The Importance of Training & Development in the Financial Sector
Employee training and development is an important factor for most industries as it helps keep employee and organizational goals aligned. However, it also serves as an added layer of protection for the financial services sector, which has suffered under heightened scrutiny since the collapse of many major players due to the economic recession. And, having documented proof of employee training is important for any regulated industry.
Employees within the financial sector--from tellers in small, regional banks to senior executives at large investment firms--must remain in compliance with specific federal regulations imposed on the industry. Frequent employee training ensures these employees remain qualified for their jobs and always in compliance, even as the regulations change frequently.
Most of the training programs delivered to employees within the financial sector revolve around topics like sales training, anti-money laundering, budget management and cash flow management. Managerial training topics may involve more supervisory skills training, including communication skills and conflict resolution, for example.
E-learning training courses have become increasingly popular in the financial sector due to the lower cost involved in online delivery as opposed to travel required for off-site, in-person training. And the ability to reach a large learning audience at one time is beneficial to the financial sector. Training delivered via the Internet includes virtual classrooms, video conferencing and learning management systems (LMS), which are Web-based software systems capable of creating and dispensing learning content. The LMS is particularly popular in the financial sector because it automates the tracking of compliance training.
According to the Bureau of Labor Statistics, financial managers who work in commercial banks are becoming more involved in sales and marketing. As a result, they need to maintain a high level of knowledge regarding the rapidly growing array of products and services through formal training and development. In addition to training supplied by their employer, financial managers can seek to pursue additional profession certification training through associations, such as the Association for Financial Professionals.
According to the report "High-Impact Learning Culture: The 40 Best Practices for an Empowered Enterprise," published by Bersin & Associates, companies that encourage consistent employee learning and development perform better in a range of categories than those that don't. For example, some of the business advantages that result from ongoing skills development include high employee productivity and customer satisfaction and market leadership for at least one product or service.
Financial managers earned a median annual salary of $121,750 in 2016, according to the U.S. Bureau of Labor Statistics. On the low end, financial managers earned a 25th percentile salary of $87,530, meaning 75 percent earned more than this amount. The 75th percentile salary is $168,790, meaning 25 percent earn more. In 2016, 580,400 people were employed in the U.S. as financial managers.