Beirut - May 2009 AL-Amal Microfinance Bank HR Perspective Mohammed Salah Al-lai Executive Director Sanabel 6 th Annual Conference Al-Amal Microfinance Bank -Yemen

Introduction  Poverty and unemployment have a negative impact on the development of Yemen.  Yemeni Government has issued the Law (23) for the year 2002, establishing the first Microfinance Bank in Yemen (and the region) under the name of (Al- Amal Microfinance Bank AMB).  The bank was established by :  45% (SFD).  35% (AGFUND).  20% the Private Sector.

Vision, Mission and Objectives Vision Inclusive financial services for all Yemenis To improve the economic and social conditions of the Yemeni low income family, especially those of small and micro enterprises; by providing outstanding financial services. And to become the pioneering and sustainable financial institution in Yemen. Mission Objectives  To provide diversified financial services satisfying the target group's needs and expectations.  To expand to all the Yemeni territories (rural and urban) through new branch and possible partnership with other local institutions.  To be sustainable financial institution, with qualified and efficient staff, and equipped with modern systems able to attract fund.

Al-Amal Bank Key Figures Staff N Loan Officer's Branches N Active Clients 000

Yemeni HR Overview  Employment  Lack of clear national strategy for labor and employment.  20% of the workforce in Yemen participate in the formal sector.  17% is the rate of unemployment.  Different public and private work environment.  Yemeni people get their job through: 1. Personal initiative 2. employment bureaus  Only 5% of the unemployed are registered with them.  Only 13% of those registered received help from the bureaus in finding jobs.  Poor relation with employers.  Offering one service

Yemeni HR Overview  Recruitment:  Applicants heading for jobs that are not related to their qualification and/or experience.  Lack of qualified applicants.  Lack of proper training.  Unclear career path.  Selection: Applicants characterized with:  Poor self presentation.  Misleading previous work experience.  Hesitant to be exposed to a new work environment.

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

Al-Amal Microfinance Initiative  Started officially in January 2009 and people has little sometimes no information about it.  Strategic decision has been taken “ NO staff from the MFIs, Fresh graduates ONLY “  A management team was recruited on a voluntary basis at the beginning (4 staff).  Exposure visits locally and internationally.  HR manual and policy on recruitment and selection were set.  Appointing the recruitment and selection committee by the Executive Director.

2851 Total Number of applications 755 Management posts applicants 224 Secretary posts applicants 197 IT posts applicants 1675 Applicants with no clear interest Al-Amal Microfinance Initiative

Recruitment and selection procedures  Advertising the vacancy announcement.  screening of the relevant application forms, and key in in the database.  Selecting the best 15 applicants and calling them for the job interview.  Choosing the best one to fill in the vacancy. Sending a letter of acceptance. 2 months training period.  Keeping in touch with the second and the third ranked.

Al-Amal Microfinance Initiative  Capacity Development:  Microfinance Orientation.  Microfinance practical training conducted: Site Seeing to some regional MFI’s (Egypt and Jordon) TOT courses ensuring that people attended acquired (Trainer Status). Visiting experts. Residential experts helped training the staff and revising the manuals.  Progression Evaluation:  Setting standards.  Evaluating performance according to the standards.  Support and re-enforcement.

Al-Amal Bank contribution to the HR development of the Microfinance Industry in Yemen  Adding new potentials and experience to the industry.  Encouraging the females to apply for the vacant posts.  Using the media for recruitment.  Stimulating competition in terms of staff selection.  Creating an interest in working and learning about the industry.

Future HR aspirations of the bank  Sharing the job application database with the current MFI's.  Improve coordinating with the universities and educational institution to cater the needs of the microfinance industry needs.  Encouraging Universities and institutes to introduce Microfinance tailored programs.  Supporting National Microfinance Awareness Campaign.  Helping the MFI’s ensuring effective HR plan is in place.  Helping the countries to reach experts TOT trainers’ self sufficiency.  Encouraging the MFIs’ to have effective recruitment and selection process. Suggested Donors’ Involvement

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