MicroStart: A Guide for Planning, Starting and Managing a Microfinance Programme.
CHAPTER TWO
BACK____NEXT

B. STAFFING

1. Job Descriptions
2. Compensation

You have already planned a basic staffing structure for your projects in Chapter One: Planning. Your first and most important task now is to recruit and train staff. In this section, you will understand the roles and job descriptions of key staff and become familiar with motivating staff to meet programme objectives.

(1) Job Descriptions

Exact configurations and job descriptions of staff will vary by organization. Following are roles and functions which must be performed by existing staff or by hiring new staff.

Project Director
A university graduate with experience in project management is optimal. Project Directors need not have specific expertise in microfinance. A Project Director must be well organized and good at motivating and managing people. The Project Director:

Loan Manager
Level of education (at least 12 to 14 years) is less important than proven experience in managing and motivating people. Expertise in microfinance is not necessary however, the individual should have excellent knowledge of the target population. The Manager reports to the Project Director and:

  • designs and implements field activities
  • hires, supervises and trains Field Agents
  • holds regular meetings with Field Agents to review field activity
  • visits groups to certify them
  • manages loan disbursement with the Bookkeeper
  • manages collections with the Field Agents

Bookkeeper
First, retain a very experienced accountant as a consultant to help set up bookkeeping systems and to supervise the first few monthly financial statements. A good consultant can help you hire the right Bookkeeper to maintain records.

As Bookkeeper, hire someone with 10 to 12 years of education with experience in accounting. He or she should be able to keep good records and post a monthly trial bal- ance. The Bookkeeper reports to the Project Director and:

  • manages loan portfolio activity
  • supervises general bookkeeping and financial management
  • tracks loan disbursement, repayments and interest
  • communicates with funding sources regarding loan capital
  • works with the Project Director to create regular financial reports

Office Assistant
Hire someone with at least eight to ten years of educa- tion who is fluent in the native languages. The Office Assistant reports to the Project Director and:

  • maintains communication between office and field
  • supervises the office and general administrative activities.

Field Agents
Field Agents are the driving force of the project. They promote your services, form groups and manage clients. Field Agents should possess at least eight years of education and fluency in the languages of target communities.

Experience from around the world has shown that Field Agents can come from many diverse backgrounds, from teachers to social workers. The most important skill, however, is their knowledge of the local community.

Field Agents must be highly motivated individuals preferring field work to office work. They must be good at understanding and interacting with people. They should come from the kinds of communities you intend to serve. However, they should never be involved in processing loans in their home communities. Each Field Agent reports to the Loan Manager and:

  • promotes the project in the selected communities
  • develops and trains groups
  • assists groups in the loan application process
  • responds immediately to late loan payments
  • collects loan payments (depending on arrangements with local banks)
  • is responsible for the health of his/her loan portfolio.

Field Agents comprise the heart of the project. All revenue relates directly to the effectiveness of Field Agents. An ineffective Field Agent will linger behind a desk and bring your lending activities to a sluggish halt. An effective Field Agent will create vital, healthy and growing field activities. A qualified Field Agent capable of high performance is one who:

  • has a professional manner
  • demonstrates a personal commitment and strong connection to clients
  • is a team player and helps establish a good rapport among staff
  • is able to listen to clients and respect them
  • is able to maintain objectivity in dealing with clients
  • understands entrepreneurial vision
  • is self-confident and able to inspire confidence
  • is able to keep repayments on track.

(2) Compensation

Maintaining a high level of commitment from staff is key Staff must strive to improve the programme and be willing to share ideas. Incentives built into a performance monitoring system will encourage Field Agents and other staff to become more efficient.

Consider bonuses for Field Agents and the Loan Manager supervising them. Incentives may be based upon:

Low delinquency and default ratio
Recovery should be the key determining factor in calculating incentives. Less than 95 per cent on-time recovery should result in no incentive, regardless of the number of groups or clients. A sliding scale should be developed based on recovery from 95 to 100 per cent;

Number of groups formed
The more groups, the more clients served and the greater the opportunity for intense loan activity. Base your incentive on a client to Field Agent ratio. If Field Agents outperform the standard ratio, they get a good bonus;

Number of groups active as a percentage of groups formed
Provide incentives for Field Agents to maintain healthy groups that stay together over time.

Recognition by peers can be a great motivation for continued high performance. So can opportunities to learn and share ideas. Consider rewarding all staff with:

Idea exchanges
the chance to visit other projects in your region, country or even other countries to share ideas with peers;

Awards
an awards ceremony honouring outstanding achievement. The ceremony might involve other organizations in your region;

Speaking engagements
conferences or meetings where staff have the opportunity to speak about their work and your organization. Most programmes do not do this enough.

BACK____NEXT