Professional Documents
Culture Documents
1.00 Background
One of the major challenges for a MFI is its high attrition rate. Many MFIs
are also seriously considering the attrition problem. To achieve their goal
a strong group of employees is essential. Another challenge for Arohan is
to hire right people at right time in the middle level as well as senior level
management.
2.00 Objectives
Initially when Arohan started its microfinance business that time there was
no separate HR department but with the continuous growth of the
organisation the need of a separate work group was felt and in middle of
2008 HR department has been formed.
Two major resources for any microfinance organisation are capital &
people and without timely supply of both these resources the growth of
the organisation is badly affected. Beside operation the manpower
requirement of other departments like accounts, IT etc. are very low. Out
of total manpower 95% manpower of the Arohan is representing field staff
who actually run the business and therefore requirement of field staff is
crucial. Typically they are not very educated and low level staff. There pay
packet is also not so attractive even though their jobs are very laborious.
Organisation could not be opened branch office if HR not able to provide
branch head as well as field officers on time and the growth of operation is
totally depends on performance of HR department. In comparison to field
staffs HO staffs are qualified and get an attractive pay packet. Therefore
recruitment of field staff and to sustain them in Arohan is the main
challenge for HR department.
5.00 Human Resource Planning
After job analysis each individual position the job description as well as job
specification are being done with respect of field staff. However there is no
readily available job description and job speciation for other staff.
Considering the different type of challenges Arohan may look after the
following alternatives for solution:
In case of field staff Arohan has a standard criteria and processes and
recruitment is being done on mass scale as required for the huge
expansion plan of the organisation. Sourcing of candidates are mainly
done through advertises in the local newspapers. In addition of that
candidates are sourced through employee referral scheme. Further
leaflets for recruitment are also distributed among the customer for their
reference. However in case of area manager Arohan does not have a
policy to recruit area managers from outsider. All the area managers are
being promoted within the organisation from the post of branch manager
as the position requires at least one year experience in core microfinance
operation.
The selection process comprises written test, test of public speaking and
group interview. Selection criteria is being standardised with respect of
qualifications and experience. Most of the selected candidates are higher
secondary pass and some of them are also checked through an external
agency.
In Arohan all the field level jobs are standardised and well structured.
Reward and compensations of filed level staffs provided according to their
grade and 95% of the employees are field level staff. Quarterly incentives
are decided on the basis of customer acquisition, portfolio size and rate of
recovery. The objective behind such type of incentive structure is the
strategies for rapid growth. Further subsidies are also provided for food
and lodging by reimbursing salary of cook, cost of gas, room rent of field
officers.
Increments are made on yearly basis after considering the market rates.
For that salary of other MFIs are compared.
Other than field staffs salaries are not structured at all. Salary is being
decided on case to case basis after considering academic qualification as
well as experience and therefore it varies individual to individual. Yearly
incentives as well as increments are decided after taking feedback from
the immediate superior. Therefore chances of lobbing as well as politics
are high.
The induction program of Arohan for its field staff is very well designed
and structured system of induction for its field staff. Induction programs
comprise class room session as well as branch exposure visit and all the
candidates require attending 21 days induction program. At class room
session the mission and vision, organizational structure, processes and
procedures and basic concepts in MIS and accounting system are
discussed. During the training detailed operational policy as well as job
responsibilities are provided. In between the class room session they are
sent to the branches for on job training where are accompanied by one of
the experienced field staff who assist the candidate to learn his/her duties
and responsibilities. After completion of branch exposure another round of
class room is being organized to evaluate their knowledge and skills as
required for their job.
However for other category of staff Arohan does not have structured
training program. They are directly deployed in jobs after 5 days branch
exposure visit.
Even though Arohan has a well designed and structured training program
they are facing following problems which need to be addressed for fulfil
the objective of training –
Flow model may also be used for account for the attrition of
field staffs as it helps us to reduce the error margin while forecasting
manpower requirement.