COVINA, Calif. — Boards needing better skills, CEO comp plans calling for some serious adjustments and solutions to keep the front-line staff at the CU are just some of the hurdles facing human resources executives today.
Three HR experts recently talked with Credit Union Journal about many of the key issues challenging human resources teams.
1. Building And Retaining Talent
Performance objectives for the executive team can't be too general that they prevent a leader from directly influencing the objective, advises Executive Compensation Solutions.
"The objective has to be specific and tie directly to the area the executive oversees," said Bridget McNamara-Fenesy, senior client consultant to ECS here.
McNamara-Fenesy shares that advice and other steps CUs need to take to ensure they build and retain top talent as all types of financial institutions increase efforts to lure away staff:
- Pay more attention to development of the executive team, and not just the CEO, so the CU has a strong "bench." Succession planning should also include the executive team.
- Emphasize "pay for performance," tying variable pay to the specific objectives of the credit union.
- Develop a compensation philosophy, write it down, and have it articulated so the credit union has a benchmark and guidepost for making comp decisions.
- Create a succession plan that includes a component that addresses what to do in the event of an unforeseen vacancy in the CEO position.
- During strategic planning, think about the annual objectives for the membership and then translate those into individual objectives for executives.
2. Five Items For All HR Checklists
When it comes to the top human resources issues facing credit unions, nothing is more important that the CU paying attention to developing the skills of the entire team — at all levels, including the board, according to Deedee Myers.
The CEO at recruiting firm DDJ Myers Ltd., Phoenix, Ariz., outlined the top five things credit unions need to consider when writing out their HR checklists — including making sure the board has the right skills and director mix.
Myers emphasized that the director team has to represent the owners. "The board needs to reflect the demographic of the membership."
Regarding board skill development, Myers said the group must shift from the tactical to strategic. "Move from historical reporting to imagining the future."
Emphasizing the importance of solid succession planning for the CEO, Myers added succession planning is needed for the board, as well.
With talent development a major "opportunity" within all levels of the credit union, Myers said the executive team needs training in preparing for the future, middle management needs skills to effectively manage change upward and downward in the organization, and the front-line and back-office staff need skills to better manage the daily requirements brought on by constant change.
CEO compensation is an issue many boards must be deal with soon, added Myers, updating comp structure.
"Long-time CEOs are retiring and this creates sticker shock when hiring a high quality external candidate. The board needs to develop a strategic compensation philosophy of salary, short- and long-term incentives and retirement benefits."
3. Solving Front-Line Turnover
Carla Gant, VP of human resources at Florida Central CU in Tampa, Fla., says the HR team is focused on finding solutions for front-line turnover, keeping morale high at the CU and furthering an "ethical culture."
"Currently we are facing the ongoing problem of staffing and turnover, especially on the front line," said Gant. "I feel like we are constantly filling those positions."
What makes it tough to keep staff, added Gant, is that the $400 million credit union is competing with not only large banks but billion-dollar credit unions that have higher compensation rates.
"We have expanded our area of search to include social media, which is bringing in the quantity but not necessarily the quality," noted Gant. "We will also reach out to a few more compensation firms to get a better feel if we are in line with our compensation efforts to attract better applicants."
While the CU strives for a workplace with high employee morale, sometimes staff feel stressed, said Gant. When that happens, the credit union deals with the problem quickly.
"We have tried to deal with these matters head on, with mangers attempting to get to the root matter and trying to resolve the issue," Gant explained. "We have also contracted with outside sources that can help our employees professionally, because we all know that some matters that occur outside of the workplace often times creep into the workplace."
Gant said Florida Central pays close attention to fostering an "ethical culture."
"We stress to our employees the value of ethical performance and simply doing the right thing. When that happens misconduct is substantially lower," said Gant.
The HR VP added the credit union is clear to staff that they can bring all matters to management's attention without fearing retaliation. "Employees cannot fear retaliation for bringing an important matter to light. That may cause inaction. Staff know that in management's words, and in credit union policies, that they are free to voice their concerns."
