COMPARATIVE ANALYSIS OF STAFFING AS AN ELEMENT OF INTERNAL MARKETING IN PUBLIC AND PRIVATE INSURANCE COMPANIES

Abstract

Amidst the country, insurance is a prominent financial service, serving people by offering life and non-insurance coverages. The face of it in India before liberalization was in a state of monopoly completely served under the public sector. Meanwhile, based on recommendations of the Insurance Regulatory and Development Authority (IRDA), the sector was encouraged to privatize in 1999-2000. In the post-liberalization period, many life and non-life private insurance companies have been competing with public sector companies in the oligopoly market through captive insurance companies. The survival of an insurer in the present competitive scenario depends on its internal marketing. The concept of internal marketing emphasizes human resource planning, particularly the function of staffing, due to employees being the first customer. As a financial services provider, an insurer’s internal marketing effectiveness mainly depends on its employees’ staffing function. The researchers have selected one company in the public and private sectors for their study from both life and non-life insurance companies. The study’s outcome discloses that public and private insurance companies are well-competent in their internal marketing by strengthening the function of staffing.

Key Words: Staffing, Personnel selection, Recruitment, Internal Marketing, Insurer, Human Resource Planning, Financial Service Sector