Coronavirus | Life Insurance Corporation takes help from external agencies for promotion

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Coronavirus | Life Insurance Corporation takes help from external agencies for promotion

It may sound strange, but it is true. The Life Insurance Corporation LIC, the largest insurer in the country with assets of 38.61 lakh Crore, needs a helping hand of an external agency for assessing its officers for promotion to the top and senior management.

There is a chance of an external agency to take down the fate of some 650 officers with at least two decades of experience. The corporation's public listing would push it into the leagues of some of the largest conglomerates like Reliance Industries RIL HDFC Bank, TCS and Infosys in terms of market capitalisation as the corporation's public listing would push it into the leagues of some of the largest conglomerates like Reliance Industries RIL HDFC Bank, TCS and Infosys.

The evaluation of LIC is expected to be between 12.85 and 15 lakh crore, though the advisors are still struggling to compute its embedded value which would set the benchmark for market valuation. The IPO of the LIC is scheduled to be submitted in the fourth quarter of the current year.

Some experts are baffled with an external agency decisioning about the expansion of top management officers like Zonal managers, senior divisional managers, deputy divisional managers and deputy Zonal managers. In a corporation of LIC size, the system and processes for promotion should be inbuilt, says an HR expert.

The company says the corporation has taken the help of external agencies in the past, according to sources in the company. The government has appointed four managing directors and chairman of the LIC.

Over one lakh employees at the 65-year-old LIC are available, spreading over 2,000плюс branches and 1,500plus satellite offices. The promoting exercise will cover employees in foreign location and various states in the country.

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A total of 160 200 officers are for promoting top management, and there are an estimated 400 450 officers for senior management positions.

The agency, which can be a B-school or a recruitment firm, should have an average turnover of Rs 30 crore in the last three years. The company should have made profit in at least three out of the last five years.

The evaluation by an external agency is part of the exercise to move beyond the traditional method of evaluation.

As part of the work, the outside agency will have to conduct online and offline assessments in areas like requisite skills and attitude for the critical positions. This also means identification of cognitive, non-cognitive, leadership, psychometric, and other requisite skills.

There is a separate skill requirement for promoting to senior management level. It includes skills like team building, leadership and decision-making. LIC has a variety of skills like organizing, conflict handling, and negotiations skills.

The assessment for promotion to top management includes assessment skills, public speaking, team building, analytical ability, decision making and strategic thinking. There are other parameters like business acumen, execution excellence, conflict handling, negotiation and influence skills, creative problem solving, etc.

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