PFAs spend over 5% of overhead on staff training – PenOp

Chuks Udo Okonta Pension Fund Administrators (PFAs) spend a minimum of five per cent of their cost to training of staff to boost productivity, Pension Fund Operators Association of Nigeria (PenOp), has said. Managing Director, Stanbic IBTC Pension Managers, Dr Demola Sogunle, who spoke in Lagos, for the association in reaction to the claims by the National Pension Commission (PenCom) that operators generally do not treat the issue of staff training with paramount importance, said PFAs have being making good investment in staff training and will continue to ensure that staff are equipped for improved performance. He said: “There are many trainings and workshops being organised, either by PenOp in conjunction with PenCom. The point is that we are constantly being trained. Some PFAs spend at least five per cent of what we call Cost To Company (CTC) on training. “Note that five per cent is the minimum a company can spend on training. The fact is, because it is an evolving industry, no knowledge is loss; we would continue to train ourselves. Even some of the products that we are yet to bring into the market, some of the PFAs have undergone serious training on them. “We can never stop training for things would always happen and the world is dynamic, so we would continue to train, we would get to the point where we would say we have trained everybody and there is no need for training again. In the next quarter, we would still see the need to train somebody for a new thing for things are always happening. “So training is taken seriously, and it is from the top to the button. And PenCom is doing its best and PenOP is also doing a lot in organising event, seminar and conferences to train operators.” PenCom in a circular signed by its Head, Surveillance Department, Muhammad Datti, to PFAs said it has observed that operators generally do not treat the issue of staff training with paramount importance. It noted that the need for operators to make adequate investment in the training of its employees is of paramount importance, especially at this stage of the development of the Contributory Pension Scheme (CPS), where issues of service delivery have become a major focus/concern in the industry. “There is also the need to ensure that adequate measures have been put in place in terms of training to guarantee smooth succession especially during senior level exit from the business thus contributing to safe guarding the sustainability as well as to bridge skills gap in the pension industry. “The Commission therefore views the issue of staff training as crucial to the growth, development and success of the pension industry,” PenCom said. It noted that organisations that invest in training would gain proper staff proficiency and that a well trained work force will help reduce the risk of potential errors; improved service delivery that adequately meets the needs of clients; improved public perception of the contribution pension scheme; improved morale of employees as he/she will have a sense of belonging and this will ultimately promote loyalty as the employee put in adequate effort to ensure the success of the business; and increased productivity as training improves efficiency. PenCom said a well trained workforce shows both quantity and quality performance. Therefore, operators are expected to develop a training program/calendar on a yearly basis indicating the training needs of each employee as well as ensuring that relevant courses are identified for each employee relating to their own areas of operation/expertise on needs. It said training should be given in five basic areas as follows: New employees who join the organisation should be trained to get familiarised with the organization’s mission, vision, rules and regulations, the working condition as well as an overview of the CPS and the role of the commission. “Existing employees should be trained to refresh and enhance their knowledge especially with new development in the organisation and the industry; when any update and amendment takes place for instance in information technology where an organisation changes /upgrades its software. “In the case of promotion, career growth, job rotation so that employees are prepared for their new responsibilities; and professional development. “Training should also involve: On the job training - This method of training involves employees being trained on actual work scenarios; and off the job training - This is when training is provided away from the actual working conditions and can take the form of external training, seminars, workshops, conferences. The most important consideration here is that there is value for money,” it added. PenCom noted that utmost care should therefore be taken in selecting reputable training providers in order for employees to get the full benefits of the training. It said operators should ensure that sufficient budgetary allocation is set aside for training yearly, adding that investment in proper training at all levels can only benefit the industry as a whole and the process should be continuous for as long as the organisation is in business.