Elevating Engagement: The Impact of Professional Development in Fintech
While many companies would not see this as a necessity, it has become one of the fundamental necessities in today’s economy. Continuous learning and growth is a must to stay relevant for both businesses and individuals, thereby discouraging stagnancy. The video below will share a brief summary to the importance of professional development.
https://youtu.be/Cj0_Be2MqHs?si=4pHN7vr2CFzzcO1n
Professional development is integral to employee engagement, serving as a catalyst for skill enhancement, job satisfaction, and career advancement. Organizations that invest in continuous learning signal a commitment to employees' growth, aligning personal and professional goals. As individuals acquire new skills and confidence, they become more engaged, actively contributing to projects and adapting to change. Learning opportunities foster innovation and problem-solving, shaping a workforce capable of navigating challenges. Recognizing and appreciating employee development reinforces a positive workplace culture, increasing job retention and building a skilled workforce. In essence, professional development is not just a means of acquiring skills; it is a cornerstone for creating an engaged, motivated, and adaptable workforce crucial for organizational success.
Kahn (1990) was the first to define the term 'employee engagement' as “the harnessing of organisation members' selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performances”. Employee engagement is also defined as “the individual's involvement and satisfaction with, as well as enthusiasm for, work” (Harter et al., 2002, p. 269). The learning company is a vision of what might be possible. It is not brought about simply by training individuals; it can only happen as a result of learning at the whole organization level. A learning company is an organization that facilitates the learning of all its members and continuously transforms itself (Pedler, Burgoyne, and Boydell 1991: 1).
Taking the above into consideration I would like to now explore how improvements in professional development contribute to elevated employee engagement within a fintech organization.
- Staying Ahead in the Fintech Landscape: The fintech sector evolves at a breathtaking pace, with technological advancements and market dynamics constantly changing. Offering continuous learning opportunities ensures that employees stay ahead in this dynamic landscape, fostering a sense of relevance and engagement.
- Specialized Training for Niche Expertise: Fintech companies often operate in niche domains. Tailored training programs that address the specific needs of the industry empower employees with specialized expertise. This targeted development not only enhances job performance but also instills a sense of confidence and engagement.
- Empowering Career Progression: Professional development is a roadmap
for career progression. Clear paths for advancement communicate to employees
that their growth is a priority. Engaged fintech professionals are those who
see a future for themselves within the organization and are motivated to invest
in their career journey. Talent development is an
important component of the overall talent management process (Novations, 2009;
Cappelli, 2009). Organizations tend to make significant investments in talent
development activities, so talented employees have the competence to
successfully implement business strategies (Garavan et al., 2012)
- Nurturing Cross-Functional Skills: Fintech companies thrive on interdisciplinary collaboration. Cross-functional training encourages employees to broaden their skill sets, fostering collaboration across different departments. Engaged employees appreciate the diversity of experiences, enhancing their sense of connection to the broader company mission.
- Mentorship for Personalized Growth: Mentorship programs provide a platform for personalized development. Seasoned professionals guiding their less experienced counterparts not only contribute to skill development but also create a sense of camaraderie and engagement within the organization and reduce burnouts. Maslach described burnout as an erosion of the soul caused by a deterioration of one’s values, dignity, spirit, and will, manifesting as exhaustion, depersonalization, and reduced self-efficacy - Maslach C, Leiter, MP (2002).
- Innovation Workshops as a Catalyst: Fostering a culture of innovation through workshops is a powerful engagement strategy. When employees feel empowered to contribute to creative solutions and novel ideas, it sparks a sense of ownership and enthusiasm for the company's mission.
- Recognition Fuels Motivation: Acknowledging and rewarding achievements in professional development is a cornerstone of engagement. Recognition communicates that the company values its employees' dedication to growth, motivating them to remain committed and invested in their roles.
- Collaborative Projects for Team Bonding: Collaborative projects that leverage diverse skills create a sense of teamwork and shared success. Engaged fintech professionals appreciate the opportunity to apply their knowledge in a collaborative setting, strengthening their sense of belonging.
- Flexibility in Learning Options: Providing flexible learning options, such as online courses or self-paced modules, respects employees' autonomy. Engaged professionals appreciate the ability to tailor their learning experiences, fostering a sense of ownership and commitment.
- Feedback Loop for Continuous Improvement: Establishing feedback mechanisms ensures that professional development programs align with employees' needs. Engaged fintech professionals value a company that actively listens to their input and takes steps to continuously improve learning initiatives.
To understand this further, I did some research and found a study done by Forbes wherein they used Maslow’s Hierarchy of needs as a direct link to our need to find fulfillment in our careers or professional development. (Link to the study is provided in referencing for further review)
The No 1 reason people leave is because of lack of recognition, thereby lack of engagement.
Conclusion: In the realm of fintech, where adaptability and expertise are paramount, a fintech company's investment in professional development is a strategic move that goes beyond skill enhancement. It becomes a catalyst for employee engagement, creating a workforce that is not only proficient in the latest technologies and industry trends but is also deeply committed to the company's mission. As fintech continues to shape the future of finance, the engagement of its workforce will be a key differentiator for success, and professional development stands as a vital tool in achieving this goal.
Do you think a fintech company investing in professional development of its employees is important? Do you think successful efforts in an employee’s professional development would lead to positive employee engagement levels?
Let me know your thoughts.
- Garavan, T.N., Carbery, R. and Rock, A. (2012), “Mapping talent development: definition, scope and architecture”, European Journal of Training and Development, Vol. 36 No. 1, pp. 5-24
- Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement and business outcomes: A meta-analysis. Journal of Applied Psychology, 87 (2), pp. 268-279
- Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33, pp. 692-724
- Maslach C, Leiter, MP. The Truth About Burnout: How Organizations Cause Personal Stress and What to Do About It. San Francisco, CA: Jossey-Bass; 2000.
- Novations (2009),“Talent development issues study”, Novations Group, Long Island, NY, pp. 1-20. Nugroho, A. (2019), Ini dia FinTech abal – abal. The Finance: Infobank. Jakarta, available at: www. thefinance.co.id
- Pedler, Mike & Burgoyne, John & Boydell, Tom. (1991). The Learning Company: a Strategy for Sustainable Development.
- https://www.forbes.com/sites/joshbersin/2012/06/13/new-research-unlocks-the-secret-of-employee-recognition/?sh=7203aace5276
In the banking sector this plays a significant role. When you join a bank and you are looking for long term promotions there are 2 ways of achieving it. 1. Through hard work and you obtain a merit or 2. You complete the bankers exams and then you automatically get eligible to go to the next level.
ReplyDeleteThis gives employees a chance to do both. However this was practiced 10 to 15 years ago. Not sure if it still applies.
Agree with you. Moreover, Fintech offers the opportunity to blend finance and technology seamlessly. It can create different advantages for banking and financial services sector. The impact of financial technology not only affects the future of finance but also changes the conventional precedents for finance. For the professionals in the financial sector can have many benefits of earning the functioning of the fintech sector in the areas like Digital finance, Blockchain, Artificial intelligence, Big data, Data security, Automation and Robo-advisors (Juita, 2020).
ReplyDeleteYou have taken Maslow's Need theory to demonstrate that employees want self-esteem and recognition. The theme of my blog is motivation and retention and one of the blog topics is Self-Actualization. In the current context of the business, employees need monetary rewards but are not motivated by it because they can get the same reward elsewhere or even a better financial reward. But as you say and what my topic focused on the aspect of self-actualization is they want to self-actualize. The organization should provide them with opportunities to learn, develop and self-actualize. By this, there is a mutual benefit. The employees are improving and developing which enables them to improve performance. This benefits the organization.
ReplyDeleteIn order to stay competitive and meet the demands of a regularly changing market, fintech companies must invest in their employee's professional growth such as providing opportunities , acquiring new skills, knowledge and experience. For example, in Europe, many fintech companies offer internal training programs on new payment technologies such as blockchain and digital currencies, as well as compliance with EU regulations such as GDPR. But in Sri Lanka is there a way to learn like this? Learning and development opportunities also help boost employee engagement and retention, which is important for a company's long-term success.
ReplyDeleteCould have agreed with you more. The impact of Maslow's Law is significant for organizations to achieve optimal benefits for their investment in their employees. Furthermore, considering the growing markets, employees should always brush up on their knowledge and skill sets in order to keep a competitive advantage therefore, organizations should always invest in employee development, which will have a positive effect on the employee's career growth and a significant effect on the employer's growth and achieve their mission and vision.
ReplyDeleteI agree with you. Fintech plays a major role in the finance sector, and it provides various types of benefits such as being accessible to people, cost-effective, more convenient, changing financial services, reducing cost, improving security, improving efficiency, and bringing enhanced access to the users.
ReplyDeleteThis comprehensive article effectively elucidates the pivotal role of professional development in elevating employee engagement within the fintech sector. The emphasis on continuous learning, niche expertise, and career progression as contributors to engagement is insightful. The integration of mentorship, innovation workshops, and collaborative projects as engagement catalysts adds depth to the narrative. The mention of flexible learning options and a feedback loop showcases a nuanced approach. The connection to Maslow's Hierarchy of Needs and the recognition-engagement link provides valuable context. Overall, it convincingly argues that, in the competitive fintech landscape, investing in professional development is not just important; it's a strategic imperative for fostering a highly engaged and motivated workforce.
ReplyDeleteThis gives a great insights of the value of professional growth in the fintech industry. Investing in employee knowledge goes beyond skill improvement in an industry driven by continuous innovation and emerging technologies. it becomes a crucial factor in promoting engagement and commitment. The understanding that having a highly qualified and motivated employees is a valuable asset fits in well with the fast-paced nature of fintech. The financial industry is redefining the future of finance, and as a result, companies need to priorities continual learning and development to ensure that their staff is thoroughly linked with the company's objective and proficient. This strongly emphasizes the vital part that professional growth in the landscape of fintech industry.
ReplyDelete