HRpolicy and Procedures July 2007 V1

Human resources and
training policy and

procedures
Ref: DTDS/17052007/HRD/HRpolicy
ABC – Afghan microfinance institution

Headquarters in Jalalabad
Table of Contents
Introduction...............................................................................................................................7
Organisation chart.....................................................................................................................8
Chapter I.Ethical chart..............................................................................................................9
1. ABC values....................................................................................................................................9
1.1Quality..........................................................................................................................................................9
1.2Continuity.....................................................................................................................................................9
1.3Affordability.................................................................................................................................................9
1.4Dignified Treatment.....................................................................................................................................9
1.5Protection from Unethical Practices...........................................................................................................10
1.6Truthful Information..................................................................................................................................10
1.7Privacy and Fair Disclosure.......................................................................................................................10
2. Conflict of interest.......................................................................................................................10
2.1Hiring family members..............................................................................................................................10
2.2Extent of service.........................................................................................................................................11
3. Non-competition clause ..............................................................................................................11
4. Anti-discrimination policy..........................................................................................................11
4.1Gender equity.............................................................................................................................................11
4.2Ethnic and tribal equality...........................................................................................................................12
4.3Disability policy.........................................................................................................................................12
5. Anti-harassment and corruption policy....................................................................................12
5.1Prevention of harassment ..........................................................................................................................12
5.2Prevention of corruption ............................................................................................................................12
Chapter II.Recruitment policy and procedure........................................................................13
1. Job description............................................................................................................................13
1.1Chief Executive Officer (CEO)..................................................................................................................13
Mission of the position...............................................................................................................................13
Major objectives.........................................................................................................................................13
Tasks and responsibilities...........................................................................................................................13
Skills ..........................................................................................................................................................14
Education and experience...........................................................................................................................14
1.2Finance & administration manager (FAM)................................................................................................15
Major Objectives........................................................................................................................................15
Tasks and responsibilities...........................................................................................................................15
Skills...........................................................................................................................................................15
1.3Credit Operations Manager (COM)...........................................................................................................16
Task and responsibilities............................................................................................................................16
Skills ..........................................................................................................................................................17
1.4Human resources and training officer (HRTO)..........................................................................................17
Skills ..........................................................................................................................................................18
1.5Risk officer.................................................................................................................................................19
Skills...........................................................................................................................................................19
Background and experience.......................................................................................................................20
1.6Provincial branch manager ........................................................................................................................20
Skills...........................................................................................................................................................21
1.7District branch manager ............................................................................................................................21
Skills...........................................................................................................................................................22
1.8Accountant.................................................................................................................................................22
Skills...........................................................................................................................................................23
1.9MIS officer ................................................................................................................................................24
Skills...........................................................................................................................................................24
1.10Loan officer..............................................................................................................................................25
Major objectives .....................................................................................................................................25
Skills...........................................................................................................................................................26
1.11Provincial accountant and MIS assistant (PAMA)..................................................................................26
Skills...........................................................................................................................................................27
1.12Driver.......................................................................................................................................................27
Skills...........................................................................................................................................................27
1.13Guard........................................................................................................................................................28
Skills...........................................................................................................................................................28
1.14Cook.........................................................................................................................................................28
Skills...........................................................................................................................................................29
2. Recruitment procedure...............................................................................................................29
2.1Needs identification....................................................................................................................................29
2.2Recruitment committee .............................................................................................................................30
Composition...............................................................................................................................................30
Objectives and responsibilities...................................................................................................................30
2.3Recruitment process...................................................................................................................................30
Step 1 - Define needs: task and person......................................................................................................30
Step 2 – Source candidates.........................................................................................................................30
Step 3 – Review applications.....................................................................................................................31
Step 4 – Application of the HR policy concerning conflict of interest......................................................31
Step 5 – Testing .........................................................................................................................................31
Step 5 – Interviews.....................................................................................................................................32
Step 6 – Reference......................................................................................................................................32
Step 7 – Make a decision............................................................................................................................32
Step 8 – Make an offer...............................................................................................................................32
Step 9 – Contracting & probation period...................................................................................................33
3. Filing procedure..........................................................................................................................33
Chapter III.Compensation policy and procedures.................................................................33
1. Salaries.........................................................................................................................................33
1.1Salary scale.................................................................................................................................................33
1.2Salary calculation.......................................................................................................................................34
Loan officers..............................................................................................................................................34
Other staff...................................................................................................................................................35
1.3Taxes calculation........................................................................................................................................35
2. Benefits........................................................................................................................................36
2.1Insurance....................................................................................................................................................36
2.2Leave..........................................................................................................................................................36
2.3Transportation allowance ..........................................................................................................................36
3. Incentive scheme.........................................................................................................................37
Definition of ABC staff incentive scheme......................................................................................................37
ABC strategic goals....................................................................................................................................37
Why to implement a staff incentive scheme in ABC?...............................................................................37
Staff incentive scheme objectives..............................................................................................................38
Design of the incentive scheme ......................................................................................................................39
Key principles of ABC incentive scheme..................................................................................................39
Team incentive...........................................................................................................................................39
Individual performance measurement parameters for loan officer............................................................40
Bonus calculation for loan officer..............................................................................................................41
Cost/Benefit analysis..................................................................................................................................47
Performance measurement parameters for manager..................................................................................48
Bonus calculation for manager...................................................................................................................48
Cost/Benefit analysis..................................................................................................................................49
Testing of the incentive scheme .....................................................................................................................49
Sample........................................................................................................................................................50
Timeframe..................................................................................................................................................50
Success criteria of the pilot test..................................................................................................................50
Before to start the pilot test........................................................................................................................50
Make a decision and implement.................................................................................................................50
Presenting the incentive scheme to the staff...................................................................................................50
Monitoring the incentive scheme....................................................................................................................51
Temporary incentive scheme..........................................................................................................................51
4. Evaluation of the new compensation scheme............................................................................53
4.1Global compensation per staff level ......................................................................................................53
4.2Comparison with previous salary scale......................................................................................................54
4.3Comparison with Afghan microfinance market.........................................................................................55
4.4Potential financial benefit of the incentive scheme....................................................................................56
Chapter IV.Working hours and leaves...................................................................................56
1. Working hours............................................................................................................................56
2. Leaves..........................................................................................................................................57
2.1National holidays........................................................................................................................................57
2.2Paid leave...................................................................................................................................................57
2.3Maternity leave...........................................................................................................................................57
2.4Sick leave...................................................................................................................................................57
2.5Funeral leave..............................................................................................................................................58
2.6Hadj leave...................................................................................................................................................58
2.7Leave without pay......................................................................................................................................58
2.8Excess in leave .........................................................................................................................................58
Chapter V.Disciplinary and termination procedure...............................................................58
1. Objectives....................................................................................................................................58
2. Key principles..............................................................................................................................59
2.1Fairness.......................................................................................................................................................59
2.2Confidentiality............................................................................................................................................59
2.3Natural justice............................................................................................................................................59
2.4Equal opportunities....................................................................................................................................59
3. Disciplinary procedures..............................................................................................................59
Disciplinary committee...................................................................................................................................59
Necessity for investigation..............................................................................................................................60
Disciplinary hearing........................................................................................................................................60
Notification of Outcome..................................................................................................................................60
4. Progressive disciplinary actions.................................................................................................60
Oral warning....................................................................................................................................................61
Written warning...............................................................................................................................................61
Suspension.......................................................................................................................................................61
Termination.....................................................................................................................................................61
Chapter VI.Performance appraisal.........................................................................................62
1. Objectives....................................................................................................................................62
2. Principles.....................................................................................................................................62
2.1Fairness principle.......................................................................................................................................63
2.2Transparency principle ..............................................................................................................................63
2.3Objectivity..................................................................................................................................................63
2.4Constructiveness.........................................................................................................................................63
3. Appraisal committee...................................................................................................................63
4. Appraisal type and frequency ...................................................................................................64
4.1Probation period performance appraisal....................................................................................................64
4.2End of contract performance appraisal.......................................................................................................65
4.3Bi-annual performance appraisal...............................................................................................................65
5. Appraisal factors.........................................................................................................................66
6. Follow-up on appraisal...............................................................................................................68
Chapter VII.Training policy....................................................................................................68
1. Employees’ development policy.................................................................................................68
2. Training needs assessment.........................................................................................................69
3. Individual request for training...................................................................................................70
4. Cost of training............................................................................................................................70
5. Time-off for Training .................................................................................................................70
6. Training plan...............................................................................................................................70
6.1Training plan for support staff (driver, guard, cook).................................................................................71
6.2Training plan for PAMA............................................................................................................................71
6.3Training plan for Accountant.....................................................................................................................72
6.4Training plan for MIS Officer....................................................................................................................72
6.5Training plan for loan officer.....................................................................................................................73
6.6Training plan for district branch manager..................................................................................................74
6.7Training plan for province branch manager...............................................................................................75
6.8Training plan for risk officer......................................................................................................................76
6.9Training plan for HRTO.............................................................................................................................77
6.10Training plan for Credit Operations Manager..........................................................................................78
6.11Training plan for Finance and Administration manager..........................................................................79
6.12Training plan for Chief Executive Officer...............................................................................................80
7. Training evaluation.....................................................................................................................81
Annex.......................................................................................................................................83
1. Request for staff form.................................................................................................................83
2. Salary calculation model for Loan Officer................................................................................84
3. Application evaluation form.......................................................................................................85
4. Interview Assessment form........................................................................................................86
5. Example of test............................................................................................................................87
6. Contract template.......................................................................................................................89
7. Total compensation per month..................................................................................................94
8. Salary scheme of other MFIs......................................................................................................95
9. National holidays.........................................................................................................................96
10. Performance appraisal form ...................................................................................................97
11. Training needs assessment form..............................................................................................98
12. Training quality assessment form..........................................................................................99
13. Assessment of employee’s participation to training.............................................................100
Introduction
An elaborate Human resources policy and procedures manual is in place to regulate all matters
related to human resources management. It addresses all aspects of human resource administration,
management and development and governs all categories of ABC employees.
Financial and administration, Credit and Operations and internal control policies supplement Human
Resource policy as additional internal controls in the institution’s day to day operations.
ABC thrives on a culture of merit and professionalism along with the culture of commitment to ABC
social vision and missions of alleviating poverty through the provision of financial services to poor rural
households. Ethics, social commitment, discipline, responsibility and efficiency constitute every one’s
daily obligation while at work; and are the institution’s primary requirement and expectation of every
individual staff.
ABC HR policy and procedures manual aims to give clear guidance in recruitment, compensation
performance assessment, ethical principles, trainings, work organisation, disciplinary procedures…
These procedures are reflecting ABC culture and objectives of providing a quality service to the rural
populations. They also aim to guaranty that human resources are managed with equity and fairness
and according to employee’s merit.
These procedures and policy apply to all ABC staff without exception and their application will be
controlled by the management committee and the risk officer. Any infraction to their application will be
subject to a disciplinary procedure.
It is the responsibility of Human resources and training Officer to propose amendment of these policy
according to the organisation’s development. The management committee should be consulted for this
process. All changes on procedures and policy should be reviewed and approve by the board of
directors.
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Organisation chart
Board of Supervisors (XYZ’s DOP
and head of evaluation department)
Board of directors (7 members)

with a majority of members from XYZ (4)
Chief executive officer
Financial and administration manager Credit operations manager
Risk officer
Human resources
and training officer Accountant
MIS officer Branch Branch

manager managers
province districts
PAMA
Loan officers Loan officers

* The provincial accountant and MIS also reports
to MIS officer and Financial and administration
manager
** The Chief Executive Officer with the Finance &
Administration Manager and Credit Operation
Manager and the Human Resources and
Training Officer form the Management
Committee.
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Chapter I. Ethical chart
1. ABC values
ABC values results from its vision to: “alleviate poverty and improve the living conditions of vulnerable
communities in Afghanistan, with particular emphasis on rural areas and the Eastern region, by
providing financial services and capacity building adapted to their needs”.
This vision involves a mission of service to the Afghan poor rural population, aiming to improve their
livelihood by offering adapted financial services while building their capacity. Therefore, this vision leads
to a number of values that ABC aims to respect both in its relationship with the clients and in the
management of its human resources.
1.1 Quality
ABC believes clients deserve respectful, fair, and flexible services that are attuned to their needs and
support positive developmental change in their lives. Clients should be given an opportunity to provide
feedback (confidential, as appropriate) on the services they are receiving so that those services can
more closely meet their needs. Indeed ABC believes that clients are the main source of information on
the products quality and therefore it is crucial to take into consideration their satisfaction.
In the same way, ABC aims to provide a good work environment to its employees and should therefore
be opened to their suggestion to improve this work environment.
1.2 Continuity
ABC believes poor people need access to financial services over time to manage their families’ life-
cycle needs. ABC is committed to promoting sound practices (such as operational sustainability, saving
reserve…) that support sustained services.
Through ensuring the sustainability of the organisation for the clients, ABC also aims to sustain the
employment of its staff. Convinced that a good staff is the condition to achieve its vision and mission,
ABC aims to establish a long-term relationship with its employees and therefore to avoid job insecurity.
1.3 Affordability
ABC believes poor people can optimize the benefits of financial services only if they can afford them.
ABC is committed to promoting responsible governance, management authority, field supervision,
appropriate incentives, and internal controls that contribute to efficient and affordable services.
1.4 Dignified Treatment
ABC recognizes that institutions engaged in provision of financial services should be fair, disciplined,
and respectful. ABC is committed to promoting policies, practices and oversight mechanisms that affirm
the dignity of clients, are respectful of cultural and gender differences, and prevent abusive loan
collection practices.
While recognizing the clients’ right of dignified treatment and therefore promoting these practices among
the staff, ABC also recognizes this right for its staff who are considered as a partner in the achievement
of the institution’s goals and therefore are considered as an asset that should be treated well.
1.5 Protection from Unethical Practices
Because poor people are particularly vulnerable to predatory and unethical practices, ABC has a special
commitment to promoting practices that ensure poor people receive protection from illegal, unethical,
discriminatory, and deceptive service.
In the same way, ABC commits to protect its staff against unethical practices from their colleagues or
supervisors.
1.6 Truthful Information
ABC believes clients deserve complete, accurate, and understandable information regarding the terms
of financial services, including costs of borrowing and transaction services. ABC is committed to
promoting practices that ensure clients have the information they need to make informed decisions.
ABC also commits to transparency with its staff, providing truthful information to them about the
institution’s development and the policies implemented.
1.7 Privacy and Fair Disclosure
ABC believes service providers need to safeguard the personal information of their clients. ABC oppose
disclosure of personal information without client knowledge and consent.
In the same way, ABC will not disclose information about its employees without their knowledge and
consent – except in the case of civil or criminal offence.
2. Conflict of interest
The HR policy aims to prevent any conflict of interest that could occur in Human Resources
Management. This policy on conflict of interest intends to protect the employees from discriminations
based on social or familial networks and to prevent the use of the institution to achieve personal
interests.
2.1 Hiring family members
ABC strictly prohibits to hire employees who have a family link to any of the current staff. This applies to
direct members of the family (father, mother, brother, sister, cousin, niece, nephew, uncle and aunt) and
indirect members of the family (family in law: father, mother, brother, sister, cousin, niece, nephew,
uncle and aunt). There will be no exception in this rule. It is the responsibility of the candidate to declare
its affiliation to another employee, however the HR department should check this affiliation through
provision of birth certificate and genealogy of the applicant and should reject the application if any links
are found.
More distant family relations such as second degree cousins can be tolerated provided that the relation
is clearly declared by the employee and the applicant. However, if the relationship is with one member
of the recruitment committee, this member of the recruitment committee should be replaced by another
person. The two persons having family relations should in no case have a hierarchic relationship within
ABC.
In case of infraction to these principles, disciplinary measures will be decided by the disciplinary
committee. This will be consider as a serious offence to ABC policies.
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2.2 Extent of service
ABC policy on conflict of interest also prevent the employee to get involve in activities where a conflict of
interest could arise. This concern different situations according to the position of the employee. The
following list is inclusive but not exhaustive:
- commercial relationship (landlord, supplier…) with one of the client/potential client
- debt relationship (gerawi, loan…) with one the client/potential client
- commercial relationship (landlord, shareholder…) with one of the supplier/potential supplier
- debt relationship (gerawi, loan…) with one of the supplier/potential supplier
In these cases, it is the employee’s responsibility to make the institution aware of the possible conflict of
interest. In this case the decision (for transaction, choice of supplier…) should be transferred to another
employee who doesn’t have a hierarchic relationship with the employee presenting a conflict of interest.
The procedure for the decision should be carefully monitored by the risk officer to verify that the conflict
of interest of the other employee didn’t influence the decision.
3. Non-competition clause
All ABC employees are bound by a non-concurrence clause in their contract. This involves two kinds of
obligations for the employees:
- the confidentiality on ABC data and policies. This policy on confidentiality aims to ensure
that the clients’ data are not given to rival organisation of ABC. In the same way it aims to protect the
confidentiality of ABC policies, especially but not exclusively, credit policies that should not be shared
with the competition.
- the prohibition for an employee to approach the same clients for another organisation
within the 12 months following the leaving date from ABC (being caused either by dismissal or
resignation.
4. Anti-discrimination policy
4.1 Gender equity
ABC is committed to offer the same treatment and opportunities to both genders. This is a strong
commitment of the organisation for women empowerment and their access to work. Indeed, as ABC
tries to target women micro entrepreneurs to empower them, it needs to be coherent and to apply the
same principles to its own organisation.
Considering the Afghan environment that clearly discriminates women’s access to work, ABC will take
some measures to facilitate their access to employment within the organisation. These measures
include the maternity leaves, possibility of hiring a Markham (chaperon) to go to the field, adapted work
environment (with separated room to respect Afghan culture of Purdah).
Considering the difficulty to access women’s clients, and the limitation of freedom of movement,
women’s objectives will be lower than men’s in order to reach equity of treatment.
This gender equity should be applied and imposed for all the human resources management: from the
recruitment, compensation, performance appraisal, access to job promotion…
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4.2 Ethnic and tribal equality
Afghanistan is populated by different ethnic groups and tribes. There are a strong code of honour and
cultural tradition of solidarity within these groups and tribes which often leads to the use of wasita1 in
work environment to get employment, favours, better treatment…
Nevertheless, ABC commits to offer equal treatment to all people without considering ethnic groups and
tribes membership. Indeed it intends to reward employee’s merit and not their membership to a group.
In the same way, ABC commits to offer the same access to employment to these different groups,
without favouring any of them. To do so, ABC forbids the mention of ethnic group during the recruitment
process.
committee. This will be considering as a serious offence to ABC policies.
4.3 Disability policy
ABC commits to offer equal treatment and opportunities to disabled people. To do so, ABC will propose
specific measures to facilitate disabled people’s access to employment such as desk position for
employee with limited movement ability or adapted working hours for people following a course of
treatment.
The disability can be mentioned during the recruitment process to envisage the required measures to
facilitate the employee’s integration, but should in no case been used to reject an application.
5. Anti-harassment and corruption policy
5.1 Prevention of harassment
ABC firmly commits to prevent harassment within its organisation. This includes both mobbing
(psychological harassment) and sexual harassment that one person in a position of power could impose
to his/her subordinate. This means that a supervisor – direct or indirect – can not require sexual favour
or make any inappropriate comments to a subordinate. In the same way, ABC strictly commits to
prevent psychological harassment which means that a supervisor would exert an inappropriate pressure
on his/her employee that can be qualified as abuse of power.
In case of evidences of harassment, a termination procedure will be begun against the employee.
5.2 Prevention of corruption
ABC is strictly committed to the prevention of corruption within the organisation. This applies to all its
activities: in relationship with clients, but also within the organisation for relationships between
employees.
Corruption is here defined as a behaviour on the part of persons in which they improperly enrich
themselves or those close to them by misusing power with which they have been entrusted. In short,
corruption is the misuse of public power for personal gain. In ABC it could take the form of payment of
money against promotion, against increase of salary, against provision of loan…
ABC will react firmly against any case of corruption by a termination procedure after investigation
procedure.
1
Wasita : social connections
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Chapter II. Recruitment policy and
procedure
1. Job description
These job descriptions should be revised frequently by the HRTO in order to keep them updated
according to ABC needs of development. Job description of management committee should be
designed and reviewed by the Board of Directors.
1.1 Chief Executive Officer (CEO)
Level: Chairman of management committee and consultative member of the board of directors
Accountable to: Board of directors
Supervision of: directly all the members of the management committee (financial and administrative
manager, credit operation manager, human resources and training officer), risk and security officer, MIS
officer, and indirectly all the members of the institution.
Deputy: the FAM will be his deputy in case of unavailability to carry out his duties.
• Mission of the position

- The CEO is the person responsible to implement the vision/mission expressed by the board of
directors into practical decisions.
- The CEO is the person responsible to manage the institution on a day-t-day basis and to achieve
goals and plans.
- Finally the CEO is accountable to the board of directors and the donors for financial and operational
management.
• Major objectives
- The CEO is responsible for the development of an Afghan Microfinance institution providing
financial services to poor rural communities.
- The CEO translates the vision into practical and achievable goals, business plans and action plans.
- He/She provides clear leadership and direction to the organization, implementing the business and
action plans and achieving them.
- He/she is required to direct and control the operations of the institution, and shall coordinate and
supervise the activities of its various provinces and branches, in accordance with the policies,
approved business plans and instructions of the Board of Directors
- He/She ensures an efficient human resources management and controls the application of human
resources procedures to guaranty the fairness and equity.
- He/She is accountable for the transparency in internal and external communication of
achievements, accounting documents and financial statements.
- He/She represents the institution in an official capacity as well as in civic, social and community-
oriented activities that promote goodwill for the institution especially with donors, banks, government
representatives and any other relevant stakeholders
- He/She insures the development and sustainability of the institution both in a financial and
operational perspective
- He/She insures the compliance with Afghani laws and regulations regarding microfinance activities
• Tasks and responsibilities

- The CEO is in charge of reporting to the board of directors and donors (or investors) about the
performance and development of the institution especially by submitting to the Board of Directors
13
periodically quality reports on the performance, financial condition, and general affairs of the
institution;
- He/She is in charge of the coordination with XYZ regarding all potential partnerships that could be
necessary for the development of ABC
- He/She is in charge of communicating to the team the decisions of the board and to implement with
them the business plans and action plans
- He/She is in charge of orchestrating the actions of the various departments within the institution and
through job descriptions, goals setting and performance appraisal make sure that responsibilities
and objectives are clearly defined to achieve corporate goals
- He/She is in charge of the management of the team: motivation, organisation, establishment of
standards to measure the performance of the institution and its various departments and branches;
- He/She is accountable for the existence of appropriate internal controls
- He/She serves as the authority for employee relations and personnel matters; as per approved
policies, has authority for all hire/fire decisions, compensation and disciplinary actions and their
compliance with ABC approved internal regulations;
- He/She continually assesses the legal and operating environment, including trends in the industry in
Afghanistan, and makes recommendation to the Board of Directors
- He/She conducts periodic monitoring visits to the field, ensuring clients satisfaction and competitive
edge in the market, and that all procedures are being followed
- He/She makes sure that microfinance good practices are adopted by ABC
- He/She should plan and prepare the succession for all the key staff with a particular attention for the
management committee
- He/She is the ultimate responsible for the protection and the security of the people and assets of
ABC
• Skills
- Integrity and transparency
- Willingness and capacity to take responsibilities
- Knowledge about microfinance and about management of an organisation
- Strong management and leadership capacities
- Initiative and independence
- Ability to manage staff in a team work spirit
- Knowledge about Afghanistan is a requirement and knowledge about Eastern region is desirable.
- Strategic thinker able to make plans and to map out the institution strategy
- Ability and willingness to go to the field in the Eastern Provinces
- High flexibility
• Education and experience

- University degree preferably in economics, finance or administration desirable
- Very good command of English, Pashto is necessary and Dari is desirable
- The CEO should have a relevant experience in the banking or financial sector (microfinance
institution would be a clear advantage)
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1.2 Finance & administration manager (FAM)
Level: Member of the Management Committee
Reports to: Chief Executive Officer
Directly supervises: Accountant, Province Accounting and MIS assistants, and the branch
managers for all financial matters
• Major Objectives
- The Finance and Administration manager (FAM) makes sure that ABC has the financial resources
to achieve its mission
- The FAM sets and recommends for higher approval the policies and procedures in the following
areas:
 Management of assets and liabilities
 Accounting
 External auditing
in accordance with local rules and regulations;
 Administration
- Together with the CEO, he /she manages the relationship with donors and investors
- He/She reports regularly to the Board, the CEO, donors and investors and other authorities as
appropriate on the present and planned financial situation of ABC
- In cooperation with the Credit & Operations Manager, he/she ensures preparation of annual plans,
quarterly & monthly plans, budgets etc
- He/She provides excellent service to user of administration
- He/She is with the CEO the ultimate guarantor for the sustainability
- He/She is the deputy CEO in case of his/her unavailability to carry out his/her duties
• Tasks and responsibilities

- He/She ensures that all information from the Department goes out on time and is accurate,
particularly monthly, quarterly and annual reports and that financial statements are properly
consolidated
- He/She provides management reports (Balance sheet, income statement, Cash flow statements,
others) to the CEO and the members of the management committee to be used as management
tools, and to the Board of Directors
- He/She establishes cash and liquidity management principles and ensures proper segregation of
compulsory savings. He/She carefully follows liquidity position
- He/She manages financial relationships with donors and investors, and the financial community at
large
- He/She approves all investments in excess of US $ (to be determined) with the institutional
sustainability in mind
- He/She supervises the Administration function and ensure that cost/benefits analyses are used
- He/She insures all the assets of the institution with appropriate insurance companies
- He/She provides managerial and technical support to ABC personnel in matters managed by the
Department
- He is in charge of ABC premises & equipment’s management, directly for the HQ and through
branch managers at district level.
• Skills
- Thorough knowledge of finance and accounting
- Good understanding of IT
- Ability to delegate while keeping appropriate control
- Teamwork
- Willing to take initiatives
- Negotiating abilities
- Precision and sense of details and well organised
- Good listener
15
- High flexibility

- University degree in economics, finance or management
- Prior experience in microfinance or banking or audit firm or similar
- Very good command of English and Pashto is necessary and Dari is desirable
1.3 Credit Operations Manager (COM)
Level: Member of Management Committee
Reports to: Chief executive officer
Supervision of: all provincial managers, branch managers and indirectly loan officers
- The Credit Operations Manager is responsible for the implementation and fulfilment of strategic
goals of the organisation through day-to-day management of microfinance operations
- The COM is responsible to propose strategic decisions to the CEO concerning the development and
growth of the institution, especially in terms of regional and branch expansion and credit products
- He/she is in charge of the compliance of operations with procedures of the institution, legal
regulations and strategic plans approved by the Board
- He/She is in charge of the supervision of operations at the provincial and branch level to maximize
the effectiveness and efficiency of branch operations and distribution network
- He/she is accountable for clients’ satisfaction among others by insuring the ad equation between
products and demand
- He/She is accountable for the portfolio quality
• Task and responsibilities

- He/She plans and manages activities of microfinance operations to ensure that goals and objectives
are accomplished in a timely manner and as per financial projections
- He/She participates jointly with the CEO to the elaboration of the strategy, credit policy formulation
and procedures development
- He/She participates actively in products development together with senior management staff and
eventually technical advisor
- He/She ensures and controls the implementation of the credit operations according to adopted
policies
- He/She is responsible in collaboration with the HRTO to ensure the staff’s development,
management, performance appraisal, training, motivation…
- He/She performs regular site visits (both to the field offices and client business sites) to ensure
proper and timely provision of microfinance services and to keep in touch with the field reality
- He/She investigates and resolves any issues/problems related to clients and field operations in
collaboration with relevant field staff
- He/She prepares quality reports on portfolio quality, growth and any information that could be
necessary for reporting to the board and to donors (or investors)
- He/She is responsible for supervision of accurate and timely flow of finances for Microfinance
Operations, coordinating with FAM (monthly planning with Branch Managers, ensuring correctness
and appropriateness of all operations expenditures)
- Together with microfinance operations staff, he/she identifies problem loans and deficiencies and
proposes/implements necessary corrective actions.
- He/She generates and analyses the different ratios on portfolio quality, profitability, staff
productivity… in order to take informed decisions
- He/She is in charge of carrying out regular surveys of the competition and to deal with the
competition at the local level if necessary.
- He/She represents ABC in all microfinance related forums (such as AMA, MRRD meetings…)
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• Skills
- Excellent communication skills
- Knowledge about microfinance is a requirement
- Well organised person
- Strong management skills
- Attention to details
- Credit skills
- Good analylitical ability
- High flexibility
- Knowledge about Afghanistan is a requirement and knowledge about Eastern region is desirable

- University degree in economics, finance or management
- Prior experience in microfinance or banking
1.4 Human resources and training officer (HRTO)
Level: Member of management committee
Accountable to: Chief executive officer
Supervision of: in medium term, will have an assistant
- The Human Resources and Training Officer develops strategies and strengthen systems to
continuously align HR systems to the organization's mission and vision
- The HRTO is in charge of the joint management of existing staff with the members of the
management committee and the recruitment of ABC staff
- He/She is in charge of the personal development of ABC staff
- He/she insures the harmony and the motivation of the staff and commitment to the institution’s goal

Recruitment
- In collaboration with the Credit Operations Manager and Financial and Administration Manager, the
HRTO assesses the needs for new employees and designs a job description with the relevant
stakeholders
- He/she evaluates the best recruitment sources (media…) to post job announcements
- He/she sets-up the recruitment process and does the follow-up for the entire process with the
relevant persons (direct supervisor of the future employee, CEO…): selection of CV, tests,
interviews, recruitment committees…
- He/she is in charge of the orientation of each new employee in order to facilitate his/her integration
to the institution.
Administration of Human resources

- He/She is responsible for payroll administration
- He/She determines the compensation of each employee in collaboration with the members of the
management committee
- The HRTO establishes files on each employee gathering all relevant information (CV, minutes of
interview and meetings, evaluation forms, pay slip)
- He/she establishes a performance assessment system that will then be carried out by the
respective managers/supervisors
- He/she reviews and update the HR policy frequently
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- Based on the regular performance assessment made or the possible complains by the FAM &
COM, he/she manages disciplinary measures to be taken against the staff and eventually proceed
to dismissal, upon approval from the CEO
Planning
- He/She should keep looking for person with high profiles that could potentially assume key positions
for the development of ABC
- He/she keeps posted on the evolution of the Afghani microfinance sector in terms of Human
Resources (especially for salary benchmark)
Development and training

- He/She assesses frequently the training needs of the staff by two different ways: 1. directly with the
concerned employee, 2. more globally with all the stakeholders of the department
- According to the needs assessment, he/she prepares a training plan that should try to meet both
individual and institutional development needs.
- In collaboration with relevant actors (COM, FAM, CEO and technical assistance providers), he/she
implements the training plan
- He/she evaluates the trainings provided and the impact of the participation of the staff to these
trainings
- In accordance with specific and punctual technical needs, he/she identifies external training
resources and assesses other training opportunities (donors, NGOs...) that could meet the needs
• Skills
- Good communication skills and diplomacy
- Ability to work upon request of senior management without decision making power
- Knowledge about microfinance would be an advantage
- Skills in administration and organisation
- Well organised person
- Ability to manage staff in a team work spirit
- Good analylitical ability
- High flexibility
- Knowledge about Afghanistan is a requirement and knowledge about Eastern region is desirable

- University degree
- Experience in human resources or similar field
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1.5 Risk officer
Level: Senior Management Staff
Reports to: Chief Executive Officer and to the Board of Directors
Directly supervises: no one (at least in the short term)
1
- He/She identifies the risks ABC is exposed to, recommends, puts in place, applies a set of policies
and controls mechanisms to cover/limit these risks
- He/She makes sure that security measures are in place and implemented to assure a proper
protection of the people and assets of ABC

Internal Control
- He/She prepares and then update a manual of control of procedures
- He/She establishes an annual control plan (with calendar)
- He/She sets-up a chain of control at all levels and controls its implementation
- He/She makes sure the principle of separation of duties (authorization, execution, control) is applied
wherever necessary and feasible
- Personally or by delegation, he/she ensures that the following types of control are implemented:
1. Routine controls
2. Localized inspection missions on well defined subjects
3. In depth control mission on yearly accounts
- He/She reports deviations to the Board of directors with suggestions of corrective actions
- He/She discusses audit reports with heads of departments to take corrective actions and sensitizes
appropriate stakeholders
- He/She assists the external auditor and implements his recommendation for the internal control of
the institution
- He/She assists the Board of Supervision in its mission of control and supervision by providing all
necessary information
Security
- In coordination with the authorities and XYZ’s direction committee, he/she establishes security
policies and procedures and update them as required
- He/She ensures that security policies and procedures are widely advertised and adhered to
- He/she provides advice to the senior management regarding critical security issues
• Skills
- Natural authority
- Independent
- Capacity to resist pressure and stress
- Diplomacy
- Precision and attention to details
- Curiosity
- Good command of English and Pashto is necessary and Dari is desirable
- Good analylitical skills
- High flexibility
1
Risks : impairment of assets, accounting, systems, liquidity, Foreign Exchange and rate
risk, credit, fraud
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• Background and experience
- University degree
- Good command of IT
- Prior experience in accounting or audit or surveillance
- Knowledge of internal control principles and of microfinance products
1.6 Provincial branch manager
Level: Management Staff
Reports to: Credit Operations Manager and FAM for financial matters
Directly supervises: Loan officers and the PAMA
- Under the supervision of COM the branch manager is responsible for operational, financial and
administrative tasks within the branch
- The branch manager is responsible for the development, the supervision and the control of all the
activities within his branch.
- The branch manager ensures the implementation of rules and procedures of the institution and the
fulfilment of the plans set-up by the management team

Management
- The branch manager provides his/her collaboration for the elaboration of the institution plans
(operational and financial)
- The branch manager is in charge of the implementation of ABC plans (operational and financial) at
the branch level by translating general objectives and plans into individual plans
- The branch manager is responsible for the reporting – both financial and operational – to the
Headquarters on weekly and monthly basis
- The branch manager is in charge of setting-up individual objectives for loan officers according to the
branch objectives set-up by the COM, and to supervise and evaluate them towards these objectives
- He/She is in charge of the on-job training of the loan officers and other permanent employees of the
branch
- He//She participates in the recruitment of new staff assigned to the branch
- He/She is responsible for solving problems at the branch level, with the support of the COM and the
rest of the management team if required
- He is in charge of the branch’s premises & equipment’s management.
- the management of security at a provincial level in direct and close collaboration with the risk officer.
In this framework, he/she has full authority upon the provincial staff to take the last decision on any
matter related to security (especially for field trips)
Operations
- The Branch manager has to make sure that credit policies and procedures are understood and
applied by LO and that controls are in place for the proper execution of these policies and
procedures.
- He/She is chairing the loan approval committee and gives the final decision for it.
- He/She is in charge of controlling the data base entry made by the MIS/accountant assistant
- He/She is in charge of visiting clients in order to ensure the quality of the loan officers’ work and the
clients’ satisfaction and the compliance of credit policies
- He/She is representing of the institution in an official capacity as well as in civic, social and
community-oriented activities that promote goodwill for the institution with local authorities in
collaboration with the CEO
Financial management
- He/she should ensure that the financial objectives set for his branch are met and that variances are
explained
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- He/She is in charge of controlling the entry in the accounting system by the MIS/accountant
assistant
- He/She is in charge of approving the expenditures of the branch up to 200USD and to request the
approval from the headquarters for upper amount.
- He/She is in charge of cash management (fund request according to forecast) within the branch in
collaboration with headquarters
- He/She is coordinating the branches at the provincial level for all matters related to cash
management, accounting and MIS. In this framework he/she will be supervising the PAMA
Development
- The branch manager is in charge of the canvassing for new markets both geographically and in
terms of new products
- The branch manager is in charge of the groundwork with local authorities to develop ABC in new
areas
- The branch manager is in charge of gathering information about clients’ satisfaction and needs
• Skills
- Natural authority
- Team work spirit
- Good relational qualities
- Ability to take initiatives
- Ability to solve problems

- Prior experience in microfinance
- Primary education and basic knowledge of algebra
- Fluent in Pashto and basic knowledge of English
- Basic knowledge of computer (Word and Excel)
1.7 District branch manager
Level: Management Staff
Reports to: Credit Operations Manager and FAM for financial matters
Directly supervises: Loan officers
- Under the supervision of COM the branch manager is responsible for operational, financial and
administrative tasks within the branch
- The branch manager is responsible for the development, the supervision and the control of all the
activities within his branch.
- The branch manager ensures the implementation of rules and procedures of the institution and the
fulfilment of the plans set-up by the management team

Management
- The branch manager provides his/her collaboration for the elaboration of the institution plans
(operational and financial)
- The branch manager is in charge of the implementation of ABC plans (operational and financial) at
the branch level by translating general objectives and plans into individual plans
- The branch manager is responsible for the reporting – both financial and operational – to the
Headquarters on weekly and monthly basis
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- The branch manager is in charge of setting-up individual objectives for loan officers according to the
branch objectives set-up by the COM, and to supervise and evaluate them towards these objectives
- He/She is in charge of the on-job training of the loan officers and other permanent employees of the
branch
- He//She participates in the recruitment of new staff assigned to the branch
- He/She is responsible for solving problems at the branch level, with the support of the COM and the
rest of the management team if required
- He is in charge of the branch’s premises & equipment’s management.
Operations
- The Branch manager has to make sure that credit policies and procedures are understood and
applied by LO and that controls are in place for the proper execution of these policies and
procedures.
- He/She is chairing the loan approval committee and gives the final decision for it.
- He/She is in charge of controlling the data base entry made by the MIS/accountant assistant
- He/She is in charge of visiting clients in order to ensure the quality of the loan officers’ work and the
clients’ satisfaction and the compliance of credit policies
Financial management
- He/she should ensure that the financial objectives set for his branch are met and that variances are
explained
- He/She is in charge of controlling the entry in the accounting system by the MIS/accountant
assistant
- He/She is in charge of approving the expenditures of the branch up to 200USD and to request the
approval from the headquarters for upper amount.
- He/She is in charge of cash management (fund request according to forecast) within the branch in
collaboration with headquarters
Development
- The branch manager is in charge of the canvassing for new markets both geographically and in
terms of new products
- The branch manager is in charge of the groundwork with local authorities to develop ABC in new
areas
- The branch manager is in charge of gathering information about clients’ satisfaction and needs
• Skills
- Natural authority
- Team work spirit
- Good relational qualities
- Ability to take initiatives
- Ability to solve problems

- Prior experience in microfinance
- Primary education and basic knowledge of algebra
- Basic knowledge of computer (Word and Excel)
1.8 Accountant
Level: Officer
Reports to: Finance and Administration Manager
Directly supervises: provincial accountant assistants
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- The accountant is in charge of keeping updated and accurate accounting for both internal and
external constituencies
- The accountant is in charge of providing accurate and on-time information to the finance and
administration manager

Planning and reporting
- He/She participates in the design, implementation, operation and development of the financial and
accounting system of the organisation together with the FAM
- He/She is responsible to prepare accurate and on-time management reports (Balance sheet,
income statement, Cash flow statements, others)
- He/She is in charge of establishing monthly, quarterly and annual financial reports for donors that
will then be validated by the FAM
- He/She participates in the preparation of plans and forecast for the institution (monthly, quarterly,
annual financial plans, budgets, business plans…) together with the COM and the FAM
- He/She provides support to the risk officer for internal audit and to the external auditor as well
Day-to-day accounting
- He/She collects and files all accountancy documents (bills, contracts, etc…)
- The accountant is in charge of managing the cash according to procedures in place
- The accountant is responsible for keeping Cash books and other financial documents on a daily
basis
- He/She is in charge of executing all cash payments upon checking the correctness of payment
demands and ensuring that the approval process was followed. The payment has to abide by the
internal rules of level of authority.
- He/She ensures that expenses incurred in the branches are in accordance with the plans and
projections
- He/She is responsible for monthly operations of depreciation, provisions and other adjustments
- He/She is in charge of keeping the inventory of fixed assets of the institution
- He/She is responsible for bank accounts reconciliation
Control
- He/She is in charge of controlling the accounting data entered by the provincial accounting assistant
before to post them into the system
- He/She is in charge of insuring that procedures are followed for approval of expenditures, World
Bank procurement procedures…
- He/She visits frequently the branches in order to ensure that procedures are followed, that books
are kept correctly and data entered in the right way in the software
• Skills
- Team work spirit
- Excellent capacity of organisation
- Ability to solve problems that could happen in the work progress
- Ability to work under pressure and to deliver on time
- Sense of confidentiality and discretion
- Knowledge about microfinance would be a plus

- Degree in accounting, economy, or management
- Prior experience in accounting
- Knowledge of accounting software
- Good command of computer
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1.9 MIS officer
Level: Officer
Reports to: Chief executive officer
Directly supervises: provincial MIS assistant
- The MIS officer is in charge of the implementation and update of the MIS system used to keep
record and track loans and other financial services
- The MIS officer is in charge of providing portfolio reports that will be used as decision tools by the
management team

Loan tracking
- He/She is responsible for keeping accurate and updated reports on financial services (loans,
savings…) provided by the institution, on clients (village bank and individuals) and on loan officers’
performance and branches performance
- He/She is responsible in for the design and implementation of loan tracking procedures together
with the Credit Operation Manager
- He/She is in charge of updating the data about loans, clients and loan officer as often as required to
keep accurate information
- He/She defines, in collaboration with Risk Officer and CEO, the procedures to protect the
information and to recover data in case of breakdown in the IT system
- He/She insures the control over systems (versions, upgrade…) and take corrective actions in the
case of technical problems, in coordination with the management team
Reporting
- The MIS officer is in charge of preparing monthly reports on portfolio, branch performance and staff
performance
- He/She is in charge of preparing weekly follow-up on disbursement and repayment for the
management team (COM, FAM and CEO) for them to use it as a decision making tool for portfolio
at risk follow-up and forecast for cash management
- He/She should take initiatives to produce new reports (on portfolio, impact…) that can be use by the
management team as decision making tools
Control
- The MIS officer is in charge of controlling the data entered at the provincial level by the provincial
MIS assistant before to post them into the software
- He/She visits frequently the branches and the clients in order to verify the information given
• Skills
- Team work spirit
- Good capacity of organisation

- Secondary school
- Experience with IT or data base
- Good command of Windows, Office
- Good command of Pashto and English is required
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1.10 Loan officer
Level: field staff
Reports to: Branch manager
Directly supervises: nobody
- The loan officer aims to offer ABC financial services to village banks among rural communities
- The loan officer is responsible to analyse economic situation of clients and their needs for loans and
repayment capacity
- The loan officer manages his/her portfolio to maximize the number of village banks and clients , the
volume of loans and the portfolio quality
- The loan officer is responsible of for offering a good visibility and image of the institution as he/she’s
the first – and often only – contact of the client and the community with the institution

Planning
- The loan officer is in charge of preparing the planning of his/her activity for the next fortnight
according to schedule of disbursement and repayment
- He/She is in charge of providing this planning to the branch manager who approves it
Marketing
- The loan officer is in charge of canvassing potential village banks within the area defined by the
branch manager, in order to offer them financial services.
- The loan officer will follow the procedures established by the institution which includes the contact
and presentation to the communities and their council before establishing any village bank and the
conduction of presentation with the targeted population to present the products
- He/She is in charge of promoting the institution’s products among the village banks
Provision of financial products

- The loan officer is in charge of the creation of village banks, the presentation of the products to
them, and their training according to the institution’s procedures
- He/She is in charge of gathering and analysing information about clients in order to prepare their file
for approval with the branch manager. To do so the loan officer is required to visit client’s business
or house.
- He/She should present the clients’ file for approval to the branch manager
- He/She organizes, trains and supervises community members about the institution’s procedures,
the management of financial products and the operations’ record
- He/She is in charge of the all contract procedures from their preparation, to their filing, through their
signature.
- He/She is in charge of disbursement and repayment operations according to the procedures
Follow-up of clients
- He/she is in charge of controlling the information given by the clients about his/her income, family,
and purpose for the loan in order to minimise the risks
- He/she should visit regularly the client’s business in order to monitor the business’ expansion
- He/she should follow-up repayment and take actions in case of late repayment following the
procedures in place
- He/She should provide relevant information to the client on business development, microentreprise,
or appeal to the branch manager to find relevant partnership for provide such service
Reporting
- He/She should keep accurate and update file on each clients and provide these information to MIS
assistant
- He/She is in charge of reporting all operations to MIS and accounting assistant on daily basis
- He/She is in charge of preparing monitoring reports and to highlight eventual problems to the
branch manager
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• Skills
- Ability to organise and plan his/her work
- Good analytical capacities and understanding of the environment (market, competition, risk…)
- Ability to work under pressure
- Good communication skills
- Selling ability
- Attitude of service towards clients
- Discretion about clients’ information and the institution’s procedures
- Ability to work in the streets
- High motivation, ability to take initiative
- Desire to learn

- Literacy and basic algebra knowledge
- Good command of Pashto is required, English would be a plus
1.11 Provincial accountant and MIS assistant (PAMA)
Level: assistant
Reports to: Branch manager and technically to the MIS officer and the accountant
- The provincial accountant and MIS assistant is in charge of entering data in the software for both
accounting and MIS
- To collect receipts and vouchers for all financial operations and client’s application forms
- Controls the information given by loan officers about clients and financial operations before entering
it into the system

Accounting
- He/She collects and files all accountancy documents (bills, contracts, etc…) for the headquarters
- He/She is in charge of managing the cash at the provincial level according to procedures in place
- He/She is responsible for keeping cash books and other financial documents on a daily basis
- He/She is in charge of encoding and entering the operations of the branches in the system on a
daily basis
- He/She is in charge of following-up the cash on a daily basis
Loan tracking
- He/She is in charge of entering the data from loan application and village bank files in the system on
a daily basis
- He/She is in charge of filing the different forms and to send them to headquarters
- He/She is responsible to get update on client’s status when it’s modified
- He/She provides short reports to branch manager on portfolio growth and quality in collaboration
with the HQ accountant
Control
- He/She is in charge of controlling the data given by the loan officer in collaboration with the branch
managers
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• Skills
- Team work spirit
- Good capacity of organisation

- Prior experience in accounting
- Secondary education
- Knowledge of accounting software
- Good command of computer
1.12 Driver
Level: support staff
The Driver is responsible for driving ABC vehicle, minor repairing, ensure that the vehicle is ready for
travel, kept clean etc. He reports to Branch Manager.

- Drive office vehicles for the transport of authorized personnel
- Responsible on daily basis for checking oil, water, battery, tires, etc
- Perform minor repairs and arrange for other repairs and ensure that the vehicles are kept clean
- Reporting immediately to Branch Manger in case of any security event happened
- Stay or moving to a secure place in case of security tragedy happening in the area and confirm the
branch manager.
- Log official trips, daily mileage, etc
- Ensure that the steps required by rules and regulations are taken in cars of involvement in an
accident.
- Keep up the log book and ask for signature of staff at the end of trip
- Any other duties assigned by supervisor
• Skills
- Knowledge of traffic rules and regulations
- Skills in minor vehicle repair
- Reliable, Honest, Objective and hard work
- Ability to work under pressure, and to work long hours.
- Must be a self-motivated person, capable of learning new tasks.

- High school graduated
- At least 2 years of driving experience and Valid driving License
- Very good knowledge of local language
- Willing to travel in eastern region
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1.13 Guard
The Guard is responsible for total security of the ABC office and individual property of ABC. He reports
to Branch Manager.
- Prevent visitors who are carrying weapon from entering the ABC office.
- Secure the ABC (Branch) at the finish of working day.
- Inspect all incoming mail and packages and report immediately to the Branch Manager any
suspicious packages, bags or envelops.
- Direct visitors to register their details upon entering the office
- Manage access of ABC vehicles to Parking areas and ensuring that inspection completed properly
- Prevent Non ABC vehicles from entering to ABC office or parking in areas considered a risk to the
ABC.
- Patrol the ABC (office) ensuring the safety and security of the offices, equipment, vehicles and staff.
• Skills
- Working alternatively night/day shift according to schedule prepared by Branch Manager
- Reliable, Honest, and hard worker
- Deal politely and professionally with visitors, staff and colleagues
- At least completion of Primary school

- At least 2 years prior experience as security guard
1.14 Cook
The cook is responsible for preparation of daily meals, keep clean the dining room and kitchen,
shopping of food if assigned by supervisor. He reports to Branch Manager.
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- Prepare and serve daily meals as required
- Keep the kitchen and cooking utensils clean
- Follow good hygienic rules in personal cleanliness and food preparation
- Request kitchen relevant needs, as gas, pots etc
- Assist in preparing for visitors and guests
- Prepare shopping needs as necessary; always try to keep costs down to reasonable levels
- Conduct him/herself both professionally and personally in excellent manner
- Any other duties assigned by supervisor
• Skills
- Must be able to cook vegetarian and meat-based meals
- Reliable, Honest, Objective and hard worker
- Deal politely and professionally with visitors, staff and colleagues

- Completion of Primary school
- Prior experience as cook
2. Recruitment procedure
2.1 Needs identification
Before starting any recruitment procedure, it is essential to establish clearly what are the needs. We can
identify three types of situations:
- creation of a new position within the organisational chart
- geographical expansion or portfolio growth
- retirement, dismissal, resignation or unavailability (because of maternity, Hadj leave…) of
an employee
In the first case of a new position creation, the needs identification should be carried out by the
management committee with the approval of the board if this decision leads to a significant change in
the organisational chart. The management committee should present a request to the board, defining
the new position (with a draft of job description), and justifying its incorporation to ABC organisational
chart. Then it will be the board’s responsibility to evaluate whether the need expressed by the
management committee is real and justifies the organisational chart modification. Once the board gives
its approval, the organisational chart can be modified and the recruitment process can be started by the
HR department.
In the second case of geographical expansion (opening of new branches, or coverage of new districts
from existing branches) or portfolio growth (significant increase in the portfolio), Credit Operations
Manager and branch managers should evaluate the opportunity of hiring new staff compare to the
possibility of redeployment of existing staff within the branches. To do so, they should analyse the
productivity of existing staff compared to ABC objectives. If the productivity is equal or higher than the
objectives, it means that expansion requires the recruitment of new staff – that should then be specified
to HR department through a request for staff form (see in annex). In the contrary case – when
productivity is lower than the expected level – a redeployment of staff should be done at a first stage to
cover the geographical expansion, and the situation should be monitored to evaluate the evolution of
productivity.
In the last case of retirement, dismissal, resignation or unavailability of an employee, the direct
supervisor and the head of department should assess the need for recruitment to fill the position. The
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first step is to assess if there are internal resources to fill the position, and to assess the productivity of
existing staff. The internal solution should prevail on external recruitment if it can increase productivity
and efficiency. However, if the resources are not available internally, the direct supervisor should fill a
request for staff form (see in annex) and transfer it to the HR department.
2.2 Recruitment committee
• Composition
The recruitment committee can be as small as 3 people, but it is recommendable to involve at least 4 or
5 persons depending upon the level of the recruitment in order to get different opinions, to be able to
discuss the relative weaknesses and strengths of candidates.
The recruitment committee should be composed of:

- direct supervisor of the future employee
- the manager in charge of the concerned department
- member(s) of the board for management positions
- human resources and training officer
- chief executive officer for senior positions (management committee and branch manager)
- technical advisor if there is any
• Objectives and responsibilities

The recruitment committee, following the framework and methodology for recruitment, will select the
appropriate candidate and hire him/her for the position described in the job description.
It should be a decision based on the fulfilment by the candidate of the requirements expressed in the job
description, as well as on objective elements to balance the intuition and the skills and experience of the
candidate and on subjective elements such as personality and perception.
2.3 Recruitment process
• Step 1 - Define needs: task and person

This first step corresponds to job descriptions that should define clearly what is the position to be filled,
in order to identify the relevant skills, knowledge and other characteristics related. It is critical to start
from the point of view of the position – in relation to the MFI’s need – and not from the person (potential
candidates or previous person in this position).
The job description should define what is critical to have for the job, and what is desirable. Considering
the Afghan context, it is important to take into consideration personal qualities as well as background,
because it could be difficult to find graduated people with a large experience.
Whilst writing the job description, it is essential to remember that it is the first image that the candidate –
or future employee – will get from the organisation. So it is important that it reflects your institutional
culture and express the mission and vision of the organisation.
• Step 2 – Source candidates

Different sources can be investigated:
- internal recruitment, by circulating the job posting to the current staff and investigating their
capacities through performance appraisals in their current position and with their supervisors.
- networking of personal contacts, similar organisations (other Afghan MFIs), network (such as
AMA, AQBAR), professional organisation (such as Microfinance Gateway…)
- advertising in local newspaper, newsletters (for example in MISFA’s bulletin).
The job announcement should precise a deadline for application and the required documents. The
required documents should be at least a Curriculum Vitae and a Cover Letter (expressing the motivation
and the relevant skills of the applicant). References of certificates, diploma could also be asked.
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• Step 3 – Review applications
The applications review will be done by the HRTO – when in place. For the current recruitment process
of senior management, the technical advisor will be in charge of this task.
Every CV should be compared to the job description in order to analyse if the applicant has the MUST-
HAVE requirements or not, and then they will be classified in three categories: Yes – the candidate has
the MUST-HAVE requirement; No – the candidate doesn’t have the MUST-HAVE requirements and
therefore is eliminated; Maybe – unclear if the candidate’s qualifications meet the MUST-HAVE criteria.
The cover letter will also be analysed in order to better understand the motivation and literacy level of
the postulant. However, the CV remains more important for the selection as we are looking for objective
information about qualifications and experience, especially since there is no history of cover letter
writing in Afghanistan and people do not express what their motivation is in such letters.
The references of certificates and diploma will be checked to verify the accuracy of the CV information.
• Step 4 – Application of the HR policy concerning

conflict of interest
In accordance with the ethical chart, it is prohibited to hire employees who have a family link to any of
the current staff. This applies to direct members of the family and more distant family relation such as in-
laws as specified in the HR policies.
More distant family relations such as second degree cousins can be tolerated provided that the relation
is clearly declared by the employee and the applicant.
In order to apply this provision of the HR policy, a birth certificate will be asked and the genealogy of the
applicant and his/her possible links to any employee will be checked. If some links are found with the
existing staff, the application will be rejected.
• Step 5 – Testing
Especially in a context of low qualification, testing of the applicant’s abilities should be done. In case of
the presence of a technical advisor, this person should be designing and carrying out the testing in
collaboration with the HRTO. In all cases, the direct supervisors of the future employee will be involved
in the process.
This testing will take place after the first applications’ review. Only the persons falling in the categories
“Yes” and “Maybe” will take the test.
This test will be prepared considering the requirements for the job and will be directly linked to the future
position (no psychological or personality test). the different topics related to the position (such as
management, accounting, financial management…), the following are common to all positions:
- reading, writing – in Afghan language (Pashto compulsory and Dari desirable) and English
- language skills – in Afghan language (Pashto compulsory and Dari desirable) and English
- basic microfinance skills
- basic algebra
- Other specific skills shall be added according to the position concerned.
The results of the test will be provided to the applicant. They will serve as a justification for the decision
of the recruitment committee. From the testing, the recruitment committee should be able to identify
precisely the applicants who fulfil the MUST-HAVE criteria.
In the case of one applicant coming from another MFI/financial institution/bank where he/she was in the
same position, testing will not be compulsory. The skills and competencies will be checked with the
previous employer (if feasible) and the test will only take place if any doubt remains.
31
• Step 5 – Interviews
The interview is the best moment to determine if the job matches both the employer and the candidate’s
objectives and requirements. The interview aims to scan the skills, abilities, values and nature of the
applicant.
At the minimum the HRTO and the future direct supervisor should meet all the candidates (all the one
who were selected in the previous steps) once and the recruitment committee would then meet the
short-listed people. In the case of senior management members, the recruitment committee should be
involved in all interviews if possible.
In the case of non senior management members, the short list submitted should include at least 3
applications. In order to ensure the full transparency of the process, the risk officer shall randomly check
rejected applications.
The questions are only a starting point to open the discussion, but they should cover important topics
such as the MUST-HAVE and the NICE-TO-HAVE. It is important to ask questions that will lead the
candidate to show its growth and development potential. It is important not to leave anything unclear
and to ask clarifications.
After the interview, each member of the recruitment committee fills the Interview assessment form,
provided by the HRTO. This form will help to set-up objective observations and conclusions on the
postulant.
After seeing all the candidates, the recruitment committee selects 2 to 4 candidates that match with the
profile and seem suitable for the organisation
• Step 6 – Reference
For the short-listed candidates, references will be asked to previous employers if possible. These
references, gathered either by phone, meeting or written demand, should analyse deeply the previous
experience of the candidate, especially related to the must-have and nice-to-have. We should try to
detect any problems, difficulties of the candidate, as well as verifying the positive characteristics.
Generally the previous supervisor is the contact for reference, however it can be interesting to contact
the subordinates, especially for a management position in order to analyse his/her behaviour with the
staff and if it corresponds to the requirements and the culture of the institution.
• Step 7 – Make a decision

Ultimately the decision should be taken by the manager of the concerned department with the advice of
the recruitment committee. However for future members of the senior management, members of the
board will be part of the decision.
To take the decision, all objectives criteria should be considered (CV, reference, interview assessment
form…). If there are several final candidates, it is important to prioritize the skills and qualifications and
qualities necessary and to see which candidate fits the best with the profile. If there are some doubts
remaining, it could be relevant to meet the candidate again in order to take an informed decision. The
costs of hiring the wrong person are very high (direct cost of time and effort in recruitment, plus salaries
and compensation, and indirect cost of visibility of the organisation).
The decision should be taken in accordance with ethical chart – including equal access to
employment for ethnic groups, sex, religion…
• Step 8 – Make an offer

Once the final candidate has been selected, it is important to ensure that the goals of both the
organisation and the candidate match. Issues such as salary, benefits, start date, work conditions…
should be discussed in a second interview.
After the offer, give a deadline to the candidate for his/her response. Then the HRTO is in charge of
following-up the candidate’s decision, and to answer any further questions.
32
• Step 9 – Contracting & probation period
Once both parties agreed on the contract conditions, the contract is prepared by the HRTO according to
regulations, signed by the CEO and the new employee. The contract is then filled by the HR department
into a file at the employee’s name.
Each contract should follow the requirements expressed in the HR policy. Internal rules and job
description should be annexed.
Each contract is submitted to a probation period. This period is 3 months for all the staff, except
members of the management committee who are submitted to 4 months probation period. During this
period, both parties can break the contract without any indemnity and a notice period of 7 days. Before
the end of the period, an evaluation should be carried out by the HRTO and the direct supervisor of the
employee and validate by the manager of the department.
For managers, the evaluation will be carried out according to the performance appraisal policy. .
3. Filing procedure
All the steps of recruitment process should be documented through ABC forms and kept in a file with the
employee’s name. This file should keep record of:
- job description
- CV and cover letter
- Application review form
- Test form
- Interview assessment form
- Personal details of the employee (phone number, address, date of birth…)
- Tax number
- Contract signed
It should then be updated with all documentation relative to the employee regarding performance
assessment, training, letters…
It should also be recorded in the HR management system and completed along the career of the
employee, with training needs assessment, training evaluation, performance assessment, momentum,
letters…
Chapter III. Compensation policy and

procedures
1. Salaries
1.1 Salary scale
Job level Minimum Midpoint Maximum

Cook 100 120 150
Guard 130 150 180
Driver 150 190 230
Junior loan officer 160 200 250
Loan officer 200 250 310
Senior loan officer 250 310 390
PAMA 220 275 340
Branch manager 400 495 595
Officer (MIS/accountant) 350 435 550
33
HRTO 600 850 1300
Managers (COM/FAM) 600 1200 1800
CEO 1600 2350 3000
The amounts given are net salary after deduction of taxes.
The salary scales are intentionally large in order to allow a good flexibility. The different levels of
remuneration are created in order to reflect differences between competencies, skills, performances…
In this model, competencies and results in the position are more promoted than seniority. Therefore it is
possible to consider that an employee entering in the company but with high skills could get a salary
corresponding to midpoint instead of minimum. In the same way, an employee that would not be fully
proficient in his position could stay at the minimum level, independently of his seniority.
The basic salary levels shall be revised on a yearly basis according to the diverse indicators such as the
inflation. Propositions will be made by the Management Committee and approved by the Board of
Directors.
1.2 Salary calculation
The salary calculation aims to be transparent and to reflect employee’s performance and achievements.
The salary calculation should remain within the limits of the salary scale above established. In no
occasion can an employee have a lower basic salary than the minimum, or a higher basic salary than
the maximum point
On top of the basic salary, a seniority bonus will be granted to all the staff for 7 USD per month for each
year worked in ABC .
• Loan officers
The different levels of loan officer (junior loan officer, loan officer, senior loan officer) correspond to a
reward for good performance of loan officer (performance in terms of portfolio) and their skills. Seniority
could be taken into consideration, but the results should prevail over any other parameter. It is not
seniority that is important (although it should not be discarded); it is experience, competency and skills.
The level for loan officer will be determine during the annual performance assessment. This evaluation
will take into consideration past performance, skills and ability to take initiatives.
Every year the level for good performance will be reviewed by the management committee.
Once the level of loan officer is fixed, the HR department will calculate the salary according the following
ratios:
- productivity growth: comparison between last 3 months performance and average over the last
12 months
- comparative productivity: comparison with average performance of ABC staff and comparison
with average of the branch
- comparative quality of portfolio: comparison with average of arrears on portfolio
- for new staff only (less than 6 months within the institution): comparison with other new staff’s
performance
The exact calculation of ratios is available on an excel sheet, in annex.
Once the average ratio is calculated, we apply the following table of coefficient:
- less than 75% of performance = 1
- from 76% to 85% of performance = 1,1
34
- from 226% to 250% of performance = 2
- above 251%= 2,1
This coefficient of multiplication is then applied to the basic salary (minimum point of JLO) and the
employee’s salary is the result of this operation – with adjustment in round figures.
The model for salary calculation of loan officer is in annex.
• Other staff
For all other staff, the calculation is based on previous performances within the job in order to
determinate where the employee is located within the salary scale. However, there is no precise
calculation method, since other positions involves more complex factors.
The definition of each employee’s salary will be based on:

- his/her past performances (in terms of portfolio quantity and quality1, achievements of
objectives…)
- his/her skills (in terms of portfolio management, ability to take initiatives to solve problems…)
- his/her behaviour (team-work spirit, attendance…)
-
This will be assessed through an annual performance assessment with the employee and his/her
supervisor. The assessment form is in annex.
The HRTO is in charge of evaluating these criteria with the director supervisor of each staff and the
head of the Department. In this process of salary fixing, the HRTO should follow procedures and apply
the principle of fairness between employees. The CEO will be in charge of validating the salaries, and
the risk officer will make sure that procedures were followed.
1.3 Taxes calculation
As per Ministry of Finance rule it is responsibility of the employer to make sure that tax has been
deducted from all those employees whose salaries are subject to tax and has been deposited into
government account within ten days from the date tax has been deducted.
HRTO will calculate tax for all taxable staff when preparing payroll. Financial department is responsible
for the tax calculation accuracy, payment arrangement and deposit into government account in timely
manner.
Every employee should have tax No and it is responsibility of the HRTO to make sure that each
employee has TAX No. HRTO is responsible to apply for Tax Identification No. (TIN) for newly hired
staff.
Financial department is responsible to make sure that Tax reports has been submitted to the ministry of
finance in timely manner and in the specific format established by the ministry of finance. All reports
acknowledgements must be kept in the file.
Current tax rates (as July 2007) are the following:
Salary (in Afghanis) Tax rate

12500 0%
12501 to 100,000 10%
Above 100,000 20%
The tax rate applies to the portion above of the limit. For example, the 10% tax applies on all Afghanis
above 12500. So if the salary is 12550Afghanis, the tax applies on the 50 Afg not on the 12550 Afg and
so the tax is 10% of 50Afg, so 5Afg.
1
Portfolio quantity corresponds to the number of outstanding loans, and their volume, and portfolio quality
corresponds to their PAR (portfolio at risk)
35
2. Benefits
2.1 Insurance
All ABC staff will be covered by life and work accident insurance. The contract is currently with a
Pakistani insurance broker, based in Peshawar (Adamjee Insurance). But ABC could choose in the
future to change its contract, after a cost/benefit analysis.
The insurance premium is 1.3% of the annual basic salary (salary before taxes only) of each employee
and the insured amount is 100% of one year of basic salary.
It covers the following events:

- in case of death following a work accident, refund of 100% of the insured amount
- in case of permanent disability, refund of 100% of the insured amount
- in case of the loss of one eye, leg and arm (50% of disability): refund of 75% of the insured
amount
- in case of the loss of one eye, leg and arm (25% of disability): refund of 50% of the insured
amount
- in case of injury, refund of the transportation fund, medications and payment of a percentage of
the salary (add from contract)
- in case of natural death, refund of 100% of the insured amount, with a limit to a maximum of
250 000 Pakistani roupies (4166 USD)
The annual cost for each employee – covered by the company – is presented in Annex 7.
The insurance is compulsory for each employee.
2.2 Leave
Leaves, has defined in the Chapter “Working hours and leaves” are part of the benefits that the
company offers to its employees.
2.3 Transportation allowance
Each member of ABC staff is entitled to use ABC transportation – car - to come to work. This allowance
is estimated to 10-20 USD per month according to cases. Staff who would live outside the perimeter of
service of ABC transportation will receive this amount of money each month – upon presentation of an
evidence of the place of residence.
36
3. Incentive scheme
The definition of a staff incentive scheme requires understanding what the incentive scheme’s
objectives are. These objectives should fit both with the organisation strategic goals and with the
institutional culture in order to have an effective impact – as outlined in the following diagram.
influence Objectives of staff

Strategic goals incentives
ORGANISATION CULTURE
Contribute to Incentive determine

achieve scheme
Definition of ABC staff incentive scheme
• ABC strategic goals

ABC strategic goals for the next 2 to 3 years could be expressed as follows1:
Rank (according to Goals Terming2

importance)
1 Operational sustainability of the MFI Medium-term
2 Construct an institution fully and properly staffed with clear Short-term
and well defined objectives at all levels
3 Increase outreach Medium-term
4 Create a culture of productivity Medium-term
• Why to implement a staff incentive scheme in

ABC?
A rapid assessment of human resources in ABC highlights the following conclusions3:
- ABC has not been able to keep some of its qualified staff who were hired by the
competition (such as the previous accountant, branch managers…)
- The staff (from loan officer to the management) are dedicated to XYZ’s development
vision and are committed to serve poor rural communities through microfinance
- The staff doesn’t understand that ABC needs to reach sustainability to continue its
activity. Indeed they seem to be still running on an NGO model without seeing ABC as
a Microfinance Institution that requires a certain level of profitability and operational
sustainability.
- The staff complains about their monetary compensation that has not been reviewed
since more than a year and that doesn’t take into account their performances and
efforts as it is the case for some of the competitors.
- The staff also complains about the lack of training at all level – loan officers but also
management. Indeed no training plan has been designed and this seems to affect staff
motivation – as well as their outreach
- Staff’s productivity is very low, about half of the Afghan average for loan officers
1
A detailed strategic plan of ABC will be prepared in the next future
2
Short-term is defined as 6-8 months, medium term as 1 year, and long-term as 18-24 months
3
See in annex the detailed results about the questionnaire done with all ABC staff in February 2007
37
- There is no real performance assessment scheme in ABC, which leads to a lack of
transparency in terms of promotions (either to senior loan officer, branch manager…)
and to a lack of human resources management
- The interdependence between activities and departments (operation, finance, MIS…) is
not highlighted which often leads to a lack of commitment to do accurate and on time
reporting.
In this context, ABC is not promoting performance nor developing its staff’s capacities. This is a clear
risk for the institution as it leads to bad productivity and performance and jeopardizes the potential
growth of the institution by keeping inefficient staff. There is also an important risk of fraud due to the
imperfect reporting system both in finance and operation.
• Staff incentive scheme objectives

The incentive scheme should be directly linked to objectives in order to be an efficient tool to achieve
goals and not to be turned into an inefficient and costly practice that could also be counterproductive by
encouraging behaviours which don’t fit with the organisation’s goals or culture. It is important for the
incentive scheme to respect the institutional culture.
The present incentive scheme for ABC loan officer has the following objectives:
Rank (according to Objectives Expected results

importance)
1 Increase the productivity of the loan - Number of loans disbursed per loan
officer officer increases substantially
2 Keep the high quality of the portfolio - The PAR >30 days remains less than
5%
3 The follow-up and support for - The drop-out rate decreases – even it
capacity building of clients are can not be only be credited to the
increased and of better quality incentive scheme but also to marketing
policies, pricing…
- ABC develops a competitive advantage
of good support and capacity building
4 Increase staff’s satisfaction and - Staff are more committed to their work
motivation - Staff seeks promotion within the
institution
The present incentive scheme for ABC branch managers has the following objectives:
Rank (according to Objectives Expected results

importance)
1 Increase the outreach and profitability - The number of clients is increased
of the branch - The PAR >30 days remains less than
5%
- The profitability of the branch is
increased
2 Increase the quality of reporting (both - The information from the field is
financial and operational) accurate and controlled by management
- The consolidation of the information
(operational and financial) is done on
time with efficiency
3 Reinforce team-work - Staff understands the interdependency
between different departments (MIS,
accounting, operation…)
- Staff cooperate better to the global
structure – especially for the information
and accounting system
4 Attract and keep productive and - Turn over rate decreases
trained staff in ABC - The quality of staff increases – either
internally or by the external recruitment
- Unproductive staff are laid off
38
Any incentive other than “team incentive” for the management team (FAM, COM and CEO) will be
decided by the board in function of resources available as well as objectives of ABC.
Other staff such as MIS officer, Accountant, Provincial Accountant and MIS assistant don’t benefit from
an individual bonus. Indeed it will be too difficult to give objective parameters to assess their
performance since it is very much relying on other staff’s performance (number of loans, provision of
receipts…). Therefore, they are not targeted by individual incentive scheme. However, since they
participate to the institution’s achievement of objectives, they will receive team incentive on the basis of
a bi-annual grant for achievement of objectives
Design of the incentive scheme
• Key principles of ABC incentive scheme
O INSTRINSIC MOTIVATION
It is important to keep the intrinsic motivation of the staff. This motivation comes from the fact that staff
is dedicated to ABC mission of providing financial services to low income rural microentrepreneurs.
Management is in this matter very important, and managers should continue highlighting this during
their meeting with staff.
O INCENTIVES / DISINCENTIVES
The incentive scheme is here to promote performance and to achieve objectives. It is not here to reward
normal behaviour/tasks that are part of the job description. On the contrary, if staff does not comply with
the procedures in place, disincentives will be adopted.
O TYPE OF INCENTIVES
In order to fit with ABC institutional culture, incentives will be both individual (to promote individual
performance and productivity) and for the team (to promote team-work).
Incentives proposed will be both monetary and non-monetary (like benefits or rewards).
A linear scheme with minimum requirement has been chosen for its impact on performance. Indeed with
a linear scheme each point of effort is rewarded, contrary to staged bonus system which encourages
staff to remain close to a certain stage or trigger point. The minimum requirement is set-up in order to
give a minimum for receiving a bonus scheme. This minimum can also serve to evaluate bad
performance and to attribute negative incentive (taking off from the incentive envelope, without ever
taking of the fixed salary)
As the incentive scheme aims to reward performance or behaviour in different areas, weights are set-up
in order to decide the weight of each component according to the objectives.
O PRINCIPLE OF FAIRNESS
The incentive scheme takes into account the operational context difference between branches, gender,
and seniority of staff… in order to give objectives and rewards adapted to the situation and to avoid
unfairness.
The incentive scheme is based on objective and quantifiable indicators that could be assessed in a
professional and metric way in order to avoid any unfairness.
• Team incentive
Twice a year, the board members will grant some bonus to the institution’s staff according to the
achievements of general objectives set-up by plans. This bonus will be targeting staff who don’t benefit
from other incentive scheme (all the staff with exception of Loan officers and branch managers). The
bonus will be a bi-annual grant of 75USD for an achievement of 100% of the objectives, and 100USD
for an achievement of 150% or more of the objectives.
39
• Individual performance measurement
parameters for loan officer
O PERFORMANCE MEASUREMENT FOR JUNIOR MAN LOAN OFFICER

Performance Reference Minimum Weight
level requirement
Number of outstanding loans 220 180 35%
Volume of outstanding loans 50 000USD 30 000USD 10%
Proportion of 1st cycle standard loans 50% 40% 5%
in the portfolio
Arrears on portfolio 10 days 20 days 35%
Quantity of monitoring reports 4 VB/months 2 VB per month 5%
Quality of monitoring 100% of 75% of 10%

corrective corrective
actions
O PERFORMANCE MEASUREMENT FOR MAN LOAN OFFICER

level requirement
in the portfolio

actions
O PERFORMANCE MEASUREMENT FOR SENIOR MAN LOAN OFFICER

level requirement
in the portfolio
Areas on portfolio 6 days 15 days 35%

actions
O PERFORMANCE MEASUREMENT FOR JUNIOR WOMAN LOAN OFFICER

level requirement
in the portfolio

actions
40
O PERFORMANCE MEASUREMENT FOR WOMAN LOAN OFFICER
level requirement
in the portfolio

actions
O PERFORMANCE MEASUREMENT FOR SENIOR WOMAN LOAN OFFICER

level requirement
in the portfolio

actions
• Bonus calculation for loan officer

1
The reference bonus is from 100USD for junior loan officer to 140 USD for senior loan officer and
120USD for loan officer. This is given to people who are reaching the objectives set-up by the CEO and
COM. The high value of the reference bonus corresponds to a decision to base the financial
compensation on performance.
A bonus cap will be fixed to 100% of the fix salary. In case of numerous loan officers reaching this
bonus cap, the incentive scheme would be updated by the HRTO, especially in terms of performance
level.
The bonus formula is the following:
(ACHIEVEMENT – MINIMUM REQUIREMENT)

X WEIGHT
(REFERENCE VALUE – MINIMUM REQUIREMENT)
It is applied to all criteria of performance measurement, summed and then multiplied by the bonus
reference to get the bonus of each employee.
An excel sheet – called ABC incentive scheme – will provide the computerized model that will be used
by the HRTO to calculate the bonus of each loan officer, each month.
1
This is the bonus obtained by a loan officer who reaches the reference level for all parameters
41
O BONUS CALCULATION FOR JUNIOR MAN LOAN OFFICER:
( Number of outstanding loans - 180 )

x 35%
( 220 - 180 )
+
( Volume of outstanding loans - 30 000USD )
x 10%
( 50 000USD - 30 000USD )
+
( Proportion of 1st cycle standard loans - 40% )
x 5%
( 50% - 40% )
+
( Areas on portfolio - 20 days )
x 35% * 100USD
( 10 days - 20 days )
+
( Number of monitoring reports - 2 )
x 5%
( 4 - 2 )
+
( % of corrective actions - 75% )

x 10%
( 100% - 75% )
42
O BONUS CALCULATION FOR MAN LOAN OFFICER

x 35%
( 300 - 250 )
+
x 10%
( 90 000USD - 55 000USD )
+
x 5%
( 45% - 35% )
+
x 35% * 120USD
( 10 days - 20 days )
+
x 5%
( 4 - 2 )
+
x 10%
( 100% - 75% )
43
O BONUS CALCULATION FOR SENIOR MAN LOAN OFFICER

x 35%
( 400 - 300 )
+
x 10%
( 110 000USD - 90 000USD )
+
x 5%
( 40% - 30% )
+
x 35% * 140USD
( 6 days - 15 days )
+
x 5%
( 4 - 2 )
+
x 10%
( 100% - 75% )
44
O BONUS CALCULATION FOR JUNIOR WOMAN LOAN OFFICER

x 35%
( 200 - 150 )
+
x 10%
( 45 000USD - 27 000USD )
+
x 5%
( 50% - 40% )
+
x 35% * 100USD
( 10 days - 20 days )
+
x 5%
( 4 - 2 )
+

x 10%
( 100% - 75% )
45
O BONUS CALCULATION FOR WOMAN LOAN OFFICER

x 35%
( 260 - 200 )
+
x 10%
( 80 000USD - 45 000USD )
+
x 5%
( 45% - 35% )
+
x 35% * 120USD
( 12 days - 20 days )
+
x 5%
( 4 - 2 )
+
x 10%
( 100% - 75% )
46
O BONUS CALCULATION FOR SENIOR WOMAN LOAN OFFICER

x 35%
( 360 - 260 )
+
x 10%
( 95 000USD - 80 000USD )
+
x 5%
( 40% - 30% )
+
x 35% * 140USD
( 6 days - 15 days )
+
x 5%
( 4 - 2 )
+
x 10%
( 100% - 75% )
• Cost/Benefit analysis
Benefits Costs
Increase staff productivity (and thus reduce staff Cost of bonuses and rewards
cost such as training, workspace, equipment
because need less loan officer for same job)
Increase outreach
Better potential to attract and retain productive Increase the risk of key people (the higher the
staff due to the higher total salaries productivity of employees is, the higher is the
concentration of responsibility and the higher is
the damage if an employee leaves the institution)
Increase income from interest and fees Increase non-staff related costs (such as other
operation costs)
Increase portfolio quality
Increase services to clients
Increase the sense of responsibility on loan-officer
Maybe: increase commitment of the staff Maybe: decrease intrinsic motivation
47
• Performance measurement parameters for
manager
O PERFORMANCE MEASUREMENT FOR BRANCH MANAGER

Performance Reference level Minimum Weight
requirement
Achievement of branch objectives 110% 100% 25%
PAR >30 days for ABC portfolio 0% 2% 20%
Quality of monitoring: % of corrective 100% 80% 10%
actions
Self-sustainability of the branch 110% 100% 25%
Field visits + new markets 2 days per week 1day per week 5%
Organisation of branch management Once a week Twice a month 5%
meeting
Staff performance and training needs Once a month Once every two 10%
appraisal months
• Bonus calculation for manager

The reference bonus is 140USD, which corresponds to 35% of branch managers’ fix salary. There is a
bonus cap at 100% of the fixed salary.
The bonus formula is the following:
(ACHIEVEMENT – MINIMUM REQUIREMENT)

x Weight
(REFERENCE VALUE – MINIMUM REQUIREMENT)
It is applied to all criteria of performance measurement, summed and then multiplied by the bonus
reference to get the bonus of each employee.
An excel sheet – called ABC incentive scheme – will provide the computerized model that will be used
by the HRTO to calculate the bonus of each loan officer, each month.
The branch manager in charge of the coordination at the provincial level will receive a bonus of 70USD
corresponding to these additional responsibilities.
48
O BONUS CALCULATION FOR BRANCH MANAGERS:
( achievement of branch objectives - 100 )

x 25%
( 110 - 100 )
+
( PAR>30 days on ABC portfolio - 2% )
x 20%
( 0% - 2% )
+
( percentage of corrective actions - 80% )
x 10%
( 100% - 80% )
+
( Self –sustainability of the branch - 100% )
x 25%
( 110% - 100% )
+ * 140USD
( Field visits - 1 per week )
x 5%
( 2 per week - 1 per week )
+
( Branch management meeting - 2 per month )
x 5%
( Once a week - 2 per month )
+
( Staff perf and train. Needs appraisal - 1every 2month )
x 10%
( 1 per month - 1every 2month )
• Cost/Benefit analysis
Benefits Costs
Increase staff productivity (and thus reduce staff Cost of bonuses and rewards
cost such as training, workspace, equipment
because need less loan officer for same job)
Increase outreach
Better potential to attract and retain productive Increase the risk of key people (the higher the
staff due to the higher total salaries productivity of employees is, the higher is the
concentration of responsibility and the higher is
the damage if an employee leaves the institution)
Increase income from interest and fees Increase non-staff related costs (such as other
operation costs)
Insure the sustainability of the operations
Increase the sense of responsibility of manager
Increase the control over staff and coaching
Maybe: increase loyalty and commitment of the Maybe: decrease intrinsic motivation
staff
Testing of the incentive scheme
A pilot test for the incentive scheme will be carried out. It will allow the institution to see what could be
the benefit of such scheme or to see what their drawback is. This will also allow to see the reaction of
49
the staff to the scheme. This pilot phase allows the institution to take corrective actions for the design of
the incentive scheme before perpetuating it for a long term risking implementing a useless or even worst
a counterproductive scheme. Indeed it is difficult to know in advance what would be the staff’s reaction
to an incentive scheme.
• Sample
The pilot phase will be carried out in all the existing branches of the institution.
• Timeframe
The pilot phase will be carried out during 3 months, for the staff to have the time to understand how the
scheme works, and to react to it.
• Success criteria of the pilot test
To decide if the incentive scheme fits to the institution requirements, we have to set-up the expectation
of the pilot phase. As the duration of this pilot phase is short, we can’t expect to see the full impact of
the incentive scheme on the productivity and performances of the staff. However, by determining in
advance what would be the success criteria, it allows the institution to evaluate the scheme.
First of all, a quantitative analysis of the difference of performances between the previous period when
no incentive scheme were in place and the three months period of implementation of the incentive
scheme. It is important to compare these periods considering as well that the capital to lend is available,
so for the past period only months were capital was available will be taken into consideration.
Secondly, a quantitative analysis will be done with the branch managers to appraise the effect of the
scheme on the team and their work.
We estimate that in the case of ABC, the incentive scheme would be considered as a success if first it is
financially balanced (the cost of the incentives are lower than the increase of incomes that it brings) and
secondly it brings an increase of at least 20% in the productivity of the loan officer.
• Before to start the pilot test

Different conditions are required before to start the pilot test:
staff have understood the scheme well,
staff have all necessary information to anticipate their rewards
staff have a chance to earn rewards (capital to lend is available, objectives are
achievable…)
staff have understood that the incentive scheme is on a pilot-phase and can be modified.
• Make a decision and implement

Once the incentive scheme has been experimented through the pilot-phase, there are different
alternatives:
The scheme was a success, so the institution implements it
The scheme has some default, so it needs to be modified and tested again
The experience shows that this is not a relevant system for the institution that drops it
If the scheme is a success, the implementation can take place. It requires good information of the staff
for them to understand how the scheme works. Indeed, a lack of information can make the scheme
being totally useless.
Presenting the incentive scheme to the staff
Once that one incentive scheme has been approved, it needs to be presented to the staff. This should
take place before the implementation, because implementing an incentive scheme without explaining it
to the staff would be useless and often counter-productive. It is essential to present it to the concerned
staff but also to their direct supervisor, and to make sure that they understand it. The scheme may/will
be revised by the senior management and the Board as they see fit.
50
It is important in this process of communication to give a good transparency of staff’s performances for
them to be able to see what their performances are and what needs to be improved. It is crucial to
implement a feedback system, indeed when the incentive scheme assesses that the employee doesn’t
meet the minimum required for repeated period, it is essential that the information goes back to the
direct supervisor and then to the HRTO and the COM and CEO for them to take corrective actions.
Monitoring the incentive scheme
It is essential that the incentive scheme remains dynamic and takes into account evolutions of the
institution and of the staff. The impact of the system on staff motivation and its results on the institution
(portfolio, client relationship, team spirit etc ;) should be assessed frequently with the help of managers.
As well as the minimum requirements and objectives should be frequently reviewed in order to avoid
having unachievable performances or to the contrary objectives that are easy to reach and then an
incentive scheme that becomes a financial burden on the institution.
The HRTO should be the person responsible for this monitoring with the help of the managers and in
collaboration with the Credit Operation Manager and the Chief Executive Officer.
Temporary incentive scheme
As specified in the presentation of the testing period, the implementation of an incentive scheme
requires the availability of capital to lend. However due to some past problems with the instalments from
the donor of capital for credit line, the necessary availability of capital is not yet present in ABC to
implement this scheme for loan officer.
The credit capital will be increased in the coming months to reach the required amount. In the meantime
a temporary incentive scheme will be implemented through the same methodology. After the increase of
the capital for loan portfolio, when it will reach a total of one million and five hundred thousands dollars,
and the end of the testing period, the permanent incentive scheme will be implemented.
The temporary incentive scheme will be the subject of the testing and so the implementation of the new
scheme should only be considered as a revision of the objectives and not of the methodology.
The temporary incentive scheme is the following for loan officer and remains the same for branch
managers as their performance assessment is not based on portfolio
O TEMPORARY PERFORMANCE MEASUREMENT FOR JUNIOR MAN LOAN OFFICER

level requirement
in the portfolio

actions
O TEMPORARY PERFORMANCE MEASUREMENT FOR MAN LOAN OFFICER

level requirement
Volume of outstanding loans 60 000USD 45 000 USD 10%
in the portfolio
51

actions
O TEMPORARY PERFORMANCE MEASUREMENT FOR SENIOR MAN LOAN OFFICER

level requirement
in the portfolio

actions
O TEMPORARY PERFORMANCE MEASUREMENT FOR JUNIOR WOMAN LOAN OFFICER

level requirement
in the portfolio

actions
O TEMPORARY PERFORMANCE MEASUREMENT FOR WOMAN LOAN OFFICER

level requirement
in the portfolio

actions
O TEMPORARY PERFORMANCE MEASUREMENT FOR SENIOR WOMAN LOAN OFFICER

level requirement
in the portfolio
52

actions
4. Evaluation of the new compensation scheme
4.1 Global compensation per staff level
3500
3000
2500
53
4.2 Comparison with previous salary scale
600
550
The new salary scale is proposing a gradual progression of salaries according to their performance
(condition to go from one salary level to the other one). This progression aims to keep good staff within
ABC and to encourage them to have better performance.
500
450
3600
4003400
The new salary scale aims at promoting management position and to offer them possible increment if
they are showing good performances. This is again a way to keep good managers within ABC and to
avoid seeing good and well trained staff leaving. The salary scale for MIS and accountant is the same
as they are in the same level of responsibilities. It is less large than for other position, since there are
clerk jobs and not management position. However the possibility to get increment according to
performance maintains the attraction for these positions.
3200 54
350
4.3 Comparison with Afghan microfinance market1
3500
3000
2500
These charts give an idea about the microfinance employment market in Afghanistan. However it is
important to note that first of all no information were available from the largest MFIs (FINCA, BRAC or
First Microfinance Bank), which have a higher salary scale according to the informal information
gathered. In the same time, for the MFIs represented above, it is necessary to notice that the top
2000
management – not represented in this chart – is expatriate and therefore has a higher salary scale.
Finally, it is important to see that the scales given don’t set-up the potential of increment within the
organisation.
If we want to analyse the differences between the salary scale proposed for ABC and the competition’s
salary scale, we can notice:
- ABC salary scale for each position is larger, in order to give some flexibility to the
management to reward good employee or to attract well skilled employees
1500
- ABC salary scale is more complex, because it involves more differentiation between
the different position (for example between loan officer according to their experience)
- Loan officers’ salary is lower than the average of other MFIs, as the compensation is
trying to promote good performance through an incentive system that comes in addition
to the fix salary
- Only one of the three MFI that provided information declares to have a bonus system
1000
for loan officer (up to 400USD). However, the largest MFIs in Afghanistan (BRAC,
FINCA and FNMB) declared having such system but didn’t to give details about it.
500
1
The full data are available in annex 5
0 55
minimum
4.4 Potential financial benefit of the incentive scheme
permanent incentive
temporary
normal scenario scenario after few months
incentive scenario
of implementation
number of loan disbursed 456,67 800,00 2 800,00
volume of portfolio disbursed 120 547,86 240 000,00 630 000,00
service fees 17 000,00 33 600,00 88 200,00
loan at risk written off 0,05 0,04 0,04
loan portfolio volume 686 745,40 926 745,40 1 556 745,40
PAR (7-365days) 0,10 0,06 0,06
cost of write-off 286,14 185,35 311,35
operation + financial costs
(without salaries) 32 293,92 32 293,92 38 000,00
monthly cost per unit
borrowed 0,27 0,14 0,06
cost of portfolio 32 580,06 32 479,27 38 311,35
salaries of microfinance staff 12 967,00 15 975,00 15 975,00
approximate cost of
incentives 0,00 3 000,00 4 000,00
NET INCOME (USD) -28 833,21 -18 039,62 29 602,30
Potential financial benefit of

the scheme for 1 month 10 793,59
Potential financial benefit of

the scheme after few months 58 435,51
Chapter IV. Working hours and leaves
1. Working hours
ABC working hours are from 8’00AM to 5’00PM with an hour and half of lunch break between 12’30 and
14’00.
There are no overtime paid to ABC employees except for guards and drivers. Extra-hours will be paid
proportionally to their salary basic salary.
During the month of Ramadan fast, working hours will be adapted to take into consideration the
celebration of this important period for Afghans. Therefore working hours will be from 8’001M to 3’00PM
without break.
56
2. Leaves
2.1 National holidays
ABC respects all national holidays of Afghanistan according to the list published by ACBAR (see in
Annex 9).
2.2 Paid leave
Request for annual leave must be prepared on ABC Leave form and submitted for approval to HR
department at least two weeks in advance in usual situations. In case of urgent and unforeseen need of
annual leave, the HRTO shall approve a maximum of 3 days leave.
Each ABC staff is allowed 2 paid leave days per month worked as from the validation of the probation
period. These days can be cumulated by the employee in order to take longer leave. The decision about
leave date is taken by the direct supervisor of the employee and with consultation with the HRTO.
Annual leaves will be subjected to making the request three weeks in advance. In case of urgent and
unforeseen need of annual leave, the direct supervisor shall approve a maximum of 3 days leave.
In the case of contract termination – either because it is not renewed, or because the contract is
terminated by ABC, or because of the resignation of the employee – paid leave accumulated by the
employee will be paid with the last salary.
In case of resignation without compliance with the required notice period, the annual leave will not be
paid.
Paid leave cumulated in a certain year (N) shall be taken before September 20 th (Sunbola 30th) (N+1) or
they will be lost with no compensation. The Afghan year considered is starting on March 21st (Hamal 1st)
and finishing on March 20th (Hoot 31st).
An employee of ABC can take a maximum of ten consecutive working days paid annual leave at once
and should work for a minimum of 6 weeks between two annual leave periods.
2.3 Maternity leave
Each woman from ABC staff is entitled to 3 months of maternity leave for each pregnancy with a
minimum of 45 days. The employee has the right to choose when she wants to take this leave (either
before or after the birth). The decision about leave date is taken in agreement with the HRTO and with
consultation with the direct supervisor of the employee.
2.4 Sick leave
Each member of ABC staff is entitled to 4 days of sick leave per month and a maximum of 10 days per
year, without diminution of his/her salary. However, no sick leave over 2 days can be admitted without
medical documentary evidence.
The salary of the employee taking sick leave will be paid:
- In totality for a leave between 1 and 5 working days
- At 50% of the fix salary for a leave from 6 days to 1 month
- Beyond one month, the management committee should decide if the employee must go in leave
without pay or retire
- In the case of repeated sick leave (3 sick leave of 1 day or more during a period of 3 continuous
months), the salary is paid: totally for a total cumulated absence of less than 1 week, 50 % for a
cumulated duration of absence of 1 week to 2 months, and beyond, the employee might be set in leave
without pay or retirement
57
It is the employee’s responsibility to ensure that the HR Department receives a sick leave request by the
second day of absence due to illness.
2.5 Funeral leave
Each member of ABC staff is allowed 6 days leave for funeral of family member of the first degree
(parent, child, brother, sister) and 3 days leave for funeral of family member of the second degree
(uncle, aunt, cousin, nephew, niece, in-laws). If an employee is not in the office when the event occurs
and is not able to prepare leave form and approval, he/she must call or send a message to the office to
report the family death within 24 hours.
Extra days of unpaid leaves shall be granted upon situation.
2.6 Hadj leave
Leave for the pilgrimage to Mecqua are deducted from annual leave. In this case, the employee can
take up to 45 successive days of leave and take up to 24 days of leave in advance. These days will be
deducted from his/her last salary if the contract stops before he/she accumulates enough days of leave.
2.7 Leave without pay
Leave without pay is available to employees when all another applicable leaves is exhausted; it must be
only on previous approval from the HR department after discussion with the direct supervisor. A
maximum 12 working days leave without pay is facilitated for the employee who has completed at least
six months of work with the institution. It is worth mentioning that, it is not an entitlement and will be
granted in only exceptional cases.
All unjustified leaves will be considered as leave without pay.
2.8 Excess in leave
If an employee exceed his/her rights to leaves in one or various of the previous categories, he/she will
be submitted to a procedure of contract termination.
Chapter V. Disciplinary and termination

procedure
1. Objectives
The disciplinary and termination policy aims at sanctioning the misconduct or performance problem of
the employee. It will allow the employee to know the official position on his/her work or behaviour and
therefore give guidance for further work. It also aims to clarify supervisors’ expectations and to solve a
situation of dissatisfaction and start on new and sound basis.
The purpose of this document is to set down the procedures to be followed when standards of conduct
give rise to problems which cannot be resolved by advice and encouragement, training or increased
support. ABC is committed to the avoidance of formal disciplinary procedures wherever possible by
addressing problems as soon as they arise. This procedure is intended to provide consistency in the
58
treatment of staff and follows good practice. ABC will undertake disciplinary action only in accordance
with the provisions of this procedure.
2. Key principles
2.1 Fairness
The application of this procedure will be consistent, prompt, impartial reasonable and applied without
discrimination. This involves a strict application of the policy without exception for employees who would
have special connections with the management committee.
2.2 Confidentiality
Information relating to an allegation of misconduct should not be divulged to any parties not involved in
the disciplinary process. Statements, letters and other communications will be strictly confidential to
those involved in the disciplinary procedure.
2.3 Natural justice
At every formal stage of the disciplinary procedure, the employees will be advised of the nature of the
complaint, in writing and will be given the opportunity to state their case. Where a warning is given, the
individual will be provided with appropriate support to improve his/her conduct.
2.4 Equal opportunities
This policy will be applied without any distinction as to sex or gender, age, sexual orientation, marital or
parental status or other family circumstance, race, ethnic or national origin, colour, creed, disability,
political belief, membership of or activities as part of a trade union, or social or economic status. ABC
will monitor the use of its disciplinary procedure by the sex, age, ethnic origin and disability status of
those against whom action is taken to ensure that its implementation does not impact unfairly on any
one group.
3. Disciplinary procedures
Disciplinary committee
The disciplinary procedure should be conducted by a disciplinary committee composed of:

- employee’s direct supervisor
- head of the concerned department
- Human Resources and Training Officer
- Chief Executive Officer.
In the case of a disciplinary procedure involving one of these stakeholders, this person should be
excluded from the committee and replaced by his deputy or another member of the management
committee.
In case of a disciplinary procedure involving directly one of the management committee’s member, a
member of the board of directors should attend to the committee or be represented.
If any conflict of interest arises from the selection of the disciplinary committee, the person concerned
should make the HRTO aware of the situation for him/her to take necessary steps.
59
Necessity for investigation
Disciplinary action will not be undertaken until the necessary facts have been established. The
disciplinary committee will designate one person in charge of conducting the disciplinary investigation.
The person in charge of conducting the disciplinary investigation will collect statements and conduct
meetings with the relevant parties, including when appropriate any witness to the incident. Any witness
to the alleged misconduct may be required to make a signed, written statement.
The person in charge of the investigation will then prepare a small report based on the findings of
her/his investigation to present the case to the disciplinary committee. This report should be submitted
within 3 working days after the incident declaration.
Disciplinary hearing
Once the person in charge of the investigation has provided the report, the disciplinary committee
should meet in presence of the concerned employee within one working day after the submission of the
investigation report.
The disciplinary committee should select one chairman who will conduct the hearing, confronting the
different points of view and request clarifications from the employee. The disciplinary hearing should not
be held without the concerned employee, because this one should have the right to present his/her
arguments during the hearing. One of the members of the committee should be taking record of the
hearing – that will be added to the employee’s file.
Once all the opinions have been confronted, the disciplinary committee should ask the concerned
employee to leave the room and take decisions. The decision should be a consensus approved by all
the committee’s member in order to avoid problems of disagreement afterwards.
Once the committee has taken its decision, it should formalise it by preparing the letter or speech
relative to the decision, and transfer it to the HRTO to be added into the employee’s file and the HR
management system.
Notification of Outcome
Where disciplinary action is taken, the member of staff will be informed of the outcome as soon as
possible including:
- The disciplinary sanction awarded including the level of any warning given
- The reasons why the disciplinary action was taken
- The consequences of any further failure to adhere to acceptable standards of conduct.
In cases where a suspension is given it should be made clear that further formal disciplinary action may
result in dismissal
- The provision of any support, counselling or corrective action that is required and if not
immediate, the time within which improvement will be expected
- The fact that a record of warnings will be kept.
4. Progressive disciplinary actions
Progressive discipline is a formal process which includes several steps or levels of discipline, each of
which provides the employee with the opportunity to correct the problem or inadequacy.
There are four steps in the progressive discipline process; however, in cases of misconduct or repeated
infractions, the process may be shortened and the disciplinary committee may move directly to a later
step in the process, including termination.
60
Oral warning
Oral warnings are appropriate for minor first offences. It is important that the disciplinary committee
doesn’t overuse the oral warning that would then loose its force and become ineffective. There should
not have more than two oral warnings for the same type of offence done by an employee.
If the disciplinary committee believes that an oral warning is appropriate, it should be made clear to the
employee that the oral warning is the first step in the progressive discipline process. The oral warning
should be documented by the disciplinary committee in the same way as if it were a written one
summarizing the arguments. The record and note should record the date, time and reason for the
warning in the employee’s file and the HR system.
Written warning
A written warning should occur in three different cases:

- there is no improvement in conduct about which the employee has previously been warned
- another related offence has occurred during the currency of a previous warning
- the conduct is of such seriousness that an oral warning is not appropriate.
The written reprimand should be given to the employee within one working day directly following the
disciplinary committee, with copies to the Human Resources Department and the employee's official
personnel file.
The written warning should:
- Be identified as a disciplinary warning;
- Describe as specifically as possible the situation which prompted the warning; including day,
date, time, location;
- Indicate why the behaviour or performance is unacceptable;
- Review the decisions that were reached during the discussion regarding how the employee
would correct the problem;
- State that if the behaviour continues or other problems occur, additional corrective measures
may be taken.
Suspension
Suspension is the third step of the disciplinary procedure. It is intended to indicate to the employee the
seriousness of the infraction and that the employee can reasonably expect that the next step is
termination of employment. It should also be the consequence of two written warnings occurring in less
than 12 months. It should also be issued in case on a non-improvement of the conduct about which the
employee had previously been warned.
The duration of the suspension will depend on the seriousness of the situation and will be decided by
the disciplinary committee. But this duration should not exceed one month.
Termination
Termination of employment is the culmination of the progressive discipline process or the penalty for
very serious offences. It should also be the consequence of three written warning occurring in less than
18 months. It will also occur if there is no improvement in the conduct which has been the subject of a
suspension.
61
Any dismissal for gross misconduct will take immediate effect once the decision has been made and the
individual will be entitled to no notice period regarding the termination of their employment.
Below is a list of some examples of gross misconduct which may result in dismissal. This list is not
exclusive or exhaustive.
- serious negligence resulting in unacceptable loss, damage or injury
- intentional serious breach of ABC policy or regulations or improper conduct in relation to job
responsibilities
- serious breach of ABC policy on conflict of interest, anti-discrimination or anti-harassment
- theft, fraud or deliberate falsification of records of ABC documents
- malicious damage to ABC property
- deliberate refusal to comply with reasonable instructions or requests made by a line

manager within the work place
- a breach of health and safety rules which places a member of staff or others in danger
- intentional misuse of confidential information
- fraudulent misuse of the ABC property or name
- Unauthorized entry to computer records or inappropriate use of ABC data or computing

equipment.
Chapter VI. Performance appraisal
1. Objectives
As ABC is committed to the professional development of its staff and to the achievement of its mission –
to provide financial services to the rural communities – it is essential to assess the performance of the
staff.
The performances appraisal process intends to support each employee’s professional development by
assessing individual achievements, strengths and areas for improvement. Therefore it should be used
by the management to elaborate skills development plan for the employee.
It also intends to give a clear picture to managers on the individual performance in order to take
informed management decisions at the branch level, department level and institution level.
The performance appraisal has to be considered along with the compensation policy, since incentive,
bonus, and position on the salary scale very much depends on performance appraisal.
2. Principles
Few key principles are guiding the performance appraisal:

- fairness principle
- transparency
- objectivity
- constructiveness
62
2.1 Fairness principle
Based on ABC ethical chart, principle of fairness should be applied for performance appraisal. This
principle means that all employees should be treated in an equal way, without consideration for their
relationship with supervisors, for their ethnicity, for their gender… It also involves that the decisions
taken through the performance appraisal process apply to all the employees in the same way.
The fairness principle also require that the performance required from the employee corresponds to the
position level and to the compensation received. To ensure this, the performance parameters should be
based on the job description to match with the position’s objectives.
2.2 Transparency principle
To complete the requirement of fairness, the performance appraisal process should also be transparent.
Therefore it is critical that all employees acknowledge the performance parameters, and the objectives
set-up for each factors according to the job description. It is also essential that employees understand
the performance appraisal process, especially if it is complex – like involving different weights for
different factors…
The decision of the appraisal committee should be presented to the employee with transparency on the
criteria and the performance evaluation. This will facilitate his/her acceptation of the decision and will
reduce possible reclamations.
The transparency of the process involves the necessity to involve the concerned employee in the
discussion
2.3 Objectivity
To complete the requirements of fairness and transparency, performance appraisal factors need to be
assessed in an objective way which means that no personal feeling will take part of the evaluation.
Therefore the factors should be quantifiable in order to restrict the possibility for subjectivity and
therefore involvement of personal feelings in the appraisal.
To guaranty this objectivity, the performance appraisal will require documented decision, based on
quantifiable factors and documents. All value judgement will have to be documented and no assertion
can be taken into consideration without its justification.
In order to achieve this objectivity, the HR department will collect the relevant data from the different
stakeholders in order to provide documentation about the employee’s performance (mainly from MIS
and employee’s file). The HR department will also prepare an adapted format to guide the appraisal
committee through the process.
2.4 Constructiveness
The performance appraisal aims to provide guidance for the employee’s development. Therefore it
should provide practical recommendations for improvement linked to the results of performance
approval. A performance appraisal that would only state the low performance without providing
guidance would be useless and totally counter-productive. The performance appraisal decision should
come with a training plan for the employee in case of low performance and with guidance to achieve
better performance in case of average one.
It is also essential to implement a follow-up on the performance appraisal to learn from this process and
implement the recommendations. It is the duty of the Human Resources Department but also from the
direct supervisor of the concerned employee.
3. Appraisal committee
The performance appraisal should be carried-out by a committee gathering different persons from the
organisation. The presence of different persons aims to:
63
- bring different point of views according to the position of the committee member. For
example members from different department would have a different point of view. In the same way
person from different levels of the hierarchy will have different perspectives on the employee’s
performance
- decrease the risk of subjectivity in the performance appraisal. Indeed the confrontation of
different points of view that will have to reach a compromise reduces the risk of personal value
judgements that could be the result of personal relationships.
The performance appraisal committee depends of the level of the appraised staff and therefore is
different according to each position.
Appraisal committee Type staff Appraise

COM, direct supervisor & HRTO Field operation staff Loan officer, Murabaha
purchaser
CEO, direct supervisor & HRTO Admin staff Accountant, PAMA
FAM, direct supervisor & HRTO Support staff Guards, Drivers, Cook and
Cleaners
CEO,FAM & COM Head office staff MIS officer & Risk officer
CEO,FAM & COM Managers Branch Managers
CEO, Vice chairman & Chairman Management committee members COM, FAM & HTRO
Chairman & Vice chairman Senior Manager CEO
4. Appraisal type and frequency
There are different steps in the career of the employee with an institution and each one of these steps
should be the occasion for an appraisal of the employee. There are different categories of appraisal
according to their respective objective:
- to take a decision on the contract continuation, or renewal
- to recognize the employee’s performance and reward or punish him/her for it
Depending on the appraisal type, the appraisal frequency would vary. For the first appraisal category,
formal appraisal should happen at each step of the contract requiring a decision concerning the future of
the employee within the institution – namely at probation period and end of contract time. For the
second appraisal category, formal appraisal should occur at least two times a year for each employee.
4.1 Probation period performance appraisal
The probation period performance appraisal is a critical moment for the institution. Indeed after the end
of the probation period, the employee will be fully integrated to the team, and therefore it would become
more complex to terminate his/her contract in case of dissatisfaction with the employee’s work.
Therefore this evaluation should be well prepared and carried-out with attention.
It should take place before the end of the employee’s probation period, ideally in the previous week – to
allow some flexibility in case of unforeseen problem.
The appraisal will evaluate the performance of the employee from the first date of hiring to the date of
the appraisal according to objectives set-up in the job description. This probation period appraisal will be
based on reports/feedback prepared by direct supervisor during the probation period regarding
performance, skills and behaviour of the employee and on general reports from the concerned
department head.
This appraisal should lead to a decision concerning the contract of the employee. Three types of
decision can be taken:
- continuation of the contract – ending the probation period this decision would lead to the
64
permanent incorporation of the employee to the institution
- the termination of the contract
- the prolongation of the probation period in case of uncertainty about the performance of
the employee. The probation period can be extended for a same duration but only one time.
The probation period performance appraisal should also be an occasion for the employee to express
his/her feelings regarding his/her involvement in the institution. It should be used to settle problems that
could have occurred in the probation period.
4.2 End of contract performance appraisal
The end of the employee’s contract is a critical moment to appraise performance. Indeed, then the
institution has to make a choice between renewing the employee’s contract or not. It is essential to
identify good employees who should be kept in the institution and employees who are not bringing
enough value to the institution to justify a new contract.
It is critical to carry-out this appraisal and not to renew automatically the contract without evaluating the
employee’s performance.
This appraisal should be based on the job description review, and the review of all the past performance
appraisal of the employee – from the probation period appraisal, to the annual appraisal and through the
ongoing appraisal from the direct supervisor and the concerned department head.
It will lead to two types of decisions:

- the non-renewal of the contract in case of dissatisfaction with the employee’s
performance
- the renewal of the contract either for the same period, or for a longer period in case of
good performance.
It should also be an occasion for the employee to express his/her point of view on his/her work and on
the institution in order to improve the institution’s weaknesses and to encourage existing strengths.
4.3 Bi-annual performance appraisal
Twice a year, each employee should be evaluated according to his/her performance. This bi-annual
performance appraisal should help the employee and the institution to evaluate the objectives
achievements and to implement new strategies to improve the performance.
The bi-annual performance appraisal should:
- Analyze concerned employee’s achievements in relation to his/her job description and the
ABC or department level objectives
- Develop a mutual understanding of the future performance expectations and objectives
- Identify future support that the employee requires from the institution to improve the
performance
The bi-annual performance appraisal lead to three types of decisions:
- Appreciation letter in case of good performance
- Warning letter in case of low performance
- Promotion in the hierarchy or in the salary scale of the same position
During the first year of employment with ABC, the employee will only have an annual performance
appraisal instead of being bi-annual – because they will already be having a probation period
assessment.
In the case of a transfer from one location to another one, the bi-annual performance appraisal should
not take place before three months of duty in the new location in order to be able to have enough
information concerning the performance in the new station.
65
5. Appraisal factors
The appraising factors are based on the objectives assigned by the job description to the employee
according to his/her position within the institution. Therefore these factors are different according to the
department and the position of the concerned employee.
The HR department is in charge of gathering the information on each factor before the appraisal and to
present them to the appraisal committee for consideration at least 3 days prior to the scheduled date for
appraisal.
Following are the factors for performance appraisal:

Concerned staff Factors Parameters Weight
volume of outstanding loans,
Portfolio quality number of outstanding loans, 50%
arrears on portfolio
Implementation of operations
field staff of
Respect of manual of procedures, filling of the forms,
operations 25%
operations procedures scoring methodology, respect of
department
chain of command
team work ability, punctuality,
General behaviour 10%
attitude, dedication to work
problem solving, communication
Quality of employee 15%
skills, microfinance knowledge
Implementation of financial
respect of finance &
procedures, filling of the vouchers,
administration manual of 40%
forms, book maintenance, respect
procedure
of chain of command
Finance on-time deliverance, accuracy of
Reports quality 40%
Department Staff the report, control of the data
Respect of the MIS manual of Implementation of MIS procedures,
40%
procedures respect of chain of command
on-time deliverance, accuracy of
Reports quality 40%
the report, control of the data
MIS Department
ensure the respect of the Implementation of operations
operations manual of procedures, control of the respect of 20%
procedures from all staff chain of command
productivity of branches, branch
Management of operations management, problem 25%
management
portfolio
Operation Achievements of the
volume, delinquency, achievements 25 %
Department operation department
of objectives
Senior
product development, geographical
Management Strategic decisions 20%
extension
Quality of employee
leadership, communication skills,
5%
microfinance knowledge
Finance ensure respect of the finance follow-up of procedures on finance, 20%

66
manual of procedures from all respect of chain of command and
staff authorisation levels
financial sustainability of
Management of finance
the branches, self-sufficiency, 25%
operations
problem management
Department management of assets, yield on
Achievements of the financial
Senior portfolio, self-sufficiency, operating 25 %
department
Management expenses ratio
Planning decisions cash flow forecast, budget 20%
ensure respect of the HR Implementation of the HR
manual of procedures from all procedures, respect of the chain of 25%
staff command
recruitment, performance appraisal
Management of HR and decisions on awards or 30%
Human punishment, problem management
Resources
Achievements of the HR training plan realized, low turn-over,
Management 25 %
department good quality of staff
Respect ABC Security policy and
Respect of the internal
procedures, respect of chain of 40%
control procedures
command
accurate information, on-time
Quality of reporting 20%
reporting, justification of reports
good coordination with security
Risk Department Management of security 10%
service provider, on-time reporting
Control
Proposition of corrective to improve internal control and
20%
actions decrease deviation from procedures
business plans, strategic plans,
Achievements of ABC plans 20%
budget
Control on applications of internal control, information
10%
policies accuracy
Achievement of objectives in achievements in terms of
both operation and finance sustainability and development in 25%
sections both operations and finance
CEO preparation of business plan, action
Planning and strategic
plan, and practical implementation 25%
decisions
of board decisions
Relationship with board Good reporting, on-time reporting 10%
The scoring of each factor will be from 1 to 10 and the sum of the scoring for each factor according to its
weight will determinate the decision. The following table intends to summarize this scoring and to set-up
the relative decisions according to the type of appraisal.
Scoring Performance Decision for Decision for end Decision for

probation period of contract annual appraisal
appraisal appraisal
67
1 to 3 Unacceptable Termination of the No renewal Termination of the
performance contract contract
4 to 5 Low performance Prolongation of Depends on case Warning letter
the probation – no renewal if no
period perspective of
evolution and
renewal with
specific training if
real potential of
improvement
6 to 8 Average Continuation of Renewal with Appreciation letter
performance the contract with specific trainings according on
specific training strengths
8 to 10 Good Continuation of Renewal at the General
performance the contract same position with appreciation letter,
salary increase or salary increase or
promotion promotion
The HR department is in charge of setting-up reference level for each parameters in collaboration with
the manager of the department and with board members. These reference levels should be presented
clearly to the appraised staff as part of the transparency policy. They should be updated at least once a
year.
An appraisal form example is presented in Annex 10. Appraisal forms for each grade will be developed
by the HR department according to this template.
6. Follow-up on appraisal
As expressed in the objectives, the performance appraisal aims to support each employee’s
development. Therefore it is essential that a follow-up on the appraisal is carried-out. Indeed, the
performance appraisal should not only lead to a decision concerning contract, salary, letters… but also
to measures to improve the employee’s performance, or to share his/her experience with other
employees in case of good performance.
To ensure this follow-up, the appraisal committee should provide recommendations on next steps to
take for each employee regarding possible improvement… Then, the HR department is in charge of
compiling all these information – especially on training, or exchange of experience – and to share it with
heads of department in order to take practical measures to implement it. If trainings are required, it will
be the HR department to include them in the general training plan if they are not planned yet or to
schedule the relevant training for the employee.
On the following appraisal, the implementation of the previous appraisal committee’s decision will be
assessed.
Chapter VII. Training policy
1. Employees’ development policy
ABC places a high priority on staff growth and development. Indeed, human resources are the key
factor for microfinance success as its development is based on the ability of staff to relate to clients and
to run operations smoothly in the officer. The institution depends on the skills and commitment of
employees to reach our goals.
It is for these reasons that ABC is highly committed to the ongoing success of our staff. ABC overall
training and development initiatives are driven from strategic plans and are designed to work toward
meeting its mission and vision. Based on strategies, the Human Resources and Training Department
68
will determine areas for skill training or professional development, and implement appropriate programs
applicable to all staff.
Staff development can take on many forms, for example:

-Training for a specific skill;
-Development of leadership abilities;
-Coaching or mentoring;
-Reviewing resources and materials;
-On site field visits; and
-Performance management.
The first step in creating a development plan is to identify your development areas. To do this, the
following elements should be reviewed:
-job description;
-position requirements
-competencies
-the most recent performance review.
Training should in every instance be seen as an investment rather than an entitlement. In determining
overall institutional training initiatives, ABC will consider priorities for training and strategic
people/positions to receive training. As part of the commitment to ensure all staff have opportunities for
learning, the human resources and training department will make an effort to systematically document
and revise technical information and methodologies to be distributed for use in all offices.
As said above, the provision of training is an investment in the human resources, therefore it requires a
certain level of commitment from the staff. This commitment involves their active participation in the
training in order to get the maximum out of it to develop themselves in both their own interest and ABC
interest. It also involves a commitment to the organisation to remain with it and to implement the lessons
from the training once properly trained.
Attendance to training is mandatory unless there is written approval for absence. Staff must provide a
debriefing of the course to other staff if they are the only representative of the institution in the training.
2. Training needs assessment
A general training plan of the organisation should be prepared by the Human Resources and Training
Department to set-up a training plan for each position in order to provide a minimum of knowledge of all
employees to fulfil their duties and responsibilities efficiently.
Then training and development specific to individual staff will be developed by the Human Resources
and Training Department during the annual Performance Appraisals or the probation period
performance assessment. Staff should discuss personal development plans with their respective
managers. Managers, in coordination with the HRTO, will determine the most appropriate training and
development initiatives for each employee. Initiatives must relate to skills, knowledge or attitudes
required for work within ABC. Only work related training will be approved.
Therefore all training needs assessment and training plan should be linked to job description.
Training and development initiatives will be considered based on the following priorities:
- To ensure staff understand and embrace ABC mission and vision
- To retain staff for the long term by creating productive, positive working environments that
allow staff to reach their fullest potential.
- To help ABC to have access to up to date technical information on microfinance.
The training needs assessment will be done by head of department and HRTO, with the input of both
the employee and the direct supervisor. To do so, they will follow a special format called training need
assessment (in annex of this document).
69
3. Individual request for training
On-top of training proposed by the institution, employees can require to participate to other trainings,
offered by external institutions. To be approved, these trainings should be:
- related to the employee’s duties and responsibilities
- be provided by recognized institutions
- be within the costs limits.
The employee can submit a request for training to the HRTO – according to the organisation’s form (in
annex). The training request will then be assessed by the HRTO and the head of the department, in
consultation with the Finance department.
4. Cost of training
Costs of training requirements need to be built into ABC budgets, and training programs should be
incorporated into the annual plans. The institution will cover the direct expenses related to trainings both
internal and external. This includes the full cost of the course, books and resources required and
expenses related to travel, food and accommodation.
The Human Resources and Training department should propose an annual plan for training needs
along with a related budget. Both the plan and the budget will be discussed in management committee
before a decision is taken by the committee.
Once the envelop for training is granted to the HRT department, it is the HRTO’s responsibility to
manage this envelop to reach the annual plan.
For individual training expenses over $1,000, an employee must sign a contract of service obligation
with ABC as per the following schedule:
- $1,000 - $5,000 – obligation of 2 years of service
- $5,000 and greater – obligation of 3 years of service
If an employee leaves before the obligatory period of service the employee must reimburse 50% of the
expense to ABC.
In general, ABC will not normally approve long- term University Degree or College Diploma programs.
However under special circumstances – to be decided by the management committee, or in the case of
management committee’s members by the board members – the institution could consider an Education
Bonus Plan. This plan will cover eighty (60%) of tuition costs; all other costs such as travel, materials,
and the remaining 40% of tuition are the responsibility of the participant.
5. Time-off for Training
Mandatory staff training meetings are considered part of the job for full-time salaried employees. Should
these meetings occur over weekends, the employee together with their manager may negotiate time off
according to the overtime policy.
However ABC will not pay staff’s time to attend outside training courses, workshops, or seminars that
were requested by the employee. For example, if a workshop is on a Saturday, the institution will not
pay an extra day of work, or give time to attend the workshop outside of normal working hours.
6. Training plan
Prior to the individual training plan that will be developed for the employee after the annual performance
appraisal, there is a training plan for each category of employee that corresponds to the minimum
training that the institution should provide to a new employee. The training plan also clarify the content
of the orientation of employees. This training plan should be amended to face new development of ABC
in the future – such as start of new activity (savings…).
70
6.1 Training plan for support staff (driver, guard, cook)
Denomination Contents Duration Characteristic
Orientation of the employee - brief presentation of ABC mission ½ day Compulsory

and vision on the 1st
- presentation of ABC regulations week
(especially HR and security)
- explanations on the job description
and duties
Security (for guard and - basic security rules 1 day Compulsory
driver) - road or house security/safety rules on the 1st
- XYZ/ABC rules on security month with
- Training on how to react to specific update every
danger year.
6.2 Training plan for PAMA

and duties
Basic training on the data - Software installation ½ day Compulsory
base - Back-up on the 1st
- Presentation of the levels of security week
Training on the Credit - General presentation on the credit 1 ½ day Compulsory
module module on the 1st
- Presentation of the credit week
procedures manual
- Presentation on clients and group
creation
- Presentation on loan processing
- Presentation on vouchers
Training on the Accounting - General presentation on the 1 ½ day Compulsory
module accounting module on the 1st
- Presentation of different vouchers week
and receipts
- Presentation of the different reports
- Presentation of accounting manual
of procedures
Training on microfinance - What is microfinance? ½ day Compulsory
- History of microfinance on the first
- How does microfinance alleviate semester
poverty?
- What are the different microfinance
products? Methodologies?
- Microfinance key principles
Training on risk - What are the different risks in 1 day Compulsory
management and internal microfinance? on the first
control - How to control them? What are the semester
procedures to put in place? What
are the responsibilities of each
person?
71
Training on key - Productivity and efficiency ratios ½ day Compulsory
microfinance ratios - Portfolio quality ratios on the first
- Sustainability ratios year
- Liabilities and assets management
ratios
- Profitability ratios
6.3 Training plan for Accountant

and duties
Training on the Accounting - General presentation on the 1 ½ day Compulsory
module of the software accounting module on the 1st
- Presentation of different vouchers week
and receipts
of procedures
poverty?
Training on key accounting - Review of CGAP guidelines on 1day Compulsory
principles of microfinance disclosure and accounting principles on the first
semester
Training on risk - What are the different risks in 1 day Compulsory
person?
ratios
6.4 Training plan for MIS Officer

and duties
Basic training on the data - Software installation ½ day Compulsory
base - Back-up on the 1st
72
- Presentation of the levels of security week
Training on the Credit - General presentation on the credit 1 ½ day Compulsory

module module on the 1st
- Presentation of the credit week
procedures manual
creation
Training on reporting - CGAP guidelines for disclosure 1 day Compulsory
- MISFA guidelines for reporting on the first
month
poverty?
Training on risk - What are the different risks in 2 days Compulsory
person?
- Specific emphasis on credit risk and
scoring
ratios
6.5 Training plan for loan officer

and duties
- How does microfinance alleviate week
poverty?
Training on credit - Presentation of the training program 2 days + 3 Compulsory
operations procedures for VB days on on the 1st
- Presentation of procedures for VB site with a week
creation senior LO
- Presentation of different forms and
how to fill them
- Presentation of the scoring and
approval procedures
- Presentation of the disbursement
and repayment procedures
73
Training on monitoring and - Presentation on need for monitoring 1 day + 2 Compulsory
impact evaluation as risk management tool days on on the first
- Presentation of monitoring site with trimester
procedures Senior LO
- Training on how to assess the
impact of the loan
Training on risk in - What are the different risks in ½ day Compulsory
microfinance microfinance? on the first
- How to control them? What are the semester
person?
6.6 Training plan for district branch manager

and duties
poverty?
Training on credit - Presentation of the training program 2 days Compulsory
operations procedures for VB on the 1st
- Presentation of procedures for VB week
creation
how to fill them
approval procedures
Training on monitoring and - Presentation on need for monitoring 1 day Compulsory
impact evaluation as risk management tool on the first
- Presentation of monitoring trimester
procedures
impact of the loan
- Training on corrective actions
- Partnerships with other
organisations: how to create them,
and why are they important?
person?
Training on financial - Overview of financial management 1 day Compulsory
management in ABC on the first
- Financial and accounting semester
procedures of ABC
- CGAP disclosure guidelines
- Cash flow management
74
- Key financial ratios
Training on reporting - Internal reporting ½ day Compulsory

- Reporting to donors – both financial on the first
and operational semester
Training on marketing - How to understand clients’ needs? 1 day Compulsory
- How to conduct a mini-market on the first
survey? semester
- How to market ABC products?
- How to answer to questions on
Sharia’ compliance
6.7 Training plan for province branch manager

and duties
poverty?
Training on credit - Presentation of the training program 2 days Compulsory
creation
how to fill them
approval procedures
Training on the Accounting - General presentation on the 1 day Compulsory
- Presentation of different vouchers trimester
and receipts
of procedures
Training on the Credit - General presentation on the credit 1 day Compulsory
module of the software module on the 1st
- Presentation of the credit trimester
procedures manual
creation
procedures
impact of the loan
75
Training on security issues - How to assess security situation? ½ day Compulsory
- What to do when facing a security on the first
problem trimester
person?
Training on financial - Overview of financial management 1 day Compulsory
management in ABC on the first
- Financial and accounting semester
procedures of ABC
- CGAP disclosure guidelines
- Key financial ratios
- Reporting to donors – both financial on the first
and operational semester
survey? semester
6.8 Training plan for risk officer

and duties
poverty?
Training on risk in - What are the different risks in 1 day Compulsory
- How to control them? What are the week
person?
Training on internal control - Presentation of internal control 1 day Compulsory
procedures manual of procedures on the 1st
- How to implement internal control? fortnight
Training on credit - Presentation of the training program 1 day Compulsory
- Presentation of procedures for VB fortnight
creation
how to fill them
76
approval procedures
fortnight
Training on accounting and - Review of financial and accounting 1 day Compulsory
finance procedures manual of procedures on the first
- Key ratios fortnight
Training on the Accounting - General presentation on the ½ day Compulsory
- Presentation of different vouchers month
and receipts
- Presentation on clients and group month
creation
procedures
impact of the loan
Training on security issues - How to assess security situation? ½ day Compulsory
- What to do when facing a security on the first
problem trimester
- How to report a problem on the first
- Relations with external auditor semester
6.9 Training plan for HRTO

and duties
poverty?
- How to control them? What are the week
person?
77
Training on HR policy - Review of the policy of ABC 1 day Compulsory
- Review of the HR procedures and on the first
their application fortnight
Training on HR module of - Global presentation of the software 2 days Compulsory
the software - Review of recruitment process on the first
- Review of filing process fortnight
- Review of performance appraisal
process
- Review of training process
- Review of the leave process
- Review of the pay roll process
- Review of the different reports
6.10 Training plan for Credit Operations Manager

and duties
poverty?
creation
how to fill them
approval procedures
- Presentation on clients and group fortnight
creation
- How to control them? What are the month
person?
procedures
impact of the loan
78

trimester
Training on sustainability in - definition of sustainability ½ day Compulsory
microfinance - the double-bottom line on the first
- institutional sustainability semester
- financial sustainability
- sustainability ratios
Training on strategic - definition of strategic planning 1 day Compulsory
planning - situation analysis: assessment of on the first
the opportunities and constraints semester
- developing strategic plans
- implementing strategic plans
survey? semester
6.11 Training plan for Finance and Administration manager

and duties
poverty?
week
- Key ratios week
- Presentation of different vouchers fortnight
and receipts
person?
trimester
79
Training on financial risk - liquidity risk ½ day Compulsory
management - risk of interest rate on the first
- macroeconomic risk semester
Training on financial - income statement 1 day Compulsory
statements and key ratios - balance sheet on the first
- financial ratios of semester
sustainability/profitability
- financial ratios of asset/liability
management
- financial ratios of portfolio quality
- financial ratios of efficiency and
productivity
Training on financial - how to enter data in the system ½ day Compulsory
management tool - how to do cash flow forecast on the first
semester
6.12 Training plan for Chief Executive Officer

and duties
poverty?
- Presentation of procedures for VB fortnight
creation
how to fill them
approval procedures
- Presentation on clients and group fortnight
creation
80
fortnight
- Key ratios fortnight
- Presentation of different vouchers fortnight
and receipts
person?
trimester
Training on financial risk - liquidity risk ½ day Compulsory
management - risk of interest rate on the first
- macroeconomic risk semester
Training on financial - income statement 1 day Compulsory
statements and key ratios - balance sheet on the first
- financial ratios of semester
sustainability/profitability
- financial ratios of asset/liability
management
- financial ratios of portfolio quality
- financial ratios of efficiency and
productivity
survey? semester
7. Training evaluation
As trainings are part of ABC strategies to improve its performances and productivity, it is essential to
evaluate them. It is the duty of the human resources and training department to carry-out this evaluation
that should assess both the quality of the training and the quality of the staff’s involvement and
understanding.
The assessment on training quality should be made through a short questionnaire given to the all the
participants to the training (in annex). It should then be analysed by the human resources and training
department and then give recommendations on how to improve the training.
81
The assessment on staff’s participation to the training should be the duty of both the trainer and the
HRT department. In case of external trainer, it is essential that the HRT department requires this
evaluation as a part of the Terms of Reference. In all the cases, this evaluation should be expressed
through a written document provided to the trainer (see in annex) and filled by him that will then be part
of the employee’s file and should be taken into consideration during the employee’s appraisal process.
82
Annex
1. Request for staff form
83
2. Salary calculation model for Loan Officer
3. Application evaluation form
4. Interview Assessment form
86
5. Example of test
87
88
6. Contract template
89
90
91
92
93
7. Total compensation per month
Job level Salary Benefit Incentive

level Transportation insurance minimum good Maximum
10USD/month performance
Junior loan minimum 160 10 2,08 0 100 60
officer mid-point 200 10 2,6 0 100 100
maximum 250 10 3,25 0 100 150
Loan officer minimum 200 10 2,6 0 120 80
mid-point 250 10 3,25 0 120 130
maximum 310 10 4,03 0 120 190
Senior loan minimum 250 10 3,25 0 140 110
officer mid-point 310 10 4,03 0 140 170
maximum 390 10 5,07 0 140 250
PAMA minimum 230 10 2,99 0 8,33 12,5
mid-point 275 10 3,575 0 8,33 12,5
maximum 330 10 4,29 0 8,33 12,5
Branch manager minimum 400 10 5,2 0 140 260
mid-point 495 10 6,435 0 140 355
maximum 595 10 7,735 0 140 455
Officer minimum 350 10 4,55 0 8,33 12,5
(MIS/accountant mid-point 435 10 5,655 0 8,33 12,5
)
maximum 550 10 7,15 0 8,33 12,5
HRTO minimum 600 10 7,8 0 8,33 12,5

mid-point 850 10 11,05 0 8,33 12,5
maximum 1300 10 16,9 0 8,33 12,5
Managers minimum 600 10 7,8 0 8,33 12,5
(COM/FAM) mid-point 1200 10 15,6 0 8,33 12,5
maximum 1800 10 23,4 0 8,33 12,5
CEO minimum 1600 10 20,8 0 8,33 12,5
mid-point 2350 10 30,55 0 8,33 12,5
maximum 3000 10 39 0 8,33 12,5
94
8. Salary scheme of other MFIs
Position MFI Minimum maximum Comments

Program MFI 1 1 500 2 000
Manager/Deputy MFI 2 800 1 000
MFI 3 800 2 000
Loan Officer MFI 1 500
Supervisor/Branch MFI 2 300 550
Credit Manager
MFI 3 350 750
Loan Officer MFI 1 120 180 Plus Bonus - up to 400
MFI 2 204 270 No Bonus
MFI 3 200 400 No Bonus
Finance Manager MFI 1 500 1 500
MFI 2 800 1 300
MFI 3 1500 2500 Expat
Finance Officer MFI 1 200 400
MFI 3 200 500
MFI 4 200 500
Admin Assistant/HR MFI 1 - -
MFI 2 - -
MFI 3 250 500
95
9. National holidays
96
1.1
10. Performance appraisal form
97
11. Training needs assessment form
98
12. Training quality assessment form
99
13. Assessment of employee’s participation to training
100

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Human resources and

training policy and

ABC – Afghan microfinance institution

Board of directors (7 members)

Chief executive officer

Financial and administration manager Credit operations manager

MIS officer Branch Branch

Loan officers Loan officers

1.4 Dignified Treatment

1.6 Truthful Information

1.7 Privacy and Fair Disclosure

2.1 Hiring family members

4.1 Gender equity

5. Anti-harassment and corruption policy

5.1 Prevention of harassment

5.2 Prevention of corruption

1.1 Chief Executive Officer (CEO)

Accountable to: Board of directors

• Mission of the position

• Tasks and responsibilities

• Education and experience

Level: Member of the Management Committee

Reports to: Chief Executive Officer

• Tasks and responsibilities

• Education and experience

1.3 Credit Operations Manager (COM)

Level: Member of Management Committee

Reports to: Chief executive officer

• Task and responsibilities

• Education and experience

1.4 Human resources and training officer (HRTO)

Level: Member of management committee

Accountable to: Chief executive officer

Supervision of: in medium term, will have an assistant

• Task and responsibilities

Administration of Human resources

Development and training

• Education and experience

Level: Senior Management Staff

Reports to: Chief Executive Officer and to the Board of Directors

Directly supervises: no one (at least in the short term)

• Task and responsibilities

1.6 Provincial branch manager

Level: Management Staff

Directly supervises: Loan officers and the PAMA

• Task and responsibilities

• Background and experience

1.7 District branch manager

Level: Management Staff

Directly supervises: Loan officers

• Task and responsibilities

• Background and experience

Reports to: Finance and Administration Manager

Directly supervises: provincial accountant assistants

• Task and responsibilities

• Background and experience

Reports to: Chief executive officer

Directly supervises: provincial MIS assistant

• Task and responsibilities

• Background and experience

Level: field staff

Reports to: Branch manager

Directly supervises: nobody

• Task and responsibilities