Credit union professionals looking to improve banking services and deepen their relationships with business partners should consider creating transparent career paths for their employees. Career pathing presents a structured development program within any financial institution. If done successfully, it allows workers to see their potential for advancement, set clear milestones and receive proper direction to achieve these aspirations.
Credit unions with burgeoning career path programs support employees in developing the necessary skills to advance in their field. They can benefit a company in many ways.
The Benefits of Career Pathing Options
Job path programs are vital in avoiding employee turnover. Replacing workers who resign is expensive, costing 21% of their annual salary. People who clearly understand how their career progresses will be less likely to quit, costing financial institutions fewer expenses and resources to rehire new employees.
Credit unions that have career path options in place are more likely to attract and retain talented employees and people who are qualified for the positions. Once transparent career pathing options are established, employees will have something additional to work toward. They’ll be incentivized to become top performers to advance their careers, resulting in better outcomes for the credit union.
How to Create Career Paths for Employees
Before establishing career paths for employees, best practice calls for company reflection and setting goals as a leadership team. What does the credit union hope to achieve with the career pathing program? Consider objectives like productivity, employee engagement or turnover as focus areas.
1. Create a Career Road Map
Create a detailed career map for each company position that charts a development path in each business area. For example, have a career map detailing the steps to go from a teller to a relationship banker, loan officer or auditor.
Additionally, explain the moves it would take to transition into a management role. Using a diagram or graphic to represent career position changes is helpful. It also highlights the many opportunities for employees to advance in their careers.
Add clarity by fleshing out the position profiles. Outline and detail job responsibilities, education requirements and necessary skills. Include technical training, licenses and required certifications.
2. Outline Performance Standards
Ask HR for a review of the top employee’s performance. Translate these numbers to the career road map, so other workers can aspire to the same execution level. Consider researching different metrics in banking to provide a broader achievement scale.
3. Incorporate Training Opportunities
Identify professional development opportunities for employees to advance and grow. Consider milestones like leadership training classes, employee stock ownership finances or cross-functional development courses. Additionally, market these training opportunities as a perk within the credit union and allow workers to complete training during office hours.
Offering growth options with an employee’s career can benefit a company significantly. People feel loyal to their employer, making them more likely to stay in their current role. It helps to develop the worker and save the company money by promoting from within rather than hiring from outside.
Communicate About the Career Pathing Program
Once the career path program is organized and established, the next step is ready to roll out. Consider having HR communicate the news so all is shared with existing employees in the same manner. Ensure everyone understands that the company wants them to grow. Have managers revisit this information soon after it’s been implemented to guarantee workers understand the core contents.
Keep career paths transparent for all employees by posting the road maps for all to see in the company interweb. If there’s a physical office location, consider printing it out and displaying it. Have managers routinely meet with employees to see how they’re doing on their personal career path program.
Set up a System to Track Performance
Launch the program and establish a system to track employees’ success. Performance management software can help HR manage employee progress in the career path program and document job reviews. Another option is to administer a career development survey before launching the program and then conduct another study three months later. Compare results for benchmark data. Inspect turnover rates and employee performance metrics to measure success.
Support Employees Through Career Paths
The benefits of creating a career path program are profound. Employees are more likely to stay in their current role and become more efficient workers to help improve banking services and deepen business relationships.