What’s in a Name …Or Job Title?

by Megan Mohr, CCP

In Shakespeare’s famous play, Romeo and Juliet, Juliet asks, “What’s in a name?” Her meaning behind the question is that names are somewhat arbitrary and are not the key element that gives someone value or the qualities he/she possess.

However, when it comes to HR, the “names” we use for jobs are job titles and they certainly carry some weight. Think of some of the strange job titles you’ve seen on an applicant’s résumé or perhaps some your credit union actually uses. Maybe it’s a Conversation Architect or an Insight Guru. Perhaps it’s something that’s not quite so strange but may be a bit misleading like a Marketing Manager or an Operations Coordinator.

Job titles have consequences, both positive and negative. Sometimes changing an employee’s job title in lieu of a pay increase can be motivating and boost morale. But what about the websites employees can look at where salaries are self-reported? With this new title, he/she may assume that his/her pay is now in need of an increase as well. Or, what applicants are you misleading or missing out on because the title you posted was above or below their expectations?

And, of course, there’s the ever-popular “manager” title. There’s certainly argument to call someone a manager when he/she manages a function, but that can be a double-edged sword. Let’s suppose we have an employee who manages various marketing projects and has the title Marketing Manager. If this individual asks around for what Marketing Managers make, suddenly it looks like he/she is underpaid. This employee can feel important to be called a manager, but suddenly be dissatisfied when the title seems to imply more money than he/she is currently receiving.

Moral of the story? Choose your credit union's job titles wisely. It can affect morale, your recruiting ability and turnover.

Need help with those pesky job descriptions? Maybe our Job Description Plus can help.

Does Your Credit Union Have a Social Media Policy? (Part 1 of 2)

The following installment of a two-part blog comes from our cohort Joyce Campbell, content manager at HRN Performance Solutions.

The last ten years has seen a revolution in how people communicate with each other. Social networking, which includes use of Internet forums, blogs, wikis, LinkedIn, Facebook, MySpace, YouTube, Twitter, Flickr – and the list goes on and on – has changed the world. As with most social transformations, this one affects the workplace as well.

If your credit union hasn't already created a social computing policy and guidelines for your workplace, you probably should. No policy is a risky policy. The trick is trying to decide what will work for you, specifically.

The following are a few key points to consider in drafting your credit union's policy. Given how rapidly things are changing in this area, you’ll likely need to review and update your policy regularly. It will definitely be a work in progress. 

Developing Social Networking Policies and Guidelines 

1. One size definitely does not fit all – Don’t expect to adopt another organization’s policy. At the very least you’ll need to customize sample policies (including the HRN written policy included as a template in HR Suite) to fit your credit union, how technology is used in your workplace, your employees and overall organizational need.

2. There are varying degrees of tolerance among organizations – High tech organizations may be very liberal regarding employee social computing and see business opportunities in letting employees network at work. Some older brick and mortar companies may have little use for and only see problems arising from employee social networking. Where does your credit union fit along this continuum?

3. What kind of social networking does your organization seek to regulate?
 
a) When?
      i. Social networking during work
      ii. Social networking after work
      iii. Both

b) What?
      i. What types of communications do you intend to address?
      ii. Does it depend on whether the activities are at work or home?

4. What types of communication may be useful to your organization?


5. What types of communication could present problems to you?

6. Which groups in your organization should be allowed to use company equipment and work time for social networking? – All employees? None? Some?

7. Should you consider blocking, filtering, or monitoring certain sites at work? If so, for what groups of employees?

8. What are the legal concerns and potential negative aspects for employers?  

a)    Companies may be liable for defamatory, harassing, or discriminatory communications by their employees.

b)    Organizations should understand that employees have certain privacy rights and, in some states, laws protect employees who engage in lawful activities outside of work.

c)     Although this area of law is evolving, there are protections for employees engaging in political activities so an employee blog regarding politics, working conditions, or employee rights is probably protected.

d)    Federal labor law provides that employees have the right to discuss wages and terms and conditions of employment.

e)    Employers must be careful not to violate the federal Stored Communications Act. It prohibits a 3rd party from accessing electronic communications (e.g., email or social network sites) without proper authorization. There’s nothing wrong if an employer reads an employee’s posts on a public site…there’s no expectation of privacy. However, if that employer gains access to a password protected site by illicit means or by coercing another employee to offer up the password, that’s another problem.

f)     Many employers review applicants’ social sites to learn more about the candidates. However, an employer who learns about an applicant’s or employee’s disability, sexual identity, race, etc., and fails to hire the applicant or promote the employee could face discrimination allegations.

g)    A Federal Trade Commission guideline (Guides Concerning the Use of Endorsements and Testimonials in Advertising) provides that employees who use social media to make statements about an employer’s products could create liability (even unintended) if a consumer later claims that he was misled or purchased a defective or dangerous product. Companies could be liable for any false or unsubstantiated claims by employees or even for an employee’s failure to disclose his relationship with the company.

h)    Inappropriate communication can damage company reputation.

i)      Problems may arise by intentional or accidental employee action.

j)      It can waste an awful lot of time and decrease productivity. (Some characterize this as “social notworking” vs. “social networking”).

Come back next week to read Part 2!

Increase Wallet Share with Credit Union Employee Training

Having an advantage over your competitors often depends on the quality and skills of your employees. Having well-trained, productive employees helps ensure you can meet your business goals, including that of wallet share growth. Just because your credit union employees may have selected the financial industry as their place of work, it doesn’t mean they are financially savvy or even financially literate. However, because they work in a financial services area, they should be – and one way to increase financial literacy is to provide them with financial education. Here are things to consider and steps in setting up a training program:

Set Training Goals and Objectives
Once your training needs are determined and prioritized, it's important to set achievable, clearly-defined and measurable goals and objectives. What are the financial “terms” important for employees to be fluent in when dealing with members? Perhaps employees need a tutorial in interest rates, amortization of loans or how a credit union operates.

Analyze Training Options
There are many training options available to fit all kinds of training needs. When evaluating, consider what is most appropriate and cost-effective for your situation. Your decisions should include: the format, classroom vs. Internet or other technology; the source of materials, company created or vendor package; and trainers, in-house or external.

Some credit unions have established successful financial training options. MeriTrust Credit Union in Wichita, KS, has offered a 12-week program for the past three years to help employees better understand money. Topics include how to develop a structured budget, how to pay off debt, how to invest in stocks and bonds and how to shop for real estate and mortgages. Alliant Credit Union in Chicago, IL, holds a monthly series of “Product Knowledge College” classes assisting employees – at all levels – to get up to speed on topics such as student loans, investment and retirement planning and loan protection plans.

Design and Develop
If you’re credit union is going to create your own training materials, start by assembling a design team of employees including key managers with knowledge of the particular training need, technology experts and marketing personnel. Make sure you keep your training goals in mind when designing these materials.

Materials should include a training outline, trainer’s guide, student materials, visual aids and media resources. List equipment needed to deliver the training. Test the initial draft on a small group of employees and then revise them if necessary. Some fun ideas include playing financial “Jeopardy” or simple match games for matching financial terms.

Evaluate Training and Trainers
Your credit union must accurately analyze and measure the results of its training programs to determine if its goals are being met. Analysis tools could include participant feedback (usually in the form of participant questionnaires). Consider following up periodically with employees to determine training effectiveness.

Training materials and procedures should be revised as needed to incorporate items discovered during training evaluation. As new products or financial tools are introduced, “mini” training sessions should occur to ensure financial literacy among your credit union employees.

Related Services: HR Consulting Services, Social Media, Management Training

5 Tips to Jump Start Credit Union Compliance in 2012

For anyone dealing with compliance issues, the beginning of the year is a time to plan, prepare and schedule projects. There are so many regulations and changes to track that the little details can easily become lost; but those little details can cause big headaches later in the year. As you prepare for the year ahead here are a few tips to make compliance more manageable:

1. Be Proactive
   Regulatory changes can be overwhelming, so tackle the issues before they tackle you. Research what the new requirements will be and how they will affect your credit union before they take effect. Determine which key employees will be able to help you implement the new requirements and let them assist you in transitioning your credit union to comply.
   
   
2. Line Up Your Resources
   Find sources for information you can trust and experts to offer advice; the InfoSight website is a great start! Knowing where to obtain information on regulatory changes that are relevant to your credit union is half the battle. These sources also offer tips and guidance to make compliance easier for you.
   
   
3. Enhance Your Knowledge
   Take time to read and understand regulatory issues that affect the credit union industry. In the last few years there have been so many regulatory changes that it can be difficult to keep up with everything, and once you fall behind it is difficult to get ahead again. Take time weekly to read articles and information that helps you to be prepared for the issues that your credit union will face. Be involved with your league and proactive in issues that need your representation, input and support.
    
4. Schedule it
   Enter important compliance dates on your calendar. As the year progresses make sure you continue to add and update new events so that you have reminders and a way to follow up on the events. The calendar can help in reporting the compliance projects progress and at year end the calendar will represent what you have accomplished.
    
5. Prepare
   Organize and arrange your documents and resources so that for reviews and audits you are prepared before the auditors pull into the parking lot. Have a game plan in place of who will be able to answer questions and provide assistance so that everything progresses smoothly. For external auditors this can save the credit union money; and for regulatory audits makes completion of your audit easier.

These tips should give you a jump start on 2012 compliance issues. This New Year brings new beginnings and new opportunities and the year ahead looks to be busy for the credit union industry. If you are feeling overwhelmed and looking for compliance assistance we can help - just contact us.

Conducting an HR Audit at Your Credit Union

Do you know whether your human resource practices are helping, hindering or having little impact on what your credit union is trying to accomplish? Credit unions routinely conduct internal and external audits of their accounting function to evaluate company practices against industry standards and legal and regulatory requirements.

Similar review and analysis can be applied to the human resource function. An HR audit can evaluate the effectiveness of human resources, comparing your credit union’s current practices against credit union industry best-practices, reviewing compliance with relevant employment laws and regulations, and identifying “gaps” between what the credit union needs vs. what HR is delivering.

Why Should You Conduct an HR Audit?
Have you ever wondered whether that turnover report you supply to senior management is worth all of the time and effort? Or, have you wondered if the way you’re handling FMLA leave is technically correct, given all of the changes in the last couple of years? An HR audit can provide solid answers to these types of questions and much more.

Compliance review is another key reason to audit the HR function. We all know that the pace of change in the HR arena has been fast and furious. Are your credit union's policies, forms, and practices all compliant with current regulations? The audit process can help you focus on making sure that everything is up to date.

Has your credit union gone through a merger, consolidation or added a new branch? If so, this is a good time to take a moment to consider if the HR function has changed with these changes. Do you continue to meet its needs and to ensure that all practices are in compliance?

Determining the Scope of the Audit
Once your credit union has committed to undertaking an audit, you will need to decide what areas the audit will cover. An all-encompassing audit would look at things like policies, forms and tools, employment records, the employment process and much more. The audit can also look at key metrics, such as turnover, cost per hire, spans of control, salary compa-ratios, etc. Just keep in mind that the scope of the audit should be centered on the current status of your credit union and the strategic plan.

Never Conducted an Audit?
Now that you think an HR audit sounds like a good idea for your credit union, now what? Certainly one option is to do an in-house audit. One of the primary benefits of a do-it-yourself audit is that you know your organization better than any outsider. It can save your credit union money, you can set your own schedule and you can maintain maximum control over the process.

One the other hand, audits are very time-consuming. Outsourcing your audit provides several benefits:

• You get the credibility and validity of an expert’s opinion of your HR practices.
• They can give you a fresh perspective on your processes and policies.
• Using a third party to conduct staff interviews allows for a level of confidentiality and staff may be more candid.
• It will save time for you and your HR staff.
• This third party auditor could continue to be an ongoing resource for your credit union with any questions or issues you may have going forward.

Whether conducted in-house or by an outside party, an HR audit can provide an opportunity to examine the HR function in your credit union and offer useful feedback to improve the department’s contribution to its success.
 

Related Services: Compliance Consulting, HR Compliance   

Gen Y at Work in Credit Unions

More than likely, you have received an email or birthday card that begins with “You Know You’re __ (fill in the blank with your age) When …” followed by a list of pop culture references, fashions or fads that contributed to the decade of your age group. But have you ever thought about what contributed to the values and expectations we associate with the generations in the workplace? Factors such as growing up during the Depression, the profound effect of the civil rights era, cultural and familial experiences of our childhood, and the invention of the Internet all play a part. Without a doubt, those values and expectations are brought into the workplace.

Whether you call them Millennials or Generation Yers, they are 82 million strong and in less than 5 years will make up almost half the workforce. Although stereotypes are oversimplified characterizations, it’s important we recognize the common traits, creating a foundation for us to understand and acknowledge the differences which appear in the workplace.

	Baby Boomers	Generation X	Generation Y
Birth Years	Born between 1946 and 1964 (between 47 and 65)	Born between 1965 and 1980 (between 31 and 46)	Born after 1980 (younger than 30)
Population	Over 78 million	Over 58 million	Over 82 million
Personality traits	Competitive, independent, social consciousness, workaholics	Cynical, pessimistic, “pay your dues” attitude, self-reliant, critical, knowledgeable	Pragmatic, naturally optimistic, open to change, independent, experimental, rewarded for participation and effort
Cultural events	Marched for equal rights and to end the Vietnam War Birth control for women who chose to delay motherhood and pursue education/ careers	Latchkey kids growing up with mom in the workplace Divorce rate doubled	Raised to be well-rounded - get good grades, play an instrument, volunteer Grew up with diversity in terms of preferences, attitudes and ethnicity
Technical Skills	Acquired midway during working career, some resistance to change	Technologically astute, obtain transferable skills for job security	Tech savvy and tech dependent, no fear of technology
Trust	Trusting of institutions	Low trust in institutions	Little trust in business institutions and the government
Wealth	Wealthiest generation, age-defying lifestyle, idealistic	Materialistic, economical, experienced multiple recessions	Traditional values with reference to spending and saving
Communication & Relationships	Personal interactions and relationships are important	Communication of open, honest dialogue	Keeping promises matters, desire respect

Communication
So, if we’re a Baby Boomer or Gen Xer, how do we communicate with this generation? We know that Gen Yers grew up with technology at their fingertips from the time they drank out of their very first sippy cup. The toys and games they played provided instant responses, and often they played independently as they held Gameboys in their hands. Similarly, they prefer communication through technology. According to a 2010 Millennial Inc. survey of 1,000 Gen Y employees, three-quarters have profiles on social networking sites. Even email is outdated communication for Gen Yers, so they may respond more quickly to a text message or instant message (IM).

The key is speaking the language and using the correct media to connect to your Gen Y employees. Gen Y employees value relationships, but they don’t need face-to-face encounters to build them. Find out how they communicate. Do they prefer text messages over emails? Then, create diverse channels of communication to build that relationship with them.

So what about the reverse? What if a Gen Y employee is in a customer service role where they are required to have face-to-face encounters with customers? Gen Yers may need some additional training from a mentor to sharpen their face-to-face verbal communication skills.

Managing and Feedback
Gen Yers grew up participating in soccer games with constant encouragement and rewards for effort. Parents commonly shifted their schedules around to accommodate their multiple activities. Now Gen Yers are in the workplace and often have the same expectations from management, which may result in offering more flexibility in the workplace. Their focus is on getting the work done, not workplace presence, as they can complete work anytime, anywhere with technology.

As a manager of Gen Y employees, you can also be a student of your young employees. You may be the most experienced and have the longest tenure, but you are no longer the smartest one in the room. Learn from their technical skills and show acceptance of their energy and enthusiasm. They’re impatient and aren’t used to having to “pay their dues,” so help balance that by providing changes in their work projects, roles and responsibilities. Gen Yers expect communication and constant feedback, including being “in the know” on executive decisions and developing business strategy.

In the end, the Millennials are here and they are having a strong presence in the workplace. Let’s do our best to embrace them, doing what’s right for our business culture to succeed. As they would say, that would be “XLNT”!

Related Services:  Performance Management, Compensation Management, HR Consulting Services

Succeeding in a Performance-based Culture

Enhancing or improving member service is an ongoing priority for most, if not all credit unions. From motivational signs in the employee break room to catchy, feel good slogans on marketing materials, member service is what often differentiates credit unions from other financial institutions and establishes long-term member loyalty.

Effective member service is a combination of many interconnected components and functions—operating hours, ATM access, friendly staff, branch locations, online banking, lending programs, etc. But what often determines the overall satisfaction a member has with their credit union is the experience they share interacting with the credit union employees. Which is why, in order to thrive, your member service culture must be supported and consistent throughout your staff, starting with the CEO and other senior officers.

At times, your credit union may need to consult with an industry expert to meet with senior management or board members to better understand the goals of your credit union and then develop performance plans to support these goals. To succeed, the actions and priorities of the senior management team need to align with the priorities of the board, the members and staff.

Contact HRN at 800.262.6285 or click here to learn more about our CEO performance programs and our HR consulting services.