Staff Incentive Schemes for Deposit Mobilisation

Abstract:

This note discusses in details about designing the staff incentive schemes for deposit taking microfinance institutions. It highlights the importance of being friendly and having good interpersonal skills in mobilising deposits. It suggests designing group based staff incentive scheme for deposit mobilisation as it is often difficult to discern exactly what (and who) caused the customer to entrust the institution with his or her funds and provides a simple formula for it. It also stresses to factor in more weights, if there are different schemes, and/or management thinks of refining the existing schemes. It further recommends distributing the branch bonus pool according to the base salaries.

Tags: BURO, BN48, BN 48, MicroSave, KPOSB, South Asia, South Africa, Microfinance, Retail banks , Staff incentive schemes, Human resource management, Savings, Bangladesh, Kenya, MFIs, Microfinance institution, Financial services, Deposit mobilisation, Group bonus pools