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-11. Executive summary

2. Company profile

3. Organizational chart

4. Department study

Chapter-21. Literature review

2. Methodology

3. Objectives of the study

4. Measuring tools

Chapter-31. Graphs and analyses

2. Findings

3. Suggestions

4. Conclusion

Chapter-41. Appendix

2. Questionnaire

3. Bibliography

Babasabpatilfreepptmba.com


CONTENTS

1. Executive summary

2. Company profile

3. Organizational chart

4. Department study



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).



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.

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



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.

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.

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. 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

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

Awards 2003-

04

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 insuranceStages in Policy Issuance

1) Proposal

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.

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.

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:

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,

house shops and ships. The fire insurance not only covers the risk of fire, but

also the consequential losses from such fire.



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.

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

Life insurance is a tax saving product.

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

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.

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, 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.

Insurance. The underwriting department would do this.

Issuing a policy document.

Keeping track of the performance of the insurance contract like timely payment of

renewal premium.

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

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

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.

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:

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.



Management team:

Mr. V. Vaidyanathan: Managing Director and CEO

Ms. Anita Pai: Executive Vice president – Customer

Service, Technology and Marketing

Dr. Ajeet Chatterjee, Appointed Actuary

Mr. Puneet Nanda: 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, Chairperson

Mr. N.S. Kannan, Director

Mr. K.Ramkumar, Director

Mr. Barry Stowe, Director

Mr. Adrisan O’Connor, Director

Mr. Keki Dadiseth, Independent Director

Prof. Marti G. Subranhmanyam, Independent Director

Ms. Rama Bijapurkar, Independent Director

Mr. Vinod Kumar Dhall, Independent Director

Mr. V. Vaidyanathan, Managing

Director and

CEO

Organization structure



Departmental Study: Sales and Distribution


Senior Voice President

Vice President

ZM Manager

Regional Manager

Associate Regional Manager

Area Manager/Sales Manager

Sourcing structure

Business Manager

CEO

Senior business Manager

Senior Agency

Manager

Agency Manager

Unit Manager


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!!!

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 on-

ground 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:



Human resourceThe 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 OperationsThe 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



CONTENTS

1. Literature review

2. Methodology

3. Objectives of the study

4. Measuring tools

Literature ReviewIntroduction 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.

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.



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.



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,



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



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.



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.



CONTENTS

5. Graphs and analyses

6. Findings

7. Suggestions

8. Conclusion

Results and Discussions with Graphs and Charts



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

FrequencyPercentValid PercentCumulative Percent

Valid Strongly Agree 9 18.0 18.0 18.0

Agree 22 44.0 44.0 62.0

Disagree 15 30.0 30.0 92.0

Strongly disagree 4 8.0 8.0 100.0

Total 50 100.0 100.0

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?

Frequency Percent Valid Cumulative



Percent Percent

Valid On the job

training

4 8.0 8.0 8.0

Class room

training

39 78.0 78.0 86.0

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?

Frequency Percent Valid

Percent

Cumulative

Percent

Valid Highly

satisfied

15 30.0 30.0 30.0



Satisfied 27 54.0 54.0 84.0

Neither

satisfied nor

dissatisfied

4 8.0 8.0 92.0

dissatisfied 4 8.0 8.0 100.0

Total 50 100.0 100.0

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?


Percent

Cumulati

ve



Percent

Valid Yes 48 96.0 96.0 96.0

No 2 4.0 4.0 100.0

Total 50 100.0 100.0

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.



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


Percent

Cumulative

Percent

Valid increase in confidence level 10 20.0 20.0 20.0

Healthy relationships 7 14.0 14.0 34.0

communication skills 10 20.0 20.0 54.0

efficiency level 11 22.0 22.0 76.0

reduces stress and frustration 12 24.0 24.0 100.0Total 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



Do you feel training provided in the organization is effective


Percent

Cumulative

Percent

Valid yes 44 88.0 88.0 88.0

no 6 12.0 12.0 100.0

Total 50 100.0 100.0

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.



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

Frequenc

y

Percent Valid

Percent

Cumulative

Percent

Valid always

considers

6 12.0 12.0 12.0

some

times

considers

11 22.0 22.0 34.0

never

considers

33 66.0 66.0 100.0

Total 50 100.0 100.0

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?


Percent

Cumulative

Percent

Valid highly satisfied 2 4.0 4.0 4.0

Satisfied 4 8.0 8.0 12.0

neither satisfied nor

dissatisfied

23 46.0 46.0 58.0

Dissatisfied 9 18.0 18.0 76.0

highly dissatisfied 12 24.0 24.0 100.0

Total 50 100.0 100.0

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


Percent

Cumulative Percent

Valid Always recognizes 38 76.0 76.0 76.0

some times recognizes 7 14.0 14.0 90.0

never recognizes 5 10.0 10.0 100.0

Total 50 100.0 100.0

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) FrequenciesAre you satisfied with the relationships between you and middle level management?




Percent

Cumulative

Percent


Satisfied 4 8.0 8.0 10.0


dissatisfied

14 28.0 28.0 38.0



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) FrequenciesAre you satisfied with the commission rate given by the company?




Percent

Cumulative

Percent


satisfied 24 48.0 48.0 56.0


dissatisfied

12 24.0 24.0 80.0



Total 50 100.0 100.0

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) FrequenciesAre you satisfied with your unit managers?

Frequency Percent Valid Cumulative



Percent Percent


Satisfied 33 66.0 66.0 72.0

neither

satisfied nor

dissatisfied

13 26.0 26.0 98.0

highly

dissatisfied

1 2.0 2.0 100.0

Total 50 100.0 100.0

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


Percent

Cumulative

Percent

Valid highly 30 60.0 60.0 60.0



satisfied

satisfied 14 28.0 28.0 88.0

neither

satisfied nor

dissatisfied

6 12.0 12.0 100.0

Total 50 100.0 100.0

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?


PercentCumulative

Percent



Valid yes 12 24.0 24.0 24.0

no 38 76.0 76.0 100.0

Total 50 100.0 100.0

Analysis: Out of 50 respondents 38 respondents are not satisfied with their job, and remaining

12 respondents are satisfied with their job.



15) Frequencies

Any suggestions to improve training program


Percent

Cumulative

Percent

Valid Explanation about

insurance

11 22.0 22.0 22.0

Explanation about

stock market

7 14.0 14.0 36.0

Explanation about

selling skills

25 50.0 50.0 86.0

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:

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.

To compete with other competitors and retain the Advisors the company should try to

give them higher commission rate.

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.

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.



Contents

Appendix

Bibliography

Questionnaire



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


http://www.insurance.com/

http://www.iciciprulife.com/

http://www.google.com/


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

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?


Dissatisfied

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?


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

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


a project report on retention of financial advisors through training programs at icici

Documents

icici prudential team

life insurance industry

icici bank

prudential plc

company environment

betterment of company

training programs

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