iTalent presents “VISION 2013…… A GAME CHANGER” 13th October 2012- Saturday This year’s seminar will focus on the increasing regulatory, economic, and environmental pressures currently faced by the industry, as well as looking at the next decade and how it will be the game changer. — Will the road ahead in 2013 be a challenge? Game changer for the future of the Insurance Industry? From 1st October you can check for Seminar Updates on http://www.talentdiscoveri.com/ Seminar By Invitation Only
Despite continued high unemployment numbers, companies are hiring. Surprisingly, they are finding it difficult to find just the right people for positions that they need to fill. Recruiters, often called “headhunters,” who took a huge hit when the economy tanked in 2008, are reporting that they are now busier than they have been in several years.
Working with a recruiter can be a great benefit in your job hunt, but only if you understand their role in the hiring process. Unfortunately, too many people have misconceptions about what they do, and how to motivate them to be your advocate. It’s time to clear the air and bust some of the myths.
1. MYTH: The Recruiter’s Job is to Help a Job Hunter Find Employment
FACT: Recruiters work for employers, not job hunters. Their job is to find the best talent for the position the employer is seeking to fill, bearing in mind all of the employer’s “must haves,” “should haves,” and “shouldn’t haves.” They aren’t paid to help people to transition to new fields, but rather to find talented individuals who have done the job already in a different context, or people ready to move up to the next level in their same career path. To be sure, they help individuals whom they are able to place, but their primary responsibility is not to be a career counselor or coach for job seekers.
2. MYTH: All Recruiters Are Paid the Same Way
FACT: There are essentially two types of recruiters for full-time permanent jobs:
Contingency recruiting companies aren’t paid unless their client company hires a candidate they submit. Competition among firms is intense. For individual contributor-type positions, employers will frequently offer multiple recruiters the opportunity to work on the same job posting, and only pay a fee to the recruiter who actually finds the right talent.
That said, many contingency recruiters form networks or alliances to cooperate with each other and do “splits” where they share job listings with one side, taking 50 percent of the commission for getting the listing and another side taking 50 percent for finding the successful candidate. This is much akin to realtors sharing commissions for the sale of a home. If a recruiter advertises a search for “my client,” but doesn’t include the name of the client, it is likely a contingency search.
Retained search firms are paid by a company to take on an exclusive role in a given search, with the understanding that they will receive a higher level of service and more complete candidate vetting than is typically the case with contingency firms. These firms are most often utilized for executive level searches. Fees earned for retained searches are generally much higher than for contingency searches, and are paid out at specific points in the search process.
3. MYTH: Recruiters Are Rude and Unresponsive
FACT: Recruiters, like anyone else with very limited time, prioritize who that time is worth speaking with, and for how long. They are likely to be very responsive to clients or potential clients who have job orders for them to fill, and people who they see as strong (potential) candidates for those job orders. They are likely to be much less responsive to individuals who approach them out of a sense of desperation, with a career change in mind, or who are not perceived as “A” class workers.
Most recruiters simply don’t have the time to respond to the hundreds of unsolicited resumes or phone calls that they receive virtually every week. And it simply is not their role to coach people who aren’t a close fit for the kinds of positions with which they work. It is common for a recruiter to make 50 to 100 phone calls each day, and with that kind of volume they simply don’t have the time to deal with extraneous conversations.
4. MYTH: Recruiters Aren’t Out to Get Job Hunters the Best Possible Compensation
FACT: In almost every situation, recruiting fees are pegged as a percentage of the new hire’s first year base salary. The more you earn, the more they earn. Often they have inside information about what the company is willing to pay, and are able to obtain a higher salary than what a job hunter initially thought they could get. Companies do not take the recruiter’s commission out of the new hire’s compensation. Much more often they understand that they must pay a premium for candidates sourced through recruiters.
5. MYTH: Recruiters Don’t Care About Creating Long-Term Relationships
FACT: Recruiters are essentially in a relationship-building business. The successful ones know that their long-term success is based on building their network of relationships. They remember who helps them on one search, and will be likely to want to aid that person later on. They appreciate when a job hunter isn’t a good fit for a current job, but goes out of their way to introduce them to someone who will be. They love the repeat business that comes from gaining multiple job orders from the same company. One surefire way to get a recruiter’s attention and build a long-term relationship with them is to offer to provide the names of people who are strong connectors to others, thought leaders, and high performers in their specialized field.
Not every job hunter will find success working with a headhunter, but if you are accomplished in your field and committed to staying in it, building relationships with recruiters who specialize in your skill set and industry will be a great asset in your job hunt.
Public sector general insurer New India Assurance is likely to post 18-20 per cent gross premium growth in the current financial year, after reaching Rs 10,000 crore mark last fiscal, a top company official said today.
“We will maintain our leadership position. We hope to see 18-20 per cent growth in premium in the current financial year, in line with the industry growth projections,” company’s Chairman and Managing Director (officiating) A R Sekar told reporters here.
“We have not seen losses from foreign operations…it should be a profitable growth,” Sekar said.
The largest general insurer had reported a loss of Rs 412 crore for the first time since its inception in 2010-11 on account of around Rs 300 crore losses from foreign operations.
However, the company swiftly swung back the very next fiscal (2011-12) with Rs 179.4 crore profit.
On growth in various segments, Sekar said, “Both corporate and retail segments are witnessing sound growth rates. But, growth in retail is higher than other segments”.
Any general insurance player who would like to see rise in profit has to concentrate on retail segment, he said.
About hike in premium in health, fire and motor insurance, Sekar said any rise is consumer-specific, which depends on the risk attached.
“I can’t give a number across the board. It depends on the individual policy and risk attached to it,” Sekar said.
New India reached a gross premium collection of Rs 10,074 crore in FY2011-12. While Rs 8,543 crore was from domestic operations, Rs 1,531 crore came from overseas operations.
It had posted a profit of Rs 179.4 crore during the last fiscal.
“The meeting discussed how to increase insurance penetration, how insurance companies can do more business, how better products can be introduced at lower premium, and how more investment can flow to infrastructure sector,” said financial services secretary DK Mittal.
Mittal said there will be another round of meeting to discuss investment and taxation issues. The government is looking to popularise insurance and mutual funds to wean investors away from gold and raise long-term funds for investors.
A government official familiar with the deliberations told ET that insurance regulator has agreed to develop a mechanism for faster approval of insurance policies.
“But the ‘use and file’ process will only be applicable for standard products and the insurers will also have to explain the product mechanism before hand,” he said.
At present, insurers can introduce products only after obtaining the sector regulator’s approval.
Ways to relax investment norms to channelise more funds into the infrastructure sector, bancassurance and process of approval for opening offices in Tier-II and below towns were among the issues discussed.
Exemption of service tax on insurance policies, especially annuities, will be among the key issues that will be discussed on Thursday, another official said. The policies currently attract a service tax of 3 per cent.
Finance ministry will also discuss with IRDA a proposal to allow insurance companies to invest up to 50 per cent of their debt investments in AA-rated paper, as opposed to the current stipulation that they invest 75 per cent of their debt corpus in AAA-rated bonds. At present, 50 per cent of the total investible funds of insurance companies have to be parked in government funds. It has now been proposed that this allocation be lowered to 40 per cent.
Finance ministry officials and IRDA are also expected to deliberate dilution in the 18 per cent minimum alternate tax, or MAT, applicable to non-life insurers.
According to estimates, the investment corpus with life insurance companies is about Rs 13 lakh crore. Of this, only 20 per cent currently goes towards the infrastructure sector. India needs about a trillion-dollar investment in the infra space during the 12th Five-Year Plan (2012-17).
Some of the common factors in these cases include inability to align aspirations with proficiency, failure to do a course correction, over aggression, lack of team skills, poor work-life balance, arrogance and inappropriate mentorship.
“As individuals progress through their careers, they should strive for sustainable growth; growth and development in every sense — physical, emotional, professional and spiritual, says Leena Nair, executive director — HR, HUL.
In order to do this, one needs to set personal goals just the way one sets professional ones and hold oneself equally accountable for both, she adds.
Many a time, a young leader is seen faltering because of unrealistic goals and a hurried approach.
In 2006, a British multinational banking and financial services firm hired a talented young leader to head its commercial banking operations in India. The leader, in his early 40s with extensive experience in banking, was put at the helm to enable the bank attract top talent. Three years down the line, the young leader abruptly put in his papers, amid much speculation about his exit.
“He was an outstanding leader, but just could not manage the monster that he created. He was being aggressive and crazy and was not able to get things in the right perspective,” says a person close to this once highly-spoken-about leader in Mumbai’s banking circles.
A former head of a Kolkata-based residential property, also in his early 30s, tried hard to give shape to a conversion project — manufacturing to real estate — on the outskirts of the city but the project failed due to his aggressive pace, apart from issues on the family side of the business. “He was capable of doing much more but could not manage the commitment on the project,” says a person close to the leader.
“When a young leader does not have a realistic expectation of oneself, he or she could burn out fast. You cannot win every battle,” says Santrupt Mishra, carbon black business CEO and group HR director, Aditya Birla Group. “Being a realist while trying to achieve the best is important,” he adds.
“When people are in a hurry and try to take short-cuts without getting sufficient experience they reach a level where they cannot meet expectations leading to non-performance and failure,” says Dinesh Jain, CEO of Hovers Automotive.
FAILURE TO IDENTIFY STRENGTHS
The failure to identify one’s core competence can lead to an early crash-out. “Be aware of one’s strengths and weaknesses and focus on using the strengths,” says Rajeev Dubey, president group HR, corporate services and after-market, Mahindra & Mahindra.
Jain cites the case a hugely successful global manager and CEO of a multinational consulting company, who decided to take on the role of the CEO of a operations company in the business of manufacturing and marketing. “He was brilliant in strategising but when it came to giving directions in operations to a larger workforce he failed,” says Jain.
INABILITY TO CHANGE
Young leaders sometimes tend to get chained to previous experiences that are not relevant to the current environment. The inability to adapt and learn to work in a change environment can lead to failure of a young leader. “Failure to do course correction and inability to prioritise and focus on key success factors could lead to early burn-out,” says Dubey.
However, there are many who do the course correction successfully, like this young leader who made transition from a consultancy to an operations firm but made his way back promptly as he realised he was not hardwired to take decisions in an environment that demanded quick and multiple decision making in the absence of full information, where he failed.
Citing his own example of having to learn to work in a change environment, Jain of Hovers Automotive, says, “When I moved as a young manager from a large MNC to a start-up it was a big challenge and I had to go through a complete new learning curve that took time”.
Former State Bank of India chairman OP Bhatt has been appointed on a panel that will assist in the search for the next chief of Insurance Regulatory and Development Authority, a move that signals Bhatt’s return to the establishment.
Bhatt was at odds with the Reserve Bank of India on several issues when he headed the country’s largest lender from 2006 to 2011, but with the change of guard at North Block, he seems to be back in favour.
Although Irda chairman J Hari Narayan is due to retire in February, the government is keen to start the succession process early.
Besides Bhatt, former Sebi chairman GN Bajpai,financial services secretary DK Mittal, department of economic affairs secretary Arvind Mayaram and secretary in the department of personnel and training PK Mishra have been named on the panel.
“We have to shortlist one director from an Indian Institute of Management,” the official said. “Once that is done, we will send all the names to the appointments committee of the cabinet for approval.”
Former chairman of Life Insurance Corporation TS Vijayan is said to be the front runner for the post of Irda chief. Vijayan, who was battling corruption allegations, was recently given a clean chit by the Central Bureau of Investigation and the finance ministry.
During his stint at SBI, Bhatt had locked horns with RBI on teaser loans, a home loan scheme that offered lower interest rates in the first few years, and later on provisioning norms, resulting in his gradual alienation from the finance ministry then headed by Pranab Mukherjee.
Soon after Bhatt left, SBI reported a 99% fall in profit in the quarter to March 2011, which was blamed on higher provisioning. The bank had then set aside 500 crore on outstanding teaser home loans on the directions of RBI.
SBI had to eventually discontinue the teaser loan scheme. “Bhatt was in SBI and not SBI himself,” Pratip Chaudhuri, the current chairman of the bank had said justifying the decision.
Some finance ministry officials say Bhatt’s vast experience could have been utilized better by the government after his retirement from SBI.
“There are so many issues such as bank capitalisation, new licences, financial inclusion. In fact, he could have provided more teeth to the spate of circulars that the ministry issued,” one of these officials said.