Talent Wars: What’s the Secret to Finding and Keeping Your People?

What makes somebody the right fit for a job? In my opinion, a big factor is something that can’t be changed or developed – it comes down to personality and chemistry, and whether the individual meshes comfortably with their teammates and the organization’s culture. And it’s hard to say whether the fit is right until the new employee has settled into their role. In any type of new relationship, people are generally on their best behavior in the beginning, hiding their quirks and flaws until it becomes too much work to do so. As a friend of mine used to say about couples who just started dating, “At the three-month mark, the crazy comes out!”

For me personally, a job feels like the right fit when I have no strong desire to go somewhere else. Of course, career advancement is important and often requires switching companies, but if the thought of staying in my current job forever brings feelings of contentment, not dread, I’m probably doing something right.

Cultural fit, chemistry, personality … they’re all critical to a successful, long-term employer-employee relationship, and usually aren’t fully visible until after a hire has been made. They’re also only a portion of what credit union hiring managers are concerned about, as only people who “fit in” and have the right skills for their position make good hires.

As credit unions continue to update their business practices to stay competitive, increasing their focus on areas like cybersecurity, fintech partnerships and member experience, it’s becoming harder for them to find the talent they need. According to an August 2019 survey of executives from 50 credit union organizations, the industry is facing a talent shortage due in part to changing industry demands, and executives’ number one area of focus when looking for talent to fulfill their short-term strategy is to find people with the skills and experiences to meet their evolving business model.

Another key takeaway from the survey, conducted by Korn Ferry and the Filene Research Institute, is that it’s essential for credit unions to widen their search for talent, extending it well outside the boundaries of the CU industry. Forty-one percent of respondents said in selecting a partner to help with talent acquisition, having access to talent pools within the broader financial services industry is most important, and only 17% said having credit union industry experience is most important. The survey also found:

• Ninety-four percent of respondents said they are either somewhat or very successful in finding strong talent from outside the credit union industry.
• Zero percent of respondents said they were not interested in talent from outside the credit union industry.
• Credit unions’ most significant challenges in attracting external hires are first, a shortage of talent in the market; second, compensation; third, attracting talent from new/fresh segments in the market; and fourth, cultural alignment.

So, if credit unions need to look outside the industry to find the best talent, and 100% are willing to do so, according to this survey, how can they get started? One strategy is to physically put themselves out there in front of job seekers and not be shy about it, like eight credit unions did last month at the second annual Cooperative Career Fair, held outside the headquarters building of the $1.3 billion Unitus Community Credit Union in downtown Portland, Ore. The one-day career fair brought hiring managers from local credit unions face-to-face with candidates, drew between 65 and 70 attendees both years, and included a raffle and onsite DJ.

A number of hires – six last year and three this year, so far – have been made as a direct result of the career fair, and more are currently in process, according to Gayle Evans, SVP and chief human resources officer for Unitus Community. Notably, the fair has attracted the attention of employees from neighboring big banks (Unitus Community’s headquarters is a short walking distance from Wells Fargo and KeyBank locations). “I personally spoke with three guests who were looking to make a change from Wells Fargo, they were in the commercial lending field,” Evans said.

Because credit unions that seek business from the same pool of potential members teamed up for the career fair, and even cross-referred candidates to each another, the event exemplified the non-competitive nature of the industry – something external candidates find appealing. Amy Nelson, president/CEO for the $94 million Point West Credit Union in Portland, which participated in the fair, said while meeting with a man earlier this year at another local career event who had attended last year’s credit union career fair, he shared “how impressive it was to watch competing credit unions giving each other high fives and share stories that day about their mutual passion for serving the underserved, while essentially vying for the same talent.”

Echoing the survey results, Evans said Portland-area credit unions are feeling the effects of the “war for talent,” especially given the region’s strong economy, which has led businesses to expand and competition for talent to increase. “Economic reports show that housing costs continue to outpace wage growth,” she added. “It’s getting more difficult to retain employees who live and work in the Portland Metro area. Many are moving to outer areas and dealing with longer commutes or relocating to other states.”

In response to these challenges, Evans said more employers are offering remote work options, and in Unitus Community’s case, ensuring compensation remains competitive. It recently added a student loan repayment benefit – an attractive perk that addresses a major financial pain point being felt nationwide.

Much like with forming long-lasting personal relationships, making great hires is becoming more difficult to navigate. It requires making investments in people before truly knowing how they’ll mesh with your team over time, or if they’ll choose to stick around. Sometimes, building an outstanding team comes down to timing and luck – factors that are out of the organization’s control.

So, it’s best that they focus on strategies that are in their control. For credit unions, that starts with leaving the comfort zone of their own industry and looking at candidates in places they may not have considered before. Because sometimes, the most meaningful connections are also the most unlikely.

Natasha Chilingerian is executive editor for CU Times. She can be reached at nchilingerian@cutimes.com.