Striking the right balance between staffing needs and wants
In the not-too-distant past, we saw quiet quitting, and it appears in 2024 that we are seeing a return to layoffs. For example, Kinecta Credit Union, with 806 full-time equivalent employees, recently laid off 84 employees due to a fall in earnings. And, Kinecta is not alone in this trend. The workplace looks and feels schizophrenic.
In my observations, I saw a lot of post-pandemic hiring, a lot of employees shopping the job market, some quiet-quitting, and dissatisfaction with the return-to-work (RTW) mandates that drove job satisfaction scores down.
Another observation is that a credit union appears after a staff layoff and the credit union posts job openings. This is curious. I believe there are reasons for these mixed messages. Sometimes there is empire-building. Empire-building typically refers to a situation where the leadership focuses on expanding a department’s size (think influence), using hiring to compensate for poor execution or performance, or hiring more bodies instead of seeking efficiencies and process improvements.
The term empire-building carries a negative connotation if the expansion is seen as overly aggressive or if it deviates from the credit union’s primary mission and strategic objectives. Of course, responsible growth can enhance a credit union’s ability to provide better services and benefits to its members. However, credit unions must balance growth objectives with their commitment to member service, financial stability, acceptable expense ratios, strategic objectives, and job security for their employees.
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