Challenges with HR Planning,

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• Challenges with HR Planning,
• recruitment and deployment

Deepak Alok
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Agenda

• Introduction
• Case Studies two typical MFIs
• State of the sector regarding HR issues
• Ideal Best Practices
• Issues in attracting professionals to
  Microfinance
• Conclusions

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Explosive growth in Microfinance has resulted in
steep growth in HR requirements
Outstanding (Rs Crores)
HR Requirement
Projected
This growth has made the HR challenges one of the
most important issue in the sector
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Agenda

• Introduction
• Case Studies two typical MFIs
• State of the sector regarding HR issues
• Ideal Best Practices
• Issues in attracting professionals to
  Microfinance
• Conclusions

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We will consider two typical MFIs to explore
issues in HR
MFI - A
MFI - B
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HR Challenges of these two types of MFIs
MFI - B
MFI - A
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Agenda

• Introduction
• Case Studies two typical MFIs
• State of the sector regarding HR issues
• Ideal Best Practices
• Issues in attracting professionals to
  Microfinance
• Conclusions

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State of the Sector regarding on HR issues
HR Planning
Recruitment
Deployment

• 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

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Agenda

• Introduction
• Case Studies two typical MFIs
• State of the sector regarding HR issues
• Ideal Best Practices
• Issues in attracting professionals to
  Microfinance
• Conclusions

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HR Planning needs a systematic approach
HR Planning
Define characteristics of personnel
Identify functional requirements
Identify source of personnel
Personnel development and retentions

• Operations
• Finance
• HR
• Legal
• Technology

• Education
• Experience
• Attitude

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

• Compensation
• Training
• Job description
• Motivation

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Agenda

• Introduction
• Case Studies two typical MFIs
• State of the sector regarding HR issues
• Ideal Best Practices
• Issues in attracting professionals to
  Microfinance
• Conclusions

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Issue in Attracting professionals

• MF Needs Professionals

MF can attract 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

Professionals are not coming

• Revenue model
• Continuity
• Capacity to scale up fast
• Can objectively measure performance
• Can compensate well

• Confusion in the microfinance sector
• SBLP Vs MFI
• Grameen Vs SHG
• Social Performance Vs Profitability
• Virtue vs Vice

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Agenda

• Introduction
• Case Studies two typical MFIs
• State of the sector regarding HR issues
• Ideal Best Practices
• Issues in attracting professionals to
  Microfinance
• Conclusions

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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