By Ray Birch
ALLEN, Texas—One credit union has implemented a new training program it says is not only helping to retain current staff in a highly competitive jobs environment, but also attracting new employees.
The program, called Pathways, was instituted by $2.2-billion Credit Union of Texas to also address the issue of succession planning, which it feels is often overlooked within the credit union community.
“The main reason we introduced the program is because when you look around, you see the employment market is tough,” said Senior Vice President Angela Faust. “The market has changed, as we know. The main reason we started thinking about the program was to help our succession planning.”
Two Tracks
The program offers two tracks:
- Management track. Participants must complete two years of rotations training throughout the organization, doing new jobs and learning from leadership team members about key aspects of successful management. Completion of the program results in eligibility for a management position within the company, according to CUTX.
- Senior leader track. Participants are enrolled in a formal financial education program where they gain “essential” senior leadership knowledge and skills relevant to the financial industry, according to the CU. They are also eligible to earn a company-paid MBA through the SMU Cox School of Business. After completing the program, employees are eligible for a vice president-level position within CUTX. The program requires three years.
Angela Faust
The Pathways program has been in place for more than six months and is working on many levels, Faust told CUToday.info.
“We've had succession planning at the top levels, in the C-suite, but we revamped things and said we really need to take this down management and supervisory staff to make sure we have succession planning at every level throughout the organization,” explained Faust. “That’s where we're really growing employees. And we want them to grow throughout their careers.”
What Employees Enjoy
Faust said employees like the program and what it can do for their futures.
“Staff involved enjoy being able to learn the different areas of the credit union,” she said. “We're seeing staff go from department to department and they're able to see how everything works together in the credit union, rather than how things go in their one department. That complete picture of the organization helps employees grow. The primary goal is to have staff train to step into management level roles and then managers step into senior leader level positions. That way, if someone decides to leave, there is always someone ready to step in and take their place.”
Faust said Credit Union of Texas surveyed the industry and felt succession planning, even at the higher levels, was not being given sufficient attention.
The 600-employee CUTX currently has seven employees enrolled in Pathways.
“If you're a teller in a branch, you get in this program and you temporarily step out of that role to work throughout other departments,” explained Faust. “During this time you also work very closely with management and get that leadership training experience. The goal is not for employees to become experts in each area, but to really get a full understanding of how the credit union operates.”
A Different Path
Faust said the senior leader track is different.
“Because these staff have to take on a lot of responsibilities, we don't pull those employees out of their roles,” she explained. “They continue in their current position and go through a CUES online education program. After they complete that school they work one on one very closely with each of the C-suite executives to make sure they have a well-rounded understanding of how to operate the credit union at a higher level.”
Faust said employees now feel they have greater opportunities to advance within the credit union, with a formal training program in place, and are less likely to leave the organization. She added the credit union is using the Pathways program as a recruitment tool, showing potential hires they have a clear path to move up with the organization.
“We think it is attractive for current and new employees that the credit union has a program that can allow you to set your own career path,” Faust said. “We think that is a compelling story.”
The Cost & The ROI
Faust said the cost for Pathways management level training is “overstaffing.”
“We are paying for the time we have to have someone step in to fill an employee’s job while they work in other areas of the company during Pathways,” she said.
The senior leader track costs $30,000 a year per person for the education program.”
The expenses will be well worth the results, according to Faust.
“I think for a company to be successful for the long term, you have to know who your next leaders are,” she said. “And you need to be able to have somebody ready to step up should anything happen.”