Teaching the Credit Union Difference Through Staff Orientation

If you are reading this article, chances are you’re employed at a credit union. And chances are, you know there is a difference between working at a credit union and other workplaces. Not just offering your members better interest rates and lower fees – but the other factors that make credit unions unique – namely, voluntary community involvement, commitment to financial education and other philosophical differences.

So, how do new employees in your organization learn the credit union difference and this culture? It all should begin with a well-defined onboarding process. If you’re new to the word “onboarding,” it is simply an extended, structured orientation process designed to introduce and engage new hires to your company. All onboarding programs share similar goals: to welcome new employees, introduce them to their jobs and work environment, increase early productivity and reduce turnover.

All About Onboarding
Some key components of your onboarding program may include the following:

• Create a personal onboarding schedule.
  • You should create an onboarding schedule personally designed for the position and the new hire, and be sure to include time for them to review the job. Performance will suffer if expectations are ambiguous.
  • The onboarding schedule should include informal social interactions, such as lunches or coffee breaks. This also assists in orienting the employee to the culture and the organization’s social norms.
  • Ensure the new hire has scheduled times to meet with a representative of each department to gain an understanding of their functions, and how their role intertwines with each department.
    
• Share presentations on the company’s mission, business strategies and corporate culture.
  • I’m using the word “presentations” loosely. This is your opportunity to inspire and motivate new hires. Presentations can be a ready-to-use PowerPoint or even a YouTube video created by your own staff.
  • It’s critical for management to participate in this part of onboarding; it creates a positive first impression and gives new hires a sense of value. This is also when the “nuts and bolts” of the credit union industry can be presented, including some of the fundamental elements that make credit unions different.
    
• Set up a “buddy” system.
  • Many companies have experienced success in establishing a buddy system from day one. This pairs the new hire with an experienced employee, typically someone in a similar work role, who can assist in teaching the new hire their job and acclimate them to their work environment.
    
• Follow through to ensure continued success.
  • It’s important to have periodic meetings with the new hire during their first year to uncover any issues before they develop into performance problems. You can also gain insight from the new hire to improve the onboarding process for future employees.

The components above are just a few that may be included as part of your onboarding process. By incorporating these as part of your new hire process, you will give employees something to believe in and to strive for – and a purpose for what they are doing.

Related Services: HR Consulting Services, Strategic Services

Shifting Your Strategy as the Result of a Credit Union Merger

For the past couple of decades, mergers have been occurring in many industries, and have possibly been more prevalent in credit unions. While CEOs diligently review the financial part of the merger, another critical part of the merger involves the people side of the equation. Human resources’ role can be one of the most important, aside from the financial review. 

There are two major pieces that HR handles during the merger: the strategy side – policies, practices and benefits, and the people side – emotions and culture.

The Strategy Side

The acquirer’s HR strategy can vary greatly from that of the company being merged. Some questions that should be addressed:

• Do you lead or lag the market in terms of compensation and benefits?
• What are your workplace policies?
• What are your pay policies, i.e., overtime, incentive plans and bonuses?
• What benefit plans do you offer?
• Is there a match on the 401(k) plan?

It’s important to create a spreadsheet to compare the two companies with reference to the above questions so any gaps can be identified. Typically, the acquiring company’s strategy will overrule but there can be some integration of the two, especially where there may be significant differences between the two companies.

When acquisitions occur, there are usually layoffs due to a duplication of manpower. This reality means coordinating separation and severance pay issues. Laws and regulations to be considered through this process include, but are not limited to, Employee Retirement Income Security Act (ERISA) and the Worker Adjustment and Retraining Notification Act (WARN) of 1988. Additionally, with increased combined headcount sometimes comes increased legal compliance. Many federal and state laws are based on headcount, such as the Family Medical Leave Act (FMLA). Federal and state law requirements need to be identified and brought forward to senior management to anticipate any additional costs and/or policy changes that may be implemented as a result.

The People Side
Mergers also bring about an array of emotions. Employees on both sides of the merger are most likely experiencing some of the following:

• Anxiety – Will I still have a job? What will the new compensation structure be like?
• Resistance – I’m happy where I am and with what I’m doing.
• Fear – What if I don’t like the new culture?
• Trust – How do I know I can believe what they tell us?

Effective Methods to Address Emotional Concerns
First and foremost, HR needs to ensure communication occurs frequently throughout the merger process. It’s a good idea to use multiple avenues of communication to ensure you reach everyone such as a company intranet, FAQs and all-hands meetings. Also, arming managers with information they can share with their staff is very helpful, along with question and answer sessions. Keeping the transaction as transparent as possible, with an appropriate level of disclosure, will ease the anxiety employees are experiencing. Failure to do so could allow the rumor mill to drive the communication process.

It’s important to know where each organization is emotionally before entering the merger. Conducting an employee opinion survey may be an effective method to give insight to the workplace climate and uncover any hurdles. In addition to the survey, developing a presence through on-site visits and interactions with employees may help create trust and reduce resistance.

Fortunately, mergers usually don’t occur overnight. HR should be involved in the process from the very beginning so they can complete their due diligence as thoroughly as the financial side of the transaction.

Related Services: HR Consulting Services, Strategic Planning Resources