India is a country of the rural economy. India’s economy is growing rapidly. Finances and banks play a major role in balancing the economy requirements and transactions.
Microfinance’s are one such financial institution which plays the pivotal role in the rural economy of India. Microfinance companies are largely driven by 2 resources in their growth; those are financial resources & on-field human resources.
Microfinance always gives a lot of attention to managing the financial resources. But when it comes to human resource management, major Microfinance are failing to get the optimum results. This may be hindering the sector greatly as complete sector’s operations are mainly dependent on on-field employees.
In this post, we address/tackle major concerns that arise while managing field employees in the microfinance industry and explain how workforce Intelligence application helps to solve those issues.
Let us uncover 8 major issues that Microfinance industry may face while managing human resources.
This may be one of the major issues that are faced by the microfinance’s industries. Around 70% of the employees in Microfinance companies are on-field employees. Their nature of traveling is the reason behind their failure of working time balance.
Majority of the employees need to travel to their offices before the start of the work and after the completion of the work, they need to travel back to their offices to document the work status and accomplishments.
This system may not only hinder employees working time balance but may also increase the cost/expenses of the company.
Unaccountable working hours may be affecting both the employees and the microfinance companies. Field employees may have to work extra time to accomplish their tasks. But lack of proper time and attendance management may well be causing the microfinance industry badly.
Companies will be always looking to reduce the operational costs in order to increase the profitability. Most of the microfinance companies may reduce their number of employees in order to cut their operational costs. Moreover, this can be detrimental to the company as the industry relies on human resource and direct interactions.
Microfinance companies may suffer a lot due to lack of real-time supervision of the on-field employees. Information/work progress is always exchanged during the weekly or monthly meetings. This may lead to mismanagement of the existing resources. This also creates an opportunity for the resource to play around with company rules & policies, which most of the time go unnoticed. Such incidents or activities may actually cost a lot the company.
Microfinance company’s biggest challenge would be planning their human resources. Industry’s major pain point is its attrition rate. The reasons are many, but companies are doing their best to cope-up with this problem. However, they may face major dent in the revenue growth due to this issue.
Employees of MicroFinance company may face challenges in claiming their reimbursements. A lot of paper works & too many approvals & then too & fro of the documents for authentication may turn their claim process cumbersome in most of these companies. However, many organizations have eased this process by taking a drastic step of fixing the allowance amount. But these amounts can be either underestimated or overestimated based on various factors. Hence, this might also incur an unnoticed huge cost for the company. Reason for this lack of the legitimate foolproof system for the management to authenticate these travel claims.
Due to the majority of resources are being deployed on the field, this sector has the high risk of getting badly affected by time-theft by its resources. Imagine just a 1 hour time theft a day, or as low as just 5% in a 1000+ employee organization, results to 50 hours a day & 1500 hours a month. But actual surveyed numbers are more than 5 times of the above-said figure. This is another huge unnoticed loophole in the revenue for the organizations. Time theft may not only causing the loss of the company but also affecting the employment relationship with its employers when addressed. Hence, this needs to be fixed with a foolproof solution.
Transparency is the key to organizational growth ! is that true in all the cases. Not actually, somewhere management has to draw the line & till that line it has to be transparent. So this transparency is very important, but yes the lack of this transparency may be in the data or the source of the data in evaluating productivity, engagement and expenses incurred by the resources might cause disturbances in the processes. This affects not only individuals performance, evaluation and reward system but the organization as a whole.
As per industry statistics, microfinance companies have got staggering high attrition rate than any other sectors across the globe. This is a big worry. Microfinance company policies are such that they are sometimes quite difficult & complicated to be accommodated by individuals across demographics. Many of them fear that it may affect the work and personal life balance and take the drastic decision on their JOBS after surviving for the first couple of months. And many other such issues related to travel reimbursement, & travel itself, performance & evaluation criteria are on the list of causes for the high attrition rates.
Use of technology such as computer software and systems, mobile technology is proving to be an effective strategy to resolve major of the above issues. It is observed that MFIs with good growth plan and scale strategy has adopted Enterprise Mobility Technology, which is reaping benefits for businesses.
One such Enterprise Mobile technology is Our GetSpot – A Workforce Intelligence Application. Let us look at how this application solves the above-mentioned problems of microfinance companies & their related challenges in human resource management.
1.GetSpot – Workforce Intelligence provides real-time location tracking and clock-in clock-out options. This avoids traveling to the office for the sake of attendance and reporting only.
2.With clock-in and clock-out employee can register their work hours. This provides the legible proof of their working hours.
3.Workforce Intelligence reduces travel by the large extent. It eliminates false claims by giving legible proof. It reduces work and burden on HR department by integrating with existing payroll system.
4.This application gives authority to supervisor/manager to supervise, monitor and modify the tasks to the field employees in real time. This helps efficient management of the on-field employees.
5.Workforce Intelligence gives the accurate proof of distance travel and other details. This avoids reimbursement issues that occur due to lack of proof.
Location and work management details provide true details of work commenced and completed. This will avoid the Time theft incidents completely.
Application dashboard acts as a true source of truth for all the insightful data of the field employees. This helps performance evaluation and rewarding.
Getspot-Workforce Intelligence application provides a win-win situation for both the employees and the employer. This reduces employee attrition and helps in retaining the employees effectively.
P.S: Getspot is workforce intelligence application to manage on-field workforce efficiently. Getspot helps you optimize your on-field employees’ time & tasks. It eliminates time-theft and helps you supervise on-field employee in real-time.