Microfinance is HR driven business.

Microfinance is the extension of financial services to poor who are excluded from scope of activity of organized financial system. Rangarajan Committee on financial inclusion has proved the importance of Microfinance Institution (MFI) in social sector. And suggested several recommendations for MFI. Rough estimate indicate that there are around 1000 NGO and 20 companies MFI in India. The sector needs to tap the financially excluded regions of the country. So, it got tremendous potential and can take the advantage of economies of scale. My experience of working with microfinance institution has forced me to conclude that it is totally HR driven business. Though it is true for all industry but in case of MFI the pendulum is more towards it. Microfinance requires very special skill set with appropriate attitude to serve the business. So searching the desired competency personnel, attracting, recruiting, rewarding and retaining them is tedious task. Attrition among MFI’s again challenge for the business. As business growing rapidly by taking the advantage of economies of scale, there is need to reward talent among the talent and this is very powerful tool while retaining talent. This business involves lot of creativity and innovations. Therefore HR persons need to really act as catalyst of Change as change agents. Changes are in the form of replacing old financial product, introduction of new products, changes in delivery form of services, change in work location etc. These change need to be carefully escalate to all employees very carefully.
To cope with changes and managing innovations personnel’s needed to be given a proper Training. Training must be an ongoing activity of the organization to sustain in the business. It’s all about developing an organization with requisite skills and competencies. In future those organizations grow and sustain in competitive world that have employee friendly HRM practices. After all HR is competitive edge proved in a business.


Faith
Amol
nakveamol1@gmail.com