 Chennai: In order to be ready with a human resource plan after its voluntary retirement scheme (VRS), the city based non-life insurer, United India Insurance Company, is planning to appoint a consultancy firm. The consultant is expected to study the existing work process and parameters of the supervisory and clerical cadres in 32 offices located in four zones. The other aspects to be studied are: (a) Time and motion study (b) Assessment of average workload of supervisory and clerical cadre in different types of operating offices (c) Preparation of cadre strength norms for supervisory and clerical cadres in relation to the workload including development of adjusted workload parameters for increase/decrease of clerical staff vis-a-vis increase/decrease in business parameters. It may be recalled that United India, along with three other government-owned general insurance companies, have announced a VRS scheme. As per initial estimates around 6,500 employees have opted to exit the four companies - National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India. The total workforce in all the four companies is around 80,000. Contrary to the management's expectations a higher number of officers, fearing transfers after VRS, have opted to avail of voluntary retirement. Says United India's chairman and managing director V Jagannathan: "Around 1,000 officers have opted for VRS and 800 in class III and IV (clerical and peon) cadres." In a way this augurs well for the companies which are top heavy with one officer for every four employees, which increases the overall management-cost ratio. Further, as majority of the officers belong to the administrative cadre, the impact on the business will not be much for the companies. Despite development officers and marketing executives having left in the first round of VRS, growth in the business of the government-owned companies has been described as being quite good. These retirees, it is felt, may join or float brokerage firms and would be comfortable in dealing with highly rated, solid government insurers. Meanwhile, the promotees from the clerical cadre are expected to infuse fresh ideas in capturing the market. The outgo for the four companies towards VRS compensation will be around Rs 400 crore each.
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