THE HUMAN FACTOR: Why People Are Your Most Valuable Asset

In today’s fast-paced financial landscape, an organisation’s most significant asset lies in its people, whose talent and innovation drive success and resilience. As financial institutions face unprecedented challenges from technological disruption and shifting market demands, investing in employee development has never been more critical. By fostering a culture that empowers and engages employees, financial institutions can navigate these changes and thrive.

The financial sector is undergoing a transformative shift driven by technological advancements, changing consumer expectations, and the ongoing effects of the COVID-19 pandemic. These factors have created a pressing need for financial institutions to develop a future-proof work culture prioritising employee engagement and satisfaction.

In this context, Cornerstone Performance Solutions (CPS) emerges as a vital partner for organisations. As a business learning solutions provider, CPS guides financial institutions in investing in their employees through targeted upskilling and reskilling initiatives. By cultivating future-ready cultures, CPS empowers employees to thrive in the face of new challenges and opportunities, ensuring they are equipped with the necessary skills to navigate the evolving financial landscape.

91% of employees believe their job significantly impacts their overall well-being, and 57% have considered leaving for a more supportive workplace.

(source: NationSwell Survey)

This highlights the importance of investing in employees as a strategy for retention and organisational success.

Financial institutions must recognise that their workforce is their most significant asset in order to remain competitive. By investing in employee development, organisations can cultivate a motivated and skilled workforce capable of meeting modern challenges. Moreover, as Human Capital Practitioners transition into trusted advisors, they play a crucial role in promoting impactful skills solutions and enhancing the strategic alignment of human resources with business goals.

The Impact of COVID-19 and Automation

The COVID-19 pandemic has accelerated the need for reskilling and upskilling across industries, particularly in finance. Even though the acute phase of COVID-19 might be behind us, its impact persists. The World Economic Forum projects that the "double disruption" of the pandemic and automation could displace 85 million jobs by 2025 while creating 97 million new roles that require different skill sets. This transformation presents both challenges and opportunities for financial institutions.

Organisations must foster a culture of continuous learning and adaptability to navigate these changes.

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Companies that prioritise employee development can experience a 21% increase in profitability and a 41% reduction in absenteeism.

(source: www.gallup.com/workplace)

Strategies for Creating a Culture of Innovation and Problem-Solving

To build a people-centric culture, financial institutions can implement several strategies:

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Developing Soft Skills

Soft skills such as empathy, resilience, and agility are essential in today’s financial environment. Training programmes focused on these skills can help employees cope with stress and uncertainty, leading to a more supportive workplace. CPS emphasises the importance of these soft skills, while also integrating critical cognitive skills like analytical thinking and complex problem-solving.

By equipping employees with a blend of both soft and cognitive skills, CPS ensures that teams are prepared to approach challenges effectively, reducing feelings of overwhelm and driving innovative solutions.

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Encouraging Risk-Taking and Creativity

Creating an environment where employees feel comfortable taking risks and sharing ideas is crucial for fostering innovation. Financial institutions can promote creativity by allowing employees to tackle real-world challenges and providing the necessary training to develop problem-solving abilities. CPS’s programmes are designed to encourage creativity, originality, and initiative, equipping employees with the confidence and skills needed to take courageous actions in their roles. This focus on self-mastery not only enhances individual capabilities butalso fosters a collaborative culture where diverse perspectives are valued.

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Implementing Leadership Training for Adaptive Management

Leadership training is vital for developing adaptive leaders who can navigate the complexities of the modern financial landscape. CPS offers the Advanced Certificate in Leadership (ACL6), a 12-month blended learning NQF 6 CHE Qualification designed to enhance leadership skills with a focus on adaptability. This qualification equips leaders with essential tools for self-mastery, adaptive leadership, and collaborative problem-solving, preparing them to inspire teams and tackle evolving challenges.

The Financial Benefits of Investing in Employee Well-Being

Investing in employee well-being yields significant financial benefits for organisations.

By maintaining a happy and productive workforce, financial institutions can realise substantial returns on their investment in employee development. Organisations offering financial education and support can reduce financial stress among employees, improving job satisfaction and productivity. Employees who feel valued and supported are likelier to remain loyal, reducing turnover costs and enhancing overall performance.

Competitive Advantage Through a People-Centric Culture

A strong focus on employee development and well-being can give financial institutions a significant competitive edge.

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Companies with a thriving corporate culture achieve more than 4 times higher revenue growth than those without. 

(source: Harvard Business Review)

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By prioritising employee engagement and satisfaction, financial institutions can differentiate themselves in a crowded market and attract top talent. Furthermore, organisations that invest in their employees are better positioned to adapt to changing market conditions and consumer expectations. This adaptability enhances organisational resilience and contributes to long-term success in the industry.

In the face of technological disruption and changing market demands, prioritising human capital is crucial for financial institutions. By investing in employee development and fostering a culture of continuous learning, organisations can secure their most valuable asset. At Cornerstone Performance Solutions (CPS), we are committed to helping financial sector employees upskill and reskill to meet future challenges. Partner with us to create cultures that empower employees to thrive in the digital age.

Together, we can shape a successful future! Get in touch at [email protected] today.