By Kelly Schmit
We are all aware that the Baby Boomers are nearing retirement age, but are we paying attention to the related staffing ramifications and how competition will increase when they do? You may have a successor picked for the top execs at your credit union, but outsiders will court your star folks, and the war for top talent will be fully underway.
Scott Albraccio, sales manager/executive benefits for CUES Supplier member and strategic partner CUNA Mutual Group, Madison, Wis., told attendees of a pre-conference workshop held before last week’s Directors Conference that 52 percent of credit union executives will be eligible for retirement in the next 10 years, and 17 percent plan to retire in the next five. There will be a big call for C-suite jobs, he notes, and fewer people to backfill positions. In short, Albraccio thinks credit unions need to be prepared to fight for talent.
As the mass exodus begins, a succession plan to replace top talent is paramount, as well as an active retention plan to keep qualified staff.
Bryan Hanks executive search director for CUES Supplier member and strategic partner JMFA Executive Search Group, Baytown, Texas, says it takes 50-160 percent of salary to replace a lost employee. Therefore, you need to look at the compensation package as a whole to win hiring matches and keep people in place. A complete package includes base pay, incentives and perks.
Hanks lists the following retention strategies for keeping staff: good onboarding process, clear expectations, mentorship programs, great benefits, clear and fair supervision, adequate training, growth and promotional opportunities, flexible schedules, recognition and awards, compensation, incentives, and creating a “best place to work.”
Deedee Myers, CEO of CUES Supplier member and strategic partner DDJ Myers, Ltd., Phoenix, reminded attendees that succession planning is not a drive-by event, but rather an ongoing process. “You need to be continuously looking at what competencies the CEO of the future should have,” she said.
Myers says staff diversity is key for fresh ideas, and should reflect the diversity of your membership. The more diverse the organization, the more financially successful it is.
As your credit union diversifies its staff and hires new executives, it needs to make sure to protect new and existing investments. When an executive transition happens, people who don’t get the CEO position will most likely start looking.
Albraccio says people leave for money all the time, and you don’t want to be left wanting. Almost half (49 percent) of employers are challenged to fill mission-critical positions, and 59 percent of companies list talent retention as a top concern. Soon, you will need to pay people to stay. The best time to lay plans to do so is now.
“Leadership continuity plans and bench strength will help you win the future talent fight,” he said.
Kelly Schmit is marketing coordinator for CUES.
Read about executive benefits in "Make Them Choose You" by Scott Albraccio from the December 2013 issue of CUES' Credit Union Management magazine.
Also read "Strategic Succession Planning: What It Is and Is Not" by Deedee Myers.
On this blog, you can also read "Look Within Your CU for the Next Leaders" from JMFA.
