Human capital management in rwanda: challenges and prospects for microfinance institutions

5.3. RECOMMENDATIONS

Drawing from the above conclusions, recommendations can be made to various stakeholders in the microfinance sector:

5.3.1 Recommendations to DUTERIMBERE IMF SA

Majority of the DUTERIMBERE IMF SA' employees are ready to leave as soon as they have new opportunities. This is an indication of how they perceive what is done for them by management. The following are recommendations that can be tried:

First of all, it should encourage internal human resource mobility; this motivates employees, boasts their commitment and cuts down boredom. Employees should be used to switching from post to post so that they can have exposure to many aspects of their institution;

Secondly, it should encourage employees to be shareholders. Basing on the fact that among all the interviewed employees none was a shareholder and this works elsewhere, it can be tried to buy more ownership from employees. Besides, this will increase the capital base.

Thirdly, it should work on supervision. Majority of employees being unhappy with supervision means that they need feedback and coaching on their day to day activities. This gives them an opportunity to learn more as they increase their confidence.

Fourthly, though management claims that there are many training sessions, employees are not satisfied. Working on a regular program can improve their morale. Training using knowledgeable shareholders could help;

Fifthly, there should be a clear and consistent performance appraisal mechanism with employees' involvement in the whole process. This is an ample opportunity to tell people what they do well and what they do the wrong way. It gives more meaning to people's motivation and careers.

Sixthly, as microfinance institutions are not good at motivating employees using the paycheck, DUTERIMBERE should take other non financial motivators and maximize them where it can;

Lastly, in their recruitment endeavors, there should be English speaking candidates to take up some senior positions. This is because Rwanda has gone East Africa, yet the way of doing business at DUTERIMBERE IMF SA is «French».

Human capital management in Rwanda: Challenges and prospects for Microfinance Institutions 5.3.2. Recommendations to IMF UNGUKA SA

While IMF UNGUKA SA is doing well in many regards including internal human resource mobility, there are areas where recommendations suggest changes:

First of all, there should be a clear human resource management policy. This will make clear many aspects of human resource management including career path, performance appraisal. Management should not decide out of judgment. Before being positioned as an Intermediary Bank, the human resource management practices, among other things should be well streamlined. If they are not satisfactory today, it will be worse after change of status.

Secondly, intensive training sessions take places using knowledgeable shareholders, which is good. However, such intensive training can only serve short term objectives. Management should think long term training goals.

Thirdly, there should be a clear and consistent performance appraisal mechanism with employees' involvement in the whole process. This is an ample opportunity to tell people what they do well and what they do the wrong way. It gives more meaning to people's motivation and careers.

Fourthly, in their recruitment endeavors, there should be English speaking candidates to take up some senior positions. This is because Rwanda has gone East Africa, yet the way of doing business at DUTERIMBERE IMF SA is «French».

Fifthly, in their efforts to look for experienced equity investors, management should think about changing from the French to English culture through welcoming in the right partners.

Sixthly, as UNGUKA is moving to the Intermediary Bank, it should check on the paycheck of its employees in line with what competitors are doing.

5.3.3. Investors in microfinance sector

The microfinance sector is an attractive business area in Rwanda. However, prospective investors should think about investing a considerable amount of money so that they do not suffer the fate of lack of care of human resources.