Abstract
The Microfinance sector struggles with retaining a workforce for long-term growth due to high turnover and unaligned skill sets. Traditional practices fail to address competency gaps or provide leadership pipelines. This study introduced Microfinance Management System: HR2 to strengthen advancement through integrated training, competency assessment, and succession planning. The system leverages deep learning to provide smart recommendations and detect skill deficiencies. Human Resources 2 was assessed through a qualitative design using structured interviews and the Agile framework. This methodology gathered institutional insights regarding HR hurdles while ensuring the technical product evolved through iterative feedback. The research followed a microservices architecture to decompose applications into autonomous services like Training, Competency, and Succession Planning. Participants included HR personnel and managers. HR2 was reported as 95% complete. The system automated administrative workflows, established succession pipelines for 80% of critical positions, produced a 20% increase in skill alignment, enabled 70% of employees to use the self-service portal, and reduced manual processing delays by 70%. The basis, denominator, measurement period, and validation method for these percentages were not described. The system may support training recommendations, competency-gap analysis, succession planning, and employee self-service. User adoption and familiarization remain important. The reported 70% reduction in paperwork and the other completion, skill-alignment, pipeline, use, and delay-reduction percentages require source documentation and a clearly described evaluation method.
