Problem statement: To study workmen compensation in IDBI and determine the satisfaction level of employees. Description of the Project: Reward system is a tool by which employee can attract, motivate, and retain employees. It involves everything the employee perceives to be of value resulting from the employment relationship successful. The reward system consists of many components out of which “Compensation” is one the most the important factor in employee satisfaction. Organization try to understand the type of compensation required for each of the employees and the one which has high impact on the system.
Research Objective: Employee’s preference towards total rewards system depends on one’s perception and the motivation level he has achieved in life. Various theories have been incorporated to justify the preference. The theories are explained in Literature review. Based on the problem definition, we formulated our hypothesis.
* Objectives of the Project: To study the workmen compensation in IDBI
-Primary objectives: The main task of the project is to identify: * The various compensations offered to workmen in IDBI and policies used to evaluate various compensations. * The satisfaction level of employees with their compensation at IDBI.
-Secondary objectives: * Is there any preference given to compensation by employees at any level of choosing job. * How compensation help organization to retain and attract employees.
* Methodology: * Primary Data: the main data collection will be done by surveys on the present as well as past employees if possible. * Secondary Data: the secondary data will be as provided by the company guides through their records and manuals.
Hypothesis 1: Employees are satisfied by the timely compensation provided to them under various circumstances by the IDBI. Hypothesis 2: Employees are not satisfied by the timely compensation provided to them under various circumstances by the IDBI.
The research is restricted to IDBI employees only, the population size consist of all the employees present in the organization. We shall try to involve the response of every employee. The various theories which help us to understand the satisfaction and retention level of employees in the organization are: The motivational theories which were crucial for this kind of study were Maslow’s need Hierarchy and Herzberg’s two-factor theory
* Maslow Need Hierarchy: People are motivated by inner needs. Needs form a hierarchy from most basic to higher order. The value of compensation will depend on the level of pyramid at which the person is residing. * Herzberg’s two factor theory: Employees are motivated by two ways of motivators: Hygiene factor and satisfiers. Hygiene factors in their absence prevent behaviors but their presence cannot motivate performance. Satisfiers such as recognition, promotion and achievement motivate performance.
According to Maslow’s hierarchy of needs the person who has achieved the levels of physiological needs and safety would be motivated by other factors. For the people at level 3 may not consider monetary rewards as driving force. Therefore there are chances that employees will not take compensation into matter for changing their jobs. Reward system is a tool by which employee can attract, motivate, and retain employees. It involves everything the employee perceives to be of value resulting from the employment relationship successful. The reward system consists of many components out of which “Compensation” is one the most the important factor in employee satisfaction. Organization try to understand the type of compensation required for each of the employees and the one which has high impact on the system.
Introduction * Insurance sector in India In India, insurance has a deep-rooted history. Insurance in various forms has been mentioned in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmashastra) and Kautilya (Arthashastra). The fundamental basis of the historical reference to insurance in these ancient Indian texts is the same i.e. pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. The early references to Insurance in these texts have reference to marine trade loans and carriers’ contracts. The insurance sector in India has grown at a fast rate post-liberalization in 1999. In the last decade, total premium grew at a CAGR of 25% and reached a total of $67 billion in 2010.
Indian Life insurance industry (which contributes 88% of total Life and General insurance premium in India) has emerged as the 9th largest life insurance market in the world. Yet, Insurance penetration (measured as ratio of premium underwritten to GDP) was only at 5.2 % in 2010 – significantly lower than Asian peers like South Korea, Taiwan, Japan and Hong Kong which boast an insurance density greater than 10%. With low insurance penetration levels, growth potential remains promising. More importantly, the pace and nature of growth will likely see a change where new behaviors and dynamics of demand and supply will apply.
On the demand side, growth is being fuelled by the growing population base, rising purchasing power, increased insurance awareness, increased domestic savings and rising financial literacy. The suppliers are correspondingly playing a market making role as competition heightens and differentiation become necessary for profitable growth. The major insurance companies in India and their market share is as follows–
Initially there were only two insurance companies that operated the insurance sector in India, namely, Life Insurance Corporation of India (LIC) and the other General Insurance Corporation of India (GIC). On December 2000, the subsidiaries were declared independent and began to operate as independent as independent insurance companies. According to statistics the life insurance premiums and general insurance premiums accounts to 2.5% and 0.65% of India’s GDP respectively
* Role of HR in Insurance Industry The Human Resources function in the insurance industry is of utmost important. The business of acquiring clients, providing proper awareness and converting them into customers thoroughly depends on the sales force. India being a developing nation, majority of households do not have disposable income. There is a shift in customer loyalty in no time owing to the digital revolution. The population that has enough disposable income at hand also requires proper financial advice.
The sales person, hence, need not only be well versed with the art of selling but also needs to be sound with financial knowledge about the products and its implications. Thus acquiring talent and retaining it is a major concern in this industry. The reason being a multifaceted personality is required to work for the company. The major compensation provided to these employees is often variable which keeps them on the edge of performing better every day.
* Introduction (Company) IDBI Federal Life Insurance Company Ltd is a joint venture of IDBI Bank, Federal Bank and Fortis (Ageas) Insurance International holding 48%, 26% and 26% stake respectively. With the Insurance Regulatory and Developmental Authority (IRDA) setting regulations to protect the interest of the customers, the insurer companies need to maintain a capital structure in the form of solvency ratio. A higher solvency ratio will lead to the company with a higher surplus.
As per the Annual Report 2011-12 released by IRDA, IDBI Federal holds a high solvency rate of 6.61 in March 2012. With a very high solvency rate which is second among all the private and public life insurers of India IDBI Federal poses as a healthy and safe insurer. As on March 2013, there are 10 products in the rack of IDBI federal. They are Bondsurance, Group Microsurance, Childsurance, Healthsurance, Homesurance, Incomesurance, Lifesurance, Loansurance, Termsurance, and Wealthsurance.