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CU Snapshot

 Aug '17Jul '17
# of CUs5,708 5,893
Members
(millions)
112.7112.2
Total Assets
($ billions)
$1,372.1$1,383.7
Total Savings
($ billions)
$1,158.6$1,165
Net Cap.
Assets
10.8%10.7%
Loans to Savings82.3%81.5%
Loan Delinq.0.8%0.7%

         Credit Union Indicators

Take the Sting Out of Staff Turnover

Follow these four tips to shore up your compensation strategy.

Rising employee turnover has become a larger concern in a number of credit unions. External factors such as the improving economic outlook, rising business confidence, and the resulting job creation surge increase employees' willingness to shop around for more rewarding opportunities.

Credit unions have been hit hardest in the teller lines, where annual turnover rates hover between 25% and 30% in credit unions with assets of $50 million or more, according to CUNA's upcoming 2015-2016 Turnover and Staffing Report.

The report indicates turnover in the management ranks (excluding senior management) pales in comparison, hovering around 10%. This, of course, provides little consolation to credit unions actually hit with management-level departures. If the resulting work-flow disruption, lack of strategic direction, and other challenges that frequently emerge when managers leave aren't painful enough, finding a high-quality replacement can be just as daunting.

Consider these tips to put your credit union in a better position for recruitment success:

Refer to your credit union's base-pay compensation strategy. Factors influencing your strategy include the geographic market, the position for which you're hiring, and/or your desire for specialized, hard-to-find skill sets. Then determine if your credit union wants to offer its potential job candidates base pay that's above-the-market, at-market, or below-the-market.

Access multiple sources of compensation information. Consult industry sources such as CUNA's 2015-2016 Staff Salary Report when determining a competitive base-pay target. Many credit unions will rely on several sources from both within and outside the credit union and financial services industries.

Rely more heavily on the medians, rather than the averages, as your starting point for establishing your base-pay targets. Many compensation reports will provide both an "average" base salary and a "median" base salary for a given job position. Much more often than not, the median figures are the most reliable option.

The median represents the middle mark of a range of base salaries employees holding a given job position earn. Essentially, researchers list each individual's base salary from the lowest dollar amount to the highest dollar amount. The median is the salary found exactly halfway up the list. So, half the people in that job earn more than the median dollar amount, and half earn less.

By and large, "averages" are more susceptible to situations where an individual or a very small group of individuals in a particular job position gets paid significantly higher or lower than those in the rest of the group. These vast departures from the norm can then yield misleading compensation information. The median will provide a more accurate picture for your compensation projections.

Focus most heavily on the "by credit union asset size" information in the compensation report(s), to determine your targeted base-pay level, followed by the "by region of the U.S." information.

A number of factors can influence a credit union job position's median base-pay level, including how many people the credit union employs full-time and how many members it serves. But the most influential factor is the credit union's asset size. For the most part, the median base salary for a given position increases as the credit union's asset size increases, according to CUNA's salary report.

Staff departures are inevitable. But your credit union can approach recruiting with confidence by arming yourself with a well-established compensation strategy, multiple compensation resources at your fingertips, and a solid plan for sorting through these resources.

JON HALLER is CUNA's director of corporate and market research. Contact him at 608-231-4346 and jhaller@cuna.coop.


CUNA's upcoming 2015-2016 Turnover and Staffing Report will be available this fall instantly to Complete and Expanded subscribers. It also will be available for separate purchase.