Does your employee training and account holder education strategy make the grade?
Everywhere you look this month there are signs of the annual Back-to-School ritual. As school begins across the country, teachers are busy setting up classrooms and preparing the resources to help students succeed. And parents are focused on getting their children the supplies they will need to start a new year of learning. According to the National Retail Federation, combined back-to-school spending is expected to reach $80.7 billion for families with students from elementary through college.
But when it comes to ensuring that consumers have the information and resources they need to maintain financial knowledge, there is still much to learn. According to a FINRA Investor Education Foundation report, only 34 percent of respondents could correctly answer four out of five questions on a quiz about basic financial concepts. This is down from 42 percent in a 2009 study.
As this research suggests, there is clearly a need for reliable financial education related to maintaining a healthy financial footing. Following are five steps you can take to make sure your institution is providing the knowledge and tools your account holders can use to address their financial needs. And, that your employee training ritual deserves more than just a passing grade.
And don’t forget, just like it was when we were children, adults learn and retain information differently. Some benefit from face-to-face interaction, while others prefer the convenience of online opportunities. However your employees prefer to receive information, everyone benefits from role-play opportunities where they can practice what they have learned to gain confidence in their knowledge retention and delivery.
Providing employees with ongoing, effective training situations allows them to step away from their daily responsibilities to increase their knowledge, share account holder feedback with their peers, and learn different service techniques and regulatory updates (when industry experts are incorporated into the format). Training sessions are also a great way to build teamwork and reinforce the value you place in the contributions your employees make to the institution.
Also, studies show that training increases worker productivity, improves employee satisfaction and motivation, and consequently boosts staff retention. This is vital to any successful organization since replacing existing staff can be an expensive proposition costing from 30 percent to over 250 percent of an individual’s total compensation. A survey of 500 HR professionals, sponsored by Allied Van Lines, found that it costs an average of almost $11,000 to fill one position
But don’t stop there. Once employees have received training and are back at their desks, do you provide quick references for them to refresh their understanding and presentation of program and service details?
Where do your account holders turn for their financial education and support?
When it comes to acquiring financial services, a 2018 study by J.D. Power found that 78 percent of U.S. retail bank customers are interested or very interested in receiving financial advice or guidance from their bank. Help with improving their financial situation was at the top of the list for 41 percent. Thirty-three percent wanted guidance on how to keep track of spending and household budgets. However, only 28 percent of respondents recall receiving any type of financial advice.
The beginning of a new school year also leads to increased expenses, followed soon by holiday season spending. Are you providing your employees with the resources they need to help your account holders maintain financial security throughout the year?
Increasing your focus on employee training and account holder education and advice is a solid way to demonstrate your institution’s expertise, empower your account holders with greater financial literacy and strengthen long-term relationships. And that’s a valuable lesson that will pay off for the long term.
ABOUT ROY SEIFERT
Roy is a Client Trainer for JMFA’s overdraft consulting services. He is involved in the development of customized course materials and delivering training to credit union employees. He works with credit unions to assist with improving staff confidence, enhancing their overdraft program implementation and taking their performance results to the next level. Roy has extensive expertise in human resources management. His previous experience includes development, training and technical support for custom banking software applications that have been used by some of the country’s leading financial institutions.
ABOUT JOHN M. FLOYD & ASSOCIATES (JMFA)
JMFA is one of the most trusted names in the industry. Whether it’s recovering lost revenue, uncovering new savings with vendor contract negotiations, creating more value, improving account holders’ experiences or delivering a 100 percent compliant overdraft service—JMFA can help you deliver measurable results with proven solutions. We are proud to be a preferred provider among many industry groups. To learn more, please contact your local representative or call us at (800) 809-2307.