Holding on to top talent at your credit union: 5 strategies for increasing employee retention

With a strong focus on serving the local community and prioritizing member needs over maximizing profits, credit unions rank high in customer service and loyalty. The positive image and people-first mission of credit unions can also contribute to employee loyalty and longevity.

People connect more strongly to careers that they find meaningful, and being a trusted part of a community can contribute to that sense of meaning. But that’s not always enough to hold on to performers, especially when financial institutions with higher profit margins and higher salary offerings can tempt them away.

It’s just as important to focus on employee retention as it is member retention; after all, they’re the ones carrying out the organization’s mission! Credit unions need to actively implement strategies that address the needs and aspirations of their workforce.

Why employee retention matters:

• Reduced costs: Recruiting and training new employees is expensive. According to Gallup, “The cost of replacing an individual employee can range from one-half to two times the employee’s annual salary…” Retaining existing employees reduces these costs and ensures continuity of service.
• Increased productivity: Experienced employees are more productive and efficient. High turnover disrupts workflows and hinders productivity, especially if the people left behind have to take on extra duties while new staff members are hired and trained.
• Improved member service: Employees who feel valued and engaged are more likely to deliver excellent service to members. And excellent service leads to increased member retention.
• Enhanced brand reputation: A reputation for being a good employer attracts top talent and fosters positive community relationships. This is especially important given how interconnected credit unions are with the communities they serve.

Strategies for boosting retention:

1. Create a culture of recognition and appreciation:

• • Regularly acknowledge and reward employee contributions, both big and small. This can involve public praise, performance bonuses, or even simple gestures of gratitude.
  • Implement a peer-to-peer recognition program where employees can publicly acknowledge their colleagues’ achievements.
  • Provide opportunities for employees to showcase their expertise and talents through projects, presentations, or mentoring programs.

2. Invest in professional development:

• • Offer training and development opportunities to help employees learn new skills, advance their careers, and stay up to date on industry trends.
  • Consider offering tuition assistance programs and encourage employees to pursue additional education or professional certifications.
  • Create opportunities for internal mobility by providing career paths and mentorship programs.

3. Foster a work-life balance:

• • Offer flexible work arrangements such as remote work, compressed workweeks, and flexible scheduling.
  • Promote generous vacation and sick leave policies to encourage employees to take time off and recharge.

4. Build a strong company culture:

• • Clearly communicate the credit union’s mission, values, and vision, and ensure employees understand how their work contributes to its success.
  • Promote collaboration and teamwork by creating opportunities for employees to work together on projects and initiatives.
  • Encourage open communication and feedback by conducting regular employee surveys and holding open forums for discussion.

5. Address compensation and benefits:

• • Conduct regular salary reviews to ensure employees are paid competitively within the industry and local market.
  • Offer a comprehensive benefits package that includes health insurance, retirement plans, paid time off, and other valuable perks.
  • Consider offering unique benefits that cater to specific employee needs, such as wellness programs or financial planning assistance.

By implementing these strategies, credit unions can create a work environment that fosters employee engagement, satisfaction, and loyalty. This, in turn, will lead to reduced turnover, increased productivity, and improved member service, ultimately contributing to the credit union’s long-term success.

Additional tips:

• Consider a behavioral assessment, like the Omnia Behavioral Assessment, to help hire people best suited to each position and to learn how best to motivate and develop your team.
• Conduct exit interviews to understand why employees leave and identify areas for improvement.
• Create a strong onboarding program to help new employees feel welcome, informed, and engaged from day one.
• Seek feedback from employees regularly and involve them in decision-making processes.
• Promote diversity and inclusion within the workplace to create a sense of belonging for all employees.

Investing in employee retention is an investment in the future of the credit union. By creating a work environment that values and supports its employees, credit unions can build a strong and sustainable workforce that is committed to serving their members and the community.