Why Financial Services Should Invest In Their Employees

Most financial services know that training is important. Whether training is optional or compulsory, most of their employees have gone through at least one course of training. 

The downfall, however, is that many companies consider it as secondary to primary business operations. They think of it as something they just have to do, instead of an opportunity to invest in their employees and the company’s future growth. In reality, training is critical to the profitability and growth of the company.

Here’s why when you invest in your employees, you reap the greatest reward.

Skills Quickly Become Obsolete

The primary reason financial services should invest in regular employee training is that skills are becoming obsolete at a faster rate than ever before. 

Research has found that skills have a “shelf life” of about 5 years. This is cut in half for technical skills, with obsolescence at just 2.5 years. This ever-shortening shelf life of technical skills requires consistent re-skilling to keep employees’ abilities relevant and useful. 

Unfortunately, many companies are already behind. According to McKinsey & Company, 87% of companies worldwide admit to having a skills gap in their workforce or anticipate one in the next few years. These industry-leading organizations are already playing catchup. 

More Jobs But Fewer Workers

Today’s market is highly competitive, with each business endeavoring to develop the next world-changing innovation. These innovations, however, cannot be made by the company itself. They must be made by the bright minds working there. 

As a result, the stakes to attract and retain top talent are high. 

But, due in part to the impact of the COVID-19 pandemic, workers have become more selective about the jobs they take. Even while companies are expanding their technical departments, they have to work harder to attract top talent to fill open roles. 

Rising Hiring Costs

With a skill gap on teams, and the need to hire more, many companies put more effort into hiring. But, rising hiring costs are putting a limit on the lengths companies can or will go to bring talent in the door. 

The Society for Human Resource Management states that the average cost to hire an employee is $4,129, with around 42 days to fill a position. According to Glassdoor, the average company in the United States spends about $4,000 to hire a new employee, taking up to 52 days to fill a position.

In addition, the cost of replacing an individual employee can range from one-half to two times the employee’s annual salary.

With such high costs associated with bringing in new employees, companies are turning to training to close skills gaps on their team, no hiring required. 

Invest In The Right Training

The benefits of investing in training employees are clear – closed skill gaps, retained workforce, and eliminated hiring costs. 

But, just as important as executing training, is choosing the right provider with programs that will satisfy your business needs. Choose carefully to reap the greatest reward. 

Here’s what to consider when getting started.

Diversify Training

Leading upskilling practices recommend incorporating both digital and soft skills into training to help finance employees influence decision-making. Don’t focus only on growing technical expertise, use training opportunities to grow employees into well-rounded team members. 

Select The Right Provider

When picking a training provider, it’s important to make a decision based on the factors important to your business. This could be specific software or languages offered, schedule flexibility, program length, in-person or remote delivery options, or customization options. 
Picking a provider with a track record of success working with companies like yours can also make the difference between an experience that’s just okay, and one that builds your employees into star performers.

Celebrate Achievement

Most importantly, recognize and celebrate your employees’ educational achievements. Learning something new can be difficult, and recognizing even incremental improvements and celebrating upskilling achievements can add up to big cultural change.

Training Programs Made For Financial Services

When you invest in your employees, you invest in your company too. Why not invest in the best? 

Let Flatiron School modernize your business with industry-tailored training programs in Cybersecurity, Data Science, Software Engineering, and Product Design.

Contact us to get started.

How Financial Services Prepares For The Holiday Season

With the holidays right around the corner, financial service companies are preparing for a busy shopping season. 

Public trust in the security of digital purchases has had a hand in the boom of online shopping. Consumers are now more likely to visit digital storefronts, instead of brick-and-mortar locations. As of 2022, an estimated 2.14 billion purchase goods online and at least 75% of consumers shop online at least once a month.

With every online transaction, gift purchase, or swipe of a card, financial services are tasked with keeping data secure.

So, with holiday shopping ramping up, what challenges should financial services be prepared to tackle?

Problem #1: How To Prevent Data Breaches?

A data breach can cost millions, tarnish a company’s reputation, and leave customers doubting that their information is safe. In fact, according to the Ponemon Institute and IBM’s Cost of a Data Breach Report, the average total cost of a data breach increased from $3.86 million to $4.24 million in 2021.

Cybersecurity can feel like an endless game of one-upping bad actors. Even large companies struggle to keep up with digital innovation which has resulted in an ever-increasing number and complexity of cyber attacks. 

In a digital world where automated attacks can quickly overwhelm manual monitoring attempts, having adept and skilled professionals in place is critical to a company’s continued prosperity and longevity.

Solution: Invest In Cybersecurity Preparation and Plan Ahead

To tackle the cybersecurity threats attempting to infiltrate your organization, it’s crucial to develop a two-pronged plan – a prevention strategy and a response procedure.

Prevention Strategy

You’ve likely heard that an ounce of prevention is better than a pound of treatment, which is particularly relevant to preventing cybercrime. 

Financial services should reinforce their cyber protocols and ensure that their team is skilled, supplied with appropriate software and platforms, and has the bandwidth necessary to handle the deluge of attacks. This can be accomplished either by outsourcing to third-party providers or investing in internal infrastructure and employees by hiring new employees with up-to-date skills or upskilling your existing workforce. 

Response Procedure

Should bad actors breach your organization’s data stores, it’s vital to have a plan of action in place. 

Shockingly few companies have a solid breach response plan in place, and time wasted scrambling to decide what to do, who has access to what, and which files may have been compromised lets whoever has infiltrated run amock in your system. 

To be fully prepared, financial services should develop, test, and implement an incident response plan to minimize the potential fallout of a breach. 

Related reading: Top 3 Cybersecurity Pain Points in 2022

Problem #2: How To Reach New Customers?

No matter the industry, product, or company size, the goal is ultimately the same – growth.

But for financial services, a saturated market can make it difficult to differentiate themselves from competitors and attract new customers. Many organizations find themselves pondering as the biggest shopping season ramps up, “how do we stay ahead of the competition and reach new customers who prefer online experiences?”

Solution: Leverage The Power of Data

To attract new customers, financial services can use the data they collect, which we discussed protecting above. 

Invest in Data Scientists who are able to decipher actionable insights from data collected about existing customers and use models to forecast emerging market trends. By making data-backed, research-based decisions, your organization can develop targeted promotions and bring in new customers, all with information you already had on hand.

Related reading: The (Data) Science Behind Netflix Recommendations

Tech Talent Solutions Made For Financial Services

Whether it’s the holiday shopping season or not, financial services have no shortage of challenges: legacy technology, cybercrime, and connecting data across brick-and-mortar and digital products. 

Let Flatiron School help modernize your business with training and talent services across Cybersecurity, Data Science, Software Engineering, and Product Design.

Contact us to get started.