PENSACOLA, Fla.-Spending $20,000 annually on a comprehensive employee training program is a small price to create a pool of talented leaders who are driving CU performance, says Pen Air FCU.
In this case the investment is for Pen Air University, which the $1.2-billion credit union said produces more effective, skilled leaders-at a lower cost-than hiring from the outside. "We are building a higher-performing credit union this way," said Dana Mullins, VP of human resources. "Looking at the 45 people who completed the program, 22% have already been promoted. We think that is a good start."
Pen Air U opened its doors at the nearby University of West Florida in 2009, and Leadership Fundamentals is currently the course offered. Managers and supervisors were given the opportunity to participate first, and just under 30 signed on for the initial season. Since then the program has been opened to all employees, and Mullins said about 20 is the average size of the annual class.
"Right now we have a talent pool of about 45 to draw from," said Mullins. "We are creating a pool of management and supervisory candidates for the future."
The approach is working, as the credit union's performance numbers have steadily improved the last three years: ROA (1.05%) and net worth (9.83%) have both increased 50 basis points, and membership growth (6.30%) is up by almost the same amount.
Mullins acknowledged that Pen Air is fortunate to have a university close by that is willing to work with businesses, providing the classrooms and the instructors. Leadership Fundamentals runs three 10-week semesters that span early spring through fall. Classes are one night a week for two hours. Mullins said the program aims to give current leaders new and refresher skills, and to make strong leaders out of employees who have yet to step into a manager's or supervisor's role. The first semester covers interpersonal skills, the second management development, and the third team building.
"We knew that some of our current leaders needed to refresh their skills and build new ones, because many have been in management roles and never received any formal management training," said Mullins. "So we opened the course up to them first."
A Better Approach
Mullins added that Pen Air U is a better approach that hiring from the outside, and less costly. "When you hire from the outside, you spend a great deal of money, money you never measure, getting new employees up to speed on the credit union and then getting them to perform at a high level. We believe it's much easier to take someone already familiar with our culture and the way the credit union operates and give them the skills they need to be a leader."
Mullins said training staff and promoting from within emphasizes the credit union is dedicated to its team. In return, employees show greater loyalty and have a better work attitude. "And it's just more efficient to promote from within to a higher level position and then backfill with a new employee at a lower level job."
The $20,000 annual average cost varies based on the size of a class. Due to the program's success, Pen Air will introduce the Advanced Leadership Series in 2012, a training program for those who have completed Leadership Fundamentals, noted Mullins.
