4 minutes
Reconsider some of the old-standby incentives.
Forever people-centered, the credit union industry is no stranger to strategic empathy. We dedicate vast resources to getting inside the minds of members so we can serve them better. Imagine the possibilities if we committed the same energy to understanding credit union leaders. After all, exceeding the expectations of the industry’s executives could have dramatic impact on everything from leadership continuity to overall growth of the movement.
Just like members, every credit union leader is unique. Factors such as former workplace experiences, ambitions for the future and cultural influences shape their perceptions and affect personal goal setting. Creating a rewarding executive experience, therefore, must be highly personalized with benefits as distinct as the individual.
To be sure, there are staples of job satisfaction that credit unions can confidently apply to their executive benefits strategy. However, as the C-suite becomes more diverse, it’s appropriate to challenge the status quo. Particularly as more women take over leadership roles in the credit union industry, HR and board decision-makers may want to reconsider some of the old-standby incentives.
Taking the temperature of your leaders in the following three areas may help you design an executive benefits package that resonates with the top talent your credit union needs for a strong future.
Are the Credit Union’s Retirement Contributions Attractive Enough?
Because mothers are often the primary caregiver for children and aging parents, female CU executives may come to a leadership position with fewer earning years under their belts. Their 35 biggest-income years, therefore, may not be as high as their male counterparts, reducing their expected Social Security payout.
Similarly, African American and Latino employees in the private sector have historically had much less access to workplace retirement plans. Reduced or no contributions from employers early in a career follows a professional for years and may continue to impact balances even as they move into the C-suite.
As a result, diverse and financially savvy leaders who have calculated what they’ll need for thriving sunset years may insist on greater-than-expected contributions from their credit union employer.
Are You Confident in Your Personal Financial Plan?
Speaking of the financially savvy, not all executives—even in the financial services space—have carved out the time necessary to build and maintain an optimal personal financial plan. This may be a circumstance of a jam-packed schedule or a high-pressure work environment. However, it may also be due to embarrassment or shame.
Especially for women and people of color, who tend to have greater battles with imposter syndrome, admitting they aren’t up to speed on the smartest personal investment, insurance or financing strategies can be a mental roadblock to getting started.
Credit unions should proactively connect their executives with financial coaches who have experience working with people of similar backgrounds and cultures as that of their top talent.
Do You Feel Understood?
Credit union executives run the gamut when it comes to risk tolerance. The industry stereotype has credit union CEOs and boards on the conservative end of the scale. In many ways, this makes them a great match for most credit unions (and the regulators they answer to!). Yet, the tendency to be careful can backfire when it comes to aggressively planning for a personal financial future. Just the same, there are many leaders across the movement who live comfortably in the calculated-risks area of the spectrum.
Understanding how a particular individual weighs the risk and reward of different investment, insurance and retirement strategies will be a key element to crafting an attractive benefits package. It may also open the door for palatable discussions around funding solutions for such packages.
Designing an executive experience with intention calls for intimate understanding of an individual’s unique values, ambitions and goals. Credit unions that take the time to explore and honor this individuality may stand the greatest chance of satisfying the movement’s top performers.
Danielle Scodellaro is an executive benefits specialist with Cuna Mutual Group Executive Benefit Solutions. She can be reached at danielle.scodellaro@cunamutual.com.
The views presented here are the author’s alone and not necessarily representative of opinions held by LPL Financial or any affiliated entity.
CUNA Mutual Group and Cuna Mutual Group are marketing names for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries, and affiliates. Certain brokered insurance products from various insurers may be offered through CUNA Mutual Insurance Agency, a subsidiary of CUNA Mutual Group. Each insurer is solely responsible for the financial obligations under the policies and contracts it issues. For more information, contact your Executive Benefits Specialist at 800-356-2644.
Securities and advisory services, when presented, are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Certain insurance products may be offered through LPL or its licensed affiliates. Registered representatives of LPL offer products and services as part of the executive benefits plans at CUNA Mutual Group. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of CMFG Life Insurance Company or CUNA Mutual Group. Securities and insurance offered through LPL or its affiliates are: Not Insured by NCUA or Any Other Government Agency | Not Credit Union Guaranteed | Not Credit Union Deposits or Obligations | May Lose Value
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