MICROCAPITAL BRIEF: Second Annual Unitus-Hewitt Compensation And Benefits Survey of Indian Microfinance Institutions Demonstrates Salary Stability

The Unitus-Hewitt Compensation And Benefits Survey, released in early June, has demonstrated stability in the microfinance industry during the 2009 economic crisis. The study examined cash and non-cash benefits at 15 microfinance institutions (MFIs) representing 10 million clients across India. The study was jointly executed by Unitus Inc., an international nonprofit providing funding and consulting services to MFIs, and Hewitt Associates, an international human resources consulting firm.

Some of the report’s key findings include:

–          The microfinance sector experienced steady growth through the last year, which lead to stable salaries in the industry.

–          Senior microfinance managers earned one third to one half of what was earned in comparable positions in large financial institutions.

–          One third of MFIs offered employee stock options

–          While most MFIs have implemented incentive programs, such as employee stock options. Some MFIs are experimenting with repealing these programs

By Matthew Castner, Research Assistant

About Unitus Inc.:

Unitus Inc. is an international nonprofit organization that aims to accelerate the growth of microfinance to alleviate poverty. Unitus draws on employees from a variety of backgrounds, including microfinance, banking, technology and consulting, to provide microfinance institutions (MFIs) with expertise and funding. Unitus currently works with 23 MFIs in India, Southeast Asia, East Africa, South America and Mexico. Unitus also supports the Unitus Equity Fund I that invests in MFIs in India and Latin America.

About Hewitt Associates:

Hewitt Associates is a human resources consulting and outsourcing solutions firm based in the United States. The organization operates in 33 countries, and reports total assets of USD 2.95 billion as of March 2010. In 2010, the organization co-wrote the Unitus-Hewitt Compensation And Benefits Survey.

Additional Resources

[1] “Unitus-Hewitt Compensation & Benefits Benchmarking Survey 2010,” Unitus Inc. & Hewitt, http://www.unitus.com/unitus-in-action/nitus-hewitt-microfinance-compensation-benefits-survey/Unitus-Hewitt%20CB%20survey%202010.pdf

MicroCapital’s Microfinance Universe profile: Unitus Inc.: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Unitus+Inc.

MicroCapital’s Microfinance Universe profile: Hewitt Associates: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Hewitt+Associates

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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