Use of Non-Financial Incentives to Manage Performance at Bandhan

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Bandhan has de-linked monthly salaries from performance and believes in a longer-term view of staff performance. It believes that immediate financial rewards might lead to inappropriate practices and hence provides long-term staff incentives through promotions and career progressions.

bandhanBandhan, India’s largest MFI operating in 19 states, caters to about 25 percent of clients in the Indian microfinance space. Bandhan’s accomplishments and high performance are the culmination of teamwork, high level of commitment, enthusiasm and motivation amongst employees both in the field and at head office.

Bandhan has de-linked monthly salaries from performance and believes in a longer-term view of staff performance. It believes that immediate financial rewards might lead to inappropriate practices and hence provides long-term staff incentives through promotions and career progressions. As a matter of policy, Bandhan tries to fill all its positions internally by conducting annual appraisals and written tests for promotion. All staff are offered a clear career path and adequate opportunities are provided to performing staff to quickly advance in their careers. This acts as a long-term incentives that not only helps build staff loyalty and commitment, but also deliver operational results. Career advancement through promotions is a powerful motivator that leads to high level of trust and dedication for the company and its clients