5 challenges credit union leaders will face in 2025

As 2024 comes to a close, you’re no doubt reflecting on what this year looked like, and what the new year will bring.

What challenges will you face as a credit union leader? And what opportunities come with them?

Here’s a condensed list of some of the top challenges for the coming year. But before we dive in, let’s make sure we’re thinking in the right terms. Yes, some of these are daunting challenges. Some of last year’s greatest problems have become even worse. They are all opportunities—for the human-centric leader.

Yup. We’re still trying to find that balance between remote work and getting people back on site. Remember that balance is a dynamic process. We’re never going to find a static balance point. Let’s find a way to take full advantage of both remote and on-site work.

Challenge: Balancing the need for flexibility with maintaining a cohesive and engaging work culture. Leaders must manage productivity and ensure team collaboration across different working environments.

Opportunity: This is a moment to better understand our people, their needs, and the environments that help them excel. By truly listening to our teams, we can create strategies that maximize productivity and nurture autonomy and work-life balance. When leaders embrace empathy and adaptability, the rewards can be transformative—for individuals and organizations alike.

Challenge: The competition for skilled workers is fierce, especially in specialized and emerging fields. First, it was “quiet quitting.” Now it’s “revenge quitting.” People are not sticking around when they’re dissatisfied. When they’re unhappy, they share their experiences widely, intensifying the talent search struggle.

Opportunity: Retaining talent demands more than competitive salaries. Employees crave purpose, growth, and authentic connection. Leaders who genuinely care, who help their teams find meaning in their work and opportunities to develop, will create environments that inspire loyalty and drive performance. Show your people they matter, and they will show up for you.

Challenge: Leaders face the complex task of fostering genuinely inclusive environments while navigating polarized social landscapes. Missteps can erode trust and unity.

Opportunity: Let’s embrace our shared humanity. It’s not our differences that make us stronger, but our ability to work together despite them. Leaders who unite diverse talents and perspectives can unlock innovation and creativity. The key? Building bridges and demonstrating that collaboration transcends division.

Challenge: A leadership gap looms as Boomers retire and job market dynamics shift. Many organizations are unprepared for this transition, risking continuity and vision.

Opportunity: The solution lies in mentorship and proactive development of future leaders. Invest in human-centric leadership training. Equip emerging leaders with adaptability, compassion, and strategic insight. By fostering a robust pipeline, we ensure resilience and sustained success.

Challenge: Leaders must integrate new technologies—AI and automation—without alienating employees or losing the human touch. Fears about job displacement and rapid change can undermine morale.

Opportunity: Reskilling and upskilling are our answers. Technology should empower, not replace. Let’s reimagine roles to focus on creativity, innovation, and human impact—areas where machines can’t compete. Lead with vision, ensuring tech-driven evolution amplifies humanity rather than diminishes it.

The coming year offers credit union leaders incredible opportunities—perhaps the greatest in decades. Each challenge is a gateway to creativity, growth, innovation, and the expansion of human potential.

If we “Keep it Human!”

To harness these opportunities, leaders must master three timeless disciplines:

Touch hearts, not just minds. This isn’t sentimental fluff; it’s core to effective leadership. Inspire through connection, transparency, vulnerability, and unwavering integrity. Let your vision be a beacon, guiding your team through uncharted waters. Everyday actions—consistency, courage, and compassion—create the trust and motivation to achieve greatness.

Empowerment goes beyond resources. It’s about creating conditions where people thrive. From recognition and encouragement to clear paths for advancement, empowerment fosters excellence. Ask your team what they need to succeed—and deliver. Leaders who prioritize development and trust build unstoppable teams.

Be a mentor. Share knowledge, wisdom, and support. Create environments where collaboration and peer mentoring flourish. Formalize mentorship programs and make them integral to your culture. Guide consistently and intentionally, knowing that your legacy as a leader is reflected in the success of those you serve.

These disciplines aren’t “soft skills.” They’re essential leadership skills.

Your success in 2025 will be defined by the success of your people. The best leaders continually strive to inspire, empower, and guide—lifting their teams to achieve their best, and in turn, reaching new heights themselves.

Inspire. Empower. Guide. Do this, and your team will make 2025 your best year yet.