Onboarding new employees in financial services is a crucial process that facilitates their smooth integration into the organisation. It also ensures they begin on a strong footing and are in a position to contribute effectively from the start.
With high regulatory demands and complex operations, financial services firms must focus on structured, thorough onboarding practices to maximise productivity and minimise compliance risks.
Read on to learn more about the best practices for onboarding new hires within the financial sector.
1. Start the onboarding process before day one
Pre-boarding is a critical step that sets the tone for a smooth onboarding process. By initiating communication and providing resources before the new employee’s start date, firms can ensure that newcomers feel welcomed and prepared. Sending out a welcome email that includes key company information, introducing team members, and providing access to resources (such as employee handbooks or financial regulations) helps reduce anxiety.
In financial services, where new hires are expected to understand intricate regulatory frameworks, pre-boarding also includes sharing essential compliance documents, internal policies or reading material that helps the employee understand how the company operates within these contexts.
It’s also beneficial to offer insights into the corporate culture and expectations, so new hires know what to expect from day one.
2. Create a comprehensive onboarding strategy
A clear and comprehensive onboarding strategy helps to streamline the overall onboarding process.
In the financial services sector, new employees must adapt quickly to company-specific processes and regulatory frameworks. To assist with this, the onboarding schedule should include training on the company’s operational systems, security protocols and compliance requirements, in addition to general administrative procedures.
Breaking down the onboarding process into phases can be beneficial. For example:
- Week 1 – Focus on administrative tasks, system setups and compliance training.
- Weeks 2-4 – Introduce specific job-related tasks and responsibilities and encourage collaboration within the team.
- Week 5 onwards – Gradually increase responsibility, giving the employees opportunities to apply their training with support from senior team members.
Having a structured onboarding plan such as this promotes consistency across hires and reduces the risk of missed training elements, which are particularly important for adhering to compliance regulations in financial services.
3. Emphasise regulatory compliance
Financial services are subject to strict regulatory oversight, and new employees must be well-versed in these requirements. To align with this, an integral part of onboarding in this sector should be dedicated to compliance training. This includes ensuring the new hire is up to speed on areas such as anti-money laundering (AML), data protection, market conduct and other financial regulatory standards.
Financial services firms might also consider pairing new employees with a mentor who is well-versed in compliance, to ensure continuous support during the learning phase.
4. Leverage technology to streamline onboarding
Technology can also be a powerful tool to utilise in the context of compliance. Many financial firms rely on specialised software for compliance and reporting. Training sessions that cover the operation of these tools, coupled with real-life case studies, can make onboarding more practical and relevant.
However, this is just one example of how technology is used to enhance the overall onboarding experience.
For financial services firms, where accuracy and security are paramount, investing in automated onboarding platforms can help streamline the process and reduce manual errors. For example, digital onboarding platforms can automate document submissions, background checks and even compliance training. This not only accelerates the onboarding process but also ensures that records are maintained accurately, which is essential for audit trails and regulatory checks – and which explains why over 25% of Irish employers are now implementing AI strategies into their recruitment processes.
Additionally, financial firms can adopt AI-powered learning platforms to deliver personalised training experiences. These platforms can assess the employee’s initial knowledge level and tailor training modules accordingly, providing a more efficient learning curve.
5. Promote a culture of continuous learning
Given the fast pace of regulatory changes in the financial services industry, onboarding should not be a one-time event, but the beginning of a continuous learning journey. New hires should be encouraged to engage in ongoing training and professional development to stay updated on the latest industry regulations and market trends.
Upskilling and reskilling programs are vital within this sector, especially as roles evolve with advancements in fintech and regulatory technology (RegTech). Consider providing access to online courses, certifications or in-house workshops to support your employees in this area.
6. Provide a dedicated “onboarding buddy”
Assigning a mentor or “onboarding buddy” is another effective way to ensure a smooth transition for new employees. This person can be a senior team member who provides ongoing support, helps the new employee get to grips with the role, and answers questions that arise during the onboarding process.
In the context of financial services, a mentor can play a crucial role in helping new employees understand the nuanced aspects of their work, such as client relationship management, compliance documentation or risk assessment practices. This encourages the new hire to feel confident in asking questions – an important element of growth and development.
7. Gather feedback and adjust onboarding practices accordingly
The onboarding process should be dynamic and evolve based on feedback. After the first few weeks or months, it’s important to gather feedback from the new employee to identify areas for improvement in the onboarding process. This demonstrates to the new hire that their input is valued, while also enabling the company to refine its strategies.
Regular check-ins throughout the onboarding process – whether conducted by HR, team leads or mentors – can provide valuable insights into what works well and what needs to be adjusted. Taking this a step further and implementing changes based on this feedback can lead to a smoother onboarding experience for future hires, while simultaneously improving retention rates.
Retain the best talent through an effective strategy for onboarding new employees
Onboarding is a critical process that, when done right, sets up new hires (and the companies they work for) for success in the financial services industry. Structured onboarding enhances productivity and compliance and contributes to long-term employee retention – a vital factor in the highly competitive financial services market.
Refine your best practices for onboarding new employees with the help of 360 Search
For more tailored solutions on recruitment and onboarding in the financial services sector, 360 Search provides customised services to ensure your firm stays ahead in attracting and retaining top talent.
We understand that a successful recruitment and onboarding process is key to delivering a strong return on investment. We recognise the time and effort it takes to recruit, interview and onboard new employees, and how these activities can impact your business operations. That’s why getting the right hire is critical. As a trusted partner, we connect you with top-tier talent, ensuring you make informed hiring decisions.
Contact us today to see how we can help your organisation find the perfect fit for your team.
