What is the purpose of setting up a training and development at a financial organisation?Why is it necessary and why the lack of training is detrimental for the company. Please help if possible!
Training and development in a financial institutions is critical for two overall reasons. The first relates to new employees: they must know the particular institutions objectives and corporate or branch culture; without this, they operate at a deficit for job and corporate optimization. The second relates to existing, promotion-track employees: they must keep abreast of changes in the industry and of laws regulating the industry (think of recent regulatory changes after the sub-prime debacle) and they must continually improve their job performance to rise to top levels, such as Vice President positions.
Lack of training is detrimental at any organization, not just a financial one. Looking at financial organizations, though, imagine if you have a loan officer at your bank who has no training. They will not know how to determine who would be a good risk and who would be a bad risk for a loan. They would loan money out to bad risks and lose the bank's money when those people defaulted. Similar things could happen to other people who are not trained. You need training so that your employees will be competent and will not do too many things that hurt your organization.
Sometimes companies assume that because they hire people will experience, they won't need to train them. However, when you have many disparate training models, there will be no consistency in your organization. A company needs to get everyone on the same page literally in order to get them there figuratively.