Training and Development for Financial Professionals at the Prudential Insurance Company - Research Paper Example

Module Training and Development for Financial Professionals at the Prudential Insurance Company Table of Contents Executive Summary…………………………………………………………… 2 Prudential Insurance Company Background....................................................... 3 Prudential Insurance Company Needs Assessment............................................. 3 Training Strategy and Design………………………………………………….. 4 Cost/benefit Analysis……………………………………………………………7 Training Evaluation Plan………………………………………………………. 7 Conclusion........................................................................................................... 8 Works Cited......................................................................................................... 9 EXECUTIVE SUMMARY A training program for Prudential Insurance Company is designed with the objective to enable the company to work towards achievement of its vision i.e. market leadership. The needs assessment conducted through organizational task and personnel analysis reveals that the three categories of employees namely customer service representatives, sales agents and actuaries should be targeted in the training. A strategy based on computer-based training is designed and the objectives, content, schedule and materials established. A cost/benefit analysis and an evaluation of the system based Kirkpartrick’s model is then developed. Prudential Insurance Company Background The history of Prudential Insurance Company can be traced back to 1875 when John Fairfield Dryden - an insurance agent established a company that started by providing cover for funeral expenses among low income families for the humble premium of 3 cents. This was before tapping into the growing middle class through industrial insurance policies. This boosted its growth and the decision to pursue an expansionary policy paid dividends as the company grew around New York by the turn of the 20th century before spreading across the US. It has since grown into a giant insurance company operating in more than 30 countries around the world and holding life insurance running into trillions of dollars. The company now offers a variety of both retail and institutional policies and uses a logo based on the Rock of Gibraltar to demonstrate its strength and security it offers to its customers (Prudential.com). Prudential Insurance Company Needs Assessment: The first step in designing and ultimately implementing a training program is conducting a needs analysis to identify what is currently available in an organization and what is needed to achieve its goals. This consists of organizational analysis, task analysis and personnel analysis all of which aid in identifying what is to be the focus of the training program to be implemented (Chan 19). An organizational analysis on Prudence Insurance Company can be done through examining the company’s vision and gauging its performance on attaining the vision. The company is committed to differentiate itself from the rest as a reputable global financial services leader which is also to be replicated in the provision of innovative solutions to all matters of health (Prudential.com). In spite of a commendable effort and growth record over the years, the company is an average performer in the industry especially in respect to sales of insurance policies, return on equity and revenue growth. A great deal is required from the management and employees in the concerned sectors if these areas are to be addressed and the vision realized. The next step in the needs assessment is performing a task analysis which is important in establishing the knowledge, skills and abilities (KSAs) required by employees in the various job descriptions. Companies in the insurance industry have various departments with several job descriptions but the organizational analysis conducted earlier helps to narrow down the areas that require the task analysis. To achieve market leadership, the company should be able to win over new customers and retain them. This requires important KSAs in customer service including the best possible public relations skills accompanied by adept knowledge of interaction. Competence in marketing and sales is also important in achieving more customers and improving turnover. The low net income and revenue growth can also be attributed to deficiency in financial management skills. The personnel analysis is the last section of needs assessment and involves analyzing the competence of the existing employees to meet their job descriptions and expectations. Guided by the two previous analyses, the customer service representatives and the actuaries are identified as the groups to which the training should be targeted. Due to the increasing cases of money laundering (American Council of Life Insurance 2), the company’s insurance sales agents will also need to be trained to avoid falling victim of this. Training Strategy and Design: Development of a training strategy involves deciding the method of delivery/instruction, generating the objectives of the training and designing the schedule, contents and learning materials. To start with, the training program to be implemented will be computer-based (CBT). Justification for this approach is derived from the theoretical frameworks of learning and the differences between learning in adults and in non-adults. According to Choy and Delahaye (2) the most effective method of instruction among adults is one based on andragogy (learner centered) as opposed to pedagogy (instructor-centered and effective in non adults); adults see the need to know and already have a self-concept for learning hence the instructor’s role should be reduced to facilitation as would happen in a CBT program. It also allows the targeted workforce to learn as they practice hence contributing to their experiential abilities. The CBT program will be optimized properly to balance the technological aspect of delivery with content to ensure maximum transfer of knowledge. The training objectives, training content, timeframe for each stage and self evaluation will be communicated to the staff with a superb communication system to enhance the training put in place. The main objective of the training program is to set the company on a path towards market leadership. The customer representatives’ job description revolves around interaction with the customers, responding to their inquiries and handling complaints, aspects of which have an important bearing on the company’s reputation. The objective will be to improve the quality of their service by doing more than the minimum necessary to give the existing and potential clients the best experience upon each interaction. In addition to enhancing their sales skills, the objectives of training for the sales agent will be to place them in a position to comply with anti-money laundering federal regulations. The objectives for the actuaries’ training will be to improve their skills of forecasting risks liabilities of the company, pay benefits in the future, enable them integrate evidence-based practice in generating probability tables and to improve their analytical skills. Chan (17) details that designing a training program is a continuous activity that involves analyzing, designing, implementing and evaluating after which the entire cycle may be repeated. The task of designing involves planning the sequence of the content, the date of launching and completion and stating the materials that will be utilized in the training program. Taking this into consideration, the training curriculum based on the objectives and to be rolled out through CBT will be as follows: its schedule will be based around a comprehensive and gradual program that will be one and a half months long after informing in advance those targeted for the training and availing the necessary resources. The first month will be for the staff to familiarize themselves with the program, objectives, expectations, model of delivery and the desired results. The next four weeks will entail the actual training and the last one will be for the first phase of appraisal of the training program. The training materials will be mainly electronic files and documents communicated to the intended staff through their personal computers. A structured approach will be utilized where the content based on one objective is communicated to the respective staff alongside its appraisal criteria and length after which the next item in the training material is communicated. For the customer service representatives, the content of the training will be appropriately centered on client interaction and will include: effective comprehension of client inquiries and needs, value-rich and useful response, effective handling of disgruntled, angry or difficult clients and confirmation of client satisfaction from the interaction. The best and most effective sales skills will be taught to the sales agents. The definition of money laundering, identifying and reporting suspicious activity, proper record keeping, common wire transfer and currency loopholes for money launderers, confidentiality, timing, impact of individual and organizational reputation damage in case of implication and penalties will be the content of the sales agents’ training (American Council of Life Insurance 3-5). The content for the actuarial department will include effective and up-to-date statistical analyses tools and techniques and utilization of the best available evidence from market research in their operations. Cost/benefit Analysis: A cost benefit analysis is important in providing justification for the training. In this case, the direct costs are wages and allowances paid to the trainers and consultants. The material, travel and indirect costs are eliminated by the CBT model. Quantifying the benefits will be done in two steps: the first will be by establishing the revenue that can be directly attributed to the training i.e. the revenue from increased growth beyond the company’s projections less the margin of error. Employee satisfaction in terms of labor turn over will be quantified as a benefit through comparing the labor retention with the pre-training rates of turnover and the salaries of the difference obtained claimed as a direct benefit. The ratio of the total training costs obtained to the total training benefits will be used to generate the projected return on investment (ROI) as an indicator of the cost/benefit ratio (Piskurich, Beckschi and Hall 153). Training Evaluation Plan: Two phases of training appraisal: one immediate and the other after one financial year will be the basis of evaluation of the training program. The goal-based Kirkpartrick’s model detailed in Eseryel (93-98) will be utilized for evaluation. Through this model, a four-tier evaluation criteria will be used i.e. reaction of the targeted employees to the training, assessment of whether the learning objectives will be met, assessment of whether there will be behavioral changes in terms of job performance as a result of the training and lastly assessments of the results based on the cost benefit analysis. The data for these assessments will be gathered in the two phases described earlier. CONCLUSION Prudential Insurance Company is an averagely performing organization that can be improved through an effective training program. This involves conducting a needs assessment through organizational task and personnel analysis to establish the areas that require urgent attention. The three categories of employees identified are the customer service representatives, sales agents and the actuaries. The model of delivery selected is computer-based training which cuts costs, saves time and is effective. The objectives, content, schedule and materials for use are determined after which a cost/benefit analysis and an evaluation of the system based Kirkpartrick’s model is suggested. This training program should help the company to work towards achievement of its goals in industry leadership. Works Cited American Council of Life Insurers. Recommended Core Elements of an AML Training Program for Life Insurance Agents and Brokers. Washington, 2006. Web. September 29, 2011. Chan, Janis F. Designing and Developing Training Programs: Pfeiffer Essential Guides to Training Basics. San Francisco: John Wiley and Sons, 2009. Print. Choy, Sarojni and Delahaye, Brian. Andragogy in Vocational Education and Training: Learners’ perspective. Australia: Avetra, 2002. Print. Eseryel, Deniz. “Approaches to Evaluation of Training: Theory & amp; Practice”. Educational Technology & Society 5 (2). USA: Syracuse University, 2002. Web. September 29, 2011. Prudential.com. Prudential History. 2011. Web. September 29, 2011. Piskurich, George M., Beckschi, Peter and Hall, Brandon. The ASTD Handbook of Training Design and Delivery: A Comprehensive Guide to Creating and Delivering Training Programs, Instructor-Led, Computer-Based, or Self-Directed. USA: McGraw-Hill Professional, 2000. Print. Read More