Source: conference.aimt.edu.in (Internet)
MANAGING HR CHA
LLENGES IN INSURANCE INDUSTRY: A
STUDY ON
LIFE
INSURANCE
Mrs. Kusum Dubey , Mr. Jay Kumar Pandey
Email id:
dubeykusum@gmail.com &
er.jay11@gmail.com
VII.
DATA COLLECTION
The nature of study is descriptive
type.
Researcher has
collected both primary and
secondary data for the
data
analysis.
Primary data
1. Designed Structured questionnaire
for data
collection.
2. Interview method.
3. Rating method.
4. Co
-
correlation and percentage method.
Secondary data:
1. Published material.
2. LIC Journals and Magazines.
3. www.bimaplus.com.
4. B
usiness magazines.
5. IRDA website.
DATA ANALYSIS & INTERPRETATION:
Researcher
applies different statistical tool
for the
interpretation and
data analysis.
Reasons for exit
% of respondents
1. Employee 0.8.03%
2. Supervisor or line manager 38.15%
3. Compe
nsation & job profile 53.82%
From the above pie chart, it has
been depicted
that 54% of
the employee quit the job for
getting
higher pay
Package, 38% employees quit due to
unhealthy
interpersonal relationship with
their
supervisor or boss and
8% employees
leave for
their own personal reasons.
Based on the survey.
It is found that Insurance sector is
touching 35.2
% attrition in year 2007. Though the
salaries are
attractive, but the jobs are highly
demanding,
target oriented
and competitive.
The above graph
shows average salary offered to
entry
-
level
employees by different insurance companies.
Max new life offered a very
competitive and
lucrative salary
after
that HDFC Standard life
insurance then
ICICI Prudential and LIC. The
best compensation policy
helps
in motivating,
attracting and retaining the best
employees
which improving organizational
effectiveness and
productivity.
Hence due to low package most of
the LIC employees looking
for the private
companies.
Insurance sector offers a wide
employment and ca
reer
opportunities to new
aspirants as well as paying a very
handsome pay
package to the experiences one. The
experiences
employee may get up to Rs. 1000000
lakhs
annually also.
Researcher used a rating method
ranging form 1
-
5 scale,
1indicates higher
rating
and 5 indicates lower rating. Based
on the
questionnaire data has been colleted
from the
employees working in LIC. After
survey, it is
analyzed that
most of the employees are today
career oriented. Salary is the
secondary priority
then job satisfact
ion after
that interpersonal
relationship with superior or boss
and lastly
training and
development programmes conducted
for employee.s better
performance.
Here in this
graph, researcher by using
questionnaire and
interview method tries to know the
employe
rs
Perspective towards company HR
practices &
organization
productivity. LIC employers says
.HR is the
Most important asset for the company
and it has a
significant impact on company.s
overall performance &
productivity. Experts says
that by offering lucra
tive pay,
excellent work
culture, career hike opportunities,
Linking pay
with performance and by providing
appropriate
training an Insurance companies can
solve the
problem of
attrition to a greater extent. Hence
HR
manager should frame
those policies & pr
actices,
which help in accomplishment of
organization
objectives while improving
individual growth and
performance.
Based on survey, 78% respondents
says that there is a
positive link between HR &
organizational productivity. But
still 18%
respondents are
disagreeing with this view and
4%
respondents can.t say anything.
VII.
FINDINGS
1. LIC is facing a challenge of
rising employee
turnover
rate and cost.
2. Poaching of talented employees by
rival
companies.
3. Attractive pay package and fast
career growth
help
in employee retention.
4. LIC is still a market leader even
after
privatization.
5. The analysis shows that HR
practices is
positively
linked with organization
productivity
not strongly linked.
6. The major reason for employee
quitting is to
avoid
h
ighly demanding and target oriented
job.
7. LIC HR manager need to have more
focused
and
professional approach in order to
compete in
a market.
8. Apart from good salary and career
growth, HR
manger
should maintain smooth industrial
&
interpersonal relatio
nship
between employer and
employee.
9. The labor turnover rate in LIC is
comparatively
low
than those in private insurance
companies.
10. LIC is a most trusted brand
declared in year
2007.
VIII.
SUGGESTIONS
1. Proper communication within the
organization.
2. By offering attractive and
competitive pay to
the
potential workforce.
3. By offering excellent career
opportunities
within the
organization.
4. By harmonious Industrial
relationship between
employer & employee.
5. By enhancing worker.s
participation in
management.
6. Top management should made
efforts for
strengthening HR department.
7. To facilitate healthy work
culture in order to
prevent
job dissatisfaction.
8. Proper implementation of stress
coping
measures
within the organization like
counseling,
meditation.
9. HR manager should give more
attention to
retain star
performer employee.
10. Right recruitment and selection
of employees
for
consistent growth of the company.
IX.
CONCLUSION
Insurance industry is growing at a
faster pace
after
privatization and globalization. The
opening
of private players
poses a serious threat for the
business of LIC. To remain survive
as a market
leader LIC HR manager need to
innovate &
restructured its existing policies
in order to attract
and retain
compet
ent workforce.
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Dear friends,
The complete text can be accessed on the given internet link above.
Hope someone from the H.R.D department in L.I.C of India bothers to read this informative piece and learn lessons from it!
Priya
