The banking, financial services, and insurance (BFSI) industry is one of the critical pillars of the modern-day global economy. It is an industry that everyone- individuals, businesses, and even governments- rely on every day.
Due to its global significance, it is also one of the more heavily regulated industries and a prime target for cybercriminals. To say that workforce training and development is a top priority in this field is an understatement.
As the industry continues to face new challenges and a high level of competition, it is crucial to keep up with the latest 2024 L&D trends and best practices.
In this blog, we will explore some of the most effective learning and development (L&D) initiatives that can help elevate the performance of BFSI professionals and the industry as a whole.
Table of Contents:
- The Need and Importance of Workforce Training and Development in the BFSI Industry
- L&D Strategies for 2024 to Elevate Performance in the BFSI Industry
- Summing Up
The Need and Importance of Workforce Training and Development in the BFSI Industry
BSFI workforce development is vital for several reasons. The chief among them are:
1. Rapid Digital Transformation
The BSFI industry is witnessing a rapid adoption of the latest digital technologies to improve the efficiency of its operations. The primary driver behind this change is the digital transformation born out of the recent pandemic.
For example, cloud-based systems accounted for the largest share of the global digital transformation market in 2022.
Consider the fact that the largest banks in the US alone employ over 2.5 million employees (not including the figures from the financial services and insurance industries). The need to reskill such a vast number of employees on the latest technologies is apparent.
2. Compliance with Regulations
The BFSI is a heavily regulated industry, and compliance violations can have disastrous consequences for all parties involved. Based on the region and domain a BFSI institution operates in, several regulatory frameworks come into play, such as:
- Basel III: A set of global standards that require banks to hold more capital, liquidity, and leverage to enhance their resilience and stability.
- MiFID II: A European directive that regulates the markets in financial instruments to improve investor protection, market transparency, and competition.
- GDPR: A European regulation that protects the personal data and privacy of individuals in the EU and the EEA by requiring organizations to obtain consent, respect data subject rights, implement security measures, and report breaches.
3. Employee Retention
The BFSI industry, as is the case with various other industries today, faces a shortage of skilled and qualified professionals who can handle the complex and dynamic challenges of this sector.
Continual learning and development (L&D) initiatives will not only upskill your employees to be ready for the changes to come but also provide an incentive to stay back when they feel the organization is investing in their development.
From an organizational perspective, statistics show that it can cost up to 33% of an employee’s annual salary to replace them.
L&D Strategies for 2024 to Elevate Performance in the BFSI Industry
The BFSI industry must adopt effective learning and development (L&D) initiatives to meet the current demands and those of the coming year. Here are some key 2024 L&D trends you must focus on to stay on par or get ahead of the competition.
1. Address the Skill Gap
According to a LinkedIn Workforce learning report, job skillsets will change by nearly 25% by 2027, making BSFI workforce development all the more essential.
The key for L&D professionals must be to evaluate and take concrete steps to address the skill gaps in your existing workforce. The focus should not just be to meet the current demands but also to take a proactive approach based on current technological trends that the industry is witnessing.
2. Adopt the Latest in Digital Education Technology
Digital education is the way forward when it comes to workforce training and development. Online learning methodologies such as personalized learning, gamification, micro, and blended learning have a proven track record of increasing learning engagement and improving knowledge retention.
Even if you don’t have the in-house expertise, several experienced e-learning services can help you prepare everything from leadership courses to every other aspect of eLearning development and delivery.
3. Focus on Diversity, Equity, and Inclusion (DEI) Training
Diversity, Equity, and Inclusion (DEI) Training must be one of your primary focal points in your learning and development (L&D) initiatives. Here is why:
A LinkedIn study revealed the following statistics:
- Diversity matters to employees and job seekers. According to a survey, more than three-quarters of them (76%) said it was an essential factor when they evaluated job offers.
- Employees want to hear their leaders’ views on diversity issues. The same survey found that 60% expected their business leaders to speak up on these topics.
- Moreover, employees prefer to work for companies that value diversity, equity, and inclusion (DEI) issues. A whopping 80% of the respondents said they wanted to join such organizations.
4. Raise Awareness about Mental Health and Provide the Necessary Support
“Mental health” and “wellness” have become buzzwords in recent years, and rightly so. According to the Mental Health Foundation, based out of the UK, about 14.7% of employees experience mental health problems in the workplace.
An APA report conducted in America found that nearly 77% of employees reported experiencing work-related stress just during the month before the survey was conducted.
Over 92% of employees surveyed for the same report also stated that emotional and psychological well-being being valued is essential for them to work at an organization.
The BFSI industry is undergoing a rapid transition, and L&D professionals must be proactive to ensure that their workforce is prepared to adapt to the changes to come. The strategies listed here will help you create a workforce that is equipped to meet the challenges of the future.
If you are looking for a learning partner to help you create top-notch learning content for your BFSI organization, look no further than Hurix Digital. We are one of the top e-learning companies in the USA with over 20 years of experience and can assist you in everything from content creation to its delivery and distribution.
Contact us to learn more about the services we offer.