Asset Liability Management

HR 101

Striking the balance investing in

Human Resource and maintaining

a low overhead cost in SACCOS

SACCA Leadership Forum , March 2013

Accra Ghana

SWOT Strengths Weaknesses

………. ……….

…….... ……….

Dedicated staff/directors Experienced staff/directors Young staff Educated staff/directors

Inexperienced staff/directors Insufficient/too many staff High/low staff/directors turnover Inappropriately qualified staff/directors

Opportunities Threats

……… Local business college

………. Banks pay higher salaries

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Where does it hurt?

Operations Balance Sheet Income & Expense

Low morale Slow growth Low income

High error rates Poor asset quality Poorly managed expenses

Low productivity High delinquency Low profitability

Difficulty in attracting new staff/directors

Low savings/shares

High Staff Turnover

Loss of member/public trust

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High Turnover – the invisible thief

• Lack of appreciation

• Interference by directors/supervisors

• Lack of roll clarity

• Lack of tools Lack of support

• Low salaries

• Unrealistic expectations

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Low Turnover

• Complacency

• Stagnation

• Lack of innovation

• Limited growth

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Protecting and Maximizing Return

on Investments • Performance management systems

– Mutually agreed upon objectives in line with the strategic plan

– Regular and objective performance monitoring and evaluation

– Rewards for performance

– Remedial action for poor performance

– Consequences for non performance

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Non cash incentives

• Recognition

• Workplace equity

• Fairness

• Professional development opportunities

• Flex hours

• Career planning

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Determining appropriate staff

levels • How many members?

• How many different types of products and services?

• How many branches?

• Automated or manual systems

• Plans for growth

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Determining appropriate salary

levels • Education levels

• Experience

• Market rates

• Benefits

• Budget

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Cost Benefit Analysis

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Cost Benefit Analysis

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Cost Benefit Analysis

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Cost Benefit Analysis Summary

• Additional loan officer = 15,600

• Automating System = 22,800

• Net cost of qualified accountant = 1,000

• Total cost of staff enhancements = 38,800

Potential to recover these costs:

• 5% reduction in Loan Delinquency = 15,000

• 10% increase in Loan Portfolio = 27,000

• Loan Portfolio Benefits = 42.000

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Options for filling gaps

• Review board skills and experience composition

– Use of non voting expert directors

• Share employees with other SACCOS

– Sheema Union

Local mentoring programs

– Chapter management meeting Malawi

– Local women’s mentorship program Ghana

• Use Chapter/Regional/Annual Meetings for training

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What’s happening in your

SACCO?

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Questions?

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