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Asset Liability Management
HR 101
Striking the balance investing in
Human Resource and maintaining
a low overhead cost in SACCOS
SACCA Leadership Forum , March 2013
Accra Ghana
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SWOT Strengths Weaknesses
………. ……….
…….... ……….
Dedicated staff/directors Experienced staff/directors Young staff Educated staff/directors
Inexperienced staff/directors Insufficient/too many staff High/low staff/directors turnover Inappropriately qualified staff/directors
Opportunities Threats
……… Local business college
………. Banks pay higher salaries
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Where does it hurt?
Operations Balance Sheet Income & Expense
Low morale Slow growth Low income
High error rates Poor asset quality Poorly managed expenses
Low productivity High delinquency Low profitability
Difficulty in attracting new staff/directors
Low savings/shares
High Staff Turnover
Loss of member/public trust
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High Turnover – the invisible thief
• Lack of appreciation
• Interference by directors/supervisors
• Lack of roll clarity
• Lack of tools Lack of support
• Low salaries
• Unrealistic expectations
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Low Turnover
• Complacency
• Stagnation
• Lack of innovation
• Limited growth
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Protecting and Maximizing Return
on Investments • Performance management systems
– Mutually agreed upon objectives in line with the strategic plan
– Regular and objective performance monitoring and evaluation
– Rewards for performance
– Remedial action for poor performance
– Consequences for non performance
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Non cash incentives
• Recognition
• Workplace equity
• Fairness
• Professional development opportunities
• Flex hours
• Career planning
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Determining appropriate staff
levels • How many members?
• How many different types of products and services?
• How many branches?
• Automated or manual systems
• Plans for growth
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Determining appropriate salary
levels • Education levels
• Experience
• Market rates
• Benefits
• Budget
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Cost Benefit Analysis
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Cost Benefit Analysis
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Cost Benefit Analysis
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Cost Benefit Analysis Summary
• Additional loan officer = 15,600
• Automating System = 22,800
• Net cost of qualified accountant = 1,000
• Total cost of staff enhancements = 38,800
Potential to recover these costs:
• 5% reduction in Loan Delinquency = 15,000
• 10% increase in Loan Portfolio = 27,000
• Loan Portfolio Benefits = 42.000
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Options for filling gaps
• Review board skills and experience composition
– Use of non voting expert directors
• Share employees with other SACCOS
– Sheema Union
Local mentoring programs
– Chapter management meeting Malawi
– Local women’s mentorship program Ghana
• Use Chapter/Regional/Annual Meetings for training
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What’s happening in your
SACCO?
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Questions?
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