HR issues in microfinance, BIRD conference

BIRD recently hosted a one day conference on "Building Efficient Human Resources in Microfinance". The conference reflected a very positive sign for the microfinance sector in India for an apex institution took lead about an issue which is core to the whole microfinance sector and is very less talked about at the same time. The conference essentially focused on HR needs of MFIs and covered issues of HR challenges in microfinance, how management courses can help and capacity building of HR to increase financial literacy of clients. Some facts from the conference -

1. 2.5 lakh personnel needed in coming years in the microfinance sector
2. The microfinance insights issue states that 48% MFIs think they lack strategic thinkers with experience in microfinance, while 35% think they lack strategic thinkers on capital markets experience.
3. BIRD, may soon start a management course on microfinance to generate microfinance managers
4. Need of training and proper motivation for MFI officers is very important. As Mr Ghosh from Bandhan pointed out – “success is not world class talent, it is world class performance”. His presentation talked about various HR motivation strategies adopted by the MFI.
5. BIRD may start customized HR training programs for microfinance institutions.
6. The staff incentive schemes need to be properly designed. Mr T N Shukla from cashpor presented a series of steps starting from recruitment up to career growth for the same.

A couple of CMF’ers wonder if is it possible to evaluate HR policies of a MFIs? The researchers, who are based in field and are in constant touch with practitioners, have found that there have been cases where monetary staff incentives have led to frauds etc. This blog talks about few such cases and studies. However, it is also known that staff incentives need not to be monetary all the time. Mr Ghosh, from Bandhan during his presentation opined, “what it basically needs to institutionalize a successful MFI, is a good HR manager; other things follow”. Perhaps, we all understand the importance of right HR and right staff incentives in microfinance and it is high time that we know what type of incentives work for MFIs.

Please feel free to contact the author of this post with any ideas or suggestion on evaluation of HR policies for MFI.