INSIGHT #1 :TRAINING – TRANSCENDING NEW BORDERS

As the world emerges out of the current pandemic, we believe transformation in training is going to be structural rather than incremental. Fixing specific training periods may give way to customised scheduling of training that enables on-the-job productivity.

In this point of view, we examine the emerging trends in training and its impact on the Banking and Financial Services.

Preface:

Banking and Financial Services is in the threshold of a massive transformation. For banks to thrive in this rapidly changing environment it is imperative that the employees be equipped with the knowledge that makes their jobs interesting and they are able to provide the requisite value add that the employers expect. This need has become more apparent in the post “COVID19 era” where operating margins are getting squeezed.

What are the emerging trends in corporate training today?

Financial organisations have begun to invest in employee training and development. Banks are realising how training programs are helping employees improve their six sigma benchmarks besides contributing to retention and loyalty which ultimately boosts employee productivity.

Focus on training is both on induction training and continuous training of existing workforce as a whole. This assumes significance when new recruits and employees look for growth as a crucial factor in evaluating job opportunities.

Training programs are now being customised according to organisational needs and understanding the emerging trends of the industry.

Complementing the detailed training are innovative approaches where short sessions are used to bolster interest amongst employees to keep themselves abreast of the changes happening in the banking world and the type of skill set that is required to meet the organisational demands.

One multinational bank, for instance, conducts regular “Lunch and Learn” sessions for its employees. Lunch and Learn sessions are informal meetings that happen over lunch, where employees undergo training on industry knowledge that would benefit the team. Lunch and Learn sessions provide important training time without taking away from a team’s standard workday. They provide an open, relaxed, and collaborative learning environment that encourages solid work culture. They also ensure employees understand how important continuous education is to their well-being. This is a part of the microlearning strategy.

COVID19 has brought in its wake a transformation in corporate training where in most banks and corporates are using online training as a means to educate its workforce.

E-Training is proving to have its own merits as it allows flexibility to employees in upgrading their skills. This medium requires minimum infrastructure and it encourages “anywhere, anytime training”. Repeat training is also possible when an employee embraces self-learning. The right balance is however achieved when self-learning is aligned with assisted training. In a complex industry like banking and financial services the need for practical training to be balanced with theory is paramount. Industry professionals with practical exposure to industry practices are now in the forefront as trainers.

Learning Management Systems (a.k.a. LMS) are being increasingly used as a part of training infrastructure. LMS integration has profound effect in measuring effectiveness specially when they can be integrated with real-time in app training programs. Banks are encouraging the deployment of instruments / approaches which provide on-demand training with engaging formats. Training of employees by creating and sharing courses, tracking course completion, testing learners, and generating e-learning reports are all elements of the LMS strategy.

We look at the top four trends that are revolutionising corporate approach to training:

1. Use of Artificial Intelligence (AI)

AI is used to mirror human intelligence and behavior. It is a tool to create a standard yet personalized user experience. There are Fintechs creating algorithms for AI-based learning platforms to perform data analysis, measure the ROI, and share evolving recommendations. AI-based learning tool can create tailored training plans for individual category of employees.

There are banks which are using their L&D teams to assess employee interest and talent using artificial intelligence so that the best person mans the right desk.

2. Customised Training

As days go by in almost all aspects of life one-size-fits-all approach doesn’t work anymore. Why should it work for training?

L&D teams are designing training modules with targeted objectives and milestones that a section of employees / a department is expected to achieve. Within the overall structure employees are encouraged to set specific goals for themselves and map out the strategies to achieve these goals.

Time consuming and effort sapping as it may be, it however produces the desired results.

This is because such employee benefitting efforts focus on individual employee’s strengths and weaknesses and aims at improving and overcoming them in the rapidly changing dynamics of business. It is akin to an eagle rebuilding its beak to face the world.

Banks are using customised training to create a positive environment in the workplace so as to improve employee commitment to the common cause. Online courses are being made easily-digestible and delivered across devices. Course administrators are busy creating learning cards and delivering training to reach learners anytime, anyplace!

3. Gamification

Gamification is the name associated with gaming techniques being embedded into the employee training program. Gaming usually involves real life role plays and competitive behavior, where players try to aim for the highest score. Enterprises deploying gamification helps build teamwork and increase engagement and productivity. Employees believe that working in an engaging work environment empowers them to put in more effort.

Employees have habits and often do not recognize these unless they are pointed out to them. With gamification in training, banks are seeking to change certain habits through self-introspection.

4. Experiential Learning

The real objective of training is to make employee better in their performances. The best way to achieve the objective is to focus on experiential learning. Trained and experienced industry seniors are ideal to contribute in this regard. When this is used in banking the results are very encouraging. Banks look forward to the training personnel to provide case studies which are the actual real-life learning for employees. This type of training allows for critical analysis and quick thinking. Learning from mistakes as well as successful attempts helps in improving the learners’ skills and abilities. Employee-participants in such a training mode often provide engaging examples when they recount their issues at work. Banks feel this is an effective method to bridge the gap between theory and practice.

Conclusion:

It is very apparent that continuous training is an important to keep the employees engaged and motivated. According to SHRM’s Skills Gap 2019 research, 75% of HR professionals say there is a shortage of skills in candidates for job openings. One of the “most effective remedies” mentioned in the report for this growing skills gap is to improve employee retention rates. Research has shown that employee training and development actually reduces employee turnover.

Earlier this year, Amazon announced a $700 million investment in employee training programs. “We think it’s important to invest in our employees, and to help them gain new skills and create more professional options for themselves,” said Beth Galetti, senior vice president of HR.

Every year, corporate training trends evolve–but the value of employee training never changes. Use these corporate training trends to guide your training process whether you are onboarding new hires or upskilling current employees. The future of L&D starts inside your organization, today.