HR as a growth enabler: Lessons from First Consult’s Journey

First Consult’s journey to a company of over 200 employees is a transformative one. At the heart of this transition lies the Human Resource (HR) function, a significant department to an organisation's success.

We went from a predominantly Addis Ababa-based team to one that spans 18 cities and towns across Ethiopia and two more offices in east Africa. First Consult also has a young team (40% under 35), with a good gender balance including in leadership (41% female in Addis Ababa office).

Our journey has shown that four key components were critical to our success: administration, recruitment & onboarding, training and development, and change management.

Administration: A solid foundation essential for growth trajectory

We went from a small firm to building a big team implementing various projects. Crafting adaptable policies and procedures to align with our evolving structure was challenging. We went from a small firm to building a big team implementing various projects. “Raising four kids cannot be as simple as raising one kid” is a common quote to explain this in simple terms.

We had to abide by labour laws and understand how to manage leaves, for instance, at scale. So, we developed a 100-page employee handbook to ensure clarity regarding company guidelines.

Recruitment & Onboarding: The foundation of high-performing teams

At First Consult, we focus on attitude when hiring, as we believe other skills can be taught.

Our focus on building high-performing teams starts right away, during the onboarding process, in which we heavily involve supervisors. Our HR team also started the “buddy system” to help new hires get familiarized with the company and easily integrate.

We also have our highly successful Young Professionals Development Program (YPDP) and more recently, a summer shadow program for high school and university students, to allow them to get exposure to office life. By investing in talent development, we are building a strong foundation for our company's future growth and success.

Training and Development: Cultivating a culture of learning and Growth

Investing in our people is the foundation of our growth strategy. We start by developing our supervisors, then scaling those efforts to all our employees. To this end, we established a Supervisors' Council, where we focus on various training on leadership matters.

We value capacity building and have implemented different training initiatives such as the Internal Peer Learning Session (IPLS) where intellectual discourse takes place and varying viewpoints from colleagues are welcomed.

We also regularly organize wellness activities to promote wellbeing and team bonding activities.

Change Management: An enabler of success

Change management was a challenge as we scaled our operations. Converting organic processes into structured documentation was time-consuming but essential.

A competency framework has been introduced clearly outlining the skills and behaviours needed for success in our roles.

Our journey has been one of continuous learning and adaptation. HR has been a strategic partner in this process. We've learned that a strong HR foundation, built on effective administration, robust recruitment, thoughtful change management, and comprehensive training, is fundamental to enable growth. While there were many challenges along the way, the rewards have been equally significant.

A huge overlooked market for financial institutions – Informal enterprises

Informal enterprises in Ethiopia are often profitable and have the potential to be bankable, yet their relationship with banks and microfinance institutions, remains limited. Most of these enterprises utilize only basic financial services such as savings accounts, while access to loans are unusual.

According to the Ethiopian Central Statistical Agency, the informal sector includes household-type establishments or activities primarily engaged in market-oriented production that is not registered, does not maintain full written book of accounts, employs less than ten individuals, and operates with no license. In Ethiopia, the informal sector is estimated to represent 33.5% of the GDP.

Despite their need for financing, informal enterprises in Ethiopia often struggle to access credit. According to a survey of 320 informal enterprises in 10 regions conducted by the First Consult Monitoring, Evaluation, Research and Learning team in March of this year, this category of businesses is the least likely to get financing from FIs.

The study recommends that financial institutions develop tailored products and services to informal enterprises to better meet and serve their needs. Digital financing offers an entry point in this regard; as most informal enterprises use digital payment systems on their mobile phones.

Informal enterprises often serve as important starting points for vulnerable groups such as women, youth, internally displaced persons and persons with disabilities in Ethiopia. Consequently, supporting the growth and formalisation of these enterprises represents an ideal entry point to reach the households of the masses, both in major and minor urban areas.

Click here to find the full study report that delves into these insights.?

Awaqi in numbers

Awaqi is a youth-focused digital platform launched by the BRIDGES programme, which is part of the Mastercard Foundation ’s Young Africa Works strategy in Ethiopia, and implemented in partnership with First Consult. The platform empowers young people to achieve their aspirations, whether through conventional jobs or entrepreneurship. By leveraging its website and social media, Awaqi shares inspirational content and cultivates an entrepreneurial mindset among young men and women, encouraging them to pursue dignified employment and opportunities for growth.

Amidst conflict, horticulture thrives

Horticulture plays a crucial role in the Amhara region, significantly contributing to job creation, income generation, and improved nutritional status. The region's diverse agro-ecologies and fertile soil are ideal for growing a variety of fruits and vegetables, predominantly produced using traditional farming methods.

Despite the ongoing conflict in Amhara region, the Feed the Future Ethiopia Transforming Agriculture initiative is actively implementing interventions to boost the agriculture sector, essential for food security and economic development.

The activity has established demonstration sites that showcase modern horticulture practices to hundreds of farmers. Through this initiative, farmers receive training on Good Agricultural Practices (GAPs) and are supplied with improved vegetable seeds to boost productivity and yields.

To date, the activity has trained 41 smallholder farmers, including 13 women, in Amhara region, on GAPs and provided them with improved seeds for growing vegetables. These efforts are already yielding promising results.

By equipping farmers with essential skills-from planting to marketing -the Feed the Future initiative has not only boosted the incomes of participants but also improved community level access to high-quality vegetables at affordable prices. To further enhance the horticulture sector, the initiative aims to revitalize and establish fruit nurseries and vegetable seedling nurseries through support for youth-oriented MSMEs.

Holistic support to recover well-being and livelihood: Aregu’s story

Aregu Melaku, a 35-year-old single mother from Kutaber Woreda in Amhara Region, has faced a lot of hardships. After losing her left leg to chronic health problems, she found herself with the responsibility of raising two children and supporting her mother. Her situation became even more challenging when the conflict in the region resulted in the destruction and looting of her small coffee shop.

In her time of need, Aregu received support through the MESMER Programme, which provided both a grant and psychosocial support (PSS). She attended public awareness sessions and participated in eight weeks of group counselling, which greatly led to improvement of her mental and emotional well-being. The resources allowed her to regain stability and confidence in herself and her business as well.

“I used to associate every loud noise with the sound of the explosion of guns. Then I started the counselling session, and the cases discussed and the explanation by the counsellors started attracting me. I internalized and related them with my own life. The coming Ethiopian new year is the beginning of my journey to attain my future goal.”

Aregu used the grant to purchase the materials necessary to revive her business. With MESMER's assistance, Aregu received government support, where she was provided a designated working space.

Aregu's story highlights the importance of layered support - combining access to finance with other forms of support like PSS, business development services and government support enabling enterprises to rebuild their business.