Dynamic microfinance sector development at the Kyrgyz market led to the growth in the number of companies and resulted in the increase of the need for qualified employees and effective personnel management systems. Presently, over 300 microfinance organizations with developed regional network operate in Kyrgyzstan. Moreover, the microfinance market is viewed as the instrument for combating poverty, creating new employment opportunities and favorable conditions for small and medium business development.

Considering high capacity and future perspectives for the development of this sector El Group Consulting experts initiated the discussion in order to define existing unique features of the personnel management process as well as problems idiosyncratic for the microfinance sector and ways for their solution. Human resource managers (HR) from leading microfinance organizations of Kyrgyzstan expressed their expert opinions.

According to the results obtained in the course of expert interview the human resource managers view the broad regional coverage of organizations to be the challenge and main peculiarity in activities of microcredit organizations. The specific nature along with the shortage of qualified staff in remote regions of the country is a serious test for development and effective operation of microcredit branch networks. According to the HR managers the most complicated situation relating to the shortage of qualified staff is observed in Batken, Jalalabad and Talas regions.

In spite of existing complexities, in the opinion of Mr. Radiy Temirgaliev, Personnel Unit Manager at FINCA Microcredit Company (MCC), the situation with selection of qualified personnel has improved in the regions for the past year that, in his opinion, is related to the return of labor migrants home.

Another unique feature in the activities of microcredit organizations is the emphasis on the direct contact with the consumer in selling services and products that result in increased demand for staff members with direct sales and marketing skills. However, according to our experts, the labor market cannot meet the needs of microcredit organizations in experts for the microfinance sector.

Mr. Kirill Tsyganov, Communications and Talent Development Director of Kompanion Financial Group, noted that the company plans to actively cooperate with regional higher educational institutions in order to meet the increased need for personnel in regional branches. In addition, Ms. Altynay Kozubekova, Personnel Manager at Mol Bulak Finance, pointed out that it is planned to open the CentralAsianAcademy of Finance and Management with participation of the Frankfurt School of Finance and Management to train microfinance experts and managers in the nearest future. In the expert’s opinion it will have positive impact on the quality of training staff for the microfinance sector.

At present, microcredit organizations attach greater importance to the development of their own human resource capacity by introducing internships for young experts and on-the-job coaching to solve the problem related to the lack of qualified staff. Another effective technique of solving the problem with the shortage of qualified staff involves selection of prospective candidates with basic skills and advanced personal qualities required to sell microfinance services and products. Mr. Tsyganov and Ms. Kozubekova cited as an example teachers and health care professionals to be the prospective candidates for loan officer positions in the regions due to their advanced communications skills and respect that they enjoy within their regional community.

Microcredit organizations attach great importance to intangible personnel motivation instruments. Experts pointed out that the key and the most valuable staff members in branches have significant career growth opportunities in view of on-going expansion of the branch network and opening of new field offices. Thus, Mr. Temirgaliev noted the company image, competitive salary and employment conditions, in-house team building trainings and others among the factors that contribute towards building a strong team and developing sound personnel capacity of the company.

In terms of financial motivation of personnel in this segment the salaries of loan officers in MCCs consist of the base pay and performance based variable part of the remuneration given the nature of direct sales for economic products. Results obtained in the course of Salary and Remuneration Market Research for the second half of 2009 conducted by El Group Consulting show material salary increase in MCCs’ branches as compared with the banking sector branches due to the variable part of the remuneration package for the MCC staff member.

El Group consultants on their part would like to highlight significant achievements and positive trends in human resource development systems with leading companies of the microfinance sector that, in our opinion, contribute to improved understanding of the importance of human resource management process by microcredit and financial sector companies. The large scale plans of companies to introduce international training standards for their employees in microfinance will contribute to the overall long-term labor market development in Kyrgyzstan.

El Group Consulting Analytical Group