This paper attempts to give an overview of the international experience with staff incentive schemes. It provides an overview of the staff incentive schemes in other industries, where these are an element of common policy.

It also provides information on some basic parameters of microfinance industry such as outreach and sustainability. The findings in this research suggest that a much smaller percentage of MFIs employ some form of monetary incentive program in Asia but the majority of schemes in place were designed to enhance asset quality and staff productivity. It concludes that the highly productive MFIs are heterogeneous in their staff incentive schemes.

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