As the economy continues to improve, more credit unions are offering pay increases and other incentives as a way to retain and attract employees, according to CUNA’s 2015-2016 Staff Salary Report.
Between 75% and 85% of credit unions provided management and non-management employees with a salary or wage increase in 2014, budgeted for increases in 2015, and anticipate doing so in 2016.
Among credit unions raising wages, projected salary increases this year and next range from 2.5% to 2.9%, according to the report. That places credit unions at roughly the average for all U.S. companies in 2015 (2.9%) and 2016 (2.7%), according to the Economic Research Institute.
The number of credit unions offering pay increases, as well as the size of the increase, depends on the year, the credit union’s asset size, and the employee category.
“Many credit unions have incorporated employee salary increases as a valuable tool to retain staff members and recruit new employees,” says Jon Haller, CUNA’s director of corporate and market research.
On the flip side, only 10% of credit unions planned to enact a salary or wage freeze in 2014 and 2015. That number approached 45% during the recent recession.
Variable pay continues to be a popular way to reward employees without increasing fixed costs. Among credit unions with more than $1 million in assets, 70% offered full-time employees bonuses or other incentives in 2014.
Credit unions’ upward trend in hiring continues in 2015, with 35% planning to add full-time employees—a figure that has increased steadily from 20% in 2012. On average, credit unions plan to hire 4.1 fulltime employees this year.
For more information about CUNA’s 2015-2016 Staff Salary Report, visit cuna.org/compensation.