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HR Issues .ppt - M2I Consulting

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					              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

HR Requirement        Growth in Microfinance and HR requirements                   Outstanding
                                                                                   (Rs Crores)
      50000                                                                        12000
                                                       Projected
      45000
                                                                                   10000
      40000

      35000
                                                                                   8000
      30000                                                                                      HR
                                                                                                 Requirement
      25000                                                                        6000          Outstandings
                                                                                                 (Rs. Crores)
      20000
                                                                                   4000
      15000

      10000
                                                                                   2000
       5000

           0                                                                       0
                 Mar '02 Mar '03 Mar '04 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

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

• Introduction

• Case Studies: two typical MFIs

• State of the sector regarding HR issues

• Ideal Best Practices

• Issues in attracting professionals to Microfinance

• Conclusions
We will consider two typical MFIs to explore issues in HR




                                MFI - A                           MFI - B



   Creation     • Conscious attempt to provide          • NGO expands its
                financial services to poor. Promoted    operations to Microfinance
                by a management professional

   Strategic    • Singular focus on Microfinance        • Microfinance just one of
                • Sustainability is the guiding force   several activities
   Focus
                                                        •Not aware of sustainability

   Leadership   • Professional CEO                      • Community leader CEO
                • CEO centric operations, weak          • Weak organization
                second line of leadership
HR Challenges of these two types of MFIs



                              MFI - A                                  MFI - B



  Planning     • Mostly quantitative and focuses on          •Almost no planning for HR
               number of recruitments as well as             •Can roughly estimate
               promotions                                    personnel requirements for
               •More as an addendum to financial plan        the next three-four months
  Recruiting   •Very structured recruitment for field   • Ad-hoc recruitment, often
               staff                                    transferred from the other
               •Ad-hoc in the case of senior managerial programmes
               staff
  Deployment   • Structured training and induction           • No structured training and
               system, job description for the field staff   induction system, job
                                                             description
                                Agenda

• Introduction

• Case Studies: two typical MFIs

• State of the sector regarding HR issues

• Ideal Best Practices

• Issues in attracting professionals to Microfinance

• Conclusions
State of the Sector regarding on HR issues


        HR Planning                       Recruitment                       Deployment



• Little formal HR planning       • MFI-A has good recruitment for    • MFI-A has formal training
system                            the field staff level               and job description for the
                                                                      field staff level
• Most of the planning is         • Cannot find professionals for
quantitative and concentrates     middle and senior management        • MFI-B has no formal
on field staff                    level                               training and job-description
• To feed in to financial plans   • MFI-B often transfer staff from   • Training for the senior and
                                  other programmes                    middle level staff is mostly
• Planning is almost non-                                             donor driven
existent for the senior and
middle management level

• Almost no planning for
training, deployment and
motivation
                                Agenda

• Introduction

• Case Studies: two typical MFIs

• State of the sector regarding HR issues

• Ideal Best Practices

• Issues in attracting professionals to Microfinance

• Conclusions
HR Planning needs a systematic approach

                              HR Planning

    Identify          Define              Identify           Personnel
   functional        characteristics       source             development
 requirements      of personnel        of personnel         and retentions




    • Operations   • Education         • Local graduates     • Compensation
    • Finance      • Experience        • Other MFIs          • Training
    • HR           • Attitude          • Other Industries    • Job description
    • Legal                            • B school Campus     • Motivation
    • Technology
                                Agenda

• Introduction

• Case Studies: two typical MFIs

• State of the sector regarding HR issues

• Ideal Best Practices

• Issues in attracting professionals to Microfinance

• Conclusions
                      Issue in Attracting professionals


     MF Needs
     Professionals
                                  MF can attract
• Large number of small            professionals
transactions
• Margins are small                                          Professionals are
                               • Revenue model
• Pressure to maintain
                                                                 not coming
                               • Continuity
portfolio quality
                               • Capacity to scale up fast   Confusion in the
•High volume of cash
                               • Can objectively measure     microfinance sector
transactions
                               performance                   • SBLP Vs MFI
•Large number of small
units                          • Can compensate well         • Grameen Vs SHG
•Can scale up fast                                           • Social Performance Vs
                                                             Profitability
                                                             • Virtue vs Vice
                                Agenda

• Introduction

• Case Studies: two typical MFIs

• State of the sector regarding HR issues

• Ideal Best Practices

• Issues in attracting professionals to Microfinance

• 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

				
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posted:4/25/2013
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