Inspiring a Civil Workplace at Your Credit Union

by Joyce Marsh, SPHR, Sr. HR Consultant

Wouldn’t it be great if everyone said and did the right thing all the time and no one’s feelings ever got hurt? That would be a perfect world – which, of course, we know we don’t live in. But we can wish, can’t we?!

Ensuring that employees practice civility at your credit union is a progressive activity. Civility being courteous and polite. It doesn’t sound that difficult to be nice, but because of various negative factors, we sometimes digress. Following are some tips for resisting bad manners and encouraging civility at your credit union. Remember, it starts with you:

• Personality conflicts – Empathetically putting oneself in the other person’s “shoes” can help you see the conflict in a completely different light.
• Holding your tongue – Think before speaking. Look for the good in others and focus on their strengths.
• Lead by example – Random acts of kindness and sincere compliments of a “job well done” are always encouraging. And they’re much better than speeches that tear someone down.

The Cost of Incivility

Incivility is degrading to all who are affected by it, regardless of whether it is directed at them or if they’re a witness to its hurtfulness. When incivility reigns, it can quickly turn into a claim of harassment or a hostile work environment.

Train your employees to be respectful of others, and to look for positive qualities in them too.
Someday, they themselves, could be the victim, and what a lonely place that would be! Teaching employees to be aware of, and think about, the effects of what they say or do can help them be more thoughtful and considerate workmates. Civility leads to less turnover, better productivity and a happier staff.

HR Neutrality – Does One Size Fit All at Your Credit Union?

by Charisse Rockett, PHR

As credit union HR professionals, we are always trying to make sure everyone is treated the same – that no one feels slighted or left out; that everyone is treated equally. In certain instances that's a really good idea, especially if it keeps you out of legal trouble, (e.g. male/female, old/young, black/white). But, are our HR practices becoming a one-size-fits-all?

Let’s take a step back. Examining our motive for treating all of our credit union employees the same should give us some insight as to whether this is a constructive practice. Ask yourself these questions and answer honestly:

• Am I afraid of a claim of discrimination or retaliation?
• Am I trying to avoid conflict by applying policies the same way to all employees?
• Am I ignoring an underlying employee performance issue that needs to be addressed?
• Is treating all employees the same taking the easy way out? 

If you answered “yes” to any of these questions, you may be practicing HR neutrality. Obviously, some policies must be applied the same way to all of your credit union's employees, like no smoking in the office. But, must our top performers be treated the same as our mediocre or low performers? No, but we must treat them fairly.  In fact, our treating employees fairly sometimes mean we treat them differently. How?  A high performing employee doesn’t want to be treated the same as one they view as a slacker. They want to be treated differently, because they deserve it. There is nothing illegal about treating a high performer better than you treat your employee that is not meeting your expectations.  

So, the next time you encounter a situation that previously had the one-size-fits-all HR neutrality applied to, examine your motive for doing so, use empathy by putting yourself in your credit union's employee’s shoes, and always keep the human in Human Resources. Oh yes, and you must deal head-on with the perceived slacker; they may just need clearer expectations, but you won’t know if you don’t ask!

Source:  Sackett, Tim.  “HR Neutrality:  Everybody Seems to Hate It – Except, of Course, HR.”  Available here.

Elements of an Effective Succession Plan at Your Credit Union

by Nancy Norman, PHR

Earlier this month I attended Society for Human Resource Management's succession planning training in Seattle, Washington. It’s a new course that they have begun offering because so many of its members have asked for it. I spent the day in a room with about 25 human resource professionals that are looking to begin or implement a better succession planning process in their own organizations. They all seemed to echo many of the same challenges:

• Executive Buy-in: Management sees the value but does not want to invest much of their own time expecting HR to take the reins and make it happen. Unfortunately, effective succession planning is closely tied to a credit union's strategic plan and requires the input and participation from several key sources, especially management. Obviously, their feedback is needed on assessments, but they are also critical resources in providing coaching and mentoring to high-potentials. Work to get the necessary buy-in to support your plan, it can make all the difference at your credit union.

• Time: Creating a solid plan and developing the processes to maintain it is very time consuming for credit unions that are already stretched thin. True, succession planning takes time. However, it is because we are stretched so thinly that an untimely or unexpected departure can be so costly. Even if you start slowly and ramp up your efforts little by little, you will eventually get to where you need be.

• Simple: Keeping it simple is what everyone wants, but that seems to an elusive target.

The idea of a simple succession plan kept coming up. Many have tried and failed to create a plan that was simple and easy. Even the trainer admitted that this is very hard to do, if not unrealistic. When you consider all of the moving parts of an effective plan, they can become complex very quickly. However complex, they are still a necessity in today’s changing world. Find a way to build it into your credit union's culture and make it part of everything that you do.

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.

Are You Ready for a Vacation?

by Charisse Rockett, PHR

Remember returning to school after summer break when you were a kid? It was so exciting because on the first day of school, the teacher would ask what you did on your summer vacation. You'd share your stories with all the other students of visits to Grandma’s house, trips to Florida or up north, playing outside in the hot summer sun and swimming every day possible. When you're a kid, vacations are a lot of fun!

So, why is it so hard for many credit union employees to take time off from work for vacation? It could be a number of reasons. Heavy workloads may place added pressure on an employee, the boss’s negative attitude toward those employees using their earned benefit, and the squeeze of the economy could all add to an employee’s hesitance to take their time off.

According to a survey by U.S. Travel Association, “Americans left an average of 3.2 PTO days on the table in 2013, totaling 429 million unused days among U.S. workers.” The survey went on to say that “nearly 34 percent of employees indicated that their employer neither encourages nor discourages leave, and 17 percent of managers consider employees who take all of their leave to be less dedicated.” (Fortunately, that leaves 83 percent of managers who do not feel that way!)

In fact, most employers recognize the importance of providing time off for their credit union's employees to relax, refresh and rejuvenate. Employees personally and physically benefit by disconnecting for a short time and companies enjoy happy, more engaged workers and increased productivity. When vacation time is encouraged by management, it works as an excellent retention tool as well.  So, what are your vacation plans?

Having an Office Party without Legal Issues at Your Credit Union

by Charisse Rockett, PHR

One thing leads to another. It's true – winter, holidays ... parties!  It's that time of year when credit union HR professionals get nervous! They realize that holiday office parties are common and that they can improve morale, employee communication, and show that an organization cares about its people. As we all know, nothing in HR is simple and without consequence.

Mark Toth, Chief Legal Officer at Manpower Group NA and author of The Employment Blawg, reported that 83 percent of employers plan holiday celebrations this year, which is higher than last year’s 68 percent, but still below 90 percent in 2007. Other statistics he shared indicate that 54 percent of employers are having employee-only parties without guests and only 48 percent plan to serve alcohol.

Here are some tips for the ever vigilant credit union HR pros:

• Be inclusive. Make sure that your office gatherings don’t intentionally (or more likely unintentionally) exclude individuals within your credit union. Your employees may differ greatly in terms of religion, age, ethnicity, marital status, background and interests, so be sensitive to those differences. Make all feel welcome, but do not make attendance mandatory or give it the appearance of being mandatory.
  
  
• Invite guests. Encourage employees to bring spouses or significant others. This may help to discourage bad behavior by employees. 

• Inform employees. Besides giving the time and place, employees should be reminded that company behavior standards are just as applicable off site as on site.  Employees should understand that corrective action will follow for those “behaving badly” and who say or do things that are inappropriate. 

• To serve or not to serve. Soft drinks and other non-alcoholic beverages should be plentiful as should food. If serving alcohol, hire a professional bartender that will help prevent underage drinking and will know when someone has had enough. Try drink tickets, limiting individuals to a certain number of alcoholic beverages.
   
• Managers are managers. While managers are employees too, and they should be able to enjoy themselves, it is important to make known the expectations for them while at the party. They should be setting a good example, they should support the bartender, and they remain responsible for their employees even though it is a party.

Mixing and interacting in a more relaxed environment with employees can go a long way in building trust and loyalty and can make a good impression on their guests. Using these reminders, you can have a great party and a fun experience, with no regrets or legal action!

The Millennials Are Coming – Is Your Credit Union Ready?

by Nancy Norman, PHR

According to last month’s HR Magazine, Millennials will make up 75% of the U.S. labor force by the year 2025. With that in mind, it is crucial that HR has an understanding of what drives this generation.

To understand motivation, it is important to know where this generation is coming from.  First and foremost, this is the generation raised with personal computers. Technology has always been the preferred way to get work done, solve life’s problems, and connect with people. This group of workers favors collaboration in teams and is the most connected virtually. However, they have also been the most overprotected – growing up in an “over-adult-supervised” environment. Parents effectively convinced this generation that they were the center of the universe. In addition, they received trophies just for showing up.

The Millennials are coming to a cubicle near you and there is little to be done to stem the tide. How can your organization be prepared for and even embrace this growing population in your workforce? Ideally, you want to be proactive in adjusting your “policies, practices and procedures to leverage this generations strengths and minimize its weaknesses.”

The article focuses on 3 key areas:

FLEXIBILITY:  Millennials want flexibility in everything: schedules, locations, and assignments. They place less importance on where the work is done and what time the work occurs. They also like variety in their assignments. The desire for diverse work experiences can be perceived as wanting to move up, when it is often simply a need to do something different.

TRANSPARENCY:  This group wants to know the why behind the decisions. They will ask more direct questions and will require greater transparency from the organization. When transparency makes sense, do it. When it doesn’t, be prepared to explain why.

COMMUNITY:  Millennials expect work to be social and fun. They like to collaborate and they do their best work in teams. Examine not only your business processes, but your space. Look for ways to encourage employees to gather and collaborate. The article suggests gathering spaces in your work area as well as group onboarding to create camaraderie and loyalty among the new hires.

Examine your business practices and determine how these changes fit into your business model and align with your strategic plan. The point is not to cater to one particular generation, but to recognize and find ways all may benefit by these updated policies. As the article says, “Focus less on the characteristics society has ascribed to the emerging Millennial generation and more on policies and practices that support the changing demands being placed on our workforce.”

SOURCE: HR Magazine, October 2013 Issue, “New Kids on the Block,” article by Kathryn Tyler.

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.

Don't Be Left Behind at Your Credit Union

by Charisse Rockett

Many of the articles I have read recently were on the topic of “relevance.” That word just seemed to keep showing up. I could ignore it no longer!  One article that specifically caught my eye was on the website tlnt.com, written by Ron Thomas, entitled, “Staying Relevant:  Either We Continually Adapt, or We End Up Obsolete.” He made some very interesting observations. He stated, “Skill sets of jobs today are changing at warp speed.  How do you hire for the future? Today’s workers need to be able to work in almost any medium, be comfortable using different technologies, and stay abreast of current and future trends.”

Those three sentences convey a lot of thoughtful information. First of all, credit union industry changes are dictating the skill sets of jobs. Because the industry changes are happening quickly, the skill sets required of jobs performed just a few years ago are no longer relevant. That means that credit union employees today may no longer have the skill set needed to perform their jobs in the near future.

What can be done to counter this change in your credit union's employees’ knowledge and skills? One is to review job descriptions each time an employee leaves and at least annually. This will determine if you have the relevant (that word again!) tasks, duties, responsibilities and functions that make up the job. Review the education, experience, and skills the job requires ensuring they are consistent with the actual needs. Make sure that you look at the job in a prospective manner, to hire for your credit union's current needs and always keeping the future in view. Remember, if you continue to hire employees using your 1999 job description, you will get a 1999 skill set!

Another key to keeping the skills of your workforce applicable to your business is to continue developing your employees. Spend a little time and money now to reap greater benefits and actually see the ROI later by giving them the tools to keep up with the rapidly changing trends. When you show your employees that their knowledge and skills are important to you, enough to invest in them, you are building on your credit union’s future. Don’t get left behind, lead the pack and plan for tomorrow, today!

Are There Bullies at Your Credit Union?

by Paul Hendryks and Gene Mandarino

Turn on the news, read your phone, listen to the radio, watch any of the most popular sitcoms or reality shows and you will see a common thread running through all of them, or most of them: people being mean. The news is filled with horrific stories of violence and abuse. The sitcoms cannot do without pranks and practical jokes at someone’s expense and the reality shows are a continuous stream of people arguing, with more bleeped out expletives than actual dialogue. 

With this continuous stream of “mean” in the media it is no wonder workplace bullying is on the rise. And, according to the Associated Press, 10 states are now considering legislation that would allow workers to sue for on-the-job bullying that causes physical or emotional harm. They also cite that 56% of companies surveyed have some type of anti-bullying policy.

As an HR professional we would suggest that every credit union get out in front of this and look at including an anti-bullying policy in their employee handbook. As a person I would suggest that we look at ways to encourage each other to be nicer: to say thank you; to say please; to help out a coworker who is struggling with a problem at home; to buy a coworker a candy bar just because; to give someone a thank you card; to ask “How can I help?”; to recognize someone for a job well done at a staff meeting; to bring in coffee from Starbucks for the office; to help out with mundane tasks i.e., stuffing envelopes, filing, etc.; or to just ask yourself, “What can I do to be a little nicer?” 

Workplace Bullying - The Next Employment Law Nightmare? 

Maybe you thought it was just an oversight that you weren’t included in the lunch outing by others in your department. Then you later learn that one of your coworkers used the lunch outing as an opportunity to criticize you about everything – from the clothes you wear to your work habits. And later in the week, this same coworker takes credit at a staff meeting for a project you recently completed (knowing you don’t have the courage to speak up to dispute his statement).

All of this may remind you of similar antics pulled by bullies in grade school. One would think that the playground bullies would “grow out of it” and not continue this type of behavior in the workplace. Apparently not, as workplace bullying has affected about 35% of workers according to a CareerBuilder survey.

To read more about this developing topic, click here to view the most recent HRN Performance Solutions monthly HR white paper. If you would like to receive more well-researched and concisely written FREE monthly HR topical white papers, simply sign up here and we will add you to our email distribution list.

Gaining the Competitive Advantage for Your Credit Union - Part 4: Walking the Walk

by Amy Neale

Below is Part 4 of a four-part series we've done on Gaining the Competitive Advantage for Your Credit Union.

To tie this all together – what good is having the competitive advantage with marketing, technology or rewards if you don’t have a staff qualified to support it? It’s no secret that to have a successful credit union you need successful, happy employees.

It’s not enough to say you have excellent member service; you need to walk the walk too. The best way to make that happen is to make sure your staff’s goals are aligned with your credit union’s goals. These goals need to not only be symbiotic but concise, defined, valued, reviewed and evaluated. The most cost-effective and time-saving way to ensure this happens is through an effective performance management system, such as Performance Pro.

For a performance management system to be effective it needs to weigh goals, offer customized factors, be easy to use and require the employee’s buy-in. Once an employee has bought into not only your credit union’s goals, but their own goals as well, it’s easier for them to understand the bigger picture. Then they’ll truly understand how every single member interaction helps everyone to achieve those goals.

The end result? Your credit union will have, attract and retain top performers – employees who help give you that competitive advantage we’ve been talking about.

The Best of the Rest

Defining what makes your credit union different gives potential and current members a clear, definite choice. And remember, if you don’t rise to the challenge – your competitors will be happy to do so.
 
Related Services: GSTV, Mobile, BoldChat, Financial Resource Center, Video Management, Invest in America, Sprint Discount, Performance Pro  

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What Perks are Important for Your Credit Union Employees?

by Joyce Campbell

The area of compensation is one that has expanded to look at not only the dollar piece of compensation, but the “total compensation” package. This part has always been interesting to me, as the additional components of total comp carry different values of importance among organizations and employees. Another interesting component is how these perks and factors have changed through the years, based on technology and the different generations.

Recently, CareerBuilder published a survey exploring what factors are important to employees and what motivates people to stay. With the onset of the new year and the media repeating consistently that  more employees are looking for jobs elsewhere, it is a good idea to know what these 3,900 full-time workers who participated in the survey have to say. 

Factors that are important to those surveyed include:

• 59%               Flexible Schedule
• 48%               Being able to make a difference
• 35%               Challenging work
• 33%               Ability to work from home
• 18%               Academic reimbursement
• 17%               Having an office
• 14%               Company car

 As far as perks, these are the ones most requested:

• 40%               Half-day Fridays
• 20%               On-site fitness center
• 18%               Ability to wear jeans
• 17%               Daily catered lunches
• 16%               Massages
• 12%               Nap room
• 12%               Rides to and from work

 So what, ultimately, are the factors that entice employees to stay?

• 70%               Increasing salaries
• 58%               Better benefits
• 51%               Flexible schedules
• 50%               Employee recognition (awards, cash prizes, company trips)
• 48%               Ask employees what they want & put feedback into action
• 35%               Increase training and learning opportunities

 “What determines job satisfaction is not a one-size-fits-all, but flexibility, recognition, the ability to make a difference and yes, even special perks, can go a long way,” said Rosemary Haefner, vice president of human resources at CareerBuilder. “Being compensated well will always be a top consideration, but we’re seeing work-life balance, telecommuting options and learning opportunities outweigh other job factors when an employee decides whether to stay with an organization.”

Although some of the survey results may not be practical for your credit union or be representative of the needs for your employee population, many of the items listed above are basic fundamentals of doing the right thing. Our society has changed and consequently the work environment has changed. We must respond in the right ways to retain employees and improve morale, which ultimately should lead to a more successful credit union.

More information gathered from the survey can be found by clicking here.
 

Hiring for the Right Fit at Your Credit Union

by Charisse Rockett, PHR

I realized one day how much my mood is dictated by how comfortable or uncomfortable my shoes are. I found that at the end of the day, when my heels were getting higher and tighter by the minute, that I became short-tempered (with everything) and not so patient.  When I got home, naturally the first thing I did was kick the shoes off, and that is when I experienced my own wonderful transformation. I was back to my usual cheery self!

When you buy shoes you want the right fit, otherwise, you will be miserable, you will be cranky, and you will want to get them as far away from yourself as you can! Buying shoes that fit can be likened to finding the right fit for your organization when making a hiring decision. If the candidate doesn’t fit, you will be miserable, you will be cranky, and you will want them gone!

Hiring the right candidate can be a tough decision because all hiring decisions have such a significant impact on your credit union, good or bad. A bad hire, by far, is more costly as reported by a recent CareerBuilder survey. It was reported that this year 69% of businesses have had an adverse effect by a bad hire; and 24% reported the cost of a bad hire to be more than $50,000!

CareerBuilder reported some of the costs of a bad hire to be attributed to their being less productive, 39%; having a negative effect on morale, 33%; and negatively impacting clients, 19%. They also said that issues related to behavior and performance contribute to defining one as a bad hire, since 60% didn’t work well with others, while 59% had a negative attitude.

This enlightening survey shared not only the effects and characteristics of a bad hire, but why companies make bad hires. Click here for the full survey results.

To protect yourself and your credit union from a bad hire, don’t be in a hurry to fill a spot with a warm body. Instead, tailor your interview questions to fit the requirements of the job and to disclose talent, emotional intelligence, and past behaviors. By all means, check their references! It may take a little longer to fill the position, but planning coupled with a little time investment upfront will save you a lot of misery and money later! Remember IF the shoe fits, wear it; and IF the hire fits, keep ‘em!

Documents to Keep or Not Keep at Your Credit Union

by Joyce Campbell

As the end of the year approaches, it is a good time to think about cleaning out file cabinets, drawers and those notebooks that collect dust on your bookshelf.  That’s one of the items on my checklist to complete before the end of the year.  Although it is sometimes a dreaded process, it always provides me with a sense of accomplishment when completed.

When approaching this project, not only should you consider how long to keep the documents but you also need to make sure you don’t keep them for too long as that could put you at risk of a security breach.  So what should you do?  First of all, it’s a good idea to have a document retention schedule in place for your organization.  Consider both the legal guidelines regarding the lifecycle of specific documents, but your organization should also consider how long you need to retain them for internal reference. 

Once the retention schedule is established and the retention period has passed, documents should be discarded appropriately.  Many types of documents require shredding as the method for discarding, which is considered to be best practice.  Additionally a destruction schedule and tracking sheet should be completed as part of your document retention practices.

Below are some of the recommended retention requirements for human resource related documents.  Please keep in mind these recommendations are general guidelines only.  They are not intended to represent legal advice as you should contact your legal expert to provide requirements for your specific requirements based on your type of business and locality.

Document	Years of Retention Recommended
Attendance Records	7
COBRA Records	4
Employment Applications – Not Hired	3
OSHA Logs	6
Performance Records – after termination	7
Withholding Tax Statements	6

Recruit Credit Union Employees (for Free!) with LinkedIn

LinkedIn has become the “go-to” place for job seekers or those looking to network or connect with friends and current or former coworkers. Connections aside, LinkedIn is also a bountiful tool for credit union human resource professionals. 

Like CareerBuilder.com, Monster.com and other job classified sites, you can post a job opening on LinkedIn for a fee. Posting fees range from $125 to $295 per job depending on where your credit union is located and how long you want to post the position. But if your credit union is like many other organizations out there, your HR department is working on a tight budget and those numbers can add up quickly.

     There are two fairly simple ways to recruit new hires for free on LinkedIn:

• Looking Good
  An effective way to find potential applicants for a position is to look for them. In the search box on the top right of the LinkedIn home page you’ll see a drop-down menu. Click on People and type in what position you’re looking to fill and you’ll get numerous people on the site who have that title in their profiles.
  
  For a more specific search, click on “Advanced” next to the search box. This lets you specify parameters like title, industry (there’s an option to select Financial Services), location and more. Just sift through the search results to find likely candidates for your job opening. You’ll even see a BETA testing area that’s unclickable, but shows you what’s coming soon for LinkedIn searching.  
  
• Join the Crowd
  If you haven’t already, we suggest you create a LinkedIn profile and a company profile for your credit union, and then join groups relevant to credit unions as well as any related fields. As a group member you’re able to post “discussions”; they even have a tab for Job Discussions where you can post a job opening. It’s free to post and you’ll want to have a link to the job details, whether it’s a PDF or a link to your credit union’s website.
  
  This form of recruiting relies heavily on word of mouth, which can go a long way in the world of LinkedIn. But the credit union industry is one based on community and the credit union focused LinkedIn groups will definitely help you spread the word!

Whichever way you choose, you’ll be one step closer to finding the perfect candidate to join your credit union family. Plus, it doesn’t put a dent in your credit union’s budget!

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   

Using Technology to Recruit Credit Union Talent

When some of us began careers in the area of “personnel” (as it was called in those days), computers were non-existent and hiring employees was pretty simple and straightforward:

Step One: Run an ad in the local newspaper
Step Two: Screen typed resumes sent to you via mail
Step Three: Top candidates complete an application form (handwritten) and are interviewed
Step Four: Select best candidate, make offer – HIRED!!

Although this process is still used, your credit union is placing itself at a disadvantage if it ignores technological tools during the recruiting process. Online activity is now mainstream and needs to be used when hiring candidates. Consider these statistics:

• 1.3 million blog posts daily (18 per second)
• 100,000 new blogs daily (2 per second)
• More podcasts than global radio stations
• 90 million Facebook profiles
• 100 million+ LinkedIn profiles

These statistics can be overwhelming, so the first step is to evaluate your options:

LinkedIn is a business-related social networking site with users in more than 200 countries. It’s a way to manage your professional identity, and link to others to build your professional network. As an HR professional, it provides a resource to get a glimpse of an applicant and look at information posted regarding their personal profile. Recently, LinkedIn has uncovered some new tools: Linked Classmates and LinkedIn Talent Pipeline.

If you have any teenagers in your family, it is a given that you are familiar with Facebook. If your credit union isn’t on it, it may be missing the mark in branding and reaching the demographic it needs to recruit from. As an example, Ernst & Young’s Career Facebook page has well over 76,000 “likes.” It includes career and recruiting information, internship experience, photos, a recruiting brochure, a weekly poll question, career tip of the week and guidelines for its Facebook group. Of its members, 44 percent stated they heard about Ernst & Young through Facebook. Although your credit union’s recruiting needs in terms of volume may not be at the same level as Ernst & Young, your pool of applicants may be the same.

When it comes to recruiting, search engine optimization could be one of your best friends. Take the time to ensure your credit union’s job page on your website has the keywords it needs to attract potential applicants searching for jobs in your field and area.

On the horizon is another technology tool called Edge Content/Microformats. Imagine being able to “tag” your job information so that any job site, i.e., CareerBuilder, Monster, etc., will grab that job information and post it in their appropriate lists.

Before launching your recruiting technology, talk to your IT gurus. They can help you map out the best way for you to position your credit union, its job postings, and advertisements to reach the right people – all while screening those who may not meet qualifications. Need some assistance determining which technologies are for you? HRN Performance consultants can help.

There’s no way around it – recruiting through technology is here to stay. Whether you choose to use LinkedIn, Facebook, search engines, or a combination of all of the above, the time to engage is now. So, welcome aboard!

Related Services: HR Consulting, Search Engine Optimization

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