Comprehensive Report: Talent Management at Aviva Insurance Company

This report provides a comprehensive analysis of the talent management strategies employed by Aviva Insurance. It begins with an introduction to talent management and its significance in human resource practices, then focuses on Aviva's business and HR strategies, including recruitment, selection, training, and reward management. The report also examines Aviva's approach to gender pay gap reporting, presenting data and highlighting the company's initiatives to address the issue. Furthermore, it identifies the impact of environmental factors, such as political, economic, demographic, cultural, and technological factors, on Aviva's HRM practices, including the effects of the COVID-19 pandemic. The report concludes with a written summary of the key findings and recommendations for Aviva's talent management approach.

TALENT MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Task 1 Explain the talent management strategy of Aviva Insurance company at present..........3
Task 2 Gender pay gap reporting at Aviva Insurance Company................................................5
Task 3 Identify the impact of Environmental factors on the HRM practices of Aviva Insurance
Company. ...................................................................................................................................7
PART 2............................................................................................................................................8
A. Written Report........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Talent management comes under the scope of Human Resource Practices which helps in
attraction, development, motivation and retention of the employees. Talent Management is a
process which aims at improving performance of the individuals in an organization with the help
of management techniques. It is one of the crucial functions of Human Resource. The talent
management helps in identification and fulfilment of the goals, target or aims of the organization
which sets a standard of performance. Talent manager requires focus on they key areas and
determine techniques to deal with the competition in the market (Benitez-Amado, Llorens-
Montes, and Fernandez-Perez, 2015).
Aviva insurance is A UK based organization and it has established its headquarters in
London. Aviva insurance has captured market across 16 countries and has a customer bases of
over 33 millions customers across the world. Aviva Insurance is listed as the largest general
insurance company in the world which functions to provide a leading life to its customers and the
pension providers. The study revolves around the talent management of Aviva Insurance.
PART 1
Task 1 Explain the talent management strategy of Aviva Insurance company at present.
The talent management strategies followed at Aviva Insurance Company covers the
business strategies and various HR strategies like Recruitment, Selection, Compensation etc.
Business strategy at Aviva Insurance company
Business strategy followed by Aviva Insurance company is Differentiation Business
strategy. There are three types of business strategies namely, Cost leadership (This strategy aims
at achieving leadership in the basis of cost which refers to providing the customers with products
and services at a price lower than the competitors), Differentiation strategy (This strategy deals
with providing products and services to the customers with different qualities and charge money
accordingly) and Focussed strategy (the focussed strategy aims at focussing upon a specific
market population only.) Aviva aims at maintaining long term relationships with its distributors
and customers by providing them with the finest quality of services and offering them the best
value for their money (Bradley, 2016). Aviva Insurance strategy aims at achieving a profitable
growth for the organization.
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Recruitment strategy
Aviva aims at recruiting the best employees for their organization ignoring the aspects of
age, gender, religion etc. of the people. Aviva follows an approach of equal opportunity policy.
In order to practice effective recruitment, Aviva uses technological tools like psychometric tools
such as Belbin and SHL and Ability test (Collings, 2015). Aviva insurance company deploys
these techniques in order to reduce the chances of bias in the organization and have effective lot
of human resource.
Selection strategies at Aviva Insurance company
Selection process succeeds recruitment process wherein the best candidates are
shortlisted from the lot of applicants who are placed in the organization. There are various
selection techniques but the ones followed by Aviva Insurance are Employee Referral
programmes and campus programme.
 Employee referral- The scenario where the employees of the organization play the role of
brand ambassadors of the process and actively take part in the process of acquiring
human resource for the company. The employees who act as brand ambassador at Aviva
insurance have high potential and relevant skills to strengthen the organization.
 Campus Program- Campus program aims at hiring fresh lots of individuals from the
educational institutes specifically the B schools. At Aviva Insurance company, they
provide well-structured inputs an appropriate environment in order to enhance their
personal and professional growth. This provides opportunity to the organization as well
as to the candidates by exposing them to the complex and competitive business
environment which further profits the organization in terms of creation and innovation.
Training and Development strategies at Aviva Insurance company
The training and development process followed at Aviva Insurance company consists of
assessing the needs over the market or the industry, Identification and development of the
managerial and supervisory skills among the employees, Training is provided to the employees
through workshops and training programs, further the new and transferring employees are
oriented with benefits of the program and a supervisory newsletter is issued (Collings, Mellahi
and Cascio eds., 2017).
Performance Management
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The performance appraisal procedure is applied in the organization on the basis of the
employee files, records of payrolls, litigation files, safety records and the administrative files
(van Zyl, Mathafena and Ras, 2017).
Reward Management
The Aviva insurance company has well prescribed wage and salary plans for their
employees which include various employee benefits as well.. The reward management at Aviva
is done as per the payroll administration with the help of manual evaluation process as well as a
computer based system. The employees in the organization are rewarded on the basis of their
work efficiency along with their compliance with the timeline standards. The employees are
provided with various benefits as rewards by enrolling the employees for various benefits such as
providing employee discounts for the recreational spots, providing educational assistance to
employees, providing recognition with the help of service rewards for employee, employee
newsletter and resolving the problems of employees by providing them assistance (Collings,
Scullion and Caligiuri eds., 2018).
Task 2 Gender pay gap reporting at Aviva Insurance Company
Gender pay gap is referred to the difference between the compensation of males and
females in various ways. The difference between the salaries of men and women is calculated in
various ways and the consensus was derived that the pay of women is less than that of men.
Gender pay gap was reported at the Aviva Insurance Limited also. Though the organization is
frequently adopting measures to reduce the pay gap (Collings, Scullion and Vaiman, 2015). The
data related to the gender pay gaps is provided below-
Gender Pay Gap at Aviva Insurance Company
YEAR MEN WOMEN
2020 26.00% 26.70%
2019 26.70% 27.30%
2018 27.20% 27.80%
2017 28.50% 27.60%
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It can be analysed from the above data that Aviva Insurance Company, UK that the
organization has addressed the issue of gender pay gaps at their organization quite seriously. The
data shows that the organization needs to put more efforts in the same direction in order to
abolish the barriers of gender pay gaps so that the employees can perform with their full
potential. It can be analysed from the data that the organization has adopted to various changes in
to action to reduce he gaps (Khilji and Schuler, 2017). Some of the notable changes are described
below-
 Changes in recruitment policies at Aviva Insurance- The organization introduced
various changes in the recruitment policies by offering all the possible roles for the
females according to the suitable work hours with an aim to encourage applications of
women in the organization. According to a survey, 87% of the total part time workers at
Aviva Insurance are females. The job roles are advertised within the organization to
widen the pool of the candidates. The shortlists are created to balance the gender gap in
the organization for internal as well as external hiring. Aviva insurance has started using
special software in order to attract the diverse candidates through the means of gender
neutral vacancy marketing.
 Retention and progression program of Aviva Insurance- The organization, Aviva
Insurance has described various ways through retention and progression programs like
introducing flexible and part time working hours to every employee in the organization
with the help of senior role models in the organization to encourage them. The
organization has further removed the procedure of location specific roles in order to
facilitate promotion. The organization has further introduced the benefit of complying
with the caring commitments for 35 hours in a year. The equal Parental Leave Policy
gives all the employees of UK (despite their different gender) leave for up to 12 months
out of which they are fully paid for 6 months. Aviva Insurance has introduced a Group
wide Accelerating Leadership from the Inside Out Programme(ALIO) which aims to
focus on providing leadership opportunities to females (Khilji, Tarique and Schuler,
2015).
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Task 3 Identify the impact of Environmental factors on the HRM practices of Aviva Insurance
Company.
HRM practices have witnessed a huge change in the Industry worldwide. The major
factors who have contributed to the change are Political, Legal, Economic and technological
factors. The impact of these external factors can not be controlled by the organization. There are
various HR practices of an organization such as recruitment and selection, Compensation and
employee benefits, Training and development practices, Performance Management and these are
affected by various Political, Economic, Legal and Demographic factors. The impact of these
external factors on the HRM practices of Aviva Insurance is as follows-
 Impact of Political factors- It is important for the organization to comply with the legal
obligations. Therefore the Human Resource department of Aviva Insurance is constantly
under the pressure in work according to the legal standard. The political factors have a
huge impact on various practices like Recruitment process, training procedure,
Compensation policies and termination of the employees (King, 2015). It is important
for the HRM department at Aviva Insurance to comply with the regulations of the
government.
 Impact of Economic Factors on HRM practices of Aviva Insurance- The economic
conditions have a huge impact on the HRM strategies of the organization. It affects the
tendency of the organization to hire employees also it affects the availability of the
competent employees for the organization. The only way to deal with it is to have
awareness about the situations in the economy and prepare for the plan accordingly in
order to safeguard against the downfall.
 Impact of the Demographic factors on the HRM practices of the Aviva Insurance-
The demographic factors refers to the characteristics of the employees working in the
organization on the basis of their gender, race cultural backgrounds and the level of
education. All these factors have an impact on the HRM strategies of Aviva Insurance.
These affect the formulation of strategies at the organization as they have to balance the
diverse workforce of the organization and also by keeping the work life balance of the
employees. They affect the HRM strategies related to the HR planning, Recruitment
process, Selection and security of workplace of Aviva Insurance (Krishnan and Scullion,
2017).
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 Impact of Cultural Factors on HRM practices of Aviva Insurance- Cultural factors
have a very huge impact on the HRM practices of Aviva Insurance. The organization
aims at hiring the workforce from different culture in the organization in order to create
the diversity of different culture which affect the organization in many positive ways.
But it is very important to manage the diversities to reduce the risk of conflicts. The
ethical behaviour is the priority to manage the smooth flow of conduct in the
organization. The cultural factors affect the HRM strategies like recruitment, selection,
training and development along with the compensation and benefits at Aviva Insurance.
 Impact of technological factors at Aviva Insurance- The advancement or up gradation
in the technology related to the HR department of Aviva Insurance has a positive impact
on the organization. The latest technology helps in reducing the work load of the HRM
department. This further helps in reducing the cost of the organization (Morris, Snell and
Björkman, 2016).
 Current Scenario due to COVID- The impact of COVID-19 on the HRM strategies of
Aviva Insurance could be monitored in various ways. Due to the Outbreak of Corona
Virus, majority of organizations shifted to Work from Home solution. Due to this HR
Departments had to provide the organization with a virtual workplace along wit some
quick guidelines. It further impacted by aiming the focus on the “Human Connect” in
order to issue the health and safety protocols, quarantine and isolation guidelines etc.
PART 2
A. Written Report
The shortcoming which can be determined from the previous analysis of Aviva Insurance
company is “Gender Pay Gaps”. It is a legal obligation for all the organization to pay males and
females equally for the equal amount of work done. The legislation of Gender pay gap has made
it mandatory for all the organizations in UK who have more than 250 employees to calculate and
publish a report based on the data related to gender pay gaps on an annual basis. It is a very
critical issue which takes place in the organization. The report includes mean and median gender
pay gap which are based upon the hourly rate of pay, mean and median bonus gender pay gap
which keeps in consideration the bonus pay received in the 12 months, the percentage proportion
of males and females who have received a bonus payment along with the proportion in
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percentage of males and females in each quartile pay band. It was noticed that the organization
was dealing with the barrier of Gender pay gaps which gave a negative impact on the
organization's image in the market. It is a situation where there is difference between the pay of
men and women. Though the Gender pay gap has improved at Aviva at in the course of last four
years but it is still into existence. The organization needs to make more efforts in order to
overcome the barrier of the gender pay gaps (Pandita and Ray, 2018).
Various recommendations in the aspect of Gender Pay Gaps can be as follows-
 Amendments can be made in the recruitment policies of Aviva Insurance
 Addressing issues related to Retention and Progression of Aviva Insurance
There are various ways to implement the recommendations in the organization to overcome the
barrier of Gender Pay gaps at Aviva Insurance Company. The ways to implement the
recommendations are as follows-
 The Aviva insurance company can detect and introduce job roles as per the appropriate
working hours in order to attract the female applicants.
 The organization can introduce the flexible and part time working hours by providing the
employees with a role model who would motivate the employees to work as per their full
potential.
 The employees can be provided with various benefits related to their physical health such
as 35 hours for fulfilling care commitments (Sparrow, Hird and Cooper, 2015).
 The organization can prepare a list of selective candidates related to both internal as well
as external hiring.
 The roles can be advertised on the internal basis with an aim to enhance the pool of the
potential candidates in order to enhance the motivation and employee morale.
 The organization can organize various programmes and give the employees an
opportunity to self nominate them selves for being a part of the selection process.
 The organization can aim at increasing the ratio of female candidates by encouraging part
time opportunities to the female employees.
The latest figures have shown improvement in gender pay gap as well as gender bonus gap. This
shows that the policies and initiatives of Aviva insurance company are going on the right path to
achieve the desired goal or the result. The change is minor but the reason behind that is the Low
representation of females at the work place for the leadership roles. The bonus gap is referred to
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the variable pay which is mainly at the senior level in the organization. Hence again the reason of
less females for the leadership roles can be stated in the context. Also, the bonus for part time
workers is not included in the data published. It is stated that the females represent the majority
ratio of the part time workers at Aviva Insurance company and hence go pro rated (Taylor,
2018).
CONCLUSION
It can be concluded from the above report that talent management is a crucial part of
Human Resource Department which helps in attracting, developing, retaining and motivating the
employees. It helps in improving the efficiency of the individual and the organization. The report
revolves around the talent management of Aviva Insurance company. The report revolves around
the business strategies and the human resource strategies of Aviva Insurance company. The HR
strategies of Aviva Insurance include Recruitment strategy, Selection strategy, Training and
Development strategies, Compensation and retention strategies. The report also involves gender
pay gaps occurring at Aviva Insurance Company and the strategies being adopted to overcome
the barrier. It also studies the impact of the various external factors on the Working environment
of Aviva Insurance company.
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REFERENCES
Books and Journals
Benitez-Amado, J., Llorens-Montes, F. J. and Fernandez-Perez, V., 2015. IT impact on talent
management and operational environmental sustainability. Information Technology and
Management. 16(3). pp.207-220.
Bradley, A., 2016. Talent management for universities. Australian Universities' Review. 58(1).
pp.13-19.
Collings, D. G., 2015. The contribution of talent management to organization success. The Wiley
Blackwell handbook of the psychology of training, development, and performance
improvement. p.247.
Collings, D. G., Mellahi, K. and Cascio, W. F. eds., 2017. The Oxford handbook of talent
management. Oxford University Press.
Collings, D. G., Scullion, H. and Caligiuri, P. M. eds., 2018. Global talent management.
Routledge.
Collings, D. G., Scullion, H. and Vaiman, V., 2015. Talent management: Progress and prospects.
Khilji, S. E. and Schuler, R. S., 2017. Talent management in the global context. The Oxford
handbook of talent management. pp.399-420.
Khilji, S. E., Tarique, I. and Schuler, R. S., 2015. Incorporating the macro view in global talent
management. Human Resource Management Review. 25(3). pp.236-248.
King, K. A., 2015. Global talent management. Journal of Global Mobility.
Krishnan, T. N. and Scullion, H., 2017. Talent management and dynamic view of talent in small
and medium enterprises. Human Resource Management Review. 27(3). pp.431-441.
Morris, S., Snell, S. and Björkman, I., 2016. An architectural framework for global talent
management. Journal of International Business Studies. 47(6). pp.723-747.
Pandita, D. and Ray, S., 2018. Talent management and employee engagement–a meta-analysis of
their impact on talent retention. Industrial and Commercial Training.
Sparrow, P., Hird, M. and Cooper, C. L., 2015. Strategic talent management. In Do we need
HR? (pp. 177-212). Palgrave Macmillan, London.
Taylor, S., 2018. Resourcing and talent management. Kogan Page Publishers.
van Zyl, E. S., Mathafena, R. B. and Ras, J., 2017. The development of a talent management
framework for the private sector. SA Journal of Human Resource Management. 15(1).
pp.1-19.
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