Banks operating in Pakistan need to enhance training and development activities of employees
Being a service industry, banks around the world strive to increase their portfolio of customers while retaining the existing. The advancement in technology has transformed the entire global industry with banking not being an exception. Perhaps that is the reason the whole market dynamics within the country changed as far as the financial service industry is concerned. From being a handful of banks operating in Pakistan in the 90’s, the figure rose to more than 45 banks operating in the country by 2015.
At present, though the discount rates have dropped significantly as compared to previous years, banks within the country continue to enhance their branch networks in search for lucrative propositions by acquiring the untapped market potential that still exists. This expansion in branch networks has led to various employment opportunities for fresh and experienced candidates since the past decade across the country. Hiring of resources is essential but if they are not trained to perform their respective jobs on a continuous basis, they (employees) will not be able to deliver quality service which is the epitome of success for the banking sector. Initial training has been provided to every employee in the industry, however like other industries across the country, banks tend to cut cost by limiting budgets for departments such as Training and Development.
A training department is deemed crucial for banks. It is they that will train and develop future leaders. The need for continuous training for bank employees has not gone unnoticed. In order to provide a continuous learning environment for the employees working within the banking sector of Pakistan, the central bank of the Pakistan namely (SBP) has advised banks to comply and focus upon TNA (training needs analysis) and the selection of an employee for a specific training program (via BPRD circular dated 30-09-2016). The next step for SBP is to monitor whether advised formulated strategy is being implemented by banks across the country. The BOD (board of Directors) of all banks have been requested to ensure meticulous compliance and follow up upon the matter. The aim is to acquire, develop and retain human capital (employees) and train them in accordance to the job requirements. Policies such as these will be lucrative for the employee, the employer and the economy as whole.
Danyal Salim Jilani is the student of MBA at Bahria University, Islamabad
