Simply put, a professional certification is “a designation earned by a person to assure qualification to perform a job or task.” The concept of “certification” gained steam during the Medieval period. Artisan and merchant guilds trained new members and awarded them trade-specific signs to hang outside their workshops, signaling their credibility and skill to potential customers.Needless to say, certifications are common in most professions today. Becoming certified in one’s field has innumerable benefits, and the need to have education in a specialized field is only ramping up. According to Technavio, the professional development market is set to increase by $4.81B from 2023 to 2028 to a total of around $15.88B in value.Likewise, investing in the education of your key talent can ensure your community financial institution (CFI) remains competitive in this fast-changing landscape. You’ll be rewarded with employees who will want to stay and grow their careers with you — employees who are equipped to be at the forefront of innovation and who will forge a stronger institutional culture to propel you to even greater heights.Investments in Education Vs. Costs of High TurnoverVirtually all workers want their employer to teach them valuable skills to enhance their careers. According to a LinkedIn Workplace Learning Report, 94% of employees would stay at a company longer if it invested in their learning and development. Retention rates are especially important in financial services where institutional knowledge is critical and hiring replacements can be costly.“The training process is very expensive. So, we want to retain our employees, and to retain them, they need to be engaged,” said Curt Hecker, PCBB’s CEO and Chairman of the Board of Directors. “Their future, where they’re going, who they’re working with, how they work, whether they’re learning here and getting something out of their time besides just a paycheck — that’s all important. Leadership has to take on that responsibility.” Indeed, if an employee leaves your CFI for one that invests in their future, you’ll likely have to spend the equivalent of six to nine months of their salary to find and train their replacement, so says a study by the Society for Human Resource Management. For an employee who makes $60K a year, you would have to dole out up to $45K to replace them.Compare those costs with the ROI of investing in education. According to Intellium, 43% of organizations with a strong learning culture report increased revenue since implementing an employee learning program. Not surprisingly, such organizations have up to 50% higher engagement and retention rates.Another reason to invest in employee education is the fact that thousands of bank executives are about to head for the retirement door, as the youngest baby boomers enter their sixties. This makes it equally important to groom a pipeline of would-be successors from within. Succession plans for each promising individual should include customized learning and development initiatives based on your analysis of any gaps in their current skills. Education Options for Banking ProfessionalsAlongside identifying promising successors, banks should design targeted learning and development initiatives tailored to close skill gaps and foster leadership potential. One approach is to create a mentoring program, something that will help your next generation of leaders learn from their predecessors without the pressure of an impending retirement. This is especially helpful for learning soft skills and developing habits and practices that can help mentees grow their roles, form bonds with others in the company, and focus their career paths.Here are a couple of CFIs who have started mentorship programs:
- First Community Bank in Arkansas launched a Women’s Mentorship Program in 2022. The bank’s EVP, General Counsel Laura Brissey and SVP, Commercial Lending Leann Siler started the program. The program organizers used data from a previous personality test the employees had taken to pair mentees and mentors at a kickoff event that laid out the roles for both sides of the mentorship. They also provided everyone a variety of helpful books and conversation topics about career plans to get them started, as well as directing them to set career and personal goals to work on together. Participation has doubled since the first year the program was offered.
- Consumers Credit Union in Michigan has a mentorship program that has grown from a casual matching between mentors and mentees into a more formal, annual process. They recommend partnering mentors and mentees by personalities and how they want to grow, rather than just matching based on roles and departments. Their mentor meetings are recommended to happen once per month, and some pairs continue to meet for years after they were matched.
If your current staff is already bearing the brunt of retirements and/or turnover, it might be more prudent to look at sources outside of your organization to provide high-potential employees with the training they need. There are a number of well-respected banking programs that provide industry-recognized certifications, equipping your upcoming banking leaders with the specialized knowledge and skills they’ll need to guide your institution forward.Here are a couple of prominent banking education programs to consider:
- Pacific Coast Banking School. Established in 1938, PCBS in Bellevue, Washington offers a three-year resident program that delves into critical financial, economic, and risk management topics. Along with two capstone projects, the coursework provides students with training in practical management and leadership skills. Graduates earn a certificate in the Business of Banking, as well as an Executive Leadership Certificate from the Foster School of Business at the University of Washington.
- Graduate School of Banking at Colorado. Established in 1950, GSBC in Westminster, Colorado has a 25-month graduate banking program at the University of Colorado Boulder. With two weeks of on-site classes every July for three years and six intersession research projects, the curriculum teaches students about various areas of banking in relation to CFIs while also fostering leadership skills.
Investing in educational opportunities for your key talent can reap great dividends. Planning ahead and preparing the next generation to make strides in their careers can help your CFI cut down on employee turnover and get ahead of the curve as a more seasoned cohort exits the workforce. Your up-and-coming employees will be much more likely to reward you with dedication, creativity, and innovation.
