MADISON, Wis.-Looking to cut costs? Investments in staff training may do the trick.
"Turnover is an expensive cost-you have not only the downtime of not having a key resource, but the recruitment of new people is a pretty expensive endeavor," said Chuck Fagan, CEO at the Credit Union Executives Society (CUES). "If you can develop the talent from within to fill or retain those key roles, that has a direct impact on the bottom line."
Fagan pointed out that CUs seem to have undergone a shift since the economic downturn, saying "I don't know that credit unions will ever leave managing crisis mode again." He pointed to the fact that all three of CUES' CEO Institute programs have sold out this year, and programs for 2014 are also receiving heavy interest.
"We did not sell out a lot of our programs over the last couple of years, and I just truly see credit unions with a renewed interest in developing their employees-broadening skills, retention, and developing for some of those future vacancies," he said. "Like it or not, it's all dollars. Stronger talent means hopefully you can drive new revenue opportunities and avoid some of the expense of turnover."
While a surge of baby boomer retirements means CUs will see some new-and potentially younger-faces in leadership positions in coming years, Fagan said not to expect to see the same kinds of tenure at the top.
"The 35-year veteran of a single institution is not what the younger generation does," he said. There's definitely a shorter time horizon in terms of tenure. Some of that I think is very helpful."
Meanwhile, in cases where CUs have new board members, Fagan added, "having a strong orientation and a strong understanding for these new board members of what their overall responsibility is has changed over the last few years. Bringing those people on to provide good governance...definitely translates into the bottom line."
