Variables affecting employees of insurance companies in achieving learning outcomes competency brought by regulatory changes

Date
2021-12
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: The FAIS Act 37 of 2002 stipulates the Fit and Proper requirements for employees engaged in intermediary services and advice in the South African Financial Services Sector. They must achieve competency in regulatory learning in order for them to be declared Fit and Proper. Competency is defined from a theoretical perspective to demonstrate a positive outcome when assessed for skills, knowledge and expertise needed for execution of tasks in relation to a financial product a person is authorised to deal in. This research project is a case study. Empirical literature provided a conceptual framework through which the study determined the statistical significance of self-directed learning, organisational culture, change management, time management, emotions, motivation and technology in achieving academic success, which is equated to competency for this study. Purposive sampling was utilised to select two insurance companies in South Africa. Two hundred and eighty-five employees in roles entailing advice and intermediary services were targeted as participants. Quantitative data (close-ended questions) and Qualitative data (open-ended questions) were collected through a questionnaire completed online by participants. Document analysis was conducted through the latest competency register from Company A and FSCA competency report. Company B is exempted as per FAIS Notice 78 of 2019. Qualitative data was also collected using four semi-structured focus groups comprising a minimum of six participants per session. Mixed method was used. Quantitative data was statistically analysed. Linear regression was applied to determine the significance of self-directed learning, organisational culture, change management, time management, emotional intelligence, motivation and technology in achieving competency in regulatory learning. Qualitative data was thematically analysed. The Ascent to Competency model was adopted for this study. It demonstrates that needs of students must be met hierarchically before a learner can ascent to competency. Data revealed that Motivation, Emotions and Organizational Culture are at 5% level of significance with averages of 0.1871, 0.2329 and 0.5879 respectively. Change Management and Time Management are statistically significant at 10% level of significance. On the Ascent to Competency model, Change Management is placed at the first layer of the hierarchy under safety and security, followed by Organisational Culture under belongingness. Time Management, Emotions and Motivation fall within the third hierarchy, called Self-concept. Self-Directed Learning and Technology at 0.0237 and 0.0644 respectively are not statistically significant in explaining the model. Qualitative data revealed that all variables identified in this study have an impact on employees when they engage in regulatory learning to achieve competency. Other variables such as Experience, Family Support, Remuneration Model, and Quality of Training also affect employees. The role of the employer was emphasised strongest by respondents as factor affecting the achievement of competency in regulatory learning requirements. Data showed that employees are not accustomed with potential assistance they could get from the FSCA and InSETA. Employees unable to attain competency face the consequences of either debarment, which leads to job loss, or demotion to jobs outside of the advice and intermediary service sector. It is thus necessary for employees of insurance companies to understand both the barriers to, and enablers of achievement of competency, bearing in mind the implications for not fulfilling Fit and Proper requirements.
AFRIKAANSE OPSOMMING: Die Wet op Finansiële Advies en -Tussengangersdienste No 37 van 2002, hierna genoem die FAIS Act, bepaal die vereistes vir Geskik en Gepas (Fit and Proper requirements) vir werknemers wat hulself verbind tot die lewering van advies- en tussengangersdienste in die Suid-Afrikaanse Finansiële Dienstesektor. Hul moet die vlak van bevoegdheid in gereguleerde akademiese opleiding bereik voordat hul as Geskik en Gepas verklaar mag word. Bevoegdheid word vanuit ‘n teoretiese perspektief gedefinieer om ‘n positiewe uitkoms te reflekteer wanneer ‘n werknemer getoets word vir die vaardighede, kennis en kundigheid wat relevant is tot die uitvoering van enige taak relevant tot die verhandeling van ‘n finansiele produk waartoe sy of hy gemagtig is. Hierdie navorsingsprojek is ‘n gevallestudie. Empiriese literatuur het die konseptuele raamwerk voorsien waarvolgens die statistiese beduidendheid van selfgedrewe leer, organisasiekultuur, veranderingsbestuur, tydsbestuur, emosies, motivering en tegnologie in die bereiking van sukses bepaal is. Sodanige sukses word dan aan vaardig wees gelykgestel. Doelgerigte steekproefneming was die steekproefstrategie waarvolgens twee versekeringsmaatskappye in Suid-Afrika vir hierdie studie geselekteer is. Tweehonderd vyf en tagtig werknemers in werksrolle wat advies- en tussengangersdienste behels, is as deelnemers aan die studie geidentifiseer. Kwantitatiewe data is versamel deur middel van geslote vraelyste, en kwalitatiewe data deur oop vraelyste, in beide gevalle aanlyn. Dokumentontleding is gedoen deur raadpleging van die jongste vaardighedsregister van Maatskappy A met inagneming van die FSCA-vaardigheidsverslag. Maatskappy B was hiervan uitgesluit soos per FAIS-kennisgewing 78 van 2019. Kwalitatiewe data is verder versamel d.m.v. vier semigestruktureerde fokusgroepe, met ‘n minimum van ses deelnemers per sessie. Gemengde metodes is benut in hierdie studie. Kwantitatiewe data is statisties ontleed. Liniêre regressie is toegepas om die beduidendheid van selfgerigte leer, organisasiekultuur, veranderingsbestuur, tydsbestuur, emosies, motivering en tegnologie ten opsigte van die bereiking van vaardigheid in gereguleerde (verpligte) studies te bepaal. Kwalitatiewe data is tematies ontleed. “Die Ascent to Competency Model” (Bestyging tot Vaardigheidsmodel) is vir hierdie navorsingsprojek aanvaar. Dit het bewys dat die behoeftes van studente hierargies bevredig moet word alvorens die student / werknemer tot vlak van vaardigheid kan styg. Data het bewys dat motivering, emosies en organisasiekultuur statisties beduidend is op die 5% beduidendheidsvlak, met gemiddeldes van 0.1871, 0.2329 en 0.5879 onderskeidelik. Veranderingsbestuur en tydsbestuur was statisties beduidend op 10%. Gemeet aan die Ascent to Competency model, is veranderingsbestuur rangordelik onder veiligheid en sekuriteit eerste geplaas, gevolg deur organisasuiekultuur onder aanvaardingsgevoel. Tydsbestuur, emosies en motivering word hierargies derde geplaas onder selfbesef. Selfgerigte leer en tegnologie, teen 0.0237 en 0.0644 onderskeidelik is bevind as statisties onbeduidend in verklaring van die model. Kwalitatiewe data het bewys dat alle veranderlikes in hierdie studie geïdentifiseer ‘n impak het op werknemers wanneer hul betrek raak by gereguleerde studie sodat hul bevoeg verklaar kan word. Verdere veranderlikes, soos ondervinding, familiesteun, vergoedingsmodel, en opleidingsgehalte het ook ‘n impak op werknemers se bereiking van leeruitkomste, in hierdie geval, om formeel bevoeg bevind te word. Data bewys dat werknemers nie bewus is van potensiele hulpverlening wat deur FSCA en InSETA beskikbaar gestel word nie. Werknemers wat nie bevoeg bevind word volgens die vereiste vaardigheidsvlak nie, loop die risiko om professioneel verbied te word om verdere finansiele dienste te verskaf, wat noodwendig sal lei tot óf ontslag óf gedwonge verlaging tot ‘n pos of posvlak waarvan advies- en tussengangersdienste nie deel vorm nie. Daarom is dit noodsaaklik vir werknemers van versekeringsmaatskappye om ingelig te wees ten opsigte van beide die belemmernisse en instaatstellers tot die bereiking van vereiste vaardigheidsvlakke, en die negatiewe implikasies van nie as Geskik en Gepas (not Fit and Proper) geevalueer te word.
Description
Thesis (MMil)--Stellenbosch University, 2021.
Keywords
South Africa -- Insurance Sector Education and Training Authority, INSETA, Self-managed learning, Financial services industry -- Management -- South Africa, South Africa. Financial Advisory and Intermediary Services Act., Financial institutions -- Management -- South Africa, Corporate culture -- Time management, Organizational culture -- Time management, Insurance companies -- Employees -- Management, UCTD
Citation