By Scott Albraccio
Imagine the following scenario: a credit union’s CEO tells the board he or she is planning to retire. The board begins their quest to find a CEO successor, carefully considering key internal C-level candidates, as well as external candidates. Whatever their final decision, a leadership change generally triggers a period of employee concern and uncertainty throughout all levels of the organization. Credit union C-level leaders are looked to to reassure and inspire “the positive impact” to their staff. At the same time, the board needs to be cognizant that they have measures in place to reassure and stabilize the credit union’s C-level talent. If the working dynamics start off rough as the new leader takes the reins, what can be done to keep these executives at your credit union and working through a tough transition?
Maintaining continuity within your team of C-level executives is crucial to your credit union’s success. If you think of the CEO as the field general, shaping and overseeing the strategy, your C-level executives are the lieutenants who execute that strategy—making them very important to your organization’s future.
More and more credit unions are offering executive benefits programs to the C-level executives, the delivery of which are contingent on the executive staying with the credit union through a transition and even beyond. This incentive has proven to be a powerful way to motivate C-level employees not only to stick with the credit union, but also make sure the new CEO is integrated into the credit union successfully.
C-level executive benefits are also an excellent recruitment tool. Your credit union may want to broaden its pool of applicants for an executive position by seeking out candidates beyond the credit union industry. If a candidate is from the banking industry, they’ll expect the robust benefits they’re used to having. While your credit union can’t offer stock options, you can offer non-qualified deferred compensation in the form of an executive benefits program. There are several ways to structure an executive benefits program so it fits in your credit union’s financial picture, mitigating direct cost to your organization.
There has never been a more important time to make sure your executive benefits are satisfactory and competitive. Right now, 52% of employers say they’re challenged to fill high-level positions in their organizations, despite the current unemployment rate. Meanwhile, 50% of CEOs age 60 to 64 say they’re planning on retiring. Updating and enhancing your executive benefits programs now will help position your credit union for greater stability overall.
Scott Albraccio is the sales specialist manager of executive benefits for CUNA Mutual Group, Madison, Wis.
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