What does successful upskilling look like? | Work It (ft. UOB's Dean Tong)

Key Concepts

• Future-proofing: The process of anticipating future trends and developing strategies to adapt and thrive in changing environments, both for companies and employees.
• Skill Gap: The disparity between the skills employees possess and the skills required by the evolving job market.
• Technical Skills: Job-specific abilities that are in demand and can change over time.
• Fundamental Banking Skills: Core knowledge and understanding of banking operations, such as intermediation, payments, and trade.
• Know Your Customer (KYC): A process within banks to verify the identity of clients and assess potential risks.
• Anti-Money Laundering (AML) and Anti-Financial Crime (AFC): Regulations and practices aimed at preventing illicit financial activities.
• Cognitive Offloading: The tendency to rely on external tools, like AI, to perform cognitive tasks, potentially leading to a decline in one's own cognitive abilities.
• Generative AI (GenAI): A type of artificial intelligence that can create new content, such as text, images, or code.
• Work-Study Degree: An educational program that combines academic study with practical work experience, allowing students to earn a degree while working and earning an income.
• Purpose and Balance: A framework for sustainable career development that emphasizes finding meaning in work and maintaining a healthy equilibrium between professional and personal life.

Workforce Transformation and Future-Proofing in the Financial Industry

This episode of the Work It Podcast, brought to you by OB, delves into the evolving nature of careers and the critical importance of future-proofing in the face of rapid technological advancements, particularly Generative AI. The discussion features Dean Tong, Head of Group Human Resources at OB, who shares insights into how the financial industry is adapting to these changes and how OB is supporting its workforce through this transformation.

Major Trends Reshaping Financial Services

Dean Tong identifies three primary trends significantly impacting the financial industry and, consequently, job demands:

1. Regulation: The financial sector is experiencing a rapid increase in regulatory complexity. This has led to the creation of new job opportunities while simultaneously making some traditional roles obsolete.
2. Technology: While technology has always influenced financial services, the pace of change has accelerated dramatically in recent years, especially with the advent of Generative AI. This technology is now touching almost every job within the bank.
3. Demographic Shift: The presence of four different generations working within the same company presents a challenge in managing diverse skill sets and fostering effective collaboration to achieve optimal outcomes.

Addressing Skill Gaps at OB

The conversation highlights the existence of skill gaps, which can be categorized into two main areas:

• Technical Skills: These are skills directly related to in-demand topics and are subject to frequent changes.
• Fundamental Banking Skills: These are foundational competencies such as understanding the role of a bank as an intermediary, payments, and trade. While the core concepts remain, the methods of facilitation are evolving, necessitating new technical skills.

Case Study: Anti-Money Laundering (AML) and Anti-Financial Crime (AFC)

A significant example discussed is the increased focus on AML and AFC due to heightened regulatory scrutiny. This necessitates banks to enhance their capabilities, often requiring new expertise.

• New Capabilities Needed: Banks need personnel who understand the evolving methods of scams and financial crime to stay ahead of perpetrators. This involves continuous upskilling and reskilling to combat new types of scams and money laundering techniques, especially those leveraging new technologies and transfer methods.
• Specific Skill Requirements in KYC: Within the Know Your Customer (KYC) process, employees need to identify the source of wealth, which can be complex, particularly when onboarding foreign clients. This requires investigative skills to determine the legitimacy of funds.
• Frontline Staff Training: Branch staff are trained to identify distress signals in customers, such as elderly individuals potentially being coerced by family members to withdraw money. This involves observing signs of duress, asking probing questions, and buying time to report to the police. Staff must also be trained to work under pressure, as they may face abuse from the very customers they are trying to protect. This requires specialized training, on-the-job practice, and supervisory coaching.

OB's Approach to Upskilling and Reskilling: The "Better U" Program

Recognizing the pressure and worry employees may experience due to constant change, OB has implemented initiatives to support workforce transformation.

• The "Better U" Program: Launched seven years ago, this program initially focused on soft skills like problem-solving, data analytics, and data storytelling to prepare employees for change.
• Refined Strategy: OB learned that reskilling is more effective when aligned with specific future job roles. They now maintain a transparent view of in-demand jobs and those being phased out.
• Key Elements of the Reskilling Process:
  • Individual Willingness: The process begins with understanding an individual's motivation and willingness to pivot.
  • Supportive Environment: OB provides an environment designed to increase the probability of success.
  • Comprehensive Training: This includes psychological preparation and practical training for the new role.
  • Manager Training: New managers of reskilled employees receive training to effectively support individuals transitioning mid-career.
  • Protected Transition Period: For the first 12 months, individuals are shielded from standard performance management, allowing them to make mistakes and ask questions without fear of negative ratings. They receive feedback but not formal ratings during this period.
  • Clear Expectations: Employees are informed that standard performance management will resume after the transition period, emphasizing the need to become self-sufficient.
• Employee Agency and Job Matching: Employees can indicate preferences for new roles, but placement is contingent on demand and supply. OB also utilizes job matching, where a significant overlap (around 50%) in base competencies with the new job increases the likelihood of success.
• Success Rates: The program has demonstrated a high success rate, with some individuals transitioning to team lead roles within six months. This success is attributed to extensive pre-work and a refined methodology.

Managerial Support and Collaboration

• Coaching for Managers: Managers of reskilled employees receive coaching to help them support their team members effectively. This is not about surveillance but about providing guidance and resources.
• Partnerships: OB partners with external organizations like Nihan to provide coaches who understand both the individual's transition and the job requirements. Regular check-ins ensure the process stays on track.

Collaborations with Educational Institutions

OB actively collaborates with various higher learning institutions in Singapore, including NUS, NTU, SMU, and polytechnics.

• Work-Study Degrees: OB offers work-study degree programs, allowing polytechnic graduates to earn a degree while gaining practical experience and income within the bank. This integrated approach can lead to earlier graduation compared to traditional university paths.
• Banking Fundamentals Training: For individuals from non-banking backgrounds or fresh graduates, OB provides comprehensive training on banking fundamentals, covering how banks operate, generate revenue, and conduct credit and trade activities. This on-the-job training aims to produce highly skilled bankers.

The Impact and Risks of Generative AI

The discussion addresses the significant impact of AI on the workforce.

• Bridging Knowledge Gaps: GenAI can act as an equalizer, bridging knowledge gaps for both older generations (in using digital tools) and younger generations (in understanding banking fundamentals).
• Risk of Cognitive Offloading: A major concern is the potential for employees to become overly reliant on AI, leading to a decline in their own critical thinking and problem-solving abilities. This is likened to the over-reliance on consultants, where internal problem-solving muscles weaken.
• OB's AI Policy:
  • Accountability: Employees are ultimately accountable for the output, regardless of whether AI was used. There is no blaming AI for errors.
  • Integration with Critical Thinking: Upskilling in GenAI is paired with training in critical thinking. Employees are taught to ask the right questions, which requires deep thought and structuring of queries.
  • AI as a Co-pilot: Employees are encouraged to use AI as a co-pilot, not an autopilot, emphasizing the need for human oversight and thought processes before leveraging AI.

The End Goal: Purpose and Balance

Dean Tong articulates OB's vision for workforce transformation, centered on the formula of "purpose and balance."

• Purpose: Employees should understand the meaning and significance of their work, which provides motivation and satisfaction, especially during challenging times.
• Balance: Sustainable careers require a balance between managing one's career and personal life, including family and friends. This is crucial to prevent burnout, as seen during the COVID-19 pandemic.
• Success Defined: For OB, success in workforce transformation means creating a workforce where individuals can see the purpose in their work and achieve a sustainable balance, thereby contributing to both their professional and personal well-being. This, in turn, benefits the company.

The podcast concludes with Ned and Gerald expressing their admiration for OB's people-centric approach, emphasizing that focusing on employees' lives and their connection to their work is paramount for long-term success.