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Training Gaps Abound

by Lee

It has always amazed me how little emphasis is spent on training in the asset management world. While many senior executives speak about the importance of training, the area is typically under-funded with little strategic direction. In fact, the training budget is typically the first area cut when firms look to lower costs.

I've had a chance to spend a fair amount of time thinking about training as part of several recent client engagements, and have seen three common gaps:

• Focus on Training, not Development: Training at asset management firms is most frequently directed at new hires or focused on new products. Many firms will also conduct sales training as part of their national sales meetings. Training, however, is typically designed to bring people up to speed, or to refresh knowledge or skills (e.g. "Here's how to use the CRM system," or "Here is insight into how the PM manages this fund"). Rarely do firms think about true employee development. Focusing on development requires firms to answer "what are the skills or knowledge that could allow employees do their jobs more effectively, be happier, and get to where they want to be in their careers?"


• Lack of Personalization: Group training definitely serves a purpose, but not everyone has the same gap in skill or knowledge. For example, one experienced external wholesaler may need extensive product-related training, but minimal territory management support, while another may be a product expert, but need extensive one-on-one coaching around how to run an effective meeting. Each individual should have a personalized development plan that is tailored to his or her needs.


• Lack of Integration with Performance Reviews: Even organizations that have sophisticated training and development programs in place typically fail to tie these efforts to employee performance reviews. Without setting clear goals for individuals regarding training and development that have a direct link to performance appraisals, training remains an afterthought.