Credit Union Employee Turnover Rates to Rise
MADISON, Wis. - A recent CUNA survey finds that credit unions should expect an uptick in employee turnover rates. According to the 2004 Complete Credit Union Staff Salary Survey, while average annual pay increases for credit union employees continue to decline, if the economy picks up steam in 2005 labor costs and turnover will increase in the near future. Experts suggest that providing a competitive compensation and benefits package is one way credit unions can help attract and retain highly skilled staffers. In 2003 13% of credit unions with $1 million or more in assets increased or implemented bonus payments. Some 12% of credit unions of this size increased or added potential incentives in 2003. In addition, overall about 65% of U.S. credit unions with $1 million or more in assets and at least one full-time employee offered variable pay to some of their full-time management personnel in 2003. Bonuses were slightly more common than incentives for both credit union management and non-management employees in 2003. The survey also finds that only four in 10 credit unions have established formal salary ranges, which can be used to prove to employees that the credit union is trying to be fair -leading to increased employee satisfaction. CUNA analysts advise credit unions to keep an eye on current economic conditions, and consider adjusting salary budgets to retain their high-performing employees. The survey, produced by CUNA's Center for Research & Advice, contains in-depth salary information for the most common credit union positions along with newly revised job descriptions, bank comparisons, and breakdowns by various peer comparison categories. This year's report includes additional asset categories and more credit union positions ranging from business services vice president/director to dealer direct manager. In addition to base salaries and ranges, the report includes incentives, bonuses, and total cash compensation for 37 full-time management positions, 52 full-time non-management positions, and eight part-time positions for credit unions with $1 million or more in assets. Data is broken down by asset size, region, number of full-time employees, number of services offered, number of members, and by the total amount of loans outstanding at the credit union. For more information about CUNA's 2004 Complete Credit Union Staff Salary Survey visit advice.cuna.org and click on "Reports."