Employee turnover at credit unions remains low, according to CUNA’s 2012-2013 Credit Union Turnover and Staffing Survey. But it’s likely to rise as the economy improves.
The overall credit union turnover rate was 10% in 2011, down from 12% in 2010 but similar to the 2009 turnover rate of 9%.
The past few years have seen stagnant wage growth coupled with heavier workloads. Consequently, many employers are reporting lower levels of employee job satisfaction and engagement.
Expect dissatisfied, stressed workers to seek job opportunities elsewhere when hiring picks up, says Beth Soltis, CUNA's senior research analyst.
In addition, retirements could drive an increase in turnover in the near future. Many older employees put off retirement to rebuild their nest eggs.
As their finances improve, these workers will begin exiting the workforce. High turnover among experienced managers and other key positions could have an especially detrimental effect on organizational performance—possibly leading to instability or a leadership void.
While turnover rates can signal a problem, they don’t tell the whole story. For instance, high turnover indicates employees aren’t staying in jobs for very long at your credit union. But the rate itself doesn’t explain why employees left or which staff employees left.
Did they leave because they’re poor performers who couldn't handle job expectations? Or were they high performers you’ll regret losing?
Are your employees high performers who consistently meet performance and productivity goals? Or are they simply accustomed to working at the credit union and haven’t taken the initiative to look for career advancement elsewhere?
The answers to these questions should dictate your credit union's approach to recruitment and retention strategies, Soltis says.
This article originally appeared on CU E-Scan.