Star Employee-Seeking Credit Unions: It’s Time to Up Your Game
The old pick-up lines employers have been using aren’t going to cut it, because job-seekers are tolerating a lot less these days.
Has anyone else noticed that the pandemic caused their social circles to shrink? Everyone’s circumstances are different, of course, but from my perspective it seems that the number of fair-weathered friends and acquaintances one has – the types of people you may run into at an event or bar, and engage in surface-level conversation with – has dwindled. This is mostly because the past 16 months have presented little to no opportunities to visit such events or bars, leaving us with more time to invest in the people we’re closest with. It’s also because recent events have led us to form strong opinions on big issues, like social justice and what behaviors are considered risky during a pandemic, leading some to distance themselves from individuals who have exhibited opinions and behaviors that they can’t respect.
With true colors being revealed and toxic and/or unfulfilling connections being eliminated, people are simplifying their lives and reprioritizing who deserves to be a part of them. And it seems that they’re feeling the same way when it comes to their jobs.
According to the Bureau of Labor Statistics, approximately four million U.S. workers quit their jobs in April 2021 – the highest number ever recorded since the BLS began reporting the data in December 2000. Some of the common employer behaviors that have triggered resignations, based on anecdotal evidence, include: Forcing workers to come back into the office, stealing away the time they’ve been able to carve out for healthy habits like exercise and hobbies; refusing to accommodate workers who request flexibility to attend to childcare or other family-related needs; not offering competitive enough wages; and not doing enough to protect onsite workers from contracting COVID-19 on the job.
In addition, some people viewed the pandemic as a time of major reflection. They may have decided that their current job wasn’t right for them and began pursuing something they were more passionate about, such as starting a business or switching careers, if they had the means to do so. According to a recent LendingTree survey of 2,050 U.S. consumers, one in four thought about starting a business during the pandemic, and cited their top reason as the desire for more purpose and passion.
Adding to this dilemma for employers is the so-called pandemic-induced “baby bust” that is unfolding in the U.S. The CDC reported in May that U.S. births declined 4% in 2020, about double the average rate of decline between 2014 and 2019. And the average number of times a woman will give birth in her lifetime declined to a record low of 1,637.5 births per 1,000 women last year (to replace the current population, that first number would have to be at about 2,100).
This is good news for the babies who will one day become part of the high school class of 2039 (want to get accepted into Yale? Be voted homecoming queen? Not such a long shot anymore!) But it’s not such good news for the future economy. Some argue the country could see a delayed baby boom, however if the current trend continues, “the U.S. may be headed for what’s known as a ‘demographic time bomb,’ in which an aging population isn’t replaced by enough young workers,” according to Business Insider. “This could slow the economy in the long term by creating higher government costs and a smaller workforce, who will have to front the care costs for aging populations.”
Going back to the quit rate news, it’s important to note that unsurprisingly, many recent job departures happened in hospitality and retail, where workers were subject to risky public-facing interactions as well as a great deal of uncertainty as demand for business shifted and an unpredictable series of reopenings and closings took place. The BLS reported 957,000 quits in the trade, transportation and utilities industry (which includes retail) in April 2021, up from 444,000 in April 2020; and 741,000 quits in leisure and hospitality, up from 316,000 in April 2020. Business and professional services wasn’t too far behind with 707,000 quits in April 2021, up from 432,000 in April 2020; 134,000 quit in the financial activities industry in April 2021, up from 68,000 in April 2020.
According to data from the NCUA’s database analyzed by our reporter and resident data expert, Jim DuPlessis, the number of full-time employees at credit unions increased by 1.1% as of March 31, 2021 from a year earlier. Drilling down to asset size, medium-sized credit unions ($1 billion to less than $4 billion) and large credit unions ($4 billion or more) saw a 1.6% and 3.4% full-time employee increase, respectively. Small credit unions (less than $1 billion), however, saw their number of full-time employees decline by 1.3% during the 12-month period.
It’s hard to say at this point if credit unions are facing a dwindling supply of job candidates, but looking at the workforce as a whole, it appears that workers are putting their own needs first and tolerating a lot less these days. That’s something all employers, including credit unions, should keep in mind as they look to hire new talent and map out their employee pay scale and benefits plans.
First and foremost, credit unions that want to stay competitive in the battle for talent must pay living wages. Some credit unions are stepping up by increasing their minimum wage – like EFCU Financial ($656 million, Baton Rouge, La.), which just raised its minimum pay from $15 to $17 an hour, and Michigan Legacy Credit Union ($276.5 million, Wyandotte, Mich.), which raised its minimum wage from $13 to $16 per hour. After one year of employment, the rate increases to $18 per hour for Michigan Legacy employees.
Next, credit unions must provide policies and benefits to employees that show they care about their well-being and life outside of work, like flexible hours that give employees space to attend to personal and family needs, or a remote work option.
And, credit unions can benefit from widening their candidate pool to include people who don’t have specific industry experience or an advanced degree, but are a good cultural fit and can be easily trained.
Employers these days are like contestants on “The Bachelor” or “The Bachelorette” – one in a crowded room full of many hopefuls who are all vying for the same person’s attention (but hopefully less drunk, desperate and fame-hungry). It’s time to up your game in your quest for talent, because your old pick-up line isn’t going to cut it.
Natasha Chilingerian is Executive Editor for CU Times. She can be reached at nchilingerian@cutimes.com.