How Regional and Community Banks Can Use Upskilling for Employee Development

Banking employees and organizations want the same thing: to close the skills gap. Employee growth helps future-proof careers and banks, keeping everyone competitive in the financial services field as a whole.

As Andrew Saidy, VP of Global Talent at video game maker Ubisoft, said in the 2024 LinkedIn Workplace Learning Report, “Learning is not an HR topic; it’s a business topic.” But upskilling still requires HR to play a critical role, coordinating career paths across the organization, buy-in from executives, and accessible resources for employees.

Below, experts weigh in on which skills are most in demand, and how to make upskilling and reskilling a seamless part of your bank’s employee development strategy, and what it could mean for employee engagement and retention.

Top Skills in Demand for Regional and Community Banks

While every organization will have unique needs, experts say there are two main categories that are broadly applicable across the banking sector: technological skills and soft skills.

1. Technical skills are in demand…

The proliferation of new technologies (such as AI) has made technical skill sets even more crucial in nearly every banking role — not just those who do financial modeling. Proficiency in prompt engineering, fraud detection, and data science are all fundamental skills for banking employees and aspirants.

“It’s crucial for those who work in finance to learn skills in protecting users from fraud and identity theft that come along with technology integration,” said Paola Accettola, principal and CEO of HR services firm True North HR.

Courses on prompt engineering, cybersecurity, automation, and risk management can help employees stay up to date on best practices, further their careers, and support new business initiatives.

2. …but so are soft skills.

Soft skills — like effective communication, strong management abilities, and top-notch customer service insight — are equally essential for employees looking to grow in the field. In fact, anonymized data from 1.1 million Lattice users revealed that communication, problem-solving, and leadership skills were the top three growth areas in 2023.

“It's [just as] important for employees to have a working familiarity with finance technology [as it is to have] compassion for customers, critical thinking, problem-solving skills, and practical communication skills,” said Henry Abenaim, founder and CEO of loan management software company Fundingo.

Training employees on communication and management skills, as well as critical thinking and collaboration, can make a measurable difference in team efficiency and success.

“[Communication] leads to better internal relationships, faster and more efficient projects, and a happier workplace,” said Josh Meyer, founder and CEO of Fintech Digital. “When employees get these right, it's like the ‘X factor’ that sets them apart for success.”

How to Make Upskilling Part of Your Organizational Culture

According to the 2023 Crowe Bank Compensation and Benefits Survey, 44% of respondents cited lack of career development opportunities as a reason for seeking employment elsewhere. That means almost half of banking employees already have an eager appetite for upskilling. All you have to do is make it accessible, right?

Of course, employee retention is a bit more complicated than that. Creating a culture where employees are rewarded for learning new skills means getting human resources and executives on board — making employee development an institutional priority. Here’s what experts recommend to make sure an employee upskilling program is a success.

1. Take a second to look at your career paths.

Career paths in banking are predominantly linear: entry level employees work their way from teller, clerk, or assistant, up into management and executive ranks. But the industry and its workforce are rapidly changing, and those siloed career paths aren’t cutting it for banks or their employees.

Consider the career paths you currently have, take stock of the specific skills and competencies listed: what skills are missing? Which skills are now obsolete? Work with managers of each department to identify competencies that are in high demand, and make changes to the career paths. Don’t forget to make changes to job titles, levels, salary bands, and tracks that may need to evolve with the times, too.

Read our article on shaping career paths in the banking industry.

2. Make upskilling widely available and personal.

For skills that are applicable to everyone (or at least a significant portion of employees), company-wide or team-wide training sessions can get everyone involved without increasing the strain on L&D resources or schedules. This could include:

• in-house educational seminars and trainings for skills development
• learning-focused company-wide retreats, offsites, or webinars
  

For a more individual upskilling strategy, set aside a budget for L&D stipends that employees can use toward continuing education of their choice. Online courses, professional certifications, or industry conferences give employees a chance to learn new skills at their own pace and concentrate on building the skills they’re most interested in.

Accettola said giving workers this discretion doesn’t just result in savvier, more prepared employees, she said — it results in a better-rounded company with happier employees as well.  

As the LinkedIn Workplace Learning Report found, employees are motivated to learn when the available upskilling:

• helps them stay up to date in their field
• is personalized for their interests and career goals
• helps them with internal mobility, promotions, or achieving career goals

3. Incorporate upskilling into performance appraisals.

Remember those career tracks we mentioned? They’re not just for show — they provide structure for performance assessments that lead to promotions. So incorporating upskilling into performance reviews becomes a win-win: employees are motivated to demonstrate their competencies, and managers have a clear set of criteria for promoting from within.

Whether it’s part of the regular employee review process, or an element of an individual development plan (IDP), spell out the expectations for upskilling, and make sure they’re connected directly to employee performance and internal mobility.

4. Keep upskilling aligned with business goals.

Upskilling is no different from pursuing any other business priority: it’s critical to set checkpoints to see if your efforts are paying off.

Before rolling out an L&D curriculum, ask employees directly about their interest and intent to participate. Some pulse survey questions your organization might want answers to could include:

• Do employees know about upskilling opportunities in their current roles and are they taking advantage of them?
• Do employees see upskilling as a benefit to their career prospects and personal goals?
• What new skills have they built recently, and what current skills do they still want to learn more about?
• What learning experiences or professional development opportunities would be most accessible or appealing for learners?
• What continuous learning opportunities have they participated in before, and how did they benefit from it?
  
  

Banks should also assess whether upskilling efforts are paying off for their business. Get aligned around the company’s big-picture needs, should that include a better-equipped workforce, increased internal promotions and job satisfaction, reduced turnover, or growth in innovation and inspiration.  

“Make sure your learning is aligned with business skills,” Lori Niles-Hofmann, senior edtech strategist for business consultancy NilesNolen, said in the LinkedIn Workplace Learning Report. “Rather than looking at hours of learning and course-completion rates, instead focus on identifying what skills are lacking in your organization. With that alignment and clarity, L&D can create a skill-building program that’s in lockstep with your business strategy.”

Grow Your Banking Workforce with Lattice

Knowing that upskilling employees is critical to success is one thing — making upskilling efforts an entrenched part of your organization’s learning culture is another. But experts say the benefits can’t be ignored. The right training programs bolster your talent pipeline, preparing current employees for new roles and closing any skills gaps by building the competencies your bank needs to stay competitive.

The bottom line? A rising tide lifts all boats, according to Accettola: “When leadership makes development a priority, employees are more inclined to learn to improve the industry,” she said.

Ready to get started with upskilling? Visit our library of free career growth templates to customize for your banking employees.

Or jump right into our ROI estimator to see how much Lattice’s people platform can save on your investment in people strategy.