The effects of the Great Resignation/Reshuffle continue to be felt in the U.S. labor market. Layoffs are extremely low, quit rates are high and more job vacancies exist relative to unemployed people – indicating strong demand for labor and lower supply.
The September Employment Situation Summary from the U.S. Bureau of Labor Statistics indicated this labor situation is continuing:
These challenges of the labor market are also connected with the current financial market fluctuations. In September, the Dow Jones index plunged 20% from the recent highest point. Energy prices are volatile with gas prices rising. Mortgage interest rates have reached their highest point since the Great Recession of the late 2000s as the Federal Reserve attempts to counteract the effects of inflation with interest rate adjustments.
“Credit unions are facing multiple staffing challenges as a result of economic conditions,” said CUNA Product Manager Dayna Johnson Schmitt. “They need to adjust their support of members and help them navigate this financial landscape, while also balancing the needs of staff who have the same financial pressures as the members. At the same time, credit unions are experiencing staffing challenges of high turnover rates and working to build new teams and new workplace cultures that incorporate hybrid and remote. It is a lot to manage at once.”
Another outcome of this changing economic and labor environment that credit unions need to manage is pay compression. Pay compression isn’t necessarily a deliberate practice but can happen when organizations need to address high turnover in a hiring environment favoring job-seekers. By offering new staff similar or higher wages than existing, more experienced staff, they can create pay inequity, or compression across wage levels.
“While working through these economic and labor conditions, one tool that credit unions can use to support their staff and make the best decisions about staffing and compensation is the data available through CUNA Compensation Resources.” Johnson Schmitt offers.
“Earlier this year, primary data was gathered directly from credit unions for a comprehensive salary analysis for staff and senior leadership,” Johnson Schmitt explains. “The reports also include cost of labor multipliers for states and over 400 cities. With this data, credit unions can benchmark the pay of existing staff as well as craft offers to new team members. We are grateful to the participants of these studies to provide this essential information for the industry.”
For over 30 years, CUNA Compensation Resources have offered trusted data to credit unions for informed decision-making to support their teams and members.