Training & Development as a Resourcing Strategy ; Why is it important to offer training in the banking sector?
Role of Training & Development
Training & development of any organization is basically design in order to manage people in the organization to fulfill the organization's goals and strengthen its corporate culture. Further, the HR departments of every company assist & teach their employees to acquire new skills as well as to develop abilities which help them to perform their job role in confidence. By doing so, the management expect them to reach their maximum and perform better to be competitive in frequently changing industry.
T & D unit of HR department has a major role when designing trainings for employees. It should cover all employees from bottom to top and they should analyze industry trends, new implementations such as digitalization, cyber security, systems, policies & procedure changes etc. When employees are accoutered with their skills & knowledge it is easy to drive them towards the path where the company needs to be.
How many training hours would banks spent for their employees per annum?
According to the data extracted from few banks' Annual Reports in last year, it can be seen that most of the banks started to invest more in development of employee skills & capabilities. According to the Annual Reports of each bank in 2023; DFCC Bank PLC spent 90,698 learning hours for their employees while 132,313 hours by Seylan Bank PLC & 144,885 hours by Sampath Bank PLC. It was clearly an improvement when comparing to 2022 training hours of each bank except Seylan Bank PLC.
These are the training hours for past two years of three reputed private banks in Sri Lanka. (Data extracted from each year annual reports)
Table 1: Comparison of Training hours
Adding to that, in 2022 Seylan bank spent LKR 51.8Mn (Seylan Bank Annual Report, 2023) for training & development while Sampath Bank spent LKR 56.6Mn (Sampath Bank Annual Report, 2024). However, in 2023 Seylan Bank increased the investment amount which was LKR 82.8Mn (Seylan Bank Annual Report, 2024) for training & development while Sampath Bank increased the amount for LKR 98.14Mn (Sampath Bank Annual Report, 2024).
Benefits of Training & Development for banking sector
It is not a surprise to see that the banks started to invest more on their employee training & development as it given much more benefits to the organizational development. There are few benefits of T&D that directly impact to improvement and sustainable of a bank.
- Improve Performance - As a service oriented organizations banks indeed need a professional training program which improves the quality of performance and customer service of employees. Further, after completing the full training program staff are more efficient and effective in helping and solving customer inquiries in a more professional manner.
- Self - Assessment - Most of the training programs enables employees to identify their draw backs, knowledge gaps and as well as it helps them to improve while working. In addition to that, it also help employees to acquire new skills under technological developments.
- Attract New Talents - Proper and well designed training programs not only improve existing employees skills and competencies, but also attract employees from competitive organizations which do not offer proper trainings for employee development. As the banking sector is aggressively adapting to digitalization people who have a thirst to knowledge and personal development would look forward too join with an organization where they can develop themselves. Further, if all the banks can include eLearning to their T&D process it would be a great advantage to attract young talent which could help the organization's future growth.
References
DFCC Bank PLC, 2023. Annual Report 2022. [Online]
Available at: https://annualreports.lk/dfcc2022/mda/employee_capital.html
[Accessed 28 July 2024]
DFCC Bank PLC, 2024. Annual
Report 2023. [Online]
Available at: https://dfcc2023.annualreports.lk/management_discussion_and_analysis/employee_capital.html
[Accessed 28 July 2024].
Sampath Bank PLC, 2023. Annual Report 2022, Colombo: Emagewise
Available at: https://www.seylan.lk/uploads/Annual-Report-2022.pdf
[Accessed 28 July 2024]
Excellent observations about the vital role that development and training play in banking! Enhancing staff competencies not only improves output but also draws in elite personnel. The fact that banks like DFCC, Seylan, and Sampath are setting the standard in this field is heartening. In today's quickly evolving financial market, maintaining a competitive edge requires a dedication to growth and adaptation. I appreciate you giving this important information!
ReplyDeleteExactly. It is really important to keep employees updated about new technological advancement, digitalization & internal process and policy changes as much as possible.
DeleteMore informative article as we can observe that author has described the role of training and development. As per my opinion that the backing sector in the Sri Lanka is efficiently using these methods, however, some top companies are following the path as well.
ReplyDeleteHas the increased investment in employee training hours by DFCC Bank PLC, Seylan Bank PLC, and Sampath Bank PLC in 2023, compared to 2022, impacted their overall performance and employee satisfaction?
ReplyDeleteYes. But not 100%, It increased employee performance and the proof for that is their revenue growth.
DeleteThe blog highlights the crucial role of training and development (T&D) in enhancing employee performance and organizational growth. It provides valuable insights into how banks in Sri Lanka are investing in T&D, showcasing impressive increases in training hours and financial commitment. The emphasis on improving skills, attracting talent, and leveraging eLearning is particularly relevant.
ReplyDeleteYeah. Employee participation Vs increase of performance can be the best invest to the organization. On the other hand it indirectly help to enhance profitability of the bank once employees started to use the knowledge in practical situations what they learnt from these T&D sessions.
DeleteTraining and Development are super important in the corporate world. They help each employee grow and succeed, benefiting both the individual and the organization. It's definitely a topic worth discussing!
ReplyDeleteFurthermore, in a banking industry reshaped daily by digital transformation, continuous training in new technologies and digital tools is increasingly important. It would also be exciting to examine to what degree banks can adapt new cutting-edge trainings—in terms of virtual reality
ReplyDeleteFantastic points made about the significance of training, within the banking industry! The focus on education and growth particularly utilizing eLearning tools is right on target. It's essential for banks to support their staffs development to remain secure lasting prosperity. Excited for conversations on the application of these approaches, in various banking settings.
ReplyDeleteFascinating article! It's great to see that banks in Sri Lanka are investing more in employee training and development. The benefits of T&D are numerous, and it's clear that these banks are recognizing the importance of developing their employees to stay competitive in the industry.
ReplyDeleteIn this blog, we make an in-depth review of how significant training and development is within the banking industry. It is safe to say that the data on training hours and investment (as shared by banks like DFCC, Seylan, and Sampath) makes clear the increasing focus on developing people from within. It is encouraging to note the heavy spending undertaken for staff training, such as seen with Seylan Bank and Sampath Bank, who increased their spends significantly.
ReplyDeleteInvesting in training and development is crucial for banks to enhance employee performance and stay competitive. As the industry evolves with digitalization and new challenges, comprehensive training helps employees improve their skills, address knowledge gaps, and deliver better customer service. It also attracts top talent, contributing to the overall growth and success of the organization.
ReplyDelete