challenges with hr planning, recruitment and deployment deepak alok

Challenges with HR Planning, recruitment and deployment

Deepak Alok

Agenda

• Introduction

• Case Studies: two typical MFIs

• State of the sector regarding HR issues

• Ideal Best Practices

• Issues in attracting professionals to Microfinance

• Conclusions

Explosive growth in Microfinance has resulted in steep growth in HR requirements

Growth in Microfinance and HR requirements

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HRRequirement

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HR Requirement

This growth has made the HR challenges one of the most important issue in the sector

Agenda

• Introduction





• Conclusions

We will consider two typical MFIs to explore issues in HR

MFI - AMFI - A

Creation • Conscious attempt to provide financial services to poor. Promoted by a management professional

• NGO expands its operations to Microfinance

Strategic

Focus

• Singular focus on Microfinance• Sustainability is the guiding force

• Microfinance just one of several activities•Not aware of sustainability

Leadership • Professional CEO• CEO centric operations, weak second line of leadership

• Community leader CEO• Weak organization

MFI - BMFI - B

HR Challenges of these two types of MFIs

Planning • Mostly quantitative and focuses on number of recruitments as well as promotions•More as an addendum to financial plan

•Almost no planning for HR•Can roughly estimate personnel requirements for the next three-four months

Recruiting •Very structured recruitment for field staff•Ad-hoc in the case of senior managerial staff

• Ad-hoc recruitment, often transferred from the other programmes

Deployment • Structured training and induction system, job description for the field staff

• No structured training and induction system, job description

MFI - BMFI - BMFI - AMFI - A

Agenda

• Introduction





• Conclusions

State of the Sector regarding on HR issues

HR PlanningHR Planning RecruitmentRecruitment DeploymentDeployment

• Little formal HR planning system

• Most of the planning is quantitative and concentrates on field staff

• To feed in to financial plans

• Planning is almost non-existent for the senior and middle management level

• Almost no planning for training, deployment and motivation

• MFI-A has good recruitment for the field staff level

• Cannot find professionals for middle and senior management level

• MFI-B often transfer staff from other programmes

• MFI-A has formal training and job description for the field staff level

• MFI-B has no formal training and job-description

• Training for the senior and middle level staff is mostly donor driven

Agenda

• Introduction





• Conclusions

HR Planning needs a systematic approach

Define characteristics

of personnel

Identify functional

requirements

Identify source

of personnel

Personnel development and retentions

HR Planning

• Operations• Finance• HR• Legal• Technology

• Education• Experience• Attitude

• Local graduates• Other MFIs• Other Industries• B school Campus

• Compensation• Training• Job description• Motivation

Agenda

• Introduction





• Conclusions

Issue in Attracting professionals

MF Needs Professionals

MF Needs Professionals

• Large number of small transactions

• Margins are small

• Pressure to maintain portfolio quality

•High volume of cash transactions

•Large number of small units

•Can scale up fast

MF can attract professionals

MF can attract professionals

• Revenue model

• Continuity

• Capacity to scale up fast

• Can objectively measure performance

• Can compensate well

Professionals are not coming

Professionals are not coming

Confusion in the microfinance sector

• SBLP Vs MFI

• Grameen Vs SHG

• Social Performance Vs Profitability

• Virtue vs Vice

Agenda

• Introduction





• Conclusions

Conclusions

• HR is the most critical resource in MFIs

• HR is a neglected function - not considered urgent

• Ad-hoc planning results in underperformance and can have disastrous consequences

• With proper planning MFIs can increase efficiency of HR and ensure stable growth

• Hire professionals, if the planning indicate a need for this

challenges with hr planning, recruitment and deployment deepak alok

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