Healthy membership expansion and strong loan growth bode well for credit unions’ employment environment, according to new research from CUNA.
Nearly 30% of credit unions plan to add full-time employees to their payrolls this year, up from 25% in 2013 and 20% in 2012, according to CUNA’s 2014-2015 Staff Salary Report.
Among credit unions with $200 million or more in assets, 60% plan to add staff this year.
“Credit unions are healthier today than they have been in years,” Mike Schenk, CUNA’s interim chief economist, told CUNA's News Now.
Double-digit loan growth and 2.5% annual membership growth are “a pretty good indication that there would be a need for additional people and resources to serve new members,” Schenk added.
On average, credit unions plan to add 3.9 full-time employees. That number rises with asset size, hitting 37 expected additions for credit unions with assets of $3 billion or more.
Nearly one-fourth of credit unions expect to add part-time employees this year as well, with an average 2.1 positions. Less than 10% of credit unions plan to reduce full- or part-time staff, and the vast majority of those planning to make reductions are eliminating just one position.
This is the third year that nearly three-quarters of credit unions with $1 million or more in assets have plans for wage or salary increases. “As the job environment improves, credit unions will be paying more to keep their top-performing employees," said Jon Haller, CUNA’s director of market and corporate research.
Increases are most likely among credit unions with $20 million or more in assets.
Wage growth also is supported by a reduction in pay freezes, Haller noted. “Only 17% [of respondents] anticipate any wage freezes this year, a significant drop from 45% in 2010 and 2011, and 35% in 2012 and 2013. “
Wage freezes are most likely to occur among credit unions with less than $20 million assets.
As credit unions look to a changing leadership demographic, 10% of CEOs, plan to retire in the next two years. Seventy-five percent of credit unions with CEO retirements on the horizon have succession plans in place.
For more information about CUNA’s compensation reports, click here.