Performance management for banks, NBFCs and microfinance

KRAs that balance volume and quality

Every sales goal needs a quality partner. A relationship manager measured on disbursement should also carry early delinquency on the loans they sourced. A collection executive measured on amount collected should also carry complaints and the share of promises to pay that were kept. A loan officer's new client count means little if the centres fall apart six months later. Put the pairs side by side with weights, so neither half can be ignored in the review.

• Relationship manager: disbursement value, file rejection rate, early delinquency
• Loan officer: centre attendance, collection efficiency, portfolio at risk
• Collection executive: bucket resolution, roll-backs, promises to pay kept
• Credit manager: turnaround time, audit observations, delinquency of approved files
• Branch manager: branch growth, portfolio quality, audit rating, staff attrition

Worked example: a loan officer's weighted score

Say a loan officer has four goals: collection efficiency with a weight of 40, new clients with 30, centre meeting attendance with 20 and compliance training with 10. For the quarter she achieves 95 percent, 80 percent, 100 percent and 100 percent of target. Her weighted score is 0.40 x 95 + 0.30 x 80 + 0.20 x 100 + 0.10 x 100 = 38 + 24 + 20 + 10 = 92. The manager can see at once that growth, not discipline, is the gap to discuss in her review.

A review rhythm that fits a target business

Business reviews happen monthly and should stay in the business, with the area manager going through numbers branch by branch in the first week. HR's formal cycle can then be quarterly for field roles, with a rating that feeds incentives and promotions, and annual for officers and head office staff, run after year-end closing so that March numbers are final. Keep goals unchanged through the cycle unless the business itself changes, because a goal rewritten in the last month of the quarter no longer measures anything.

Recognition beyond the incentive

Incentives reward the number, but a branch also runs on people who train new officers, cover a colleague's centres during leave and handle a difficult recovery with patience. Praise with badges such as Mentor or Customer first, and a monthly leaderboard, gives area managers a way to recognise that work in a business where almost everything else is a target. Read the leaderboard out in the monthly branch meeting so the recognition is public.

How to set it up in ZeniaHR

1. Create review cycles in Performance: quarterly for field and collection roles and annual for officers and head office staff, each with its rating scale.
2. Add goals for each employee typed as KPI or KRA, with weights that pair every volume goal with a portfolio quality goal.
3. Run a probation cycle for new officers alongside the 1 to 5 probation rating their manager gives in My Team.
4. Check weighted progress per employee and the cycle summary before calibration meetings with area and regional managers.
5. Hold the review conversation outside the system and file the signed review note in the employee's documents.
6. Turn on praise with badges such as Mentor and Customer first, and share the monthly leaderboard in branch meetings.

Read more about performance in ZeniaHR.

Roles this applies to

Frequently asked questions