This blog has previously posted articles on the advantages and drawbacks faced by microfinance institutions dealing with women, while this article discusses the benefits of hiring women in microfinance institutions to work at various levels of the management hierarchy. (The next post will mention some issues related to employing women in microfinance).

Fewer Social Barriers

Recruiting female staff members makes perfect sense if microfinance institutions deal largely with women, because it is easier to overcome social barriers. It is widely known that women in rural parts of South Asia strictly observe ‘purdah’ (a curtain or screen, used mainly in India to keep women separate from men or strangers – as defined by the Free Dictionary), which means it is very difficult for male loan officers to interact with female clients.

This barrier is immediately removed if the loan officers in question are female, because:

• Clients can easily converse with female loan officers, ask them questions about microfinance services and share any problems they face at home or at work.
• Female loan officers can easily visit women clients at their homes to collect loan installments or for some other purpose.

Diversity of Ideas

Gender diversity in microfinance institutions (which is achieved by adding similar amounts of men and women to the workforce) can improve the variety of ideas and viewpoints generated during meetings and improve the overall human resource environment of the MFI. This translates into a commercial advantage over time, especially since women can relate to the situation of female clients more easily compared to men.

Good sales figures

Lastly, it turns out “women were better salespeople because they are perceived as genuinely interested in the client’s best interest” (UNCDF).