What Does a Sump Pump Have to Do with HR?

by Lea Ann Gabbert

When I bought my house 1-1/2 years ago, I followed the advice of my realtor and had a home inspection conducted.  During the inspection, the inspector told me that I should consider adding tubing to extend the sump pump drainage out further away from my home.   I knew this was probably a good idea (consequences could be devastating – a basement full of water!) but I didn’t really know how to do it, I didn’t have time to do it, and it wasn’t raining, so I didn’t have any urgent need to do it.

Occasionally, we would get rainfall, and I would think to myself, “I really should get that sump pump drainage extender,” but again, I put it off.

Fast forward to the past few weeks where we’ve had more rain than we have had during the month of July in over 100 years and I’ve now got a small pond around the backside of my house. I can no longer put this off; I MUST do something about this sump pump!

Nothing has changed, I still don’t know HOW to do it, but I know it needs to be done. So, off I go to Lowe’s home improvement store. With the help of a “consultant,” I get all of the equipment needed for the task, get it home and it doesn’t fit.  I failed to measure the PVC pipe and took the comment a friend made, “Looks like a 2 inch PVC.” When I took it back (after measuring) and got the correct size, it was a 2 minute job to hook up. My kids and I went and got ice cream and when we returned home an hour later the water had receded!

Have you ever had a situation in your credit union that you knew needed attention, but the pain it caused wasn’t great enough to address it yet? Perhaps, you have a problem employee that needs to be cut loose, but you procrastinate until their antics rise to a dangerous level causing performance and morale to suffer. After you tackle the problem, you realize it took mere minutes to resolve the problem and terminate their employment.

Will it take a complaint or lawsuit against your credit union to force your hand to update policies, train your employees about harassment, or simply create a solid performance management process? The list goes on! All of us have to learn to prioritize and not procrastinate the important things that could devastate our credit union with productivity or monetary loss. Sometimes we realize that having the right tools and a little time investment on our part will pay off big in the end. Just like the extender for the sump pump took little time and effort, but went a long way to protect my investment and give me peace of mind!

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.

The Link Between Credit Union Employee and Member Loyalty

by Joyce Campbell

“I love the services my credit union provides, but I really dislike dealing with Susan. She doesn’t seem to care at all about my accounts, or her job for that matter. I’ve even considered moving my accounts because it makes me think this may not be a good place to do business if she is so unhappy working here!”

Have you ever heard feedback similar to this from a member, or perhaps you’ve said something comparable when you receive poor service from a business? I think most would agree that loyalty to a business is greatly influenced by the level of service received from employees of that business. Although most managers understand that engaged employees lead to a better customer experience, only 15% report significantly helping in that area according to a survey by Temkin Group.¹

Engaged employees exhibit qualities of loyal employees, similar to those of loyal credit union members. These qualities include:

• Powers of “connection” – Employees want to feel connected to their employer, which includes intellectual, emotional, and personal connections. When these types of connections exist, loyalty to the credit union is strengthened along with the desire to perform at or above expected levels. Employee and member loyalty is strengthened when they have this power of connection with their credit unions.
   
• Satisfaction of benefits – Just as our members want (and expect) competitive products from the credit union, satisfaction with benefits influence employee feelings of credit union loyalty. These benefits don’t have to be costly. In fact, voluntary perks such as non-medical benefits have been found to drive employee loyalty to an organization.²

• Two-way traffic – The expectation of loyalty is that it will be reciprocal. Recent studies indicate that a “loyalty gap” – the perception of loyalty between the employee and employer – has increased in the past three years representing a widening disconnect. This disconnect, if not narrowed, could create disengagement and loss of productivity within an organization. Loyalty can be increased by having career conversations with employees through mutual discussions of meaningful reasons to stay with the credit union. Similarly, conversations with our members regarding their future needs and how we can assist with those will increase their loyalty to your credit union as well.

Loyalty, on the surface, may seem to be simple to achieve. That’s true, as long as you keep the above qualities in check for both the employees of your credit union and the members you serve.

¹Temkin Group, a market research and consulting firm
² 10th Annual MetLife Study of Employee Benefit Trends

Related Services: HR Consulting Services, Incentease, Compease, Performance Pro

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.

What Really Motivates Employees?

Autonomy, mastery and purpose is what drives and motivates people according to Daniel Pink, author of a Whole New Mind and Drive. As the video below discusses, autonomy is about feeling like you are in control and have ownership. Mastery is the desire to get better and improve. Purpose is the feeling that you are contributing to something that is meaningful—that makes the world a little better.

What does all that have to do with employee attraction and retention at your credit union? Lots! Because once you get past money (i.e. having enough so that you can focus on your work), it is the other motivators that matter more in driving the desire to work at your organization and perform at high levels. It starts with clearly communicating your purpose so that staff understand what the big picture is and how they will be contributing to it.

Your website plays a role for potential employees because it is virtual voice of your organization, and should build the case of why a talented candidate should come to work at your credit union. Walking the walk, of course, is important too in giving your staff the sense of ownership and control over what they do, and the opportunity to improve their knowledge and skills. Finally, incentives and money do matter, so providing things like an employee discount program and competitive compensation are important.