By Charles Shanley, SPHR
When credit unions seek to control costs, they may not consider the high cost of attracting and keeping their executive talent. Replacing an employee can cost up to 160% of the position’s salary. Meanwhile, 70% of credit union CEOs plan to retire in the next few years. Therefore, attracting new talent and retaining valued employees becomes a difficult challenge.
What many credit unions might not realize is that much of this dilemma can be mitigated by developing current employees’ talents and skills. They are more likely to look outside the credit union for new talent, but there’s a huge opportunity to strengthen existing staff by implementing a mentoring and training program, creating “homegrown” talent.
Credit union employees who leave their organization often cite a lack of challenge as their main reason for defecting. When your employees are given new challenges and the support necessary to succeed, they feel valued and engaged—increasing the chance they will stay with your credit union. The benefit to your credit union is a pool of highly competent employees who are prepared to step into the next level of responsibility.
The key to any strong mentoring and training program is a robust onboarding program. This process is one of the easiest and most effective ways to start a new employee off right and ensure they stay for the long haul.
An onboarding program is a system that fully integrates a new employee into the culture and processes of the credit union. One of the top reasons a new employee leaves soon after the start of their employment is a lack of expectations and introductions. By providing the employee with clear goals and expectations from day one, and introducing them to the key players in your credit union, you’ll help the employee feel oriented, welcome and ready to jump into their responsibilities.
Finally, be sure your credit union provides employees with recognition for their successes. This recognition needn’t be financial. For many employees, just being spotlighted for excellent member service or impressive accuracy is enough to reinforce their loyalty to your credit union.
As they say, “the grass is always greener.” While the outside world is filled with potentially talented employees, don’t forget your credit union is staffed with people who are already dedicated to the success of your organization and your members. With training and guidance, they could be the future superstars of your organization.
Charles Shanley, SPHR, is Executive Search Director for John M. Floyd & Associates’ Executive Search Group.
Learn how CUES Executive Search in Partnership with JMFA ESG can help fill your open positions now.
