Best Practices in Human Resource Management
European Microfinance Week
Jody Rasch, Senior Vice President
Moody’s Analytics Social Performance Group
‹N°›
© Moody’s Analytics, Inc. and/or its licensors and affiliates.
Framework for Assigning SPAs
Social Performance
Assessment
Social Mission
Strategy and
Leadership
Customer
Relationship
Management
of Social
Outcome or
Impact
Human
Resources
Environmental
Performance
Human Resources
‹N°›
© Moody’s Analytics, Inc. and/or its licensors and affiliates.
Human Resource Performance Globally
Source: 2009 MIX social data mapped to MA’s SPA scorecard
Human Resources
‹N°›
© Moody’s Analytics, Inc. and/or its licensors and affiliates.
Sub-Factors of Human Resources
8
1
Staff Incentives and Audit
» How HR is organized and
managed
» Mechanism to address staff
satisfaction and grievances.
» Perks for staff
» Validation of information
7
2
Promotion and Retention
» Promotion linked to social
metrics and performance
16%
Staff Skills and Training
9%
» Imparting Social Performance
related training
13%
Code of Ethics
» System for ethical selfregulation
13%
6
Organization & Facilities
3
Hiring Policies
» Enforcing and overseeing
mechanism
9%
9%
17%
14%
5
Fair Compensation
» Equitable and relevant salary
4
Culture of Delegation
» Several decision making
levels to respond to clients
* Percentages based on Moody’s Analytics SPA
Human Resources
‹N°›
© Moody’s Analytics, Inc. and/or its licensors and affiliates.
Juhudi Kilimo
Practices:
Structure – Human resource department headed by a senior manager
Employee Satisfaction – Has a system to address grievances and informally looks at employee
satisfaction.
Code of ethics – Have policies on conflicts, anti-discrimination, harassment and gender. They have a
committee to oversee the implementation of the code and enforce the code. Staff does not sign the code
of ethics or have an exam on the code. Board of directors does not approve the code of ethics.
Hiring Policies – They have written policies on equal pay, discrimination, harassment and equal
opportunity. 28% of senior managers, 33% of mid managers and 55% of loan officers are women.
Culture – Senior and mid level managers have responsibility for tracking and evaluating social
performance.
Fair Compensation – Give explanation of compensation components, ensure equality of pay for men and
women and staff salaries are compared to minimum wages.
Training – Training topics include Social performance, the MFI’s social mission, collection of social data,
credit analysis, over indebtedness prevention, product pricing, collection methods and client complaint
procedures
Promotion/Retention – Key indicators client drop-out rates, loans disbursed, collections, repayment
rates, attracting clients in target market
Human Resources
‹N°›
© Moody’s Analytics, Inc. and/or its licensors and affiliates.
Pro Mujer Nicaragua
Practices:
Structure – Human resource department headed by a senior manager
Employee Satisfaction – Has a formal system to address employee satisfaction annually and conducts exit interviews.
Code of ethics – Have policies on conflicts, anti-discrimination, harassment, corruption, gender and client protection. They
have a committee to oversee the implementation of the code and enforce the code. Staff signs the code annually the code
of ethics and are required to pass an exam. Board of directors approves the code of ethics. The ethics committee
oversees the enforcement of the code and supervisors have a role in ensuring staff knowledge.
Hiring Policies – They have written policies on equal pay, discrimination, harassment and equal opportunity. They have
hiring quotas for staff.
Gender Issues – There is maternity/paternity leave and 36% of senior managers, 89% of mid managers and 88% of loan
officers are women.
Culture – Senior, mid level managers and loan officers have responsibility for tracking and evaluating social performance.
Fair Compensation – Give explanation of compensation components, incentive based scheme is audited, market rate
adjustments are given, ensure equality of pay for men and women ,staff salaries are compared to minimum wage and the
difference between highest and lowest paid employees is considered.
Training – Training topics include the MFI’s social mission, Code of conduct, gender awareness, poverty measurement
and social mission, client communication, collection of social data, credit analysis, over indebtedness prevention, product
pricing, collection methods and client complaint procedures
Promotion/Retention – Key indicators, Achievement of social goals, compliance with code of ethics, client drop-out rates,
loans disbursed, collections, repayment rates, attracting clients in target market, outreach to women and rural clients.
Audit – They periodically review compensation for unintended consequences and perform audits of their social data.
Human Resources
© Moody’s Analytics, Inc. and/or its licensors and affiliates.
‹N°›
Juhudi Kilimo - Kenya
Human Resources
© Moody’s Analytics, Inc. and/or its licensors and affiliates.
‹N°›
Pro Mujer Nicaragua
Human Resources
‹N°›
© Moody’s Analytics, Inc. and/or its licensors and affiliates.
Juhudi Kilimo and Pro Mujer Human
Resource Practices
Human Resources
‹N°›
© Moody’s Analytics, Inc. and/or its licensors and affiliates.
Contact Information
United States
Jody Rasch
Senior Vice President
Tel: (212) 553-3797
Email:
jody.rasch@moodys.com
Michael Rauenhorst
Vice President
Tel: (212) 553-2866
Email:
michael.rauenhorst@moodys.com
Alan Bonilla
Assistant Vice President
Tel: (415) 874-6286
Email:
alan.bonilla@moodys.com
Eastern Europe/Central Asia
Lilya Peskova
Microfinance Centre
Tel: +48 622 34 65 ext. 212
Email: Liliya@mfc.org.pl
www.moodysanalytics.com/microfinance
Human Resources
‹N°›
© Moody’s Analytics, Inc. and/or its licensors and affiliates.
Contact Information – Affiliates and
Latin America
Partners
India/Asia
Ms. Rajalakshmi Srinivasan
ICRA Online Ltd
Tel: +91-44 30061703
Mobile: + 91 9840565126
Email:
rajalakshmi.srinivasan@icraonline.com
Carmen Alvarado
Equilibrium Clasificadora de Riesgo S.A.
An Affiliate of Moody's Investors Service, Inc.
Tel: (511) 616-0400 221-3676 221-3688 221-2759
Email: calvarado@equilibrium.com.pe
Middle East North Africa
Sub-Saharan Africa
Davy Serge AZAKPAME
Chief Executive Officer
AFRICA MICROFINANCE
NETWORK
Tel: +229 21-307441
Fax: +229 21-307496
Email: davy.serge@afminetwork.org
Eastern Europe/Central Asia
Nagla Bahr
Director
DFSGroup
Tel :(+20-2) 37499883
Email: nbahr@finbi.com
Lilya Peskova
Microfinance Centre
Tel: +48 622 34 65 ext. 212
Email: Liliya@mfc.org.pl
www.moodysanalytics.com/microfinance
Human Resources
© Moody’s Analytics, Inc. and/or its licensors and affiliates.
‹N°›
© 2012 Moody’s Analytics, Inc. and/or its licensors and affiliates (collectively, “MOODY’S”). All rights reserved. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY
COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED,
DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR
BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY’S from sources
believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS
IS” without warranty of any kind. Under no circumstances shall MOODY’S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting
from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of MOODY’S or any of its directors, officers, employees or
agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect,
special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY’S is advised in advance of the possibility of such
damages, resulting from the use of or inability to use, any such information. The ratings, financial reporting analysis, projections, and other observations, if any, constituting part of the
information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. NO
WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY
SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER. Each rating or other opinion must be
weighed solely as one factor in any investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own
study and evaluation of each security and of each issuer and guarantor of, and each provider of credit support for, each security that it may consider purchasing, holding, or selling.
Human Resources