MADISON, Wis.-Credit union hiring is expected to be flat in 2009, and with a dismal economic outlook, this year could begin a trend to improve member-to-employee ratios as CUs seek to sustain growth with existing staff.
That's the consensus of economists and credit union HR leaders who confirmed findings from a recent poll conducted at www.cujournal.com (see chart) that indicates 70% of credit unions will not be adding staff in 2009. All agree that cross-training and greater emphasis on member contact positions will be the direction many CUs will need to take.
One Of The Remaining Levers
CUNA Mutual Group chief economist Dave Colby sees the trend occurring because staffing is "one of the remaining levers" credit unions have to strengthen operating expenses in a tight economy. "Credit unions are going to be extremely cautious as far as what they do with hiring," Colby said. "They need to protect the ROA so they can have some positive capital growth. Longer term, they are going to get more relationship-building staff as opposed to transaction-oriented staff."
The shift will come, most likely, through attrition and training of existing staff, except in areas such as lending where specific skill sets are required, agreed those who spoke with Credit Union Journal.
"You'll see more face-to-face people, whether that's credit counselors or retirement planners," said Colby. "Some of the credit unions I talk to that are very aggressive and expense-conscious are trying to migrate their members over to lower-cost distribution channels for basic services. Take the money they save there-basically fewer tellers-and invest into higher-contact-level people."
Dr. Carl Fredrickson, president of Carl Fredrickson & Associates in Florence Ky., adopts the same thinking that a greater number of member contact positions will be created to drive deeper member relationships.
Hiring Will Be Very Slow
"Hiring will be very slow to down," projected Fredrickson, a staffing expert who provides strategic planning and market research services to CUs nationwide. "One of the key questions for me is how credit unions handle vacancies that naturally occur as the labor force turns over. I think they will leave managerial positions unfilled rather than the lower levels, especially member contact positions. Credit unions can get by for a brief period without some kinds of mid-managerial talent. They may double-up duties and outsource."
Fredrickson predicts that as credit unions grow, they will use the same level of staff to serve a larger number of members.
"Cutting staff by any significant numbers is not likely to occur," Fredrickson said, due to CUs' "parental" as well as business philosophy. "Most margin pressure in 2009 is going to arise from charge-offs," Fredrickson continued "Cutting staff rarely helps reduce charge-offs. Most often, the wise thing to do is beef up collections."
