Redefining Onboarding: Innovative Techniques for Young Employees in Banking

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What are our Future FinTech Champions learning at the moment? And what are their thoughts on the current development of FinTech? Read through this submission from one of our FFCs, Ryan Cunniah, currently studying Data Science & Artificial Intelligence @ Open University of Mauritius [Submission made in September 2024].

Redefining Onboarding: Innovative Techniques for Young Employees in Banking

The experience that new hires have is greatly influenced by onboarding, particularly in sectors like banking where digital agility, customer service, and compliance are essential. Companies need to reconsider their old onboarding techniques in light of the expectations and working styles of the younger generation of employees, especially in the banking industry. Since Gen Z and millennials are already working in the workplace, creative onboarding strategies are crucial to long-term success, engagement, and retention.

The Importance of Onboarding for Young Employees

Completing compliance training and paperwork is only one aspect of onboarding. It is the first impression a firm makes on a prospective hire, establishing the tone for their performance, involvement, and future with the business. Younger employees may find that traditional onboarding programs, which frequently center around lengthy lectures and standardized training, are unappealing because they are used to more interactive, digital, and customized approaches.

The onboarding procedure for young workers in banking needs to take into account the needs of the sector and accommodate contemporary learning methods. New personnel need to have abilities beyond fundamental banking operations because of technological breakthroughs like digital currency, AI, and digital banking. However, due to the legislative framework of the sector, compliance and data security are non-negotiable issues that need to be covered during onboarding.

Adapting to the Digital Native Workforce

Generation Z employees (born 1997–2012) and millennials have grown up in a technologically driven society. This trait affects how they work, learn, and communicate. Traditional onboarding methods such as paper-based manuals, in-person seminars, or text-heavy training portals may seem outdated or disengaging to them.

Using digital onboarding systems that can provide an immersive, engaging experience is one creative strategy. Virtual reality (VR) simulations and gamified modules on digital platforms can facilitate hands-on learning by simulating real-world banking tasks. By providing realistic set-ups, these tools can improve retention of knowledge by helping new employees practice with obstacles they would probably face in the workplace. For instance, branch management issues, fraud detection activities, and customer interactions can all be simulated with VR technology.

Gamification in the onboarding process is another innovative approach. Employees are rewarded by gamified onboarding systems for finishing tasks, learning new skills, or reaching certain milestones. In addition to making learning more interesting, this promotes goal-setting and friendly competition, two things that inspire younger workers. Complying with regulations is crucial in the banking industry, and gamifying regulatory training can help make it easier to understand and more importantly to remember the complex material through those activities

Personalized Onboarding Journeys

Fresh recruits in the banking industry frequently seek out employment with a clear mission and individualized growth plans. By creating customized onboarding experiences, a creative onboarding strategy can meet these demands. Rather than implementing a uniform onboarding program, companies can evaluate the abilities and backgrounds of each new hire and develop a personalized learning plan.

A worker who has already worked in banking, for instance, might gain from enhanced training on digital banking platforms or regulatory changes, whereas a new hire might require a more thorough introduction to the financial environment. AI-driven onboarding systems allow for this personalization by evaluating the skill set during the first few days of work and recommending a customized learning path based on their areas of strength and growth.

AI can also be used to monitor each staff’s onboarding process and pinpoint areas that require further assistance. The system can provide extra resources, like lessons, webinars, or even a mentor, if a junior employee is having trouble understanding a certain idea. In fact, the buddy or mentor system is a very popular method in the professional sector. This increases the possibility that the worker will succeed in their new position by fostering a more encouraging and flexible learning environment.

Emphasizing a Collaborative and Mentorship-Oriented Culture

Younger workers who value collaboration, creativity, and mentorship may not find the banking profession appealing because it is sometimes perceived as stiff and administrative. Banks need to change their top-down onboarding process to one that encourages peer-to-peer learning in order to reinvent it for young employees.

Mentorship programs have the potential to be extremely important in this change. Matching recent hires with experienced colleagues fosters a sense of community and offers young workers insightful advice as they ease into the banking industry. The onboarding experience for new employees can be greatly enhanced by this mentor-mentee relationship, which can also help with knowledge transfer, career guidance, and navigating the organization’s complexities. In addition, a mentorship program fosters partnerships and a positive work atmosphere, which lessens the sense of loneliness that many new employees could experience.

In order to provide young workers a more comprehensive grasp of the bank’s operations, cross-departmental onboarding programs can also be used to expose them to various departments within the bank, such as customer care, risk management, and digital banking. Working on real-world projects with coworkers from different divisions helps young employees have a better understanding of the goals and business strategies of the bank. They are also able to create a varied network within the organization thanks to this interdisciplinary approach, which can be very beneficial for professional advancement.

Enhancing Employee Experience through Continuous Feedback and Development

For young employees in banking, onboarding does not end after the first few weeks or months. In fact, a truly innovative onboarding program extends into continuous development and support throughout the first year.

Constant feedback systems let newly hired employees express their worries, offer suggestions, and get helpful criticism. Employee engagement and satisfaction are raised as a result of the open feedback loop this establishes, which gives them a sense of being heard and valued. Supervisors or Human resource professionals can offer extra help by conducting routine check-ins to make sure new staffs are meeting their objectives and resolving any obstacles they may encounter.

Moreover, providing continuous learning and development opportunities demonstrates a dedication to the advancement of the individual inside the company. Upskilling is essential in the banking sector, which is changing quickly. Banks may provide access to workshops, online courses, and even certificates in cutting-edge fields like blockchain, artificial intelligence, and fintech. Organizations may increase employee retention and future-proof their workforce by consistently supporting educational programs of young workers.

Fostering a Purpose-Driven Work Environment

Young workers today are more drawn to companies with a clear mission than those that focus only on equipment and procedures. For banks, this involves aligning onboarding with the organization’s overall goals, core principles, and social impact. Including stories with a purpose throughout the onboarding process, such as how the bank supports sustainability, community development, or financial inclusion, can connect with recent workers who are frequently driven by the desire to make a difference in the world.

New employees should leave the onboarding process with a clear understanding of how their work aligns with the organization’s overall goals and how their contributions can make an impact. By fostering a sense of purpose, banks can build long-term loyalty among young employees, encouraging them to invest in their careers within the organization.

Conclusion

In order to redefine onboarding for young workers in the banking sector, there needs to be a change toward creativity, engagement, and customization. Through the application of digital platforms, individualized learning pathways, mentorship to foster collaboration, and an emphasis on ongoing feedback and improvement, banks can establish an onboarding process that corresponds with the standards and principles of the current generation. By doing this, they not only guarantee higher retention rates but also develop a young, innovative workforce that will be able to carry the sector ahead in the years to come.

 

References

REFERENCES - PART 1

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Kelsey Botne: 4 Strategies to Make Your Employee Onboarding More Effective; https://www.edume.com/blog/effective-onboarding-strategies#:~:text=Personalization%20is%20key,the%20stage%20for%20future%20growth.

Bo Dury (5th August 2021): Advantages of a Buddy System, And How You Can Implement It Successfully; https://www.lepaya.com/blog/advantages-of-a-buddy-system#:~:text=A%20buddy%20system%20is%20the,the%20job%20%E2%80%93%20sometimes%20even%20longer.

FasterCapital.com (11th June 2024): The Power of Cross Departmental Collaboration in Onboarding; https://fastercapital.com/content/The-Power-of-Cross-Departmental-Collaboration-in-Onboarding.html#:~:text=Cross%2Ddepartmental%20onboarding%20is%20a,to%20various%20departments%20and%20teams.

Jeffrey Fermin (30th November 2023): What is Continuous Feedback and How Can It Transform Your Team?; https://www.allvoices.co/blog/what-is-continuous-feedback

Cameron Hashemi-Pour, TechTarget, What is continuous learning?; https://www.techtarget.com/whatis/definition/continuous-learning