Tag: compliance training

01 Dec 2023
What can HR training do for a company?

What are the benefits of HR training?

HR training is important to ensure that the company is functioning smoothly. 

HR selects which people will be a part of the organization. If the HR training has not been done, they might hire employees with the wrong skills. The employees should also be able to mingle with the team, a crucial skill every HR needs to see. The employees must be cooperative and have the proper knowledge of the domain for which they are hired so that they can help other employees.

Moreover, HR can play a crucial role in fighting for employee rights. The employees complain to HR about the grievances they have with the managers. These are the benefits of HR training: 

  • Better team dynamics: 

Apart from that, every company has maintained a pool of training resources. HR should ensure that every employee has the right to use these resources. A human resource professional can only see proper team dynamics in the company. If there is partial treatment of some employees, they can resign. Hence, it’s better that HR checks if no employee is treated unfairly in the company. If some employees are treated poorly, they won’t cooperate. 

Employees must feel valued in a company. When there is team dynamics in the company, it can function in a seamless manner. For example, if an employee calls in sick, then other employees are ready to take on his job because they are ready to support him. When employees are a part of good team dynamics, they are more productive in their own jobs. It’s the HR’s job to set the communication rules for the other employees. 

  • HR prevents bullying:

HR has to ensure that the company environment does not get affected. The employees must have a right to complain about certain unpleasant incidents like bullying. The HR must also record how the team meetings happen in the company.

They should see when a certain worker has talked rudely to others in the company. It’s only possible when they check the footage of the meetings or the meetings are hosted over a video conferencing platform. 

  • Goal attainment by employees:

When the HR training creates a proper environment in the company, the employees work with more zest in the company. They are also satisfied with their jobs, and they have the enthusiasm to provide the best to the company. When employees are so motivated, it helps a company attain their goals. Only through HR training, the companies can ensure that the employees don’t feel like changing their jobs. 

  • Low turnover: 

HR training ensures that the turnover rates of employees are low in the company. The employee attrition rate is quite low. There is better performance management in a company when HR training is done. Performance management becomes an easier job for the HR when they are trained. When employees know how performance is measured, they work at their optimum levels.

  • Help in performance management:

Performance management happens when the managers fix the goals of employees and make sure that they are attained on time. It has four processes: planning, monitoring, reviewing and rating.

HR can also help the managers in this job because they can detect the performance of an employee. There can be checking of data to check whether it’s consistent with the performance goals set for the employees. When an employee’s data is checked, it becomes clear to the company how an employee is performing.

Performance management can’t be done without the help of HR employees. When the HR creates this process, managers can have complete confidence in them. The HR training can help such employees handle this process more successfully. HR helps provide appraisal to employees based on their performance. When the employees know what sort of performance is expected of them, they will be retained easily in the company.

When employees are encouraged to do their work properly because the manager sits with them to frame their goals, they feel pleased with their work. They are more engaged in the company. The employees get a better understanding of why they are promoted or not because the performance is explained to them. 

HR training can also help them aid managers in providing constructive feedback to employees. HR can help managers provide feedback to employees so that their progress is continuous.

11 Oct 2023
L&D use in ESG reporting

How can L&D help a company in ESG reporting? 

Businesses are facing a dynamic environment today, whether it’s due to the pandemic or otherwise. They have to comply with the environmental, social, and governance(ESG) framework, which implies that the businesses have to reveal data about their operations covering all these three parameters. Many laws cover the ESG domain, and they are made compulsory by the government. All these laws govern how the environmental, social, and governance of the business affect everything.

What is ESG?

In brief, as far as the environmental effects of ESG are concerned, they include the usage of water, management of wastewater, and other pollutants. The company has to set goals for reducing emissions and pollutants.

The social aspect of ESG includes what the DEI practices of a company are and how well it treats its labor. The company should make sure that all the employees are treated equally and justly in the company. A company should also play its role in solving community issues as a part of societal performance.

Companies need to disclose all this behavior accurately in the ESG report, which can also be audited. When such reports are audited, they enhance the trustworthiness of the company.

The last part of ESG, the governance practices, deals with the compensation of different executives and the anti-corruption laws of the company. The company must have laws for punishing corrupt behavior.

No company can ignore the importance of following ESG because not doing so can have a lot of negative consequences. Corporate social responsibility involves businesses not damaging the environment through their operations, and hence, they are not liable to pay heavy fines. The employees also feel pleased working in a company which is playing its part in the social benefit. Hence, businesses are investing a lot of money in having processes with a lesser carbon footprint.

Is learning and development of any use?

The Learning and development of a business can ensure that when it is focussing on the social impact of its operations, it does not have an effect from the governance perspective. Even if one aspect affects the other, the business should be prepared for such tradeoffs. 

For example, during the pandemic, some of the businesses suffered due to the safety requirements, which were part of the social aspect of the ESG. There were a lot of problems during the pandemic when the companies could not become agile enough in their production. The companies faced a lot of stress between managing their social responsibility with respect to worker safety and having an agile production structure. They faced many problems because the workers were not able to change themselves as per the OSHAS 18001 requirements.

There was a stringent implementation of the OSHAS 18001 standards, which mandated that the workers wear personal protective equipment during work to prevent any incidence of COVID-19. This slowed the production of many companies, especially manufacturing units.

The importance of this rule is that it prevents any compensation from being paid to the workers due to their absence from the job due to the COVID-19 ailment. But, when Learning and development are implemented in a company, employees can conform to the rules without letting productivity be affected. Through L&D, they gain a lot of expertise in doing their jobs despite the restrictions. Moreover, L&D could help workers cope with the psychological stress caused by environmental governance, like the threat of disease. 

What is ESG reporting?

Any organization needs an external L&D partner for this purpose so that it can have workshops created about the problems faced in such reporting and the important topics. It can also teach employees about the reporting templates created by the Sustainability Accounting Standards Board(SASB). 

SASB has established different requirements for various kinds of industries, including manufacturing technology and healthcare, depending on the production requirements in such industries. 

The main problem with ESG governance is the reporting of aspects like carbon emissions. Hence, the staff has to be thoroughly trained in them depending on the requirements of the industry. The company has to decide how the staff will aid in such reporting. It has to be taught the template of the reporting, depending on the guidelines established. If the ESG reporting falls short of such guidelines, there can be effects. The training for such reporting will include the involved staff and the content. 

The leaders must take part in the L&D initiative for the ESG reporting.

The employees must know what the stakeholders expect from such reporting and how the process will take place. They must also know the logic behind such reporting. The major stakeholders who are interested in the environmental choices of a company are its investors. They don’t want to invest in companies that are harming the environment.

Hence, when SASB releases such data, it helps such investors make informed decisions. Apart from being necessary for compliance, companies need to be sustainable also because they have to survive in a society, and no business can afford to turn society against it. When the staff is taught through L&D about ESG reporting, it gets a better insight into clean production and how they can be more responsible towards a better environment. 

06 Feb 2023
banking training to prevent antimoney laundering

Can banking training help in antimoney laundering? 

With the international environment in a precarious state, the banks must work hard and impart banking training to ensure they keep up with the antimoney laundering laws.

The black or illegal money is often earned through nefarious activities such as extortion and drug smuggling. Money laundering ensures that the black money seems to originate from legal proceeds.

Banking training must ensure that the bank employees know about money laundering.

Hence, banks and financial institutions must ensure that such money does not enter their systems. The banks must have a complete idea of where the money submitted into their bank accounts has come from.

The Bank Secrecy Act is important for banks to follow to prevent this money from getting legalized. As per this Act, all the national banks and branches of foreign banks must maintain records including name, date of birth, address etc. about their customers. When such records are maintained, no problems arise for banks. The banks must also verify such information some time after an account has been opened with them.

Going further, there are three stages to money laundering, placement, layering, and integration

Placement        

In the first stage of money laundering, placement which involves depositing money into banks so that it enters the financial system of a country, the criminals deposit that money into small amounts in different accounts so that it does not invoke any suspicion.

It’s because the government has prohibited deposits of large amounts to prevent any money laundering. It’s the job of the banking officials to check whether the invoices and receipts of money are original or not. Hence the first stage of placement of money laundering requires banks to be extra cautious about the origin of funds.

Therefore the banking training must ensure that the banks must do the KYC of the depositors before allowing them to open bank accounts.

Layering  

In the second stage of money laundering, called the layering, the criminals introduce illegal foreign currency into another country. In the second stage, they use the money to buy such businesses in another country. The holding period of deposits in bank accounts is a tactic to ensure that the depositors don’t withdraw the money before a period of 5 days has elapsed since opening the account.

They buy such businesses, because the criminals can show their black money proceeds to be occurring from casinos and hotels because these sources often generate a large amount of revenue. They can also show fake companies through which they have received such money, i.e., through the sales of their products or services. 

Integration 

Integration is the last stage of the money laundering business; in this stage, the criminals introduce money back into the economy. They buy real estate in a country. For example, they have to prove that they are buying this real estate with legal money and show fake purchase receipts.

The criminals withdraw the money from the local bank accounts of a foreign country and then buy letters of credit, bonds, and money orders with it. They lend that money to someone and, in exchange, get a letter of credit. Integration can also be done by purchasing luxury goods; e.g., someone can buy jewelry in another country to be sold later.

Apart from luxury goods, they could also transfer this money to a terrorist organization. 

To prevent this, for example, the UK anti-money laundering laws have prohibited withdrawing 10,000 Euros. This rule has established that the money which has originated from the terrorist countries can’t be withdrawn to the maximum of 10,000 Euros in one transaction. This law applies to all financial institutions across European Union.

If any financial institution disobeys such laws, it’s penalized by the European banking authority, which has set this law. If the money of this amount is withdrawn, it’s immediately reported to the authorities, and action is taken. 

How can banking training stop anti-money laundering? 

  • Get rid of obsolete technology:

Technology can be quite useful to banks in preventing money laundering. For example, all the banks should use similar kinds of technologies, and their systems should be integrated with one another. Integrating the data is tough when one bank operates on a different technology, like spreadsheets, and one on another, such as ledgers. Hence all banks should use cloud software to prevent such problems.

  • Research about the customer: 

Apart from the KYC process, the banks must also carry out due diligence on the customer. This implies that the information given by the customer is checked against the database. Such databases include those people who have been banned from conducting transactions in any country by their own governments. They are included in international watch Lists created by several governments. The banks must check these lists before allowing customers to open an account. 

  • Screening of weird transactions:

Banks must also check the size of transactions between them and another bank. If the transaction is more than a certain amount, they must stop it immediately. If the bank cannot regulate such transactions in time, it has to pay heavy fines. Apart from checking the size of such transactions, it must also detect who is the recipient of such funds, which could be a terrorist organization. Any black money criminal might be making such a transfer of funds earned through his so-called legitimate activities, and the bank must keep a check on it. 

  • Suspicious activity report:

Banking training for antimony laundering must involve training such officers to screen transactions of more than the permitted amount. They must also be updated with the new methods adopted by criminals to carry out transactions.

The Employees must be trained in an AML compliance program which ensures that they know how to prepare a suspicious activity report. This report has to be provided to apex financial authorities if any conspicuous transaction has happened in a bank. The transaction might not violate antimony laundering laws, but it still must be brought to the government’s notice.

This is how banks can prevent any money laundering and severe punishment by keeping due checks on transactions and their customers.

06 Jan 2023
banking training process

Three ways to impart banking training successfully

Banks have faced complicated situations due to the Covid 19 pandemic. It’s because people stopped visiting the banks due to social distancing. In this situation, the banks had to learn how to provide remote banking. The banking tellers had to understand how to provide good services to customers, including financial advice and back office operations, all remotely. Since banks had to shift people to those areas due to a new business need, banking training was needed. Banks had to segregate teams for specific tasks and train more active employees to handle a multiple-channel environment. All operations had to be digitalized in the covid and post-pandemic phases.

Therefore, banks had to think of ways to strategically capitalize on this change through services and products and reskill the workforce for it via banking training.

These are the effects of automation in the banking sector:

What has been the impact of automation in banking?

Banking automation has been happening rapidly, so the staff needs to be trained to cope with these changes. With the need to use lesser services, banks have been able to focus more on suggesting investment-based services. Automation in banking is getting used in many sectors, such as money transfers and purchasing travel insurance. This kind of automaton has also been happening due to smartphones through which customers are able to make transfers anywhere via net banking. Their customers can check their balance through mobile apps rather than going to the bank in person and checking it through an assistant. Hence, automation has led to the following changes in the banking system now:

  • Lesser manpower needed:

Since the requirement for banking clerks is not the same anywhere due to customers not using checks to transfer money, they had to be shifted to other roles. For withdrawals also, customers use ATMs, eliminating the need for a banking clerk. With the use of software in banking, there is no scope for errors because it knows which data has to be inputted into the system. This prevents banks from making compliance-based errors because no details about a customer are ignored. Therefore, the banks don’t commit crimes like money laundering even unknowingly. In fact, with the aid of software, banks can detect customers with riskier profiles and be more cautious about accepting their money and transactions.

The banking employees can also be made aware of any large transactions so that they can supervise who is behind them.

They can monitor the source of funds and whether they have not originated from any unscrupulous means. There is also a sanctions list of national and international organizations and governments that contains those people who are not allowed to conduct transactions in any country.

  • Adherence to compliance rules:

The bots can screen all the potential customers of a bank against such lists and ensure that no one present on them gets approved for any transaction. ATMs also didn’t replace the tellers in banks completely because someone could lose his card and ask the bank to block it, for which human discretion was needed.

When software is used to prevent antimoney laundering, it detects large cash transfers and deposits. In that case, the bank officers are notified by the program when the transaction levels exceed a minimum. The bank officers know very well what to do in such situations when they have been given banking training.

Although banks could have fired people due to the lesser services offered due to the pandemic period, they chose to redeploy them by providing banking training. Also, it’s not healthy for a brand’s reputation to lay off. So the banks have to reskill people, but how should they go about it.

 The following measures ensure that a bank’s reskilling program is successful:

Conducting a needs analysis is essential for effective banking training

When the banks do not have their reskilling targets properly decided, their decisions won’t be successful. Even employees in general roles need to be taught other roles as well. However, before making any reskilling effort, banks have to do a need analysis. It can help them know what skills are in demand in the future. For example, banks need skills for financial advice now because many of their customers want to save more than before. Since remote financial advice is a common feature of banks, it needs to train for it.

  • Skill closeness:

As far as reskilling is concerned, it has to be expedient so that banks don’t need to lose business at all. Therefore, they need to reskill those employees whose skills are the same as the roles for which the bank requires manpower. By assessing skill closeness, the banks find the best resources for training and save time and money on banking training. In fact, such kind of reskilling requires the least time(1- 2 days) and can deliver brilliant results.  It also saves the bank cost of hiring new resources.

For example, during the pandemic, banks had to do severe resource readjustment because the tellers had to act as customer representatives. A teller had to learn how to handle customer calls about products. The bank tellers were also trained to handle KYC verification because customers opened bank accounts online. The banks could only choose people for customer representative roles based on skill assessment. 

  • Introducing a learning culture:

The next element of making a banking training program successful is encouraging a learning culture. This can be done by top-level management only. The employees must be alerted about any content upload through notifications, and even senior management can participate in such initiatives.For this, the bank employees must be sent messages about the reskilling from the top management. When the employees receive messages from the top management about a banking training program, it enhances their morale.

Moreover, if the banks’ seniors assert the need for talent development, the banking employees take it seriously. The employees get the idea that the entire enterprise is committed to promoting talent development in the organization.

It’s not easy to make employees adjust to new roles; hence training should be provided consistently. Banks need the help of various elearning vendors to provide content through various channels, including emails, intranet, and webinars.The employees must be evaluated for engagement levels to know whether the L&D content is successful.

  • Involving the HR professionals:

But help from HR is also needed, which can help a bank determine the kind of talent it needs for its growth. It requires distinct skill sets to attain the right talent for its growth strategies. With adequate help from HR, the business can also recognize the right people who need training for future bank roles. It is because HR is specialized in tasks such as skill mapping. A banking training program needs to deploy the right subject matter experts to pass the right skills to the right people.

12 Dec 2022
storytelling in elearning

Six benefits of using storytelling in elearning

Storytelling is an intrinsic part of human culture. Generations have shared stories as heirlooms. So, it’s no doubt that it has become an inevitable part of elearning. The learners may not remember graphs and charts and their assimilated data. But they can remember a story because of its structure.

Moreover, storytelling is an interesting way to engage the audience because it takes the learners to a different environment. Employees are enthralled through simulations as they get some time away from the monotonous office environment. It’s also easy to get someone’s attention through a story because they have an element of intrigue in them.

Elearning content development companies also help organizations cash on this benefit of stories by curating those pertinent to their work processes.

Stories ensure people remember facts better; in fact, 63% of learners imbibe the data better in their minds when it’s interwoven with stories: These are the advantages of using storytelling in elearning:-

  • Get the audience hooked:

The elearning content development companies can prepare interesting storytelling scenarios for their clients.

Employees today face a lot of pressure at work for upskilling. But when the elearning module is not interesting enough, they don’t gain any knowledge. The learners’ interest can be grabbed at the beginning of the lesson when a story is told to them about another learner’s experience.

When learners listen to this story, they can learn how a subject working in a similar position faced a challenging situation.

The scenarios can help learners understand how complex situations can arise at the workplace because they contain relatable characters, or such stories can come straight from the horse’s mouth. When learners listen to someone’s experience who works in the same role, this has a profound impact on them.

Anecdotes can also be used in a module to inspire the learners because they can ensure that employees can learn how their seniors overcame problems. When senior employees share their experiences about solving problems by following a solution, they take an interest in upskilling themselves.

  • Explain facts: 

It has been found that when facts are put into stories, learners retain them better; the retention rate is as high as 20 times. You can’t attempt to influence the learners by just stating facts to them through PowerPoint slides. Therefore, storytelling is an effective medium when the management has to affect the learners to modify their behavior radically.

With genuine stories, the learners are likely to be persuaded rationally and strongly to change their work practices. The company can narrate facts to the learners about how a certain skill can increase their productivity, but when they listen to someone’s similar experience, their perception of the same skill changes.

When seniors come out in the open about professional mistakes, the learners have the highest retention. The leaders and seniors inspire others to adhere to the company’s values.

Sharing such experiences is a positive way for organizations to make employees bond with each other. Employees prevent others from committing the same errors they did through such experiences. Hence, storytelling is the best way to teach others to escape such situations scot-free.

  • Spread awareness: 

News can also be used to inspire learners. Such news can be any compliance lapses, including cybersecurity events in any organization, and have led to serious consequences for them. They can be video clippings of any real-life incident. You can teach compliance training interestingly through such videos because once learners have the backstory of how not following rules can cost a company; they are bound to be interested. 

  • Explain the relevance of laws: 

Detailed videos can also be shown to the learners, which let them know why a law came into place and how it can prevent negligence.

For example, a law regarding cybersecurity can be introduced to the learners about how it can prevent hackers from accessing the systems. It can prevent unauthorized access by only allowing designated personnel to use certain systems.

Through news bytes, the learners can learn how not following such rules has led to ransomware attacks in organizations. 

  • Instill an understanding of the company’s values:

Stories can also be used to let the learners understand why an organization follows a certain set of values. There is always a reason why an organization believes in a specific value. When the organization’s history is portrayed through simulations, employees become empathic about the values and start believing in them. Sometimes certain values of an organization are very valuable for it because they have led to its success and hence should be followed by employees at all levels. 

  • Stories spread easily:

 Also, stories do get a word of mouth publicity rather than data. Once an employee attends a training   session, he is bound to let others know about it, giving an incentive to the upskilling initiatives of the   company. An organization can’t give data to people and expect them to remember it. But they will   always remember it if data has been interspersed with a story.

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