“Two Sides of the Coin: Benefits and Drawbacks of L&D Strategies in Sri Lanka’s Financial Sector”

 

 

Strategies for learning and development (L&D) are frequently hailed as being crucial to financial organizations’ success. L&D supports personnel retention, digital transformation, and regulatory compliance in Sri Lanka's banking industry. Nevertheless, despite their strategic importance, learning and development (L&D) efforts are not without difficulties. In order to provide a fair assessment of the effects of organized L&D tactics, I examine both their benefits and drawbacks in this blog.

 

Key Benefits of L&D Strategies	Common Drawbacks and Limitations
1. Improved Employee Competence and Confidence   Effective L&D programs develop behavioural competencies, skill sets, and knowledge. Improved job performance and fewer operational errors are common outcomes for financial organisations that offer training in risk management, customer service, or financial technologies (Armstrong and Taylor, 2020).	1. High Implementation Costs   Effective L&D programs can be costly to develop, implement, and maintain, particularly when they use digital platforms or outside trainers. Long-term learning sustainability can be difficult for smaller financial organisations since they may find it difficult to spend resources consistently.
2. Higher Employee Retention and Engagement   Employees feel more appreciated and are more inclined to stick around when they are offered opportunity to advance. This is especially important in the financial industry, where employee turnover can result in expensive hiring and retraining expenses. One of the top three elements influencing employee retention in the industry, according to the Institute of Personnel Management Sri Lanka (2023), is professional development.	2. Inconsistent Participation or Application   Not every employee is as enthusiastic about learning. L&D may be perceived by some as a time-consuming duty, particularly if it is unrelated to incentives or performance. Even well-thought-out programs may fail if leadership doesn't provide solid support.
3. Enhanced Organisational Agility   Rapid upskilling enables organisations to remain inventive and compliant in a changing regulatory and economic landscape. Cultures of continuous learning equip employees to manage new technology, such as AI-powered financial services or modernised central bank reporting systems.	3. Misalignment with Organisational Strategy   Initiatives for learning are occasionally launched without a clear connection to corporate goals. This leads to fragmented attempts with no discernible effect. In the Harvard Model, Beer et al. (1984) contend that for HRM (including L&D) to be effective, it must be influenced by both internal and external factors.

 

 

“In Sri Lanka's financial industry, learning and development (L&D) initiatives can be effective instruments for enhancing staff competency and guaranteeing sustained performance. However, careful planning, constant reinforcement, and strategic alignment are necessary for their full impact. The following blog post will turn its attention to practical results by examining the true effects of L&D programs in Sri Lankan financial institutions.”

References

Armstrong, M. and Taylor, S. (2020) Armstrong’s Handbook of Human Resource Management Practice. 15th ed. London: Kogan Page.

 

Beer, M., Spector, B., Lawrence, P.R., Mills, D.Q. and Walton, R.E. (1984) Managing Human Assets. New York: Free Press.

 

Institute of Personnel Management Sri Lanka (2023) Annual HR Outlook Report. Colombo: IPM Sri Lanka.