Written by Bill Howarth on Wednesday April 11, 2012
After 40 years teaching and training in universities and professional bodies, I was recently asked a question by a student about how, after so much time, it was possible to maintain keenness and enthusiasm about the subject matter of the class.
What immediately sprang to mind was a statement from the Scottish American tycoon and educational philanthropist, Andrew Carnegie:
‘Men and women, not machines, are the real source of profits in any business.
Take away my factories, my plants, take away my railroad, my ships, my transportation, take away my money, strip me of all these – but leave me my men and women and in two or three years, I will have them all again.’
This is an ethos embedded in the educational culture of the teams of lecturers, tutors and trainers with whom I have worked over many years in the legal, trust, estates and compliance fields. Investment in the education, training and development of your staff will reap rewards in business terms in future years.
The merits of investment in a strong education and training infrastructure, and in people, are indisputable. Despite this, in times of economic stringency with budget constraints and cuts, this message often gets lost in the drive to short-term bottom-line gains. Senior management and boards need to keep this in mind when making decisions.
Firms in the financial services sector have a strong track record, over the last decade, of investing in their personnel, but there is evidence that the current economic reality is undermining this strategy. While cuts in training budgets are understandable, they are clearly misguided for the future well-being of those firms and the finance industry overall when we consider the potential of the emerging financial services centres in Asia and the Middle East.
Cost Benefit Analysis
Training and education are enablers and through investment they can be a significant contributor to the bottom line of an organisation. A well-trained and focused workforce helps to achieve competitive advantage in that it:
The challenge for organisations is that initially these clearly measurable benefits have to be funded . It is, however, a false economy to cut training and education of the workforce to achieve short-term bottom-line gains.
It is easy to pay lip service to training needs without truly determining whether the training is ‘appropriate’ or ‘effective’. The plethora of generic online CBT programmes that are used by some firms to ‘tick the box’ for regulatory purposes are evidence of that. Training needs will vary from organisation to organisation, but most firms will include the following factors in their ideal training strategy:
It is generally recognised that the most effective form of training or education is via face-to-face tuition by qualified and experienced professionals. This is not always available, feasible or affordable and so a range of alternative methods have been developed by training service providers in many areas of the world.
Find out more about ICA qualifications in AML, compliance and financial crime prevention here
Thank you. Your comment is awaiting moderation and should appear on the site shortly.
Required fields are not completed, please ensure all required fields (*) have been filled in properly.
You can leave the name empty should you wish to remain Anonymous.