The Credit Union SEG/HR Equation

by Amy Neale

Credit unions with SEG charters have higher membership growth than those that don’t. According to Callahan’s Peer-to-Peer software, it costs SEG credit unions $316 to add a new member, while community credit unions spend $371. And SEGs credit unions have a deeper average wallet share than non-SEG credit unions: $15,516 per member versus $13,722.

Your SEG development will go nowhere if you don’t have devoted and well-trained staff on either side of the equation. First, make sure your SEGs match your credit union’s values. This will help you build a long-lasting relationship and positively impact your credit union’s bottom line. You want your SEGs to look forward to hearing from you!

Next, train your branch managers and help them refine their networking skills so they can effectively spend more time in the communities they serve. And you should probably consider hiring a business development representative if you don’t currently have one. They’ll be able to focus exclusively on area businesses and SEG development. Make sure they have clearly defined goals, this will encourage ownership – and incentivize them accordingly. Compensation programs like HRN Performance’s Compease can simplify the process.

“We have a business development specialist that works with every one of our 51 SEGs,” states Barbara. “He works on site at the SEGs and educates them on the eligibility and benefits of membership. He also sends out monthly emails to the HR managers for them to send out to employees.”

The goal is to make your credit union fully accessible to your SEGs. This could include participating in their new employee orientation or onboarding process. Or, at the least, offer them a welcome kit, or brochure to hand out. Some credit unions even have introductory videos for the SEG HR department to use in orientation.