Challenges with HR Planning,  recruitment and deployment   Deepak Alok
Agenda <ul><li>Introduction </li></ul><ul><li>Case Studies: two typical MFIs </li></ul><ul><li>State of the sector regardi...
Explosive growth in Microfinance has resulted in steep  growth in HR requirements Projected Outstanding (Rs Crores) HR Req...
Agenda <ul><li>Introduction </li></ul><ul><li>Case Studies: two typical MFIs </li></ul><ul><li>State of the sector regardi...
We will consider two typical MFIs to explore issues in HR MFI - A MFI - B <ul><li>Community leader CEO </li></ul><ul><li>W...
HR Challenges of these two types of MFIs MFI - B MFI - A <ul><li>No structured training and induction system, job descript...
Agenda <ul><li>Introduction </li></ul><ul><li>Case Studies: two typical MFIs </li></ul><ul><li>State of the sector regardi...
State of the Sector regarding on HR issues HR Planning Recruitment Deployment <ul><li>Little formal HR planning system </l...
Agenda <ul><li>Introduction </li></ul><ul><li>Case Studies: two typical MFIs </li></ul><ul><li>State of the sector regardi...
HR Planning needs a systematic approach Define  characteristics  of personnel Identify  functional requirements Identify  ...
Agenda <ul><li>Introduction </li></ul><ul><li>Case Studies: two typical MFIs </li></ul><ul><li>State of the sector regardi...
Issue in Attracting professionals <ul><li>MF Needs Professionals </li></ul><ul><li>Large number of small  transactions </l...
Agenda <ul><li>Introduction </li></ul><ul><li>Case Studies: two typical MFIs </li></ul><ul><li>State of the sector regardi...
Conclusions <ul><li>HR is the most critical resource in MFIs </li></ul><ul><li>HR is a neglected function  - not considere...
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Hr issues

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Hr issues

  1. 1. Challenges with HR Planning, recruitment and deployment Deepak Alok
  2. 2. Agenda <ul><li>Introduction </li></ul><ul><li>Case Studies: two typical MFIs </li></ul><ul><li>State of the sector regarding HR issues </li></ul><ul><li>Ideal Best Practices </li></ul><ul><li>Issues in attracting professionals to Microfinance </li></ul><ul><li>Conclusions </li></ul>
  3. 3. Explosive growth in Microfinance has resulted in steep growth in HR requirements Projected Outstanding (Rs Crores) HR Requirement This growth has made the HR challenges one of the most important issue in the sector
  4. 4. Agenda <ul><li>Introduction </li></ul><ul><li>Case Studies: two typical MFIs </li></ul><ul><li>State of the sector regarding HR issues </li></ul><ul><li>Ideal Best Practices </li></ul><ul><li>Issues in attracting professionals to Microfinance </li></ul><ul><li>Conclusions </li></ul>
  5. 5. We will consider two typical MFIs to explore issues in HR MFI - A MFI - B <ul><li>Community leader CEO </li></ul><ul><li>Weak organization </li></ul><ul><li>Professional CEO </li></ul><ul><li>CEO centric operations, weak second line of leadership </li></ul>Leadership <ul><li>Microfinance just one of several activities </li></ul><ul><li>Not aware of sustainability </li></ul><ul><li>Singular focus on Microfinance </li></ul><ul><li>Sustainability is the guiding force </li></ul>Strategic Focus <ul><li>NGO expands its operations to Microfinance </li></ul><ul><li>Conscious attempt to provide financial services to poor. Promoted by a management professional </li></ul>Creation
  6. 6. HR Challenges of these two types of MFIs MFI - B MFI - A <ul><li>No structured training and induction system, job description </li></ul><ul><li>Structured training and induction system, job description for the field staff </li></ul>Deployment <ul><li>Ad-hoc recruitment, often transferred from the other programmes </li></ul><ul><li>Very structured recruitment for field staff </li></ul><ul><li>Ad-hoc in the case of senior managerial staff </li></ul>Recruiting <ul><li>Almost no planning for HR </li></ul><ul><li>Can roughly estimate personnel requirements for the next three-four months </li></ul><ul><li>Mostly quantitative and focuses on number of recruitments as well as promotions </li></ul><ul><li>More as an addendum to financial plan </li></ul>Planning
  7. 7. Agenda <ul><li>Introduction </li></ul><ul><li>Case Studies: two typical MFIs </li></ul><ul><li>State of the sector regarding HR issues </li></ul><ul><li>Ideal Best Practices </li></ul><ul><li>Issues in attracting professionals to Microfinance </li></ul><ul><li>Conclusions </li></ul>
  8. 8. State of the Sector regarding on HR issues HR Planning Recruitment Deployment <ul><li>Little formal HR planning system </li></ul><ul><li>Most of the planning is quantitative and concentrates on field staff </li></ul><ul><li>To feed in to financial plans </li></ul><ul><li>Planning is almost non-existent for the senior and middle management level </li></ul><ul><li>Almost no planning for training, deployment and motivation </li></ul><ul><li>MFI-A has good recruitment for the field staff level </li></ul><ul><li>Cannot find professionals for middle and senior management level </li></ul><ul><li>MFI-B often transfer staff from other programmes </li></ul><ul><li>MFI-A has formal training and job description for the field staff level </li></ul><ul><li>MFI-B has no formal training and job-description </li></ul><ul><li>Training for the senior and middle level staff is mostly donor driven </li></ul>
  9. 9. Agenda <ul><li>Introduction </li></ul><ul><li>Case Studies: two typical MFIs </li></ul><ul><li>State of the sector regarding HR issues </li></ul><ul><li>Ideal Best Practices </li></ul><ul><li>Issues in attracting professionals to Microfinance </li></ul><ul><li>Conclusions </li></ul>
  10. 10. HR Planning needs a systematic approach Define characteristics of personnel Identify functional requirements Identify source of personnel Personnel development and retentions HR Planning <ul><li>Operations </li></ul><ul><li>Finance </li></ul><ul><li>HR </li></ul><ul><li>Legal </li></ul><ul><li>Technology </li></ul><ul><li>Education </li></ul><ul><li>Experience </li></ul><ul><li>Attitude </li></ul><ul><li>Local graduates </li></ul><ul><li>Other MFIs </li></ul><ul><li>Other Industries </li></ul><ul><li>B school Campus </li></ul><ul><li>Compensation </li></ul><ul><li>Training </li></ul><ul><li>Job description </li></ul><ul><li>Motivation </li></ul>
  11. 11. Agenda <ul><li>Introduction </li></ul><ul><li>Case Studies: two typical MFIs </li></ul><ul><li>State of the sector regarding HR issues </li></ul><ul><li>Ideal Best Practices </li></ul><ul><li>Issues in attracting professionals to Microfinance </li></ul><ul><li>Conclusions </li></ul>
  12. 12. Issue in Attracting professionals <ul><li>MF Needs Professionals </li></ul><ul><li>Large number of small transactions </li></ul><ul><li>Margins are small </li></ul><ul><li>Pressure to maintain portfolio quality </li></ul><ul><li>High volume of cash transactions </li></ul><ul><li>Large number of small units </li></ul><ul><li>Can scale up fast </li></ul>MF can attract professionals <ul><li>Revenue model </li></ul><ul><li>Continuity </li></ul><ul><li>Capacity to scale up fast </li></ul><ul><li>Can objectively measure performance </li></ul><ul><li>Can compensate well </li></ul>Professionals are not coming <ul><li>Confusion in the microfinance sector </li></ul><ul><li>SBLP Vs MFI </li></ul><ul><li>Grameen Vs SHG </li></ul><ul><li>Social Performance Vs Profitability </li></ul><ul><li>Virtue vs Vice </li></ul>
  13. 13. Agenda <ul><li>Introduction </li></ul><ul><li>Case Studies: two typical MFIs </li></ul><ul><li>State of the sector regarding HR issues </li></ul><ul><li>Ideal Best Practices </li></ul><ul><li>Issues in attracting professionals to Microfinance </li></ul><ul><li>Conclusions </li></ul>
  14. 14. Conclusions <ul><li>HR is the most critical resource in MFIs </li></ul><ul><li>HR is a neglected function - not considered urgent </li></ul><ul><li>Ad-hoc planning results in underperformance and can have disastrous consequences </li></ul><ul><li>With proper planning MFIs can increase efficiency of HR and ensure stable growth </li></ul><ul><li>Hire professionals, if the planning indicate a need for this </li></ul>

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