Smart Learning

How will we coach professional staff?Where should we have them trained?How efficient such a training could possibly be?How much will it cost?Those are the typical questions for any leader to raise. Particularly, for a leader of an insurance company.

Traineeship abroad (usually in Russia) has long been the only effective way to provide additional training for insurance business professionals.High price and the need to detract workers from their jobs for a long period of time – these were the most evident disadvantages of such approach.Today, a decent alternative to such training exists in Ukraine.We had a chance to see that for ourselves during our visit to CJSC “Ukrainian Insurance House” (ZAO “Ukrainskyi Strahovyi Dim”).Leaders of this fast growing company chose to use an uncommon way of staff training, which is rarely taken use of in the insurance market.In cooperation with Kyiv National University of Economics (KNUE), or, to be more precise, with the InternationalCenter for Business Education (ICBE) that was founded in the end of 2004 at the University, the leaders of Ukrainian Insurance House developed a workshop program for branch directors.Lectures are delivered to the company employees by KNUE’s top professors, and by experienced professionals of Ukrainian Insurance House who have been in the insurance business for a long while.Workshops are held in Kyiv, on the KNUE premises, and in those regions of Ukraine where the company’s branches are present.Insurance Club attended one of the workshops dealing with insurance of property risks.The event was held for three days and took place in one the KNUE buildings and in Vinnitsa branch of Ukrainian Insurance House afterwards.Specially for you, our dear readers, we are publishing a coverage of the events at the workshop. We also asked the head of the Ukrainian Insurance House company and representatives of KNUE’s Insurance Department to share their experience of training program development.

Mikhail Berlin, Chairman of the Board, Ukrainian Insurance House

“As far as the personnel policy of your company is concerned, what is the role of staff training?”

“It is no surprise nowadays, that it is the efficiency of company workers that defines an insurance company’s chances to survive and stay ahead in tough competition, which is getting even more intense in the insurance market.

One of the key factors affecting work efficiency is the level of professionalism of company employees.Due to this fact the staff training issue is of high priority to the overwhelming majority of insurance companies.

To our company, personnel is the main strategic asset. We treat the issue of staff training as the key priority in our system of human resources management.

We used to have only three employees when Ukrainian Insurance House came into existence one and a half years ago.Today, we have more than 70 people working in the head office in Kyiv and in various branch offices (in cities of Vinnitsa, Dnipropetrovsk, Donetsk, Lugansk, Kharkiv, and Chernihiv).This period of time was used for the senior management staff of the company to clearly set priorities and development patterns, guidelines for the workers, as well as to create basis for corporate ethical policies.We also made a good use of innovative staff recruitment methods.All these steps led to development of well-shaped, integral and constantly functioning training system.After using “narrow” training for some while (non-systematic participation in training sessions), we realized the need to implement scheduled education system for our specialists.In order to accomplish this goal we set a direct relationship to employees’ career development charts, lecture schedules, workshops and training sessions for company workers”.

“Your company has reached many goals, but probably there is still a lot to be worked on?”

“Of course. We are currently in the stage of choosing the most rational ways, methods and patterns of training. We are working our way through the period of experimenting and formalization of positive accomplishments in our company.

Today, we are putting the final touch to the staff assessment procedures, determining the training needs and evaluating the effectiveness of training.In particular, we are refining the employee training outcome report forms.But still there are many disputable and unresolved issues.However the most important thing is that our team has a good understanding of the organization of the training process and a clear idea of the goals we are aimed at”.

“Training requires a great deal of costs.Do they pay off?”

“A budgeting system that is being implemented in our company lets us plan and analyze training costs.However, in our company, such costs are treated as investments rather than expenditures. Productivity level of such investments will be determined based on the year 2005 results”.

“Are there any ideas that you can share with the readers of our magazine?”

“Everybody understands that there is no “one size fits all” method of staff management.It takes months and even years to create a determined team and to establish a corporate culture.Besides, companies differ significantly in terms of consistency and ethical aspects of personnel policy, which prevents me from recommending a unified approach.However experience of all those companies is invaluable.

For instance, one of the innovative features we have introduced is involvement of key workers of all units into the process of determining the training policy.Their life experience and training skills, creative ideas, and the background of being employees at other companies that use European standards of management, give us an opportunity to define up-to-date patterns in personnel development.In addition to traditional forms of staff training, such as training sessions and workshops, we use mentoring techniques. It is also noteworthy that development of our proprietary standardization and certifications system for our employees is currently underway.

We opened a training center at the company. Both full-time and outsourced teachers work there.The training program includes:

1. lecture course on insurance products;

2. sales techniques course;

3. a course for beginners;

4. communication skills development course;

5. a program for top managers and other management staff of the company.

In particular, a project that involves training of the branch senior management staff performed by KNUE professors is being carried out”.

“Why did you decide to work specifically with KNUE?”

“We often employ good managers and financial experts who show interest in insurance business, but lack experience and knowledge in this field.We appreciate those specialists and help them to become re-educated.KNUE professors give our workers a profound theoretical basis of insurance business, while those specialists who have long worked in the company and also act as workshop leaders enrich the learning experience with practical advice.

O. P. Gurkach, Director of Vinnitsa Branch, Ukrainian Insurance House

“Today's workshop topic is Property Insurance.What are your impressions of the courses?”

“They are very useful.I can ask any questions about things I am interested in".

“How long have you been into the insurance business?"

“Only for half a year.I used to be a private entrepreneur before.I have a degree in economics, andI believe that the insurance business has a high potential.It is very nice that the company gives us a chance to boost our knowledge up to the appropriate level.We will see the results later on, after the complete course is finished.As for now, I am glad to have an opportunity to ask questions and get competent answers.Unfortunately, good books about insurance business are scarce, and therefore getting information from teachers is the optimal way to gain knowledge.

I strongly believe that learning and refining one’s knowledge is a process that should last throughout the whole career.Furthermore, today such approach is a must since modern business practices in our country tend to make the best use of European business standards.I am glad to be employed by a company that treats its workers as the highest value, and does not restrain investments into their education.

Semyon Osadets, PhD in Economics, Professor, Head of Insurance Department at Kyiv

NationalUniversity of Economics

KNUE has a strict education quality control. A vice principal will never sign a skill improvement certificate until he makes sure that the program quality is high.

Semyon Osadets:“Today’s insurance business is experiencing an enormous demand for staff.Meanwhile, insurance specialists who graduate from colleges and universities are very few.For example, as little as 60 students per year graduate from KNUE, and 30 to 40 people graduate from institutions in Ternopil.That’s it!This is all there is for those 387 insurance companies operating throughout the country.As for the re-education and additional training (skill improvement) programs, six years ago KNUE introduced a Masters Program in insurance management.More than 120 students have graduated from there.They now represent the elite of the Ukrainian insurance market and are heads of the leading insurance companies.In the end of 2004 the InternationalCenter for Business Education was created at the KNUE. It specializes in providing education programs, consulting services and training sessions (including those dealing with insurance business).By now, we have completed long-term skill improvement programs for two insurance companies through this Center".

“What are those programs like?”

“They are custom-designed for each insurance company (according to a company's needs) and are based on the standard program which was developed by the faculty of the department of insurance at KNUE and jointly approved by the Rector of KNUE and the Head of the State Financial Services Department.These custom programs comprise modules that can be easily modified according to the needs of a company.The learning cycle can last either 72, 144, or 256 hours.For example, we developed a 9 month training program specifically for Ukrainian Insurance House.The program provides for theoretical and practical training; it includes a series of workshops that is structured topic-wise”.

“What does a custom program design process include?Let’s say, a manager requests that his workers get trained.What happens next?”

Olga Gamankova, PhD in Economics, Professor, Deputy Head of Insurance Department at Kyiv National University of Economics

These custom programs comprise modules that can be easily modified according to the needs of a company.The learning cycle can last either 72, 144 or 256 hours.

Olga Gamankova:Our officially approved training program is offered to that company.Then the company chooses topics relevant to its interests and determines an approximate number of hours needed to go through each of the topics.Lecturers are not only the professors of KNUE, but also the experienced insurance business professionals (usually, the workers of the company).The least possible number of hours in a program is 72, and the longest program duration is 256 hours.For instance, Illichevskaya Insurance Company sent its employees to KNUE.They studied for 21/2 months. Ukrainian Insurance House chooses a different program delivery format.They find it more appropriate for their schedule if the employees are sent to us once a month. Then the employees take from 12 to 16 hours of lecturing, participate in intensive practical training sessions, and then go back to revise the topics introduced to them at the lectures.If such approach is chosen, the study process becomes quite long (9 months). A qualification certificate is awarded once the program is finished.Knowledge assessment is done based on the outcome of each workshop and is carried out by the means of test assignments developed on each topic by the teaching staff.Attendees of the courses are examined after the entire program is completed.Besides, they do a final written assignment oriented towards the actual needs of the company”.

“How much will the course cost to the company?”

Semyon Osadets:Per attendee fee depends on the total number of employees a company sends to us.The more attendees, the lower is the fee per one student.However, the program is unreasonable to run if the total number of attendees drops below 15. We can adjust the learning format depending on the needs of a company”.

“What does the tuition fee include?”

Olga Gamankova:The lion’s share of it is the professors’ salary.Plus, it includes the rent, if the workshops are run on the KNUE premises.The workshops can also take place in the insurance house’s office. Cost of learning materials and accessories that are handed out to students is also included in the tuition fee.At the workshops, our attendees get books and electronic materials that they will be able to use in the process of gaining knowledge on the issues covered by the program.It is worth mentioning, that tuition fee in our center is competitive.And yet it does pay off.Those specialists who have completed the program work more effectively and with a better understanding of their jobs.

Acting on behalf of such high-rated university as KNUE, we will never compromise our reputation by awarding certificates that are not backed by real knowledge.To us, this is the issue of absolute importance.KNUE has a strict education quality control. A vice principal will never sign a skill improvement certificate until he makes sure that the program quality is high, and the classes really did take place.