

dispersed advertisement is likely to be. The search for the top executive includes advertisement in a

national periodical, whereas the advertisement of the blue collar jobs usually confine to the daily

newspaper.

Job portals are used widely in order to publicise and advertise the job details and contact potential

employees.

Three main points considered by Aviva before an advertisement is inserted:

First, to visualize the type of applicants one is trying to recruit.

Second, to write out a list of advantages the company offers, or why should the reader join the

company.

Third, to decide where to run the advertisement , not only in which area, but also in which newspaper

having a local, state or a nation- wide circulation.

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THIRD PARTY

These include the use of commercial or private employment agencies, state agencies, and

placement offices of schools colleges and professional associations recruiting firms, management

consulting firms, indoctrination seminars for college professors, and friends and relatives.

Private employment agencies are the most widely used sources. They charge a small fee from the

applicant. They specialize in specific occupation; general office help, salesmen, technical

workers, accountant, computer staff, engineers and executives.

Objectives of recruitment & selection:

1: To attract with multi dimensional skills and experience that suite the present and future

organization strategies.

2: To induct outsider with new perspective to lead the company.

3: To infuse fresh blood at all levels of organization.

4: To develop an organizational culture that attracts competent people to the company.

5: To search or headhunt people whose skill fit the company’s values.

6: To seek out non-conventional development grounds of talent

7: To devise methodology for assessing psychological traits.

8: To search for talent globally not just with in the company.

9: To design entry pay that competes on quality but not on quantum.

10: To anticipate and find people for position that doesn’t exists yet.

Factors undertaken while formulating recruitment policies:

- Government policies

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- Recruitment sources

- Recruitment needs

- Recruitment cost

- Organizational and personnel policies

Recruitment & Selection Process

The actual steps involved in recruitment at Aviva follow a well defined path:

Application shortlist: In this step, they shortlist the resume received from various sources based

on the suitability for the requirement.

Preliminary Assessment: The short listed candidates go through a preliminary round of

interviews. This interview lays more emphasis on functional competencies. To have more data

on the functional skills, the candidates may be given a business case for analysis and presentation

(This is done for certain positions only).

Final interview: Here the candidates who successfully clear the first round of interview go

through another round of interview with one or more of the functional heads.

Medical Evaluation: Candidates who are selected by Aviva are asked to undergo a medical test.

Evaluation of the recruitment & selection process:

The following are the evaluation of the recruitment method

1: Number of initial enquires received which resulted in completed application forms

2: Number of candidates recruited.

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3: Number of candidates retained in the organization after six months.

4: Number of candidates at various stages of the recruitment and selection process, especially

those short listed.

5: Return rate of application sent out.

6: Number of suitable candidates for selection.

7: Retention and performance of the candidate selection.

8: Cost of recruitment

9: Time lapsed data.

10: Comments on image projected.

Importance & effectiveness of proper recruitment & selection at Aviva:

1. Attracts highly qualified and competent people

2. Ensures that the selected candidates stay for longer period with the company.

3. Make sure that there is balance between cost and benefit.

4. Helps the organization to create more culturally diverse workforce

Whereas, poor quality of selection means extra cost on training and supervision. Further, when

recruitment fails to meet organizational needs for talent, a typically response is to raise entry

level pay scales. This can distort traditional wages and salary relationship in organization,

resulting in unavoidable consequences. Thus the effectiveness of the recruitment process can

play a major role in determining the resources that must be expended on other HR activates and

their ultimate success.

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RECRUITMENT OF FINANCIAL ADVISORS AT AVIVA

Advisors are the backbone of any life insurance company. They play the most important and

key role for company to cashing the revenue through selling the insurance policies.

Some years ago Advisors were known as Agents but now they are known as Advisors which

seems to be more appropriate.

As an AVIVA Advisor, the sky is not the limit—you can go beyond

In India, ever since the insurance industry has opened up, opportunities for insurance

companies have become limitless. To tap this opportunity, they require Insurance agents

because agents are one of the most significant modes of bringing in much-needed business

to the company. At AVIVA Life Insurance, one will not merely be an Insurance agent—but

one will be a Financial Advisor. He will have an important role to play because he has to

give valuable advice to prospective customers about their financial planning.

Hiring Process

At Aviva, they understand that potential advisors come from diverse backgrounds and therefore

they evaluate advisors only for who they are. Aviva has a uniform multistage procedure, where

every applicant gets a fair chance of making it to their team.

They have a numerical rating system, where all the attributes, be it qualifications or experience,

age or family background of the applicants, all have predetermined points weightage. These

points determine the basic eligibility of a candidate. Once eligible, a screening interview is

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conducted, followed by a basic assessment test. Successful candidates make it to the final round

of interviews. Final selections depend upon the applicants overall performance.

So whether one is a housewife, ex-serviceman, freelancer, post office agent, entrepreneur, or a

chartered accountant, one can join the Aviva team.

Career Progression

Aviva supports its advisors in every step they take towards success. Their career development is

Aviva’s responsibility, once they are part of Aviva’s team. With this attitude Aviva encourages

and provides opportunities to all their deserving advisers to climb their career ladder, to be a part

of their sales management team, moving onto senior roles with each successful climb.

The sheer dedication, hard work and performance of the advisors can help them reach the highest

levels of success. Aviva absorbs deserving agents in their team as employees and help them build

a full time career.

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Benefits Available for Advisors

Apart from being remunerated well, Advisors get a lot of recognition and can win awards by

participating in the monthly, quarterly, half yearly, yearly business competition. These

business reviews can fetch foreign tours and travel free of cost.

Essential Demographic Factors In Financial Advisors

Some demographic factors which are considered while recruiting a financial advisor are :

· Time in area

· Income history

· Education level

· Leadership experience

· Sales background

· Community involvement

· Employment background

· Professional background

Keeping in mind the above mentioned factors there are certain laid down by the company which

the researcher had to abide by while recruiting a financial advisor. The recruitment process is as

follows.

NAME GATHERING -

INITIAL SCREENING DAY 1

TEST & REFERENCE CHECK DAY 3

CAREER SEMINAR/ ADMINISTERING P200 DAY 6

EVALUATION OF P200 & SURVEY DAY 10

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CAREER INTERVIEW DAY 11

ADDITIONAL INTERVIEW DAY 12

Name Gathering

The importance of this activity can be reffered in a way that “prospecting is the single most

important skill required for a manager’s future success”. Industrial studies have proven the

importance of prospecting. Studies of high retention and high productivity agencies have found

only one major discriminator between these agencies and those with poor retention and

productivity. The discriminator found was simply the fact that good offices interview more

candidates per hire. “On an average these agencies conduct 20 screening interview and

administer 15 numerical ability test for each agents hired. Conversely the low productivity and

retention agencies conduct only 12 screening interviews and administer 7 numerical tests per

hire. Clearly effective prospecting is the answer. In this manner it was able to select one suitable

candidate out of unsuitable candidates..

Effective Sources Of Name Gathering

The sources of name gathering can be broadly divided into two categories

a) Primary Sources

· Agent referrals

· Centre of Influences

· Nominators

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· Personal Observations

· Policy Holders

· Friends and Family

b) Supplement Sources

· Newspaper Advertising

· Direct mail/ Pre-Approach Letters

· Employment news

· Seminars

· Campus Recruitments

· Personnel Directors.

Agent Referral Program (ARP)

Agent Referral Program (ARP) is a unique tool in sourcing quality new names from successful

advisors. It can also act as an additional income opportunity for the advisors. The existing agent

advisors in the team are required to give references of prospective names. As they are in the

business they know the requirement better and so they are the best source of quality names. In

order to get quality names from the financial advisors the the researcher had to.

· Ask for references in every Performance review and planning (RPP)

· Ask after every successful field demonstration.

· Take Advisors out for dinner and use the opportunity to ask for referrals.

But in turn there is a need to reward and encourage the financial advisors so that this becomes an

ongoing habit.

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Centre of Influence

A centre of influence can be defined as people with whom you already have an established

relationship for referrals as a financial advisor are centers of influence for recruiting will include

friends business and civic contacts and your clients. Because these people respect you as a

professional they will want to help you succeed. Ultimately they will most likely be your second

most productive source of candidate referrals. Referrals from agents have consistently proven to

be the best source for quality names. The researcher began with Centre of Influence at this point

because in yhe beginning there were few of known advisors to ask. To cultivate your Centers of

Influence there is a need of well organized presentation of the career opportunity and a

description of the type of candidate company seeks. Therefore presentation must direct the focus

of the candidates to a different set of qualities and characteristics for advisor candidate’s

referrals.

Nominators

A prominent person in the community who may be in a position to recommend prospective

advisors is the nominator. Development of nominator can be a very useful practice as they can

also be a very good source of quality names. With constant communication with the nominator

he/she can be developed into a Centre of Influence. So this practice if done religiously can be a

very good source of quality names. For better results the companies has laid down certain scripts

which had to be used while communicating with the nominator

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Personal Observation

It can be defined as a face to face contact made on an impromptu basis in order to secure an

appointment for a recruiting interview. Effective recruiting requires consistent activity. Personal

observation is a method of prospecting that enables to be always in a position to recruit and take

advantage of every opportunity that arises. These opportunities usually occur in the midst of

some other activity or event. Through personal observation, more and more caliber of the

individual was noticed in every meet. These are some of the most effective sources of gathering

names. There are other very important sources like newspaper advertisements, seminars, college

interns etc. but these sources should be used as supplementary means to the once discussed

earlier for greater result and consistency.

Recruitment Funnel

The importance of name gathering can be seen form the recruitment funnel. The funnel says that

in order to recruit 2 quality agents the sales manager should have 60 qualified names. Out of

those 60 qualified names there should be at least 20 initial screening, and 8 career seminars and 4

career interview. This shows how important getting enough qualified names is. Also since the

Aviva Life works on a quality model, therefore it is important to screen good number of well

qualified names before recruiting advisors.

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DATA ANALYSIS

In AVIVA life insurance most of the employees feel that the HR department is good.

The Human Resource need forecast is mostly done quarterly or according to the situation

and not depending on fixed period.

The most preferred method of recruitment is the direct method and external sources of

recruitment are used more than internal sources.

Usually, 3-5 rounds of interview are taken depending upon the job position.

At aviva, basic assesment tests are conducted such as aptitude test to chech the reasoning

ability, analytical skills, etc. of the candidates so also medical fitness and reference

checks are conducted by the company.

They usually do not prefer recruiting through placement agencies but it depends on the

need.

Aviva prefers to go for campus interviews and even casual application that are received

for recruitment but they hardly prefer placement agencies.

Personal interview the most preferred type of interview followed by telephonic rounds as

well.

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CONCLUSION

This presents the summary of the study and survey done in relation to the Recruitment and

Selection in AVIVA life insurance. The conclusion is drawn from the study and survey of the

company regarding the Recruitment and Selection process carried out there.

The recruitment process at AVIVA life insurance to some extent is not done objectively and

therefore lot of bias hampers the future of the employees. That is why the search or headhunt of

people should be of those whose skill fits into the company‟s values.

Most of the employees were satisfied but changes are required according to the changing

scenario as recruitment process has a great impact on the working of the company as a fresh

blood, new idea enters in the company.

Selection process is good but it should also be modified according to the requirements and job

profile so that main objective of selecting the candidate could be achieved.

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RECOMMENDATIONS

Manpower requirement for each department in the company should be identified well in

advance.

If the manpower requirement is high and the recruitment team of the HR department

alone cannot satisfy it, then help from the placement agencies should be taken.

Time management is very essential and it should not be ignored at any level of the

process. There should be no bias.

The recruitment and selection through placement agencies should be considered as the

last resort and utilised only when need.

The recruitment and selection procedure should not be too lengthy and time consuming.

The candidates called for interview should be allotted timings and it should not overlap

with each other.

Use of Job portals on the internet such as Naukri.com, timesjob.com, etc. should be made

excessively to contact potential employees.

Details of vacancies in the company should be properly publicised through

advertisements in local newspapers and more emphasis should be given to ads on internet

job portals that are becoming a widely used platform for connecting the employers and

employees.

Campus recruitment should be given more importance in order to employ fresh blood in

the enterprise.

HR Department should conduct continous cold calling and screening of candidates

through telephonic interviews.

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REFERENCES:

C.B Mamoria and S.V. Gankar (2004), Personal Management Text and Cases. Himalaya

Publication.

K.Aswahthappa (2001),Human Resource and Personnel Management

Human Resource Management, (2005), Dr.P.C. Pardeshi

C.B Gupta (2005)

www.avivaindia.com

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ANNEXURE:

QUESTIONNAIRE:

1. When are the Human Resource needs forecasted?

Quarterly

Monthly

Annualy

Not fixed

2. What method do you prefer for recruitment?

Direct method

Indirect method

Third party

3. Which sources do you mostly rely on for recruitment?

Internal sources

External sources

Both

4. How many rounds of interview do you take?

1-3

3-5

5 & more

5. Do you conduct aptitude test for advisors?

Yes

No

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6. Which of the following tests do you conduct?

Psychometric test

Medical tests

Reference checks

Other

7. Do you prefer recruiting through placement agencies?

Yes

No

8. Do you make use of advertising in newspaper or internet job portals for recruitment?

Yes

No

9. What is the most preferred external recruitment option?

Campus interviews

Placement agencies

Employment exchanges

Data bank

Casual applicants

10. Are you satisfied with the recruitment & selection process?

Yes

No

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