Values Provide Credit Unions With a Strategic Advantage

Credit union leaders are accustomed to making decisions based on values. People across generations are replacing old habits with new, more values-based choices about brands, the workplace and how they want their work-life setup to look going forward. This should impact the credit union industry in positive ways. A shift toward a more values-based society opens opportunities for credit unions, which are, and have been since their inception, committed to values-based service for their members, employees, communities and other stakeholders.

The IBM Institute for Business Value reported that coming out of the pandemic, people’s views are more values oriented than before. IBM’s in-depth survey of 14,000 respondents in nine countries found that values, particularly those related to ESG factors (environmental, social and governance) increasingly will guide decisions about which businesses people will frequent and where they will work.

Heightened consciousness around ESG factors of environmental preservation and sustainability have affected consumer choices and employment trends. Of IBM’s survey respondents, 93% said the pandemic affected their views on environmental sustainability either a lot (68%) or to some extent (25%). Importantly, people are ready to vote with their wallets. A majority of consumers (54%) are willing to pay a premium for brands that are sustainable and environmentally responsible. Moreover, environmental consciousness is impacting employment decisions. Almost half (48%) of respondents would choose lower compensation in order to work for environmentally responsible organizations.

The Center for Generational Kinetics researches intergeneration trends and provides important related information about Gen Z, a prime target audience for new members and talent. Gen Z includes young people up to age 24, which includes recent college grads. They were hardest hit by pandemic-induced job losses, yet studies show that this group is even more values based than the generations before them. They have a strong desire to positively impact the world, and 62% believe they will do so. They will select brands that fully and publicly support the social causes that they do. They seek to work for companies that have a commitment to values of equality and talent development. Importantly, studies show that across all generations, people in general are more interested in work that offers intrinsic benefits beyond just compensation.

The pandemic has also shifted views about what constitutes a desirable workplace environment. The flexibility of offsite work is attractive, including working from home and hybrid models that combine offsite and in-office work schedules. IBM found that 62% of employees want to keep their current work arrangements, even after they’re immunized. Of those already working from home, 44% would like to continue and 35% want to move to a hybrid model. Of those employed under a hybrid model, 57% want to continue and another 43% wish to experience something new, whatever that may be.

These trends provide an opportunity to be seized by credit unions. Post-pandemic, people are making choices that go beyond traditional tangible factors and monetary considerations. Social responsibility has become a guiding principle in shaping ESG-related business strategies. When combined with a healthy culture that incorporates workplace flexibility, these powerful tools provide credit unions with strategic advantages to attract and keep members and talent.

People want to receive the high-quality services they need from an institution they trust and that their values align with. It starts at the top with leaders who are committed to ESG principles and integrate ESG-related values into the credit union’s business strategies. Well-executed strategic communication around their value-focused plans and actions let members, employees and the community know about their commitment.

The same is true for the companies where people want to work. Talent recruitment and retention benefit from this values-focused approach in a very competitive marketplace for skills. Employees want a healthy culture that fits their values and allows them the flexibility to continue, at least to some extent, the new ways of working that were introduced during the pandemic.

For credit union leaders, this is a time that requires incredible focus and strategic thinking.  With optimism increasing as people are getting vaccinated at higher rates and infection levels are dropping, people’s expectations and needs have changed as well. They are more focused on value-based choices for lifestyle, brands and workplace cultures. Management dashboards of smart leaders need to ensure that they are incorporating these important trends and ensuring the right internal and external communication to support these changes. The credit union industry, grounded in values, is well positioned to capitalize on these significant directional shifts that will impact all organizations and the way they move forward to achieve results.

Stuart R. Levine is Chairman and CEO for Stuart Levine & Associates LLC in Miami Beach, Fla.