Beirut - May 2009

AL-Amal Microfinance Bank HR Perspective

Mohammed Salah Al-laiExecutive Director

Sanabel 6th Annual Conference

Al-Amal Microfinance Bank -Yemen

Introduction Poverty and unemployment have a negative impact

on the

development of Yemen.

Yemeni Government has issued the Law (23) for the

year 2002,

establishing the first Microfinance Bank in Yemen

(and the region)

under the name of (Al- Amal Microfinance Bank

AMB).

The bank was established by :

45% (SFD) .

35% (AGFUND).

20% the Private Sector.

Vision , Mission and Objectives Vision

Inclusive financial services for all Yemenis

To improve the economic and social conditions of the Yemeni low income family, especially those of small and micro enterprises; by providing outstanding financial services. And to become the pioneering and sustainable financial institution in Yemen.

Mission

Objectives

To provide diversified financial services satisfying the target group's needs and expectations.

To expand to all the Yemeni territories (rural and urban) through new branch and possible partnership with other local institutions.

To be sustainable financial institution, with qualified and efficient staff, and equipped with modern systems able to attract fund.

Al-Amal Bank Key Figures

2009 2010 2011 2012 2013

Staff N. 58 142 248 379 531

Loan Officer's 22 66 128 206 298

Branches N. 4 10 18 28 40

Active Clients000

4.5 15 40 70 100

Yemeni HR Overview

Employment Lack of clear national strategy for labor and

employment. 20% of the workforce in Yemen participate in the formal

sector. 17% is the rate of unemployment. Different public and private work environment. Yemeni people get their job through:

1. Personal initiative

2. employment bureaus

Only 5% of the unemployed are registered with them.

Only 13% of those registered received help from the bureaus in finding jobs.

Poor relation with employers.

Offering one service

Yemeni HR Overview

Recruitment:

Applicants heading for jobs

that are not related to their

qualification and/or

experience.

Lack of qualified applicants.

Lack of proper training.

Varied work experience

( government, Private

sector).

Unclear career path.

Selection:

Applicants characterized with:

Poor self presentation.

Misleading previous work

experience.

Hesitant to be exposed to a

new work environment.

Microfinance Institutions

Challenging Human Resource Issues for MFIs Recruiting qualified staff. Little attraction for the applicants. Training and capacity building Preventing turnover Managing human resources Designing satisfying incentives Financial constraints

Al-Amal Microfinance Initiative

Started officially in January 2009 and people has little sometimes no information about it.

Strategic decision has been taken “ NO staff from the MFIs, Fresh graduates ONLY “

A management team was recruited on a voluntary basis at the beginning (4 staff).

Exposure visits locally and internationally. HR manual and policy on recruitment and selection

were set. Appointing the recruitment and selection committee

by the Executive Director.

Total Number of applications 2851Management posts applicants 755

Secretary posts applicants 224IT posts applicants 197

Applicants with no clear interest

1675

Al-Amal Microfinance Initiative

Al-Amal Microfinance Initiative

• Recruitment and selection procedures

Developing the Recruitment and selection .

Advertising the vacancy announcement.

screening of the relevant application forms, and key in in

the database.

Selecting the best 15 applicants and calling them for the

job interview. Choosing the best one to fill in the vacancy.

• Sending a letter of acceptance.• 2 months training period.

Keeping in touch with the second and the third ranked.

Al-Amal Microfinance Initiative

Capacity Development: Microfinance Orientation. Microfinance practical training conducted:

• Site Seeing to some regional MFI’s (Egypt and Jordon)• TOT courses ensuring that people attended acquired

(Trainer Status).• Visiting experts .• Residential experts helped training the staff and

revising the manuals.

Progression Evaluation: Setting standards. Evaluating performance according to the

standards. Support and re-enforcement.

Al-Amal Bank contribution to the HR development

of the Microfinance Industry in Yemen Adding new potentials and experience to the industry .

Encouraging the females to apply for the vacant posts.

Using the media for recruitment.

Stimulating competition in terms of staff selection.

Creating an interest in working and learning about the

industry.

Future HR aspirations of the bank Sharing the job application database with the current

MFI's.

Improve coordinating with the universities and

educational institution to cater the needs of the

microfinance industry needs.

Encouraging Universities and institutes to introduce Microfinance tailored programs.

Supporting National Microfinance Awareness Campaign.

Helping the MFI’s ensuring effective HR plan is in place.

Helping the countries to reach experts TOT trainers’ self sufficiency.

Encouraging the MFIs’ to have effective recruitment and selection process.

Suggested Donors’ Involvement

www.alamalbank.com

Thank you

E-mail: mallai@alamalbank.

com