More than one-third of chief executive officers in the creditunion industry could retire in the coming years, and the percentageof executives on senior management teams who could retire is evenhigher.

These numbers are staggering, and Credit Union Resources'research has revealed that 78% of all the current CEOs are babyboomers, and 19% of all CEOs belong to Generation X (ages 31 to49).

What does this data tell us? Well, if a large percentage of theindustry's CEOs may retire in the coming years, credit unionleadership and boards need to have a reliable source to obtainexecutive talent. They need definitive and effective means offulfilling those vacant positions with not just good hires, but thebest hires.

Putting the CEO and senior team in place is one of the mostcritical tasks any credit union will undertake. Hands down, theperson at the helm can make or break a credit union. Theindividuals hired must be the best hires because bad hires can costcredit unions millions.

A FastCompany magazine article and survey featuringZappos CEO Tony Hsieh revealed that his past bad hires cost hiscompany well over $100 million. Also, 27% of the U.S. employers intheir survey reported that just one of those bad hires cost theircompany more than $50,000.

This is not only a credit union industry problem. This wave willtranscend across all industries, from the Fortune 500 on down. Thequestion at hand is, how prepared will your organization be,regardless of its size?

Despite the critical nature of acquiring the right CEO, mostcredit union leadership teams have neither the proficiency nor thetime to devote to doing it right – and well. Therefore, creditunions should consider the requirements involved before seekingexecutive talent on their own. Much like selling your house withouta time-tested realtor, going it alone can set you up forsignificant disappointment and failure, a large expenditure of timenobody can spare, and a big hit to the executive pocketbook.

Why? The executive search process is detail oriented, timeconsuming, and requires a high level of specialized expertise.Credit union management teams can avoid the unanticipated siphoningof member money that occurs from making bad hires by partneringwith a professional executive search team whose sole focus is onhelping you acquire the best candidate to lead your multi-million-or multi-billion-dollar operation.

With a professional executive search team with national reach,you can expect their well-established and calculated searchmethodologies to procure the most dynamic and qualified leaderpossible. And the other plus? The firm should guarantee itswork.

Read more: Credit Union Resources' research showsthe majority of people in senior positions are boomers…

Until recently, executive search services in the credit unionindustry have been provided primarily by only three firms; however,additional highly capable options are now available in themarketplace. The problem has been that the expertise required forlaunching start-up executive recruiting operations is scarce, socredit unions have found themselves turning to firmsoutside the industry – firms that don't understand creditunions.

An efficient and innovative search firm offers assistance tocredit unions that greatly reduces the risk in this delicateprocess. These firms have extensive evaluation tools and rigorousqualification processes to evaluate what the candidate says and todetect what the candidate is not saying.

There is great value in selecting a firm that understands thecredit union industry and can respect the principles of what thiscommunity is all about. Even though your options are limited whenselecting a firm with roots in the credit union industry, I notonly believe that is a critical factor, but how that firm isprepared to deliver in difficult market conditions is a biggerquestion. The landscape of executive search is changing and youneed to make sure the executive search firm you select has movedinto the 21st century to accommodate the changes.

With a shortage of executive talent beginning its descent on theindustry with aging-out senior managers, the senior managers incredit unions today need to take a good look at the relationshipsthey have with search firms. Be sure to keep in mind that with theshortage of executive talent, it is now a national marketplace. Thefirm you select not only needs the tools to provide tier-oneexecutive leadership to credit unions in all 50 states, but is alsowilling to invest in the process by making an on-site visit to gaina deeper knowledge of the culture of the credit union.

Often, credit unions are hesitant to hire a professional searchteam because of its perceived associated costs. But in the end, itall boils down to the numbers. Placing the wrong people in seniorexecutive positions within your credit union can cost you up tothree times more than the cost of hiring professionals to do thehard work for you. That's something to think about as the wave ofchange fast approaches.

Marcus Cotton is vice president of executive recruiting for Credit Union Resources. He can be reachedat 832-200-8714 or [email protected].