Training and Competence

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Training and Competence (T&C), or in other words, completing tests to prove that we can do what we have been doing for years. It’s a collection of pieces of paper showing an auditor that we can pass an assessment, which tells us what we already know, we can do our jobs, and pretty well at that.

Or is it?

What a pity if we so quickly dismiss the benefits of a practical T&C scheme. Although many of us are already applying some good T&C practices we now need to document these and review any training that we already carry out to bring it in line with the T&C requirements.

We need to consider any internal meetings where learning takes place, seminars and workshops attended, CII material used, CII exams taken and the on-line learning system we may have invested in. If we work these into a T&C scheme we are well on our way.

Making sure that our T&C scheme is a worthwhile exercise - that is, it achieves a beneficial outcome and is not done simply because the FSA have told us we have to could well reap rewards. And remember, Principals, Directors and other senior managers must not be forgotten as years of experience do not mean that you too cannot benefit from a structured training plan.

So, where do we start?

A scheme does not have to be complex to be valuable. The more workable a system is the easier to understand and therefore apply. A point to note, whilst the FSA have recognised that there are additional T&C commitments for your retail staff, why not apply the same high standard across the board. This consistent approach may well make things much simpler to manage.

Start with your job descriptions – remember the job description is not personal to an individual – it describes the actual job, regardless of who is doing it. Designing these will give you a clear summary of what responsibilities and duties are required of each role, so keep them generic and to the point. There is no need to produce a list of every item of work that a job encompasses. Indeed, if you do, you may find yourself more vulnerable to a claim of ‘that isn’t in my job description’ if something is missed off.

Next, consider what level of performance you expect from each individual. A job description is geared around the actual role, but performance expectations can be tailored to the individuals you have working in your team.

Having simple and clear objectives, or KPI’s (Key Performance Indicators) as they can be commonly known, will enable you to define your expectations from each individual. Whilst the job descriptions for your Commercial Account Handlers will be the same, the KPI’s may well be quite different, allowing you to ‘target’ your staff in accordance with your business plan and their own individual strengths and preferences. KPI’s/objectives should be agreed with each individual, on at least an annual basis, so they can be adapted to reflect changes in the business, a re-focus, or a change in individual strengths.

When we have a clear idea of what the job is and the performance standards required we can then consider whether each individual can competently carry out the requirements of the role. Also, are they fully equipped and able to meet their KPI’s/objectives this year, or do they need further development.

Whilst your T&C scheme must address the first point, the FSA are not worried about the second. However, for you, whether or not your staff will meet their business targets/ objectives for the year is an important consideration. Employees must be equipped to meet the objectives and targets they have been set, and additionally feel they are benefiting from continued personal development.

Assessing competency - assessment is a word that conjures up thoughts of exams and somebody ticking boxes and confirming that you are compliant. There are a few methods we can use to demonstrate competence, so consider carefully how this can be achieved. Try and encourage competency assessments to be carried out in a learning environment, rather than a testing one. The culture within an organisation directly contributes to the success of assessment, therefore make your staff aware of the benefits and that they will be supported through training and development activities, if they can’t demonstrate initial competency.

Competent? - Even if you feel that your staff are 100% competent to carry out their role, don’t assume T&C does not apply. The FSA will want to see your staff demonstrating their competence, so you need to prove it. Also, if an individual has proved themselves to be competent, this must be maintained. After all, there are two parts to T&C, so just because the competence part may be satisfied, don’t forget the training element in order to ensure further development.

Documentation and evidence – having carried out assessments, training, development and review work, don’t forget to document it. A training plan, acting as a working document, should show what the competency requirements are, what assessment has taken place, what ongoing competency assessment is planned and any training required, linking back to when this need was first identified.

Finally, own the scheme and be proud of the training, learning and development you offer. Use it to attract new staff – after all, on more and more occasions’ future prospective employees will be asking the question ‘what induction training will I receive and what training and development will you offer’?

This article was written by Elizabeth Mills, Director, Broker Network
An edited version of this article was published in Insurance Times