Pay Increases Are Back

by CUNA eScan

The improving economy will require credit union leaders to review their compensation programs and retention strategies, according to the 2013-2014 CUNA Staff Salary Report.

 

“Credit unions that aren’t rewarding their employees competitively run the risk of losing them to an employer who will,” the report says.

Credit union leaders should note these findings:

Pay is rising. Credit union raises average 2.6% for managers and 2.5% for nonmanagers. Analysts expect 3% increases nationally across all industries.

The percentage of credit unions implementing wage freezes is dropping. During the height of the recession, 45% of credit unions froze wages. In 2013, 29% expect to do so.

Hiring is increasing. During the last two years, about 20% of credit unions said they planned to increase full- and part-time staff. In 2013, that number rose to 25%.

Credit unions that plan to bolster staffing say they will add, on average, 4.4 full-time employees and 2.2 part-time employees.

Retention is crucial. The uptick in hiring and pay adds importance to credit union compensation packages.

Two-thirds of credit unions offer variable pay as a retention strategy, with 55% offering bonuses and 38% offering incentives, according to the CUNA Staff Salary Report.

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