ST. PETERSBURG, Fla.—There’s never been a better time to invest in the workforce than today—says one HR expert, who insists that is the only way credit unions can remain competitive long term.
Lynn Heckler, EVP, chief talent officer for PSCU, told CUToday.info that investment in staff often falls off on the budget chopping block too quickly and should be considered if extra money is left over once the cutting is done.
Heckler’s insights are being shared as part of a CUToday.info series on what to do with unexpected budget surpluses, such as the payment from the NCUSIF many credit unions will receive this year.
“It is often said that one of the first budget line items to get sacrificed is marketing. Talent and leadership development might be a close second,” said Heckler. “In an increasingly competitive financial services landscape, hiring, training and retaining top talent is more important than ever. While developing and implementing a talent strategy comes at a price, credit unions finding themselves with extra dollars to spend would be well served to consider investing back into their workforces.”
Heckler said that the financial services industry is undergoing a digital transformation, and credit unions should have a digital strategy to remain competitive.
“While the impact of this transformation can be felt in obvious areas, like product and business development, there are also less obvious talent implications,” she said. “Credit unions need to prepare their workforces to adapt to the changes being brought about as a result of the shifting digital landscape, which means investing in digital-savvy talent.”
Talent Pool
The fact that the talent pool for workers skilled in digital capabilities is in high demand in all industries can make it difficult for CUs to find the right talent, said Heckler.
“These individuals are really in the driver’s seat when it comes to being able to choose where, when and how they work,” Heckler said.
What credit unions need to do is invest in digital-savvy talent before they think they need it, Heckler advised.
“The reality is that you probably need it already, even if you do not realize it yet. It is crucial for credit unions to have team members in place that really understand the digital transformation and the digitization of financial services,” she said.
Changing Expectations
Changing consumer expectations are disrupting many industries, including credit unions, and it only makes sense that employee expectations are also changing dramatically, said Heckler.
“And employee expectations are not getting any lower,” she said. “Employees are demanding a similar experience in their workplaces as they are experiencing as consumers. There are two trends underway simultaneously—a redefinition of the employee/employer relationship, and a war for talent, which is expected to worsen. This means employers should focus on and invest in things that will improve the employee experience.”
This could include conducting an employee engagement survey or implementing continual performance feedback. Or it might mean investing in employee intranets, portals and other digital self-service tools that will enable smaller credit unions to compete with large financial institutions, said Heckler.
“Take stock of your overall employee experience and invest in areas that will increase engagement,” Heckler advised. “Helping create a culture that can attract and retain top talent is a no-brainer when you consider the cost of employee turnover.”
Hecker said the profile of leaders in today’s marketplace is changing dramatically, which impacts staff development approaches.
“A typical credit union has most likely built a team with deep functional expertise. For example, a credit union’s chief lending officer has in-depth knowledge in lending and therefore becomes invaluable within the lending space,” she said. “But deep functional expertise is now giving way to enterprise leaders who are leaders of transformational change—two very different skill sets.”
How do you retool existing leaders?
“To set themselves and their employees up for success, credit unions need to figure out how to develop a person from a functional leader to an enterprise leader who is comfortable navigating change in a very quickly changing business environment,” Heckler said. “This can sometimes mean looking at implementing rotational assignments or investing in targeted development initiatives.”
This Is The Future
Heckler insisted that leadership development is the future of the credit union and the movement.
“Other financial institutions are competing for the same leaders, so we have to make sure we skill up our leaders and invest in them so we can compete in the future,” she said. “Developing a talent strategy that supports a business strategy costs money. But not investing the funds necessary to do so can result in shortchanging your credit union in the long run. Proactively investing available funds into retooling your workforce to more effectively compete will pay off in spades.”