By Ray Birch
ALEXANDRIA, Va.—US Senate FCU is taking a “holistic” approach to managing expenses during the pandemic as it works to ensure it can preserve employees’ jobs.
“We want to do everything possible to make sure we don’t have one employee losing their job because of this crisis,” said CEO Timonty L. Anderson, speaking to an issue that is a serious concern to many in credit union management.
Like many other credit unions, the $1-billion US Senate FCU has had to make revenue sacrifices to help members survive the current recession and pandemic, and is bracing for loan losses that will likely mount later this year and well into 2021.
But Anderson believes the credit union can avoid making major cuts to prop up the bottom line, including the biggest cuts of all to branches and jobs.
“But we are not going to do that,” he told CUToday.info even as he acknowledged the challenge is one not easily solved.
Anderson said US Senate FCU has reviewed almost every operational area within the credit union to make cuts and budget adjustments. He added the COVID-crisis has led to some savings.
“You have less travel. You don’t have all the meetings to go to. So we do save there,” noted Anderson. “We are just focused on tightening up.”
Cutting Marketing Costs
One area in which the credit union is spending less, said Anderson, is marketing.
“There's some opportunity to cut in that budget, and again, some of marketing is face-to-face events, and COVID has put a stop to much of those,” he said. “But there certainly is room in the marketing budget to create some savings.”
Vendor contracts are also on the radar, said Anderson.
“For those contracts that are expiring, do we keep all of them? Do we cut back on some of the services we need? We are also looking to renegotiate existing contracts,” explained Anderson.
US Senate FCU will not be giving raises at the end of the year or paying out bonuses, said Anderson.
“The employees know this. And when I talk to them about it they all just say thank you,” he said. “They are just thankful they have a job, and they know that raises are not something we can give this year. They know they have to share in solving this problem we face.”
Another challenge in the COVID era is employee productivity, which can be a significant bottom line driver. Anderson explained employees can’t be highly productive, especially when they are working at home, if they are not confident they will retain their jobs.
Employee Productivity
Anderson told CUToday.info his primary goal when the health crisis began in March and US Senate scrambled to get its workforce working remotely in just a matter of days, was to reassure his team no one would lose their job.
“This is not just a credit union budget issue. We are talking about people and their lives, their families and their futures,” said Anderson. “I had to let them know early their positions were secure.”
Timothy Anderson
That, said Anderson, is a big reason why productivity of the credit union’s staff has remained high during the crisis, with 75% still working remotely.
“I don’t think productivity would be as high as it is had we not clearly explained to our team their jobs are safe,” said Anderson.
Ongoing Communication
That reassurance is something Anderson knows he has to keep providing to staff as the pandemic wears on. The CEO’s communication with his team has been strong and consistent throughout the pandemic,” he said.
“I send emails regularly to them. We hold virtual town hall meetings and video conferences where staff can ask me questions…I stay in front of the team,” said Anderson. “Communication now is critically important. It shows that you're partnering with your staff and shows your concern for them. If that didn't happen, productivity would fall off.”