Some time back, I blogged about the strategic importance of human capital in the microfinance sector and some ways this asset can be developed to benefit the microfinance institution. This blog post goes a step further and mentions indicators of a strong human resource environment that helps drive the organization to success. This checklist has been excerpted from the Microfinance Handbook: An Institutional and Financial Perspective.

• Training materials are thorough and well-designed, covering philosophy and client service concepts as well as technical skills. A period of coaching/mentioning built into the training. Training period screens out inappropriate candidates. Length and cost of training minimized.
• Compensation policies are set to attract the right caliber of staff.
• Incentives schemes are designed to reward portfolio quality as well as volume, and incentive amounts are set relative to the extra income earned through enhanced performance.
• Employees who express a high level of satisfaction with their work. Low employee turnover. No antagonistic employee unions or associations.
• Dynamic use of employee newsletter, with contributions from employees. Strong internal communications and transparency. A team spirit evident in all activities. (Read about the right organizational culture in microfinance).
• Appraisal systems, promotion policies, and other policies are perceived as fair.

Reference:

Ledgerwood, J. (1998). Microfinance Handbook: An Institutional and Financial Perspective. Washington, D.C.: The World Bank. 121.