A Project Report on Retention of Financial Advisors through training programs at ICICI

A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Contents Chapter-1 1. Executive summary 2. Company profile 3. Organizational chart 4. Department study

Chapter-2 1. Literature review 2. Methodology 3. Objectives of the study 4. Measuring tools

Chapter-3 1. Graphs and analyses 2.

Findings

3. Suggestions 4. Conclusion

Chapter-4 1. Appendix 2. Questionnaire 3. Bibliography

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

CONTENTS 1. Executive summary 2. Company profile 3. Organizational chart 4. Department study

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

EXECUTIVE SUMMARY ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December2000receiving approval from Insurance Regulatory Development Authority (IRDA).

The company gives much importance to the induction programs so that the employees will become more familiar with the company environment, and also pays much attention towards training programs which helps and supports the advisors at each and every level of their performance.

The survey was conducted by taking sample of 50 respondents. The area of survey was conducted in company premises of Hubli branch.

In this project I found out reasons for advisors turnover and suggested few measures to retain them for betterment of company through training methods. This project emphasizes on, “Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.�

Company Profile ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December2000receiving approval from Insurance Regulatory Development Authority (IRDA).

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. VALUES: Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer first, Boundary less, Ownership, and passion. The values shine fourth in all we do, and have become the keystones of our success.

VISION AND MISSION Their vision is to make ICICI Prudent ional Life Incurrence company the dominant new Insure in the life Insurance industry. This they hope to archive through their commitment to excellence, focuses on service speed innovation and leveraging our technological expertise The success of the Organization will be founded on its strong focus on values and clarity of purpose this includes as follow.

•

Understanding needs of the customer and offering them superior products and services.

•

Building long lasting relationships with their partners.

•

Providing and enabling environment to foster growth and learning for their employees

Introduction As finance is the lifeblood for all economic activities, one aspect of financial arena, which plays a very important role, is the Insurance.

Insurance is the outcome of Man’s search for safety and security, and to find out ways and means to minimize the hardship, which are beyond his control. Because of the economic reforms introduced by our government we can see that due to this Globalization and privatization there is enormous increase in the private sector players queuing in the insurance sector. This entry of Private players has enhanced the competitiveness and Quality of service with many innovated products.

Now in India there are totally 28 players including 14 Life and 14 General Insurance Companies. And Life Insurance is one of the most common forms of insurance.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. ICICI Prudential Life Insurance Company is an emerging star in the Private players with the competition being Global in nature.

Growth of ICICI Prudential: ICICI Prudential Life has retained its leadership position over the past eight years, in the Indian private life insurance sector.

Some of the factors that distinguish us from other players in the market are: •

Assets held are over Rs. 32,000 crores as on March, 2009

•

Total capital stands at Rs. 4,780 crores (as of March, 2009) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively

•

Posted a growth of 13% (April 1, 2008 to March 31, 2009) for garnering total received premium (new business + renewal) of Rs 15,356 crores as against Rs 13,563 crores in FY2008

•

Underwritten over 9 million policies since inception

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. ICICI PRUDENTIAL LIFE INSURANCE PRODUCTS Insurance Solutions for Individuals: ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 5 riders, to create a customized solution for each policyholder.

Savings Solutions  Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of protection.  Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options.  Save’n’Protect is a traditional endowment savings plan that offers life protection along with adequate returns.  CashBack is an anticipated endowment policy ideal for meeting milestone expenses like a child’s marriage, expenses for a child’s higher education or purchase of an asset.  Life Time Gold; offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 4 fund options?

Preserver, Protector, Balancer and Maximiser.  Life Link II is a single premium Market Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market.  Premier Life is a limited premium paying plan that offers customers life insurance cover till the age of 75.  Invest Shield Life is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest.  Invest Shield Cash is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with flexible liquidity options.  Invest Shield Gold is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with limited premium payment terms.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. Protection Solutions  Lifeguard is a protection plan, which offers life cover at very low cost. It is available in 3 options? Level term assurance, level term assurance with return of premium and single premium.  Home Assure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.

Child Plans  Smart Kid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child’s life. Smart Kid plans are also available in unit-linked form? Both single premium and regular premium.

Retirement Solutions  Forever Life is a retirement product targeted at individuals in their thirties.  Secure plus Pension is a flexible pension plan that allows one to select between 3 levels of cover.

Market-linked retirement products  Lifetime Pension: is a regular premium market-linked pension plan  Life Link Pension II is a single premium market-linked pension plan.  Invest Shield Pension is a regular premium pension plan with a capital guarantee on the investible premium and declared bonuses.  Golden Years: is a limited premium paying retirement solution that offers tax benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and payout stages.

ICICI Prudential also launched “Salaam Zindagi”, a social sector group insurance policy targeted at the economically underprivileged sections of the society.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Health Solution  Health Assure: Is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses.  Health Assure Plus: Is a regular premium plan which provides long term cover against 6 critical illnesses by providing financial assistance, irrespective of actual medical expenses, as well as an equivalent life insurance cover Flexible Rider Options ICICI Prudential Life offers flexible riders, which can be added to the

basic policy at

a marginal cost, depending on the specific needs of the customer.  Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.  Accident Benefit: This rider option pays the sum assured under the rider on death due to accident.  Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death.  Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available on SmarKid, Secure Plus and Cash Plus Waiver of Premium: In case of total and permanent disability due to an accident, the premiums are waived till maturity. This rider is available with Secure Plus and Cash Plus.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. UNIT LINKED INSURANCE PRODUCTS ULIPs are a category of goal-based financial solutions that combine the safety of insurance protection with wealth creation opportunities. In ULIPs, a part of the investment goes towards providing you life cover. The residual portion of the ULIP is invested in a fund which in turn invests in stocks or bonds; the value of investments alters with the performance of the underlying fund opted by you.

Simply put, ULIPs are structured in such that the protection element and the savings element are distinguishable, and hence managed according to your specific needs. In this way, the ULIP plan offers unprecedented flexibility and transparency. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is a leading player in the retail banking market and has over 13 million retail customer accounts. The Bank has a network of over 570 branches and extension counters, and 2,000 ATMs.

Awards and Achievements

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. Innovation Award for launching Diabetes Care – Prudence Award 2006 People Award for excellence in training and people development Prudence Award 2006

India's Most Customer Responsive Insurance Company - Economic Times

Customer

Responsiveness

Awards

Most Trusted Private Life Insurer: The Economic Times - A C Nielsen Survey of Most Trusted Brands – 2004

Prudence

Customer

Centricity

Award - 2004 & 2005: Prudential Corporation Asia

Best

Life

Insurer 2003: Outlook Money

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Awards 200304

IMM Award for Excellence: Institute of Marketing & Management

Organization with Innovative HR Practices: Indira Group of Institutes

Super brand 2003-04

Organization with Innovative HR Practices: Asia-Pacific H R Congress Awards for HR Excellence

Most Trusted Private Life Insurer: The Economic Times - A C Nielsen Survey of Most Trusted Brands – 2006

Best New Insurer: Outlook Money Awards 2003

Work flow model of insurance Stages in Policy Issuance 1) Proposal Babasabpatilfreepptmba.com

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. A Proposal Stage is the First stage before the policy is issued at COPS. At this stage, the application form is received by COPS, but it is pending for issuance due to further clarifications required from the customer.

2) Login A proposal which is complete i.e., duly filled with all necessary documents attached to it & accepted by the Branch ops, is called a Login 3) Reject An Application gets rejected at the Branch Ops level due to necessary details not filled in the form or necessary documents not submitted is a Reject. It is then sent back to the Advisor for completion.

4) Issuance Issuance means a policy that is issued to the Customer by Central Ops. 5) Decline Status When a customer refuses to take a policy post login but before Issuance is called a Decline 6) Cancellation When the cheque given by the customer bounces, it amounts to cancellation of the policy.

7) Lapse A policy for which the Customer fails to pay subsequent premiums is a lapsed Policy.

8) Free look Post issuance of the policy, the policyholder has the option to turn down the policy within 15 days from the date of issuance. This period of 15 days is called Free look Period.

9) Surrender: When a customer wants to discontinue with the policy.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Insurance: Definition and Meaning Functional definition: In the words of R.S.Sharma “Insurance is a Co-operative devices to spread the loss caused by particular risk over a number of persons who were exposed to it and who agree top insure themselves against the risk�

Contractual Definition: According to E.W.Patterson, “Insurance is a contract by which one party, for a consideration called a premium, assures a particular risk of other party ad promises to pay to him or his nominee a certain or ascertainable sum of money on a specified contingency.

According to the U.S Life Office Management Association Inc (LOMA), Life Insurance is defined as follows: Life insurance provides a sum of money if the person who is insured dies whilst the policy is in effect.

Other terms used in relation to insurance and their meaning: Agent: The authorized representative of the insurer, licensed by the concerned authorities like IRDA to canvass insurance.

Bonus: The yearly share of policy holders profit declared by the company based on its profits which gets added to the policy amount and is payable upon its maturity.

Claim: The amount entitled to the policy holder or his nominee/assignee under a policy contract in the event of the happening of the contingency insured against.

Insurable Interest: Evidence suggesting financial losses due to the occurrence of the event insured against.

Policy: The evidence of contract between the insurer and the insured. A stamped sealed and signed document issued by the insurer to the insured in proof of insuring his life.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. Premium: The amount mentioned in the policy contract to be paid by the insurer periodically to the insurer to keep the policy in full force.

There are two kinds of insurance as given below:1. Life Insurance: Human lives are insured under life insurance. A Life Insurance is a combination of savings as well as security element. The insured is assured that the insurance company will pay his family the insured amount in the case of premature death. Is he is alive and the policy matures for payment, the savings so made will be helpful in his old age. Only the Life Insurance Corporation of India transacts life insurance business in India.

2. General Insurance: All insurance other than Life Insurance fall under General Insurance. Only the general insurance corporation of India transacts General Insurance business in India.

The following are different types of general insurance: ď ś Marine Insurance:The marine insurance is the oldest form of insurance and covers all the marine perils. Due to marine perils, the ship can be damaged or destroyed, cargo can be lost and consequently there can be lost of freight. Therefore, the marine insurance covers the risk to ship, cargo, and freight on the high seas.

Fire Insurance: The fire insurance covers the risk of fire to property because there is every likelihood of fire spreading in big factories, go-downs, ware housing,

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. house shops and ships. The fire insurance not only covers the risk of fire, but also the consequential losses from such fire.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. The Life Insurance: Life Insurance is one of the most common forms of insurance. It has acquired top position all over the world.

“Life insurance is a contract fare by the insured promised to pay a uniform rate premium of fixed intervals of time against which the insurer agrees to pay a fixed amount on the happening of the event which may be the death of the insured on the expiry of certain number of years”.

The advantages of Life Insurance •

Life insurance is brought not because someone is going to die, but because someone is going to live.

•

Life insurance means peace of mind.

•

Life insurance promises payment of the full sum assured from the moment the first premium is paid.

•

Life insurance encourages regular savings and guards against extravagances.

•

In most cases life insurance possesses a cash value after the first three years.

•

Life insurance removes the worry of looking after your savings. Experts safely and profitably invest your money on your behalf by experts.

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Life insurance guarantees payment in cash and is backed by the Government of India.

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Life insurance is a tax saving product.

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Life insurance is free from loss, from theft, fire, misplacement etc.

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A life insurance contract is one sided, i.e., always in favour of the insured and his family. One can withdraw from the contract anytime, but the company’s cannot.

Life insurance replaces uncertainty with certainty. It provide a complete, balanced and perfect hedge against economic threats, which confront all person, the danger of living too long or the danger of dying soon.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Insurance Market in India: The term “insurance market� is used to denote the means available for the placing of insurance and the various organizations that are willing to accept risks. It comprises of the demand side i.e., the buyers and the supply side i.e. sellers and the intermediaries. The rational behind the opening up to the sector was to five individual and corporate insurance consumers a competitive environment that can deliver products and service in tune to their requirements. At the same time and open insurance market will enable capital formation.

Reducing the need for India to seek external capital to support its infrastructure of development program. The industry is believed to benefit from any increased private participation especially in terms of technology from other global players as these players enter into joint ventures with India counterparts. The partnership between Indian and foreign firms will also enable the market to grow beyond the currents rates and will offer wider choice for the consumer through the introduction of new products, service and price option.

New players are aggressive in their marketing campaigns and the challenging LIC, virtually in all aspects.

How Insurance Works Suppose there are 1000 person all aged 35 years and healthy lives. They are insured for one year against the risk of death. Each person is insured for Rs. 50,000. if the past experience indicates the 4 out of 1000 people die during the year, expected amount claimed to be paid to the family of 4 persons would come to Rs. 2,00,000. The contribution to be paid by the each of the 1000 will come to Rs.200 per year. Thus, all the 1000 persons share loss caused to the 4 unfortunate families. 996 persons who survived till 1 year have not lost any thing as they have secured peace of mind and a feeling of security for their family. While insurance cannot prevent accident or premature death, it can help, protect the family of the deceased against the loss of income caused by the main breadwinner. In return for specified payments,

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. insurance will provide protection against the insurance of an uncertain event such as premature death.

The business of insurance company called insurer is to bring together persons who are exposed to similar risk, collect contribution (premium) from them on sum equitable basis and pay the losses (claim) to the unfortunate few who suffer.

The working of an agency The important activities in a life insurance company are:•

Procuring proposal from prospective buyers of Life Insurance.

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Insurance. The underwriting department would do this.

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Issuing a policy document.

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Keeping track of the performance of the insurance contract like timely payment of renewal premium.

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Attending to the various requirements that may arise during the duration of the contract.

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Actuarial department deciding on the premiums to be charged by the insurer.

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Investing the premiums collected and maximizing the investment return (Interest on Investment).

Why should you take insurance Insurance is desired to safeguard oneself and ones family against possible losses on account of risk and perils. It provides financial compensation for the losses suffered due to the happening of unforeseen events. By taking life insurance a person can have peace of mind and need not worry about the financial consequences in case of any untimely death.

Along with the growth of overall population in the country, crossing the benchmark of hundred crore, there gap been a significant awareness for the need for insurance in the other as well as rural segments and even among the lower middle class and illiterate class of the population.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. We in India have around 30 crore middle class educated and enlightened people who have not realized that insurance is as necessary as the other basic necessities of life such as food, shelter, clothing.

NEED FOR THE INSURANCE: Unlike other avenues of savings where the amount saved with interest is payable only on maturity, insurance plans provide for payment of the total sum assured along with a bonus, if any, on any eventuality even before the maturity of the policy. And another advantage of insurance is that an insurer can avail loans against the security of the policy from the insurance company. Even banks and other financial institutions advances loans with insurance policies as a collateral security.

To provide for one’s family and perhaps; others in the event of death, especially premature death. Originally, policies were to provide for short period of time, covering temporary risky situations, such as sea voyages. As lie insurance became more established, it was realized what a useful tool it was for a number of situation, including: •

Temporary needs/threats:The original purpose of life insurance remains an important element, namely providing for replacement of income on death etc.

•

Regular savings:Providing for one’s family and oneself, as a medium o long term exercise (through a series of regular payment of premiums). This has become more relevant in recent times as people seek financial independence from their family.

•

Investment; It is the insurance that builds up the savings of the society and thus safeguard the economy from the ravages of inflation. Unlike regular saving products, investment products are traditionally lump sum investments, where the individual makes one time payment.

•

Retirement:

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. Provisions for one’s own later years become increasingly necessary, especially in a changing cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in one’s old age.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Management team: Mr. V. Vaidyanathan: Ms. Anita Pai:

Managing Director and CEO Executive Vice president – Customer

Dr. Ajeet Chatterjee, Mr. Puneet Nanda:

Service, Technology and Marketing Appointed Actuary Executive Vice President

Board of Directors: The ICICI produentional Life Insurance Company Limited Board Comprises reputed people from the finance industry both from India and abroad.

Mr.Chanda D.Kochhar, Mr. N.S. Kannan, Mr. K.Ramkumar, Mr. Barry Stowe, Mr. Adrisan O’Connor, Mr. Keki Dadiseth, Prof. Marti G. Subranhmanyam, Ms. Rama Bijapurkar, Mr. Vinod Kumar Dhall, Mr. V. Vaidyanathan,

Independent Independent Independent Independent

Chairperson Director Director Director Director Director Director Director Director Managing Director and CEO

Organization structure

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. CEO

Senior Voice President

Vice President

ZM Manager

Regional Manager

Associate Regional Manager

Area Manager/Sales Manager

Sourcing structure

Business Manager

Senior Agency Manager

Agency Manager

Unit Manager

Senior business Manager

Departmental Study: • Sales and Distribution Babasabpatilfreepptmba.com

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. This section is divided into four parts •

Managers Utilities - In this section important announcements for managers, tools like Pre-recruitment profiling, manager related initiatives, etc are found.

•

Advisor Utilities - This section hold advisor related tools like, Electronic

benefit

illustrations,

Advisor Initiatives,

Important

announcements, statutory changes that affect advisors, etc.

•

Contests - Details of all current contests that are running will be found under this heading.

•

Contest Updates and Results - Updates of all contests and results declared will be available for view in this section

•

Group - information on our group products, printable pre quote and application forms, etc will be housed in this section.

• Finance The staff in finance section is responsible for the following: Planning & MIS – Monitoring of Organization performance - Sales, Quality, Trends - on a continuous basis. With insights into MIS, socio economic factors & competitor behavioral patterns, they contribute to sales targets, strategic initiatives, projected branches, projected work force…the road ahead!!!

Internal Audit – Risk Management, Business Continuity Plan, Best practices, policy manuals are not mere words on paper…adhere to them.

They ensure ‘Practice what you preach’!!!

Compliance – They ensure that every action is within the regulatory framework!!!

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. CCU –They ensure that every rupee is spent economically, prudently, cost effectively!!!

Distribution Payouts – They roll out commission payouts, referral, bonuses, contest spends & effectiveness…basically the sales goodies!!!

EPU

–

Cost

discipline,

expense

processing,

vendor

payments,

reimbursements, salary payouts…They handle E-TRACK!!!

Investment Operations – They being the custodian of investments, benchmark their performance with the best in the industry. They manage the cash flow!!!

Accounts – Financial Accounting, Expense provisioning, Income Accruals…

They strive on the excellence & transparency of their systems & controls, to keep the auditors, customers & shareholders assured that the financial story is said right!!!

• Marketing The team here is responsible for an array of activities: TV commercials, press and outdoor hoardings, news articles, product brochures, direct mail or onground activities. Given the breadth of activities that they are involved in, they receive dozens of queries from their internal customers everyday!

Through this section, they aim to resolve some of the most common requests they receive. The teams in marketing include:

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

• Human resource The Human Resource Function at ICICI Prudential drives the people strategy of the business. With its initial focus on operational excellence to deliver benefits and services to staff members, HR is now committed to building capability through state of the art processes. A robust performance management system, compensation system and a segmented training architecture enable it to deliver value to the organization.

This section is responsible for recruitment, selection and development of human resource that is necessary for the company.

• Customer service and Operations The Operations department oils the work processes between the customer and the company to ensure consistent and quality service to the customer. To streamline the operations, the Operations department interfaces between the clients and the agents, the branches and the underwriters, and manages work processes.

The Vision at Customer Service is to deliver ‘World Class Service’ at every opportunity.

Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query Resolution Unit are all committed to providing effective solutions to over lakhs of customers across the country

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

CONTENTS 1. Literature review 2. Methodology 3. Objectives of the study 4. Measuring tools

Literature Review Babasabpatilfreepptmba.com

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. Introduction to Retention Retention means ensuring that once the best person has been recruited, they stay with the business and are not “poached” by rival companies. Employees should therefore be carefully selected, managed and retained, just like any other resource.

Why Retention?

Key employee retention is critical to the long term health and success of the business.

Managers readily agree that retaining the best employees ensures customer satisfaction, product sales, satisfied coworkers and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning. If managers can cite these facts so well, why do they behave in ways that so frequently encourage great employees to quit their jobs?

Employee retention matters. Organizational issues such as training time and investment; lost knowledge; mourning, insecure coworkers and a costly candidate search aside, failing to retain a key employee is costly.

Employee retention is critically important for a second societal reason, too. Over the next few years while Baby Boomers (age 40 to 58) retire, the upcoming Generation X population numbers 44 million people (ages 25-34), compared to 76 million Baby Boomers available for work. Simply stated: there are a lot fewer people available to work.

Employee retention is one of the primary measures of the health of the organization. If you are losing critical staff members, you can safely bet that other people in their departments are looking as well. Exit interviews with departing employees provide valuable information you can use to retain remaining staff. Heed their results. You’ll never have a more significant source of data about the health of your organization.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. If you are committed to building an organization that will someday achieve what Jim Mullen of Mullen Advertising calls "corporate greatness," employee retention should be at the top of your to-do list (right along with hiring the right people in the first place).

Philosophically, employee retention is important; in almost all cases, it is senseless to allow good people to leave your organization. When they leave, they take with them intellectual property, relationships, investments (in both time and money), an occasional employee or two, and a chunk of your future.

And from a more practical standpoint, retention is important for the following reasons: •

Replacing qualified employees can be extremely difficult, exceptionally expensive, and very often unnecessary.

•

Training new employees is costly.

•

Poor retention creates a "revolving door" culture within the organization, lowering morale and confidence.

•

Poor retention affects your customers (no matter the type of business you have, your customers develop important relationships with their contacts within your organization).

•

High turnover eats away at your organization's productivity, ability to deliver, and overall efficiency. This sad reality always manages to impact your customers negatively in one way or another.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. The first thing to understand about employee retention is that there is no magic wand, no single answer as to how to retain your employees. Many factors that you cannot control affect retention, including but not limited to: •

Shifting markets

•

Demand for specific skills

•

Business conditions

•

Demographics

•

Lifestyle changes

•

Technology issues

•

Trends in work/life decisions as employees' needs change

How to Attract and Motivate Efficient Financial Advisors

"Today, we are faced with a greater challenge than ever before. It's not the changing vehicle technology, insurer relationships, or even equipment and products we use, but it is the immediate need for quality people to enter our industry so that we have the human resources to repair vehicles."

Sampling methodology  Sample size: 50 Financial Advisors  Sampling Method : Convenience sampling  Survey conducted on the Advisors of ICICI Prudential.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

SAMPLING TEST: Sample size (n):50.

Sample element: respondents. (Advisors) Sample units: students, professionals, house wives businessmen and others.

Sample extent: Hubli company premises.

30% of 50 sample sizes are considered for pilot study. :.

50*30/100=15(pilot study)

Out of 15 respondents 9 respondents are satisfied with unit managers. :.

9/15=0.60

:.

P (population proportion) =0.60

:.

0.60*100=60%.

Then our null hypothesis Ho and alternative hypothesis H1 becomes Ho: More than or equal to 60% of the respondents are satisfied with the Unit managers H1: Less than 60% of the respondents are not satisfied with the unit managers,

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. Calculation of standard deviation

Zcal value can be calculated by using the formula.

Zcal =Po-P/S.D :. Po (sample proportion) As per the data collected, out of 50respondents 33 respondents are satisfied with the unit managers. Therefore our Po value becomes, Po= 33/50 = 0.66 :. Po = 0.66 :. Zcal = 0.66-0.60/0.069 =0.06/0.069 Zcal= 0.869. :. Z table value @5% level of significance is (i.e. at 5% (alpha)) :. Ztable = 2.90 :. Zcal

= 0.869

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Conclusion: Null Hypotheses Ho is accepted and alternative hypotheses H1 is rejected Objectives of the study:  To identify the factors which influence the financial advisors to perform better at their work place through training programs at ICICI PRUDENTIAL LIFE INSURANCE CO.LTD  To understand the level of job satisfaction of financial advisors at ICICI PRUDENTIAL LIFE INSURANCE CO.LTD  To know how training benefits to the advisors.  To know the effectiveness of the trainer in conducting training program.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Measuring Tools: Questionnaire is considered as a measuring tool for this survey.

Data collection method: Data was collected from both primary and secondary sources. The study was based on sampling method, 50 respondents were selected for the study. All the interviews were conducted in the company premises and through telephonic survey.

Primary data collection Primary Data was collected through questionnaire and Personal interview and through telephonic survey. Each interview took about 10 to 15 minutes

Secondary data collection Secondary data was collected from company manuals, broachers, company guide, company trainer, and information from Internet.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

CONTENTS 5. Graphs and analyses 6. Findings 7. Suggestions 8. Conclusion

Results and Discussions with Graphs and Charts

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

1) Frequencies Do you feel the induction training given to you is important in your organization?

Frequenc PercentValid PercentCumulative Percent Valid Strongly Agree Agree Disagree Strongly disagree Total

y 9 22 15 4 50

18.0 44.0 30.0 8.0 100.0

18.0 44.0 30.0 8.0 100.0

18.0 62.0 92.0 100.0

Analysis: Out of 50 respondents 9 respondents are strongly agree with the induction program is important, 22 respondents are agree with induction program is important,15 respondents are disagree with the induction program and only 4 respondents are strongly disagree with the induction program is important one which is given to advisors in the organization.

2) Frequencies: What type of training methods are used in your organization?

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. Frequency Percent Valid Valid

Cumulative

On the job

4

8.0

Percent 8.0

Percent 8.0

training Class room

39

78.0

78.0

86.0

training others

7

14.0

14.0

100.0

Total

50

100.0

100.0

Analysis: Out of 50 respondents 4 respondents have attended the on the job training,39 respondents have attended the class room training and 7 respondents have attended the other types of training programs conducted in the organization.

3) Frequencies What is your opinion about the training program given in the organization?

Valid

Highly

Frequency

Percent

Valid

Cumulative

15

30.0

Percent 30.0

Percent 30.0

satisfied Babasabpatilfreepptmba.com

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. Satisfied

27

54.0

54.0

84.0

Neither

4

8.0

8.0

92.0

dissatisfied dissatisfied

4

8.0

8.0

100.0

Total

50

100.0

100.0

satisfied nor

Analysis: Out of 50 respondents 15 respondents are highly satisfied with training program, 27 respondents are satisfied with the training program,4 respondents are neither satisfied nor dissatisfied with the training program,4 respondents are dissatisfied with the training program conducted by the organization.

4) Frequencies Did you find any improvements at your work place after attending training programs conducted by the organization?

Frequency Percent

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Valid

Cumulati

Percent

ve Page 37

A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Valid

Yes No Total

48 2 50

96.0 4.0 100.0

96.0 4.0 100.0

Percent 96.0 100.0

Analysis: Out of 50 respondents 48 respondents are found improvements at their work place after attending training programs, and only 2 respondents are not found any improvements at their work place after attending training programs in the organization.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

5) Frequencies What kind of improvements you found at your work place?

Valid increase in confidence level Healthy relationships communication skills efficiency level reduces stress and frustration Total

Frequency

Percent

Valid

Cumulative

10 7 10 11 12

20.0 14.0 20.0 22.0 24.0

Percent 20.0 14.0 20.0 22.0 24.0

Percent 20.0 34.0 54.0 76.0 100.0

50

100.0

100.0

Analysis: out of 50 respondents 10 respondents have found improvement in confidence level, 7 respondents have found improvements in building healthy relationship among the employees in the organization, 10 respondents have found improvement in their communication skills, 11 respondents have found improvement in their efficiency level, and 12 respondents have found improvement in reducing their stress and frustration at their work place

6) Frequencies

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. Do you feel training provided in the organization is effective

Frequency Percent Valid

yes no Total

44 6 50

88.0 12.0 100.0

Valid

Cumulative

Percent 88.0 12.0 100.0

Percent 88.0 100.0

Analysis: out of 50 respondents 44 respondents have said the training program conducted in the organization is effective and 6 respondents have said the training program conducted in the organization is not effective one.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

7) Frequencies Are your suggestions considered in decision making by management in the organization?

Frequenc Percent Valid

Valid

Cumulative

always

y 6

12.0

Percent 12.0

Percent 12.0

considers some

11

22.0

22.0

34.0

considers never

33

66.0

66.0

100.0

considers Total

50

100.0

100.0

times

Analysis: Out of 50 respondents 33 respondents opinion is, the management never considers the advisors suggestions in decision making, 11 respondents opinion is, the management some times considers the advisors suggestions in decision making, and 6 respondents opinion is, the management always considers the advisors suggestions in decision making,

8) Frequencies Are you satisfied with the non monetary benefits provided in the organization?

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. Frequency Percent Valid highly satisfied Satisfied neither satisfied nor dissatisfied Dissatisfied highly dissatisfied Total

Valid

Cumulative

2 4 23

4.0 8.0 46.0

Percent 4.0 8.0 46.0

Percent 4.0 12.0 58.0

9 12 50

18.0 24.0 100.0

18.0 24.0 100.0

76.0 100.0

Analysis: Out of 50 respondents 2 respondents are highly satisfied with non monetary benefits provided in the organization, 4 respondents are satisfied with the non monetary benefits provided in the organization, 23 respondents are neither satisfied nor dissatisfied with the non monetary benefits provided in the organization,,9 respondents are dissatisfied with the non monetary benefits provided in the organization, and 12 respondents are highly dissatisfied with the non monetary benefits provided in the organization .

9) Frequencies Do you feel whether the management recognizes and rewards for your achievements and performance Frequency Percent Valid Babasabpatilfreepptmba.com

Cumulative Percent Page 42

A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Valid

Always recognizes some times recognizes never recognizes Total

38 7 5 50

76.0 14.0 10.0 100.0

Percent 76.0 14.0 10.0 100.0

76.0 90.0 100.0

Analysis: Out of 50 respondents 38 respondents opinion is, the management always recognizes and rewards for their achievements and performance, 7 respondents opinion is, the management some times recognizes and rewards for their achievements and performance, and 5 respondents opinion is, the management never recognizes and rewards their achievements and performance,

10) Frequencies Are you satisfied with the relationships between you and middle level management?

Frequency Percent Valid highly satisfied Satisfied neither satisfied nor dissatisfied dissatisfied highly dissatisfied Babasabpatilfreepptmba.com

Valid

Cumulative

1 4 14

2.0 8.0 28.0

Percent 2.0 8.0 28.0

Percent 2.0 10.0 38.0

18 13

36.0 26.0

36.0 26.0

74.0 100.0 Page 43

A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. Total

50

100.0

100.0

Analysis: Out of 50 respondents 1 respondent is highly satisfied with the relationship between advisors and top level management, 4 respondents are satisfied with the relationship between advisors and top level management, 14 respondents are neither satisfied nor dissatisfied with the relationship between advisors and top level management, 18 respondents are dissatisfied with the relationship between advisors and top level management, and 13 respondents are highly dissatisfied with the relationship between advisors and top level management

11) Frequencies Are you satisfied with the commission rate given by the company?

Frequency Percent Valid highly satisfied satisfied neither satisfied nor dissatisfied dissatisfied highly dissatisfied Total Babasabpatilfreepptmba.com

Valid

Cumulative Percent 8.0 56.0 80.0 98.0 100.0

4 24 12

8.0 48.0 24.0

Percent 8.0 48.0 24.0

9 1 50

18.0 2.0 100.0

18.0 2.0 100.0

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Analysis: Out of 50 respondents 4 respondents are highly satisfied with the commission rate given by the company, 24 respondents are satisfied with the commission rate given by the company 12 respondents are neither satisfied nor dissatisfied with the commission rate given by the company,9 respondents are dissatisfied with commission rate given by the company and only 1 respondent is highly dissatisfied with the commission rate given by the company.

12) Frequencies Are you satisfied with your unit managers?

Frequency Percent Valid

Valid

Cumulative Percent 6.0 72.0 98.0

100.0

3 33 13

6.0 66.0 26.0

Percent 6.0 66.0 26.0

dissatisfied highly

1

2.0

2.0

dissatisfied Total

50

100.0

100.0

highly satisfied Satisfied neither satisfied nor

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Analysis: Out of 50 respondents 3 respondents are highly satisfied with their unit managers, 33 respondents are satisfied with their unit managers 13 respondents are neither satisfied nor dissatisfied with their unit managers and only one respondent is highly dissatisfied with their unit managers.

13) Frequencies Are you satisfied with the team spirit in your working environment?

Frequency Percent Valid

Valid

Cumulative

highly

30

60.0

Percent 60.0

Percent 60.0

satisfied satisfied neither

14 6

28.0 12.0

28.0 12.0

88.0 100.0

50

100.0

100.0

satisfied nor dissatisfied Total

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Analysis: Out of 50 respondents, 30 respondents are highly satisfied with the team spirit in the organization, 14 respondents are satisfied with the team spirit in the organization, and remaining 6 respondents are neither satisfied nor dissatisfied with the team spirit in the organization.

14) Frequencies Are you satisfied with your job?

Valid

yes

Frequen Percent cy 12 24.0

Valid Percent 24.0

Cumulative Percent 24.0 100.0

no

38

76.0

76.0

Total

50

100.0

100.0

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Analysis: Out of 50 respondents 38 respondents are

not satisfied with their job, and

remaining 12 respondents are satisfied with their job.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

15) Frequencies Any suggestions to improve training program Frequency Percent

Valid

Cumulative Percent 22.0

Valid Explanation about

11

22.0

Percent 22.0

insurance Explanation about

7

14.0

14.0

36.0

stock market Explanation about

25

50.0

50.0

86.0

selling skills Others

7

14.0

14.0

100.0

Total

50

100.0

100.0

Analysis: Out of 50 respondents 11 respondents suggests to give more explanation about insurance in training program, 7 respondents suggests to give more explanation about stock market, 25 respondents suggests to give more explanation about selling skills. And 7 respondents suggest some other options to explain in training program.

Findings: Babasabpatilfreepptmba.com

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.



54% of the respondents are highly satisfied with the training programs given in the organization and 30% of the respondents are satisfied with the training programs given in the organization. This indicates more than 70 % of the trainees are satisfied with the training program



36% of the respondents are not satisfied with the relationship between advisors and the middle level management and only 8% of respondents are satisfied with the relationship between advisors and middle level management.



50% of respondents have suggested the trainer to give more explanation about selling skills so that they can sell more products and which also helps them to achieve their targets set by the company.



60% of the respondents are highly satisfied with team spirit in the organization. This indicates the management has given much importance to team work. This team spirit motivates the employees to perform better at their work place, and also helps to build up healthy relationship among the employees in the organization.



76% of the respondents opinion is, the management always recognizes and rewards for their achievements. This shows that the management always motivates the employees in the form of rewarding them for their achievements.



66% of the respondents are satisfied with their unit managers.Therfore this indicates that, in the organization unit managers are more co operative with the advisors and always motivate them for better performance at their work place.

Suggestions  Provide the opportunity for career and personal growth through training programs, challenging assignments which would help in retaining the Advisors.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. ď ś To compete with other competitors and retain the Advisors the company should try to give them higher commission rate. ď ś The factors which influence the advisors to perform better at their work place are incentives, medical facilities, traveling allowances, commission. This also helps the company to retain their advisors for a longer period. ď ś Create reasons for people to join ICICI Prudential and to stay. See that they enjoy their jobs, their responsibilities, and their possible career paths and this can be done by conducting Get together and parties for the Advisors and make them realize that are a part of ICICI family which will also help in building strong relations with each other.

Conclusion From my study I conclude that retaining of Financial Advisor is very essential for every Insurance Company, if there is frequent attrition of the advisors the company will have to bear huge expenses while hiring a new advisor and retaining of any employee. the management has maintained good relation with the advisors, and has also given much importance for team work, team spirit in the organization and motivated them in each and every level of performance, and is trying to train advisors to perform better at their work place and these training programs also helps to build up their confidence and efficiency level in their works. A little more efforts in retention programs and training programs can help the company to retain the advisors for a longer period as an asset of the company.

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

Contents • Appendix • Bibliography • Questionnaire

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.

BIBLIOGRAPHY Text book:  Subba Rao.  Company broachers.

Web sites: 

www.google.com



www.iciciprulife.com



www.insurance.com

“A Study on Retention of Financial Advisors through Training Programs at ICICI PRUDENTIAL LIFE INSURANCE CO LTD.” QUESTIONNAIRE

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. Dear Sir/Madam,

1. Personal Details Advisors Name: _________________________________ Address

: _________________________________ _________________________________

Contact No

: __________________________________

1) Do you feel the induction training given to you is important in your organization?

Strongly agree

agree

disagree

strongly

disagree 2) What type of training methods are used in your organization? a) On the job training

b) Class room training

c) Others 3) What is your opinion about the training program given in the organization?

Highly satisfied

satisfied

neither satisfied nor

dissatisfied

highly

dissatisfied Dissatisfied

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. 4) Did you find any improvements at your work place after attending training program conducted by the organization? a) Yes

b) No

If yes, 5) What kind of improvements you found at your work place?  Increase in confidence level  Buildups healthy relationships among the employees in the organization  Improvement in communication skills and conveying capacity  Increase in the efficiency level in contribution towards team work  Reduces the stress and frustration at work place 6) Do you feel the training provided in the organization to the advisors is effective? a) Yes

b) No

7) Are your suggestions considered in decision making by management in the organization? a) Always considers b) Some times considers c) Never considers 8) Are you satisfied with the non monitory benefits provided in the organization?

Highly satisfied

satisfied

neither satisfied nor

dissatisfied

highly

dissatisfied Dissatisfied

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. 9) Do you feel whether the management recognizes and rewards for your achievements and performance? a) Always recognizes b) Some times recognizes c) Never recognizes 10) Are you satisfied with the relationship between advisors and middle level management?

Highly satisfied

satisfied

neither satisfied nor

dissatisfied

highly

dissatisfied Dissatisfied

11) Are you satisfied with the commission rate given by the company?

Highly satisfied

Satisfied

Neither satisfied nor

Dissatisfied

Highly

dissatisfied Dissatisfied

12) Are you satisfied with your unit managers?

Highly satisfied

Satisfied

satisfied nor

Dissatisfied

Highly dissatisfied Dissatisfied

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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd. 13) Are you satisfied with your job? a) YES

b) NO

14) Are you satisfied with the team spirit in your working environment?

Highly satisfied

satisfied

neither saisfird nor

dissatisfied

highly

dissatisfied Dissatisfied

15) Any suggestions to improve training program? a) more explanations about insurance b) more explanation about stock market c) More explanation about selling skills d) Others

Thank You

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