Training and Competence (T&C) is one of those phrases that gets tossed about like a piece of litter on the breeze in this industry, and unless people really give it some thought it is equally worthless.
Since the work done by the Mortgage Code Compliance Board (MCCB) to introduce entry-level exams to the mortgage market, the idea of passing basic qualifications to work in the industry has become a set standard under Financial Services Authority (FSA) regulation.
This has since developed into the ongoing T&C regime that we now have, but what does it mean in essence? How can firms implement something that will meet the requirements of the FSA and deliver for their own staff and what sort of considerations need to be central if any such scheme is going to be effective?
Keeping up to speed
Many, and indeed, especially those with a good deal of experience in the industry, believe that T&C is already taken care of by doing the job every day, and keeping abreast of market news and happenings.
There is no doubt that taking an interest in industry events is essential, and this interest should be across the market and not simply in the fields where an individual works. It is also true that by working day-in and day-out in a certain sector that knowledge can be used practically and kept up-to-date.
However in terms of maintaining an ongoing development and competency, such efforts are a long way from providing what the regulator requires and delivering the results that will make the most difference for firms and their staff.
So what should a good T&C programme deliver? Clearly it needs to keep individuals up to speed with market legislation, as well as keeping them on top of the processes in place within their own and partner firms. It should also ensure that product knowledge is excellent and that individuals have the ability to use the technical knowledge they have in a variety of given circumstances. It should also be flexible enough so that where individual staff members have specific needs, they have avenues to receive the type of training they really need.
While each member of staff will have the bread and butter work they do on a daily basis, there are also numerous occasions when something a little out of the ordinary comes across their desk and making sure they can handle this is a good measure of how effective any T&C scheme is.
One good example of this is complaints handling. Complaints come in many different shapes and sizes and dealing with them effectively can be difficult. There is also little more infuriating for clients to be told by staff members that they do not have the authority to really do anything to help. However, if staff of all levels cannot deal effectively with complaints, they simply get pushed up the ladder until a bottleneck appears, service levels drop and the problems rarely get resolved to any degree of satisfaction.
T&C progression
Being competent in one’s job includes being able to handle problems as they arise and this is something that many firms have not focused on as heavily as they could. By ensuring complaints can, in the main, be dealt with as and when they arise, they can be prevented from escalating unnecessarily, and in turn a better level of service can be provided to the client or broker. If well thought through, a good T&C programme should be able to deliver tangible benefits to firms in very short periods of time. Certainly the difference that focused training can make to the handling of complaints is almost instantaneous.
Most schemes that firms put in place will centre on the market examinations and qualifications that exist and these do provide an excellent framework from which to work from. Exams are available in everything from marketing, accounting, and selling to customer care. Ensuring access to the right exams is given to the appropriate people is important. There is little less stimulating that working towards a qualification that will have little if any direct impact on one’s job. T&C is not about collecting bits of paper and ticking boxes – it is about helping people to become better at what they do and keeping them stimulated by progressing them from one level to the next.
This is why it is so important to maintain a programme that goes above and beyond the examinations in place. There’s no point in taking these qualifications if the knowledge and skills gained are not going to be put to use and further developed. To this end it is equally important to get feedback from the individuals going through the programme to ensure it is delivering what they want and in amounts they can handle. Thereafter it becomes easier to assess and deliver the kind of things that individuals want and which will prove useful in helping them move forward.
Monitor and support
Monitoring the work done by staff is also important to see that they are using the technical skills they have learnt in a practical manner. It also allows those putting the training schemes together to get a better understanding of exactly where things could be improved.
Whether through field visits, regular appraisals, peer review or customer satisfaction surveys, firms need to have a good idea of how their employees are operating to ensure they are delivering for the business and also to help them improve in areas where they have difficulties. It is only by building up an accurate picture of how staff are performing that a firm can really begin to establish consistent levels of service and build on them for the future.
Some staff may initially feel that ongoing learning and monitoring is intrusive, unnecessary and counter-productive. The reality is that a well-designed programme should actually help individuals to highlight where they have problems and be flexible enough to give them the extra training and knowledge that they need to do the job properly.
In many situations where jobs can be repetitive and a degree of boredom exists, ongoing training also offers individuals the chance to see how they might progress themselves. Not only does this help to keep boredom thresholds at bay, but it also shows staff that there are other opportunities available and that with the right training they can better take control of their own careers.
Different challenges
Companies of varying sizes have different challenges to face and getting these right is all important. While bigger firms do normally have the resource available to spend on T&C schemes and can absorb the costs more easily, this does not mean their job is any easier. The bigger the firm the more job functions and departments there will be. A one-size fits all approach will not work for either staff or regulator and it certainly will not deliver the type of benefits that management would hope for.
Smaller firms may find it easier to design a programme to meet the needs of their staff, but resource and finance may be thin on the ground and make the practical application of a scheme difficult in the beginning.
What is imperative is that financial services businesses see ongoing T&C as a way of life. It is not a fad, it is not just for Christmas, and we certainly wont wake up to find it has all been a bad dream.
T&C is not a nightmare – it is a way of helping firms do their job better, and deliver better products and service to clients. The real challenge for the mortgage market is to take the idea of a T&C programme and treat it as something that will differentiate businesses from one another. Firms should be looking to develop programmes that will help them attract staff, bring on the most talented individuals from across their business, better deal with client concerns, improve productivity and reduce the amount of errors that are made within business processes.
As companies develop their T&C programmes over the years to come, it will be increasingly easy to see those who have got it right. Those that have not will struggle in what currently is such a competitive market.
