Advisor?s assessment
Trang 2Table of Contents Fe 21 TT BE 3 1.1110 001575 nan nano aanni CHAPTER 1— INTRODUCTION 1.1 Life insurance market in Viet Nam
1.2 Company and Division Introduction
1.3 Research introducCtÏOn cà nh HH HH1 11 1 1 001 k1 4441141011272 m1911111 111 20 1.3.1 Problem statemenn† ‹ + + ch HH HH HH H2Họ r1 tr 0 tr 010211110010111121111 10 20 1.3.2 Purpose of the SEUdV con HH HH 1111.0110710 21 1.3.3 The scope of the researCh + c+t2HhrHgHHHhHHH1110210111111110122.11 1 21 1.3.4 Research qU€StÏOPS co cnhHHhưhhrưHHa He 11101n1011018011.110 21
CHAPTER 2 — LITERATURE REVIEW QQQ Ặ nh nHne HH ng t1 93 008121113181101.111 E1111110181111190 22
2.1 Recruiting the suitable candidates in life insurance industry «eeeeerrerrerrderrrrrre 22 2.2 Personality traits cs csssssscssssesceceesesesnecsnecneseessesssenenseeescsesesssaesesaseeerensenseeenenseeseesaneneeeeenees ee
2.3 Motivational traits
2.4 Interpersonal traÏfS - ch rHhhhtH110120010 1 111101100111001.081n1ne0nPnnle 29 CHAPER III— RESEARCH MODEL AND HYPOTHESES - - cà nhHhthrrrrrrdrrimeitritrirrere 31
k8 uc: nh .i an na nano 31
3.1.1 Dependent variabl€S: canh 1101111011 31
3.2 Research hypotheses
khẩu, ƠƠƠƠ an
3.4 Research PartiCiparnitS - c chén Hà 1 H121 3.5 Procedure for data collection and analyze
Trang 3CHAPTER V - CONCLUSION - cu chà” H2 HH2 H0 HH HuknnHKƯn H1 0111414110177 1m S4 5.1 Summary and conclUsiOnt + ch tr HH tà 1114111100111 net 54 5,2 Management implicatiOns - chu hh H2 H2 H111 n1100111tx 55 5.3 Limitations and further research recommendations - ch de 55 0/1/15 1701017 56 ADpenndiX cv HH HH HH0 21111411011 T1112221117117111111011T0-001110111100110 10 60 [103,211 011007 ố ố aa ên 65
Trang 4ACKNOWLEGEMENTS
I would like to take this opportunity to thank deeply and give my sincere gratitude to my instructor, Dr Hung, who has instructed and given me a deep and sound
knowledge of Business Research Method This is an interesting subject to learn, thanks
to the real practical examples and hearted-instruction of Dr Hung in the class, it helps
me to understand deeply the most important ones of the Business Research Method
Through this semester, Dr Hung has inspired us a lot to explore the Business Research Method subject and installed very deep useful knowledge of this subject It is stimulated for me to do some further research in this field in the future When studying
this subject, I realize that it is very important for my work
Trang 5ABSTRACT
This is a very hard topic to research but very interested to carry out this survey It is not popular There are not many studies about this subject in the life insurance However, in life industry, recruiting the suitable candidates is very important or how can to keep the candidates to stay a long time in industry is very important It costs a lot of time and money to recruit the suitable candidates Every year the life industry in Vietnam recruits thousands of agents But they can’t keep the candidates for a long time due to many reasons such as part time agents, wrong recruitment
In order to help AIA Vietnam can save a time as well as money The study is carried out The study tries to find out the factors affecting the recruiting the suitable candidates Through the literature available, the study focuses on the factors: personality traits, motivational traits and interpersonal traits to find out they are import or not
As the result found out, the study shows that all the three factors are very important when choosing the right agents We recommend for all the leaders that they should spend time to interview to find out the three factors whether they are suitable for this job like an agent or not
Trang 6CHAPTER 1 —- INTRODUCTION 1.1 Life insurance market in Viet Nam
According to Mr Phung Dac Loc, general secretary of the Viet Nam Insurance Association, spoke to the Vietnam News Agency about those issue
Viet Nam's life insurance sector has registered significant growth in recent years
though the local growth is still facing hurdles With six million out of 90 million people
with insurance contracts, the domestic life insurance market still has great prospective to grow There were 17 life insurance companies by 2014 with around 1,000 representative offices and general insurance agency offices There are 290,000 insurance dealers nationwide The total insurance premium revenue in 2014 reached VND28.54 trillion (US$1.268 billion), a year-on-year growth of 21.7 per cent
According to the association and Insurance Management and Supervision Administration, the total insurance premium revenue in the first half of this year gained a year-on-year growth of 30 per cent to VND16 trillion ($711 million)
Most of the salary of the Vietnamese is below middle level According to statistics of the International Retail Association, in Viet Nam, the middle-income group, who can
save a certain amount of money to buy insurance products, accounts for only 15 per cent
of the total population In the meantime, the high-income group in Viet Nam has not changed its thinking to ensure a steady and better quality of life in the future That means they do not think of buying insurance products or investing in a fund to secure their future Moreover, the value of activities on training and consulting from insurance agents has also not been up to the mark The agents have asked more people to buy insurance services only because they receive commissions from insurance contracts
Trang 7organizations or individuals have often learnt from the experiences of other insurance operators in the market when they want to set up their businesses Moreover, development of one insurance firm needs a long term plan, including development of a distribution system via agents and the labor force Life insurance products are valid between 10 years and 20 years or the entire lifetime so insurance firms must calculate the value of cash in the future
According to commitments with the World Trade Organization as well as with foreign partners at free trade agreements and bilateral trade agreements, Viet Nam will open its insurance market, which includes life insurance The local insurance market has great potential with large market shares that has not seen investors In addition, foreign insurance companies have strong points with regard to experience, information technology, management and development of products, and especially experience in distributing insurance products Meanwhile, there is high request of life insurance products in the local market The people need funds to complete certain tasks in the future, including children's education, their nurturing, looking for work and buying a house or a vehicle If the people have greater earning, they will pay more attention to their health At present, if they are sick, they wish to be treated at hospital with high quality and advanced technology This will promote competition among insurance firms Finally, employers want to retain their employees by buying insurance products for their workers
Trang 8The association is a representative of insurance companies to contribute opinions to legal documents related with insurance business activities, including a guide of law on insurance business and regulations on finance, accounting and tax The association has also reflected the difficulties in insurance business activities, policies, administrative procedures, tax and activities of agents as well as proposed solutions for those difficulties
1.2 Company and Division Introduction AIA Corporate Facts ba + Tae Highlights « Born in Asia e A Future Built on 90 Years of Strength e Strong Heritage ¢ Solid Fundamentals e First to Market
Trang 9Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 97 per cent subsidiary in
Sri Lanka, a 26 per cent joint venture in India and representative offices in Myanmar and
Cambodia
The business that is now AIA was first established in Shanghai over 90 years ago It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets It had total assets of
US$172 billion as of 31 May 2015
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance
and savings plans The Group also provides employee benefits, credit life and pension
services to corporate clients Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 29 million individual policies and over 16 million participating members of group insurance schemes
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level
1) traded on the over-the-counter market (ticker symbol: “AAGIY”)
AIA Vietnam is one member of AIA Groups established in February, 2000 AIA Vietnam has more than 500 staff and 24,300 agents up to the end of 2014
AIA Vietnam have protected 482,000 customers and has paid insurance benefits for more than 261,000 customers with more than 1,730 Billion VND up to Sept 2014
Trang 10In order to become the most beloved company in Vietnam, AIA has been focusing on recruiting high quality of agents, expanding the network of distribution, launching
new products with high benefits and building new project life AIA — Exchange or Nest to build more image of AIA to the community
A Introduction to the Pioneer II of AIA in Vietnam
AIA has established in Vietnam since 2000 It has been operating in Vietnam for
a long time AIA Life Insurance is one of the biggest groups in the World, but in Vietnam
it didn’t take the big share in Vietnam before Therefore, the Board of Directors has given out many strategies to take the market share in Vietnam In 2011 it stood the 6" position in the market share Now it is one the 3 biggest life insurance companies in Vietnam, paid more than 100 billion VND of new premium per month just after Bao Viet life insurance groups and Prudential Vietnam groups AIA is the fastest growth of new business one in Vietnam market
Keeping the very good momentum, during the Pioneer 2 called “Catching the next wave” in 2015 and then, AIA Vietnam has determined to develop new paradigm in life insurance market in Vietnam They decide to develop the new generation call “Gen X (born from 1968 until 1979) and Gen Y (born from 1979)” with at least college degree and applied new technology to do the contract for customers instead of using paper contract We don’t call the “Agent” but “Life Planner”, They will spend half a month for basic training with some allowance, they are just like “half-staff” It means that they also have salary and commission The more they sell the more commission they have
Trang 11We rolled out this project early 2015 We have a very bid ambition in the future In 2016 we will set up the 4 more “AIA Exchange Office” nationwide
B The current operation in 2015
This project has run from early 2015 up to now And we have done some big
achievements AIA Groups supports this project and our orientation in the Pioneer II
They are very happy with the result we have done the Phase I from Jan to June Now we are running the phase IT Target KPI Jan Feb Mar Apr May Jun Total ANP (mil) 245 489 734 935 1.136 1.337 4.876 New recruits 17 17 17 17 17 17 102 No of active 13 26 39 49 60 70 257 PA 0 4 0 0 36 0 40 KPI Jan Feb Mar April May June Total ANP (mil) 146 275 396 754 1,270 1.457 4298 New recruits 9 6 10 19 44 21 109 No of active 6 12 24 29 49 59 179 PA 0 6 25 31 KPI Feb Mar Apr May Jun Total ANP (mil} 56% 54% 81% 112% 109% 88% New recruits big 30-28 SR 5R 6 cee 50Y : Ve 124% 107% No of active 46% 46% 62% 59% 82% 84% 70% PA | ' 69% 78%
Notes: ANP (annual premium relating to sales); Active (Life planner does sales in current month); PA (Premier Life planner, the one who sells at least 40 million VND quarterly)
During the pilot time of the first 6 months, we have reached more than 107% of recruitment, 88% of Sales, and 70% of Life planners having sales This success is more than expectation of Board of Directors
` Đà Zz củ)
—
Trang 14The below table shows the plan for 2015: Box 1 2 3 4 5 6 7 8 Cases Cases |Active |Case Per
New Total |Actve |Case (Per Non- Size Active ANP
Exchange |Recruit |Premier !Premier |Size Active {Premier |Non Non ANP Non- Total ANP HCM 8 s S Premier |Premier |s Premier |Premier |Premier |Premier |Plan December January 17 13 11,10) 1,7 245 245 February 17 4 26] 11,10 1,7 491 491|PA promoted March 17 4 3 12 22 35 11,00 1,7 79 655 734 ril 17 4 3 12 22 46] 10,95 17 79 856 935 May 17 36 3 12 22 S7 10,90 1,7 79 1.058 1135|PA promoted June 17 36 25 12 22 37| 10,85 17 660 682 1342 July 25 36 25 12,5 25 50 11,50 1,7 781 978 1.759 August 30 50 25 12,5 25 83|_ 1150 17 781| 1232 2.013 |PA promoted September 35 §0 35 12,5 25 71 11,50 1,7] 1094 1.388 2482 October 35 50 35 12,5 2,5 85 11,501 17| 1.094 1.662 2.756 November 35 74 35 12,5 2,5 98 11,50) 17] 1.094 1.916 3.010 |PA promoted
The fiscal year of AIA ftom December to November yearly C Company strategies & Goals in 2016 to 2019
The economic and social conditions of Hanoi and HCMC are radically different
from the rest of the country, with no insurers has a clear dominant market share
However, existing AIAV agency force in Hanoi and HCMC is presently faced with low recruitment, retention and stagnant production A lot of good agency leaders desire a stronger company support regarding to a standardized, practical and disciplined framework in recruitment, coaching and financial aid Thus, AIA Vietnam needs a strategy to engrave good working habits to ignite the existing agency force and build a pool of full-time and highly productive agent force
Contribute to Dominate the Cities strategy (focus on HCMC and Hanoi markets) by attracting, recruiting and developing a new high-performing full-time agency force (both Gen-X and Gen-Y) through innovative marketing, attractive compensation, rigorous selection process and intensive training and coaching
Trang 15Project will set up the Initial Pool in Year 0, i.e only recruiting Life Planners for the 1st 6 months, meaning that there are only 6 batches recruited enjoying benefits from the Project’s compensation scheme
After the Ist 6 months, these 6 batches continue to generate Production for the Company They are still called Life Planners
Within each batch, after its first 12 months, some of the Life Planners will be promoted to leader and these leaders will recruit new agents These agents will generate production and enjoy BAU compensation scheme
+ Year | starts when the Project has Agency Leaders generated from the Ist batch of Initial pool
Year 0 (FY2015) — Setting up Initial Pool: 19 Leaders & 103 Life Planners
FY2016 Pe FY2018 IàV 2116)
No New Life Planner Manager (Leaders) 5 9 l6 28
No New Recruits 37 80 144 261
No In-force Life Planner (Agents)
57 106 202 377
(at year-end)
No Premier Life Planner (Premier Agents) 27 49 92 172
The Table above is the plan of Board of Directors
D Planning for recruiting workforce in 2016 & 2017
In the 2015 the turnover is very high per month, we have recruited more than 200 life planners Up to now we have terminated nearly 100 life planners
Trang 16Planning for 2016: Box 1 2 3 4 5 6 7 8 Cases Cases Per Case Per Active Case Active
New Total Active Size Active Non- |SizeNon| Non ANP ANP Non- | Total ANP
Exchange HCM | Recruits |Prernlers |Premiers | Premier | Premier |Premlers Premier | Premier | Premier | Premier Plan December 35 74 56 12,5 25 75) 115 17 1.734 1.466 3.201 January 17 74 36 12,5 25 40 11,5 17 1.125 782 1907 February 18 74 46 12,5 2,5 45 11,5 1,7 1.434 880 2.314 March 35 90 68 12,5 2,5 72 11,5 17 2.109 1.408 3.517 April 35) 90 68) 12,5 25 80 11,5 17 2.109 1.564 3.673 May 35 90 68] 12,5 2,5 86 11,5 17 2.109 1.681 3.791 June 35 115 86 125 25 67 115 17 2,695 1.310 4.005 July 35 115 86 12,5 2,5 72 11,5 17 2.695 1.408 4.103 August 35 115 86] 12,5 25 77 11,5 17 2,695 1.505 4.201 September 35 130 98 12,5 25 69 115 1,7 3.047 1.349 4.396 October 35 130 98 125 25 74 11,5 17 3.047 1.447 4.494 November 35 130 98 12,5 25 80) 11,5 17 3.047 1.564 4.611 Total 350 891 837 26.113 14.897 44.211
In 2016 we set up to have sales volume of 44 billion VND Therefore we have to recruit 350 life planners Planning for 2017: Box 1 2 3 4 s § 7 8 Cases Cases Per Case Per Active Case Active
Exchange New Total Active Size Active Non- |SizeNon| Non ANP ANP Non- | Total ANP HCM Recruits | Premiers |Premiers| Premier | Premier |Premiers | Premier | Premier | Premier | Premier Plan December 35) 90 68 12,5 2,5 90) 11,5 1,7 2,109 1.760 3.869 January 20 90) 36 12,5 2,5 60 11,5 1,7 1.125 1.173 2.298 February 20 90 56] 12,5 2,5 6q 11,5 1,7 1,744 1,173 2.917 March 40 110 83 125 2,5 80 11,5 1,7 2.578 1,564 4.142 April 40 110 83 12,5 25 90 11,5 1,7 2.578 1.760 4,338 May 40 110 83 125 25 100 1L5 17 2.578 1.955 4,533 June 40 130 98 125 25 100 11,5 1,7 3.047 1.955 5.002 July 40) 130] 98) 12,5 25 100 115 1,7 3.047 1.955 5.002 August 40 130 98 12,5 25 100 115 17 3.047 1.955 5.002 September 40) 150] 113 12,5 25 120 11,5 1,7 3.516 2.346 5.862 October 40 150) 113 12,5 2,5 120 11,5 17 3.516 2.346 5.862 November 40 150} 113 12,5 25 120 11,5 1,7 3.516 2.346 5,862 435 32.400 22.287 54.687
In 2017, we will recruit 435 life planners and produce 54,6 billion VND
Trang 17We have the criteria for choosing candidates suitable for the project The age should be from 23 to 35 for Gen Y and 36 to 50 for Gen X They must have college degree with 3 year experience and have income from 6 to 10 million with the previous job They are responsible to prove the current monthly income by bank statement and
other supporting documents
They must go through the recruiting process It means that they have to attend
Career Orientation Presentation, do questionnaire, and get the interview with the panel
interview If they pass, they will attend the training course for two weeks and take the
exam to get the certificate
Notes: Premiers (the one sells well); Active Premiers (the good one activates monthly); Case Size (the average premium per policy); ANP (annual premium); Non- premier (the normal life planner)
E Planning for training
h1 Câu si oe 7 at Te: bel er eas mẻ LTV S2 DU s4 Buloet Đa dder SLs Đu it Leal
E 3 Bd 6 5 H a CT 1g Pan Bão t5 oe oka Do ck 8% O8
Hl Cera day) FT KT LÊ LẺ ái LÊ nh ST? Re SAR RY ag SMES 0800 ae Zk# Bi Builder | Suider a 12 eas cea ci Cora
If the candidate passes the interview, he/ she will attend the intensive training
Trang 18will learn the knowledge of the industry, company, vision, core values, ethical values
and standards, key products and riders They also learn the sales skills such as approaching and calling, sales concepts and closing techniques They learn some basic soft skills such as active listening, basic grooming, basic NLP (neutral language programming) They will do goal setting and do commitment to mandatory daily activities One of the most important thing is that they must pass the exam of Ministry of Finance to get certificate Secondly, they will learn how to program the proposal for
customers through IPOS on IPAD They will learn some underwriting, basic claims and
servicing processes They will learn some basic investment concepts They will learn more deeply about sales cycle, referral language, role play on closing and objections handling, rapport building and connectivity, body language Thirdly, they will learn more about product portfolio They will learn more soft skills called SB They will learn how to increase the case size, prospecting, market expansion, enhance productivity, customer orientation, personal development etc
The table shows some core training/ coaching activities for life planners:
Core training/ | Time duration/
No coaching Activities Class Notes
1 Skill buiider (SKB) 3-4 hours Biweekly 2 Sales builder (SSB) { hour Biweekly 3 How to Series (HTS) | hour Biweekly
4 Underwriting (UIW) 4 hours once/ every 2/3 months 2 Customer Service (CUS) once every 3 months
continous 6 Sale kit training (SKT) 4 hours training/coaching
continous 7 COP kit training (COP) 4 hours training/coaching
Step up to premier (SUP) 8 hours once/ every 2/3 months 9 PA training skill (PAS) 4 hours PA1-PA2 (once a month)
10 Presentation Skill (PRS) 4 hours every 2/3 months ll Cold Canvass Training (CCT) 3 hours Monthly 12 Cold Canvass on field (CCF) 3 hours Monthly
Trang 19F Compensation
Basic Requirement: 100% Training & Activity XY Maintenance Requirement (MR):
* Reviewed every quarter
* FYP (first year premium) & Case: As Table bellows ¢ First 3 months inactive or not achieving MR: terminated Benefits:
* Training Allowance (Month 0): 3 Mil,
Notes: 3 Mil is paid after completing Month 0 training, passing all induction program exam This amount will be shared 50% by AL if his LP left the company (either resign or terminated) in the 1st 3 months
* Monthly allowance: Monthly Allowance is allowed to catch-up by month 12
Mlonthls h h h h h I h M ML OMI AT Allowance b 0 | 2
XY Maintenance 30 Mil FYP & 3 35 MilFYP & 4 40 MiI FYP & 4 45 Mil FYP & §
Trang 20— 50% of FYC is paid at rolling quarter end
— The Remaining 50% of FYC will be paid in 3 turns:
=> 40% is paid in Month 13 if the LP achieves PA3* (life planner has 17 million
VND commission quarterly), at least 300 million VND production in total of the Ist year
=> 30% is paid if LP (life planner) continues achieves PA (at least having 12 million
VND commission quarterly) in next quarter
=> 30% remaining is paid if LP continues to achieve PA in the quarter after next * Quarterly Bonus: Nil
* Others: Applied as BAU (Business as Usual) scheme
Calculation of agent's total benefit will be reconciled at end of month 12 between the PROJECT AIA EXCHANGE 's scheme (Monthly allowance + SO%FYC (paid at quarters end)t+ other Bonus) and the BAU scheme (100%F YC+ Bonus) The higher one will be prevailing
Other benefits:
Y Uniform: Life Planner who will be provided uniform valued 3 mil (included in Compensation Cost)
Ceremony: Passing probation ceremony, graduation ceremony Premier Agency Club
Other Company Yearly Award Yearly health care check up
S
S
Trang 211.3 Research introduction 1.3.1 Problem statement
Recruiting agency force is very important for all life insurance company In
Vietnam, there are 17 life insurance companies: Prudential Vietnam, Bao Viet, Manulife, AIA Vietnam, Ace Life, Dai-ichi, PVI — Sunlife, Prévoir, Great Eastern, Hanhwa, Generali, Aviva (Vietinbank — Aviva), Cardif, Cathay life, Fubon life, Phu Hung Life, Metlife All the companies they have to find out the best way to recruit the good agents for their companies Agency force is the main one to distribute life products to all customers The problem is that all companies can recruit many agents but it is hard to keep the agents to stay a long time with the company due to many reasons The retention is very low Like AIA Vietnam, the retention is just 20% within 12 months That is the reason why all the companies have a big headache to solve the problem AIA Vietnam recently focuses mainly about the retention of agency force That is why they must find the best way how to choose the suitable candidates in order to improve the retention Every year, AIA Vietnam has to spend a lot of money for recruiting and training new agents Due to the high turnover, the cost is very high each year
Trang 22as a routine whenever there is a vacancy to be filled, and which can be monitored and adapted in the light of experience.”
In life industry, recruiting agency force is very difficult, especially if we want to recruit the right people The agents don’t have fixed salary life permanent staff They only have commission if they can sell the product In order to look for the right people who can work in life industry like an agents needing a lot of time and high cost
1.3.2 Purpose of the study
The purpose of this research is to find out what are the key factors to recruit the suitable candidates for agency force in AIA Vietnam (AIAV) The research will answer the question “What are the key factors to recruit the suitable candidates for agency force in AIAV This is very important for AIAV If we can answer this question, the AIAV can improve the retention and save a lot of cost as well as to improve the reputation of the company This research aims to find out the key factors to recruit the suitable candidates and
1.3.3 The scope of the research
Based on the purpose of the research, the questionnaire is designed for agency leaders who have many years of recruiting agency force It surveyed with 200 agency leaders in order to find out the key factors for selecting the suitable candidates We try to find out the key ones in order to guide the rest of agency leaders to have a compass
for their work
1.3.4 Research questions
Trang 23knowing that, in order to attract the suitable or the quality ones, the products and compensation must be good and all the companies are nearly the same The problem here
is that the key factors such as personality traits, market potential, motivational traits, interpersonal traits, product belief of such a candidates in order to select the best one to
stay with the company for a long time CHAPTER 2 —- LITERATURE REVIEW
2.1 Recruiting the suitable candidates in life insurance industry
Recruiting the representatives for life industry is not hard, but the problem how to recruit the right ones and keep them to stay long in life industry If recruiting the right ones can save a lot of money for company and bring a lot of production for the company According to Wikipedia, “Recruitment — synonymous with "hiring" in American English — refers to the total process of attracting, selecting and appointing suitable
candidates for jobs (either permanent or temporary) within an organization Recruitment
can also refer to processes involved in choosing individuals for unpaid positions, such as voluntary roles or unpaid trainee roles Managers, human resource generalists and recruitment specialists may be tasked with carrying out recruitment, but in some cases public-sector employment agencies, commercial recruitment agencies, or specialist search consultancies are used to undertake parts of the process Internet-based knowledges to support all aspects of recruitment have become widespread
Trang 24Life policies are legal contracts and the terms of the contract describe the
limitations of the insured events Specific exclusions are often written into the contract to limit the liability of the insurer; common samples are claims relating to suicide, fraud, war, insurrection, and civil disorder
Life-based contracts tend to fall into two major categories:
Protection policies — designed to provide a benefit, typically a lump sum payment, in the event of specified event A common form of a protection policy design is term insurance
Investment policies — where the main objective is to facilitate the growth of
capital by regular or single premiums Common forms (in the U.S.) are whole life, universal life, and variable life policies.”
2.2 Personality traits
According to By Mark P Cussen, CFP®, CMFC, AFC, “High vitality level - One of the most vital traits of a good insurance agent is that they appear to be excited and excited at all times A worn-down or dreary disposition will immediately rub off on clients and discourage them from buying anything
Persistence - This is possibly the most vital quality of any good insurance agent Those who work in this field totally must be able to handle rejection on a daily basis over the course of their careers, and do it with a smile Good insurance agents understand that each "no" only brings them closer to someone who will say "yes."
Trustworthiness - Insurance agents who use deception to close business seldom stay with the same company for very long - and can end up behind bars in some cases
HE
Trang 25A good agent identifies that telling the truth up front will win them clients' respect and trust and is likely to lead to repeat business over time.”
Research in the field of personality has recently advanced compelling evidence that (a) personality constructs can be measured with practical consistency, (b) there is stability to personality measures over time and occasions; (c) personality
measures are significantly related to some external measure of performance; and
(d) personality measures can predict performance of prospective employees in certain settings (Barrick & Mount, 1991; Hogan & Nicholson, 1988) In the past 10 years, the views of many personality psychologists have converged regarding the structure and concepts of personality
There is growing consensus that there are five robust factors of personality (referred to as the five- factor model or the Big Five factors), first postulated by Norman and developed by Goldberg and Costa and McCrae (Taylor, 2004), which can serve as a meaningful arrangement for classifying
Personality attributes (Digman, 1990), the five factors include Extraversion, Neuroticism, Agreeableness, Conscientiousness and Openness to Experience Ata glance, the factors typically can be seen as necessary personality dimensions for a number of occupations Goldberg (cited in Digman, 1990) asserts that any model that focuses on finding a structure to explain individual differences should include traits reflected in the big five dimensions
Trang 26Traditionally, Industrial Psychologists have questioned the usefulness of
personality measures in predicting job-related criteria (such as job performance), because of pessimistic conclusions of early reviews of the topic (for example, Guion & Gottier, 1965) and concerns that most personality measures can be faked (Bergh & Theron, 2003) However, recent reviews have suggested that personality measures are valid predictors of diverse job-related criteria (Barrick & Mount, 1991; Goldberg,
1993 cited in Rothmann & Coetzer, 2003; Tett, Jackson, & Rothstein, 1991)
Personality is one of those core universal concepts in psychology that has attracted much attention and theorizing The diverse approaches and theories on personality are reflected in many different definitions, as no universally accepted
definition exists Definitions of personality may reflect the theoretical and assessment
preferences of theorists According to Bergh and Theron (2003), there is consensus on some aspects which should be included in a personality definition and aspects which influence personality According to Bergh & Theron, (2003, p 291), to define personality in all its dimensions, the following criteria or aspects must be considered:
- The external, visible or observable physical appearance, behaviour and traits, often referred to as a “mask”, the original meaning of personality;
- Possible invisible, covert or unconscious behaviours, emotions, attitudes, values, thoughts and feelings within people;
- Enduring patterns and consistencies (e.g shyness in many situations), but also the dynamic nature of behaviour, indicating motivation and change;
Trang 27different situations in a fairly consistent manner, Andrews (2001) emphasizes the construct’s relatively stable nature and its predictive quality Child (cited in Bergh & Theron, 2003, p 291) refers to personality as “more or less stable, inside factors that make one person’s behavior consistent across, and different from the behavior other people would manifest in comparable situations” underlining the individual and idiosyncratic or unique expression of personality as external behavior Ivancevich and Matteson (1993 cited in La Grange & Roodt, 2001, p 35) construes personality as the product of internal and external factors “formed by inheritance and by social, cultural, and environmental forces” and which "determine the commonalities and differences in the behavior of the individual.”
A definition more relevant to the present study that locates personality as a
composition of unique predictable traits comes from Raymond Cattell, who was one
of the protagonists of trait psychology Cattell (cited in Byrne, 1989, p 136) defines
personality as “that which permits a prediction of what a person will do in a given
situation The goal of psychological research in personality is thus to establish laws about what different people will do in all kinds of social and general environmental situations.”
2.3 Motivational traits
The vital reason for the workforces to work with the insurance company is the reasonable wage offered by the life insurance company It streams image of the company in the mind of the customers, agents The good image about the insurance
company can attract, knowledgeable employees or candidates from the market It
Trang 28offer a attractive salary and other financial benefits which should be equal to that of employees of other life insurance company’s salary in the same market If there is any difference in the salary level, employees will be unhappy Later suitable salary package must be fixed to the life insurance company employees When an employee achieves his target within the deadline, Life Insurance Company must give incentive to the agents in the form of money based on the performance
Workforces who are in need of money, prefer to get money by producing more output and speed up their work Here, money acts as a motivator for those employees Employees do the work in the company mainly for money motivates them to achieve the objective (Arun Kumar and Meenakshi, 2010) Satisfaction refers to the overall positive feelings people have about an organization; it can be measured casually by listening to people talk or by asking them how they feel about the organization It can
be measured through focus group or by administered attitude survey focus groups
(Curtis and Philip, 2001) Salary package is also helpful to increase the level of motivation and satisfaction among the employees (Tulsigiri Goswami and Harsh Dwivedi, 2011) At a minimum, employees expect their organization to provide fair pay, safe working conditions and fair treatment (Beer et al, 1984 Work has been allotted to the agents by the manager He can observe the activities of the employees and their attitudes about the job Best performing agents in the life insurance company is to be noted down and that employee must be appreciated by the manager in front of the other employees It will certainly fulfil the outstanding employee in the insurance company Aruna Srinivasan (2007), described the employee’s expectation for appreciation and recognition for their best performance in the organization This motivational method influences other employees to perform well for getting
appreciation from the manager Once the best performer is identified, that employee
Trang 29According to Wikipedia, “It is significant for organizations to understand and to structure the work environment to encourage productive behaviors and discourage those that are unproductive given work motivation's role in influencing workplace behavior and performance There is general consensus that motivation involves three psychological processes: arousal, direction, and intensity Arousal is what initiates
action It is fueled by a person's need or desire for something that is missing from their
lives at a given moment, either totally or partially Direction refers to the path
employees take in accomplishing the goals they set for themselves Finally, intensity is the vigor and amount of energy employees put into this goal-directed work
performance The level of intensity is based on the importance and difficulty of the
goal These psychological processes result in four outcomes First, motivation serves to direct attention, focusing on particular issues, people, tasks, etc It also serves to
stimulate an employee to put forth effort Next, motivation results in persistence,
preventing one from deviating from the goal-seeking behavior Finally, motivation results in task strategies, which as defined by Mitchell & Daniels, are "patterns of behavior produced to reach a particular goal”
According to Abraham Maslow's Hierarchy of Needs (1943) was applied to offer an explanation of how the work environment motivates employees In accordance with Maslow's theory, which was not specifically developed to explain behavior in the
workplace, employees attempt to satisfy their needs in a hierarchical order At the most
basic level, an employee is motivated to work in order to satisfy basic physiological needs for survival, such as having enough money to purchase food The next level of need in the hierarchy is safety, which could be interpreted to mean adequate housing or living in a safe neighborhood The next three levels in Maslow's theory relate to intellectual and psycho-emotional needs: love and belonging, esteem (which refers to competence and mastery), and finally the highest order need, self-actualization Although Maslow's theory is widely known, in the workplace it has proven to be a poor
"— i
Trang 30predictor of employee behavior Maslow theorized that people will not seek to satisfy a higher level need until their lower level needs are met There has been little empirical support for the idea that employees in the workplace strive to meet their needs only in the hierarchical order prescribed by Maslow
2.4 Interpersonal traits
According to by Laurie Reeves, “The language in an insurance policy can put
even the avid reader to sleep Filled with legal and insurance terminology, a policy can be hard to understand The best agents know how to communicate this information in a way that you can easily comprehend They don't talk down to you — they inform you intelligently The best agents can talk to anyone; they can effectively communicate with people from different backgrounds and cultures
To put it another way, as one forum member did, “A good agent knows when to
shut up.” Talking too much or going off on tangents is a surefire way to lose a potential
client Having interpersonal awareness means knowing when to speak, when to listen, and how to help a client understand his or her options.”
Trang 31According to Raj Agnihotri “Due to their responsibility of developing and
fostering business relationships, salespeople are embedded within a sphere of
interpersonal relationships; the salesperson’s inter-personal traits are critical to ensuring these business relationships Within the sales literature, interpersonal traits — which include personality traits like persuasiveness, confidence, competitiveness, need for learning, materialism, conscientiousness, and openness to experience — have been examined (Harris et al., 2005; Reday et al., 2009) However, social and self-conscious emotional traits also play a
critical role in business relationships (Bagozzi, 2006) To shed light on issues of
these emotional traits, some scholars have incorporated learning from the human
and social psychology literature to better understand sales force behavior The
value of these insights is best demonstrated by the trend of sales research that is using the psychology literature to inform their respective studies (Aggarwal et al., 2005; Homburg and Stock, 2005) We assume a similar approach and utilize pro- social motivation and behavior theory to establish the link between emotional traits and pro-social behaviors (Hoffman, 1972, 1982, 2001).”
` IT
Trang 32CHAPER III - RESEARCH MODEL AND HYPOTHESES 3.1 Research model l l H1 Personality Traits H2 Recruiting the Suitable Candidates (Agents) H3 Interpersonal Traits
Independent vartables dependent variables
Source: O'Reilly, Chatman, & Caldwell, Hackman and Oldham, Hudson
3.1.1 Dependent variables:
Recruiting the suitable candidates (Agents) is the dependent variable We are trying to find out the key factors affecting in order to choose the suable ones (agents) for life insurance
3.1.2 Independent variables:
Due to time constraint, this research narrows some key factors (excluding commission) that influence the way to select the good agents for life insurance in AIA
Viet Nam The independent variables are as followings:
een
Trang 33Personality traits (looking at behavioral preferences that is how candidate’s
preferred style of working There is no concern with their ability)
Motivational traits (estimating how much candidate are into his/ her career and whether he/she has determination and willingness to give all that he/she has to make it big)
Interpersonal traits (testing the candidate’s interpersonal skills, it will show how
well candidate build lasting and meaningful relationship with others 3.1.3 Constructs Key construct: Recruiting the suitable candidates (Agents) Other constructs: Personality traits Motivational traits Interpersonal traits 3.2 Research hypotheses Hypothesis 1: Personality traits is positive with the recruiting the suitable candidates
Extracted from “A GUIDE TO VALIDATED SCALES FOR
ORGANIZATIONAL RESEARCH AND DIAGNOSIS, Dail L.Fields”
Trang 34in the way situations are cognitively appraised (Edwards, 1996) Person-organization fit refers to the degree of equivalence or compatibility between the attributes of an organization member and those of the organization For individuals, these attributes may include personality traits, beliefs, values, and interests For the organization, these characteristics tradition ally include the culture, climate, values, goals, and norms (Chan, 1996) Congruence may occur when a person supplements or matches with other individuals in an environment, when a person’s characteristics add something to the
environment that was missing, when an organization satisfies individual needs, and/or
when an individual has the abilities required to meet organizational demands (Kristof,
1996)
Value equivalence is an important form of fit because organizational values are vital components of organizational culture that affect employees' attitudes and behaviors (Chatman, 1989) Person-organization fit can be operationalized as an individual's goal congruence with organizational leaders and peers (Vancouver & Schmitt, 1991) An alternative approach defines fit as the match between individual preferences or needs and organizational systems and structures In general, a person will be more satisfied with work if the environment fulfills his or her needs Alternately, person-organization fit can be viewed as the match between the personality characteristics of an individual employee and organizational climate For exe ample, an organization's collectivist climate may be reflected by a team-based compensation system that may or may not meet an individual’s need for achievement (Kristof, 1996)
There is some debate as to whether person organization fit should be
operationalized as the compatibility of employees with specific jobs Edwards (1991)
Trang 35organization, there is substantial evidence that employees may form their views about an organization based on their experiences in their job (Hackman & Oldham, 1980) Person-organization fit does not generally include person-vocation fit, which often reflects the similarity between an individual's personality and that of a vocational environment, or person-group fit, which describes the compatibility between individuals and their work groups (Kristof, 1996)
Hypothesis 2: Motivation traits is positive with the recruiting the suitable candidates
Extracted from “A GUIDE TO VALIDATED SCALES FOR
ORGANIZATIONAL RESEARCH AND DIAGNOSIS, Dail L.Fields” The demand
for valid measures of job features is driven by continuing efforts in organizations to determine the features of jobs that induce workforces to work harder and perform better One of the most widely used perspectives of how aspects of jobs affect employee willingness to consistently perform better is the job characteristics model (JCM) developed by Hackman and Oldham (1980) This model expects that if a job is well designed, it leads to higher levels of three critical psychological states These are experienced meaningfulness of the work, such as results from the job that are meaningful
within the employee's system of values; experienced responsibility for the outcomes of
the work, or belief that the employee has personal accountability for the outcomes; and knowledge of the results of the work activities, including judgments of others about the quality or quantity of the work performed (Hackman & Oldham, 1980)
The JCM predicts that jobs that are well designed have five key characteristics:
1 Skill variety, which is the extent to which a job requires the use of different skills and talents
Trang 363 Task significance, which is the degree
to which a job has impact on the lives of people in an organization or society in general
4 Autonomy, which describes the extent to which a job provides the employee with discretion to choose how the work is done and to set the schedule for completing the work activities
5 Job feedback, which shows the extent to which carrying out the work activities delivers the employee with clear information about his or her performance
Jobs with these characteristics create higher levels of the serious psychological states, which in tum leads to higher levels of internal work motivation (Hackman & Oldham, 1980) Research on the JCM has generally found that employees in jobs that score higher on variety, identity, significance, autonomy, and feedback have more internal motivation and better performance (Hoche warter, Zellars, Perrewe, & Harrison, 1999: Renn & Vandenberg, 1995) Individual differences among employees (personality, age, 67 etc.) may affect the relationship between job dimensions, the psychological states, and internal motivation (Spector, Jex, & Chen,1995)
Trang 37to which employees believe they are empowered in their jobs and the extent to which
employees believe the organization appreciates their efforts may affect the way that
employees view the identity, significance, variety, autonomy, and feedback in their jobs (Eisenberger, Huntington, Hutchinson, & Sowa, 1986; Gagne, Senecal, & Koestner,
1997; Spreitzer, 1995)
Hypothesis 3: Interpersonal traits is positive with the recruiting the suitable candidates
Extracted from “A GUIDE TO VALIDATED SCALES FOR
ORGANIZATIONAL RESEARCH AND DIAGNOSIS, Dail L.Fields” says that The
utility of job satisfaction and other measures of employee attitudes as a predictor of variables such as turnover and employee performance varies considerably across situations As a result, Hudson (1991) advocates examination of the effects of the characteristics of jobs and work environments on employee work behaviors Employee behavior at work generally can be characterized as either contributing to organizational goals or contributing to an employee's occupational control Employee behaviors can be described as following patterns of "good soldiers,” "smooth operators," and “saboteurs” (Hodson, 1991) Good militaries take the organization’s goals as their own, are highly committed, and don't question organizational decisions but strive to implement these decisions efficiently Smooth operators give first priority to their own occupational goals and may inadvertently advance organizational goals Saboteurs are employees who neither adopt organizational goals nor achieve their own occupational goals Therefore, they undertake such behaviors as passively resisting authority, carelessly violating work rules, or intentionally destroying property to get even with their boss or organization The distinctions among these categoe ries may be subtle; for example, some good soldiers may work diligently at preventing their boss from understanding how quickly work actually could be completed (Hodson,1991)
of (
eee 4
Trang 38A good đeal of consideration has been devoted to work behavior that is beyond
the reach of traditional measures of job performance because these organizational
citizenship behaviors may contribute to organizational innovation, flexibility, and responsiveness to changing external conditions (Sagie,1998) There have been two approaches to describing these behaviors The first approach proposes that organizational citizenship behavior (OCB) and traditional conceptualizations of job performance are separate constructs Thus, OCB is viewed as extra role behavior that is
separate from in-role job performance This approach requires determining what in-role
Trang 39A second approach to OCB is based on the theoretical heritage of civic citizenship Civic citizenship is viewed as including all positive community-relevant behaviors of individual citizens From this viewpoint, organizational citizenship can be conceptualized as a global concept that includes all positive organizationally relevant behaviors of employees including traditional in-role job performance behaviors, organizationally functional extra role behaviors, and political behaviors, such as full and responsible organizational participation (Sagie, 1998) There are three categories of
civic citizen responsibilities that also apply within work organization First,
organizational obedience reflects acceptance of the necessity and desirability of rational rules and regulations governing organizational structure, job descriptions, and personnel policies Obedience can be demonstrated by respect for rules and commands, punctuality
in attendance and task completion, and stewardship of organizational resources Second,
organizational loyalty is identification with and allegiance to an organization’s leaders and the organization as a whole, transcending the parochial interests of individuals, work groups, and departments Representative behaviors include defending the organization against threats, contributing to its good reputation, and cooperating with others to serve
the interests of the whole Third, organizational participation is interest in organizational
affairs guided by ideal standards of virtue, validated by an individual’s keeping informed, and expressed through full and responsible involvement in organizational governance Representative activities include attending no required meetings, sharing informed opinions and new ideas with others, and being willing to deliver bad news or support an unpopular view to combat "groupthink" (Sagie, 1998)
3.3 Instruments
Trang 40The part one focuses personality traits, and it consists of 9 questions It
generally measures the characteristics of the candidates Most of questions follow the Likert-type format with a sale ranging from 1 through 5 such as 1: strong agree, 2
agree, 3 neutral, 4 disagree, 5 strongly disagree A few questions are open — ended but
multiple choices
The part two focuses on motivational traits It consists of 6 questions This part focuses on determination and willingness of the candidates Most of the questions are Likert-type format
The part three focuses on the interpersonal traits It consists of 6 questions This part relates to interpersonal skills It will show how well candidates build lasting and meaningful relationships with others Most questions follow the Likert-type format
The part four focuses on the selecting the suitable candidates This part consists
of 3 questions It tells whether candidate has inner resistant for life insurance career All questions follow Likert-type format
3.4 Research Participants
The research deals with 150 selected agency leaders in AIA Vietnam in Ho Chi
Minh City We have interviewed directly 150 leaders from age 30 to 45 It took more than one month interview all the selected interviewees We just wanted to know how do they selected good candidates based on the personality traits, motivational traits, interpersonal trait and selecting the suitable candidates In the questionnaire we do not focus on the compensation We suppose that the compensation is one of the top priority of each life insurance in order to attract the good ones
penne dt