What Is Your Compliance Training ROI?

By Karl Dahlgren02.12.2018

In an ever-changing regulatory environment, credit union leaders understand the importance of timely, high-quality, regulatory staff training. In the years following Dodd-Frank, the hours that financial services employees spend on compliance training has increased by an average of 40 percent, making regulatory training programs a significant time investment for credit unions and their staff. With this drastic increase, it can often be difficult to remember that compliance training should be designed to teach and educate employees. Instead of viewing training as a mandatory requirement, credit union staff and leaders should utilize the education to incorporate compliance into their everyday responsibilities so that they can best serve their members.

More than Just Regulation Knowledge

On average, credit union employees spend 25 to 30 hours annually to complete a full, mandatory education series. Traditionally, regulatory training courses have covered each individual regulation as a whole through subject-based training. Subject-based training provides credit union employees with a thorough, comprehensive understanding of certain regulations and its impact on the credit union and its members.

In contrast, role-based courses are tailored toward specific job functions are designed to dive deeper into all the relevant regulatory information appropriate for a specific role. Coupled with interactive learning strategies such as common scenarios, gamification etc., role-based training can help save credit union employees up to 30 percent in training time while helping improve retention levels.

Coupling Role-Based, and Subject-Based Courseware to Maximize Learner ROI

One individual regulation may have a very different impact on two different staff members within a credit union. For example, a regulation may impact both a credit union’s CEO and its tellers, but require different compliance measures for the different roles. Effective training should ensure that each type of employee understands new and existing regulations and its impact on his or her role. Credit unions should consider role-based courseware as a complementary resource to instill a culture of compliance and responsibility. Courses that are designed for specific roles focus on higher efficiency and increase the learners’ ROI, by shortening the training time required while improving the applicability and quality of the knowledge trainees’ receive.

This curriculum approach can offer a series of actual scenarios that are entirely applicable to that credit union employee role-type, making the content more engaging and interesting to trainees. In the subsequent learning assessments, employees should demonstrate a better grasp of the concepts being taught, since material has been tailored to be pertinent to their role. 

Different Roles Require Different Training

After the Dodd-Frank Act, many regulations required significant oversight from executive-level employees and held board members responsible for compliance failures. Therefore, regulation education programs for the executive leadership team and board of directors need to focus on how to verify that all departments are in compliance with their relevant regulatory requirements.

Similarly, sales and service leadership courses should carefully cover the sensitive nature of presenting information to members and educate these credit union employees on how to avoid common compliance pitfalls. Different departments, such as commercial lending, loan servicing and the contact center all require a unique regulatory focus; this will help prepare employees most effectively.

Role-based regulatory education offers credit unions a significant opportunity to focus employee attention on the information that matters most to their specific responsibilities. They need to be able to manage the delicate balance between allocating too much or too little time to compliance training while feeling confident they are prepared to meet their members’ needs. By leveraging a role-based training model, credit unions can give their employees the training that is most applicable to their role and have confidence that the more limited training time is well-spent so that in the end, the members are most well served.

Karl Dahlgren is managing director of BAI, a nonprofit independent organization that delivers the financial services industry’s most actionable insights.