Thriving through the credit union talent challenge
Photo by Tima Miroshnichenko
The competition for skilled employees among North America's credit unions is heating up, presenting a pressing challenge for the industry. Expansions in digital banking services and an aging workforce have contributed to an increased demand for specialized skills in the credit union sector. Moreover, the recent COVID-19 pandemic and subsequent Great Resignation have further intensified this challenge.
A gritty battle for smaller credit unions
For smaller credit unions, the challenge is especially tough, largely driven by strains on existing resources. But that shouldn't mean it's time to waive the white flag when it comes to attracting and retaining talent. Despite limited budgets, there is a pathway for small credit unions to innovate, evolve and compete effectively.
In the United States, small credit unions are defined as having less than $100 million in assets, and number 2,981 out of a total of 4,760 (2022 data). In comparison, Canadian credit unions under $130 million number 141 out of 422 credit unions and Caisses Populaires.
Source: Statistica
The education tool to seal the deal – financial wellness programs
While excellent customer service is a powerful driver for credit unions' success, there is another area of opportunity that can further enhance their competitive edge – providing financial wellness programs to small business employees. In today's uncertain economic climate, employees are increasingly turning to their employers for support in managing financial stress and improving their financial wellness.
A study by Brightplan shows that financial wellness-related benefits have become the most desired employee perk, surpassing even mental health benefits and flexible time off. In fact, the demand for financial wellness benefits increased from 29% in 2021 to 54% in 2022. Offering such benefits can have a profound impact on employee productivity, retention and engagement. In all, 95% of workers stated that they would be positively affected by these initiatives.
Competitive advantages
Delving into the findings of a 2021 talent strategy guide by CUNA's Small Credit Union Committee, which assessed the US labor market and ways in which small credit unions could compete within it for talent, we uncover some compelling competitive advantages within credit unions.
The findings underscore that the unique attributes of credit unions (of any size) are precisely what make them an attractive career choice for individuals. And by showcasing their impact on members and the community in which they serve, credit unions can draw in top-tier talent.
Two of CUNA’s strategies emerge as particularly impactful
1. Embrace the credit union difference
Leveraging the not-for-profit, member-owned structure alongside the mission to enhance financial well-being and promote inclusivity can be potent differentiators, especially among Gen Z and Millennial talent cohorts.
2. Take a proactive approach to hiring
Credit unions should actively seek talent. The guide proposes diverse avenues for small credit unions to find potential candidates, including local ads, professional platforms like Indeed and LinkedIn, campus job fairs and social media engagement.
We recommend a third strategy
3. Implement a comprehensive community-wide financial wellness program
By offering a program that improves both member and non-member financial education, credit unions can impact the entire community. Crucially, extending this program to local schools and colleges nurtures future talent pools.
Florida’s VyStar Credit Union provides an interesting case study. Their It’s a Money Thing financial education program, operating in eighteen Florida schools, has reached 77,000 students. Impressively, 50 program graduates have transitioned into VyStar employees, demonstrating the talent-sourcing results of this initiative. You can read our story on VyStar Credit Union here.
Seizing the opportunity
In the journey of small credit unions to secure talent, challenges loom large. Yet, with imaginative strategies and community involvement, these challenges can become gold-star opportunities. For more information about our program, It’s a Money Thing, and where it is being used as an educational or recruitment tool, click one of the links below.
Tim McAlpine is the Founder & CEO of Currency Marketing. He is best known for developing the It's a Money Thing Financial Education Program that credit unions from around North America are using to connect with new young adult members. He is also a driving force behind CUES Emerge, an emerging leader program that combines online learning, peer collaboration and an exciting competition component.
