Beyond base pay
Motivating staff will require more than routine annual salary increases. Base salary budgets have increased only modestly for two years, after bottoming out at a 1.7% increase in 2009, according to the 2012 Culpepper Salary Increase Budget Update Survey.
Average U.S. base salary increases were 2.4% in 2010 and 2.9% in 2011. During 2012, base salaries are projected to increase about 3%.
For full-time credit union employees, average salary increases were somewhat lower than national figures—2.4% for both management and nonmanagement employees, according to CUNA’s survey. Budgeted base pay increases for 2012 are similar to 2011 figures.
Anticipated pay increases for 2013 are lower, at roughly 2.2%.
To motivate staff, some employers use formal pay-for-performance systems. Under these systems, high-performers receive much larger pay increases while low-performers receive low or no pay increases.
While the idea behind the systems seems logical, putting it into practice can be difficult for some managers, notes Soltis.
Currently, 27% of credit unions have formal pay-for-performance systems in place. Credit unions are more likely to have systems that reward high-performing, nonmanagement employees (24%) than management employees (2%).
The likelihood of having these systems in place increases with asset size. About half of credit unions with $50 million to $500 million in assets have pay-for-performance systems, compared with about 60% to 70% of those with $500 million or more in assets.
Helping others can be another motivating factor for workers. Here, credit unions might have an advantage over banks and some other industries due to their basic philosophy and structure.
“Credit union employees get a great deal of satisfaction out of serving members, and this motivates them and increases their loyalty to the credit union,” Soltis says.