Key Considerations for Reviewing Employee Compensation Strategies
March 9, 2020
When it comes to a credit union’s employee compensation strategy, there are many factors to consider. From the budget to performance ratings, current compensation, peer compensation, the current market, survey data, and more, it can be a lot to handle.
Fortunately, CU Solutions Group can help credit unions navigate these tricky waters. The Strategic Link partner offers credit unions essential solutions in five key areas: marketing, technology, membership enhancements, performance management and lending, and operations. Its divisions work together to help credit unions grow, expand, and serve their members with the latest technology and most innovative ideas.
“CU Solutions Group provides credit unions with the resources they need to best serve their employees and members,” said Jason Smith, Vice President of Strategic Resources. “They are an excellent partner to have when creating effective compensation policies for credit union employees.”
Compease is CU Solutions Group’s complete salary administration software, which facilitates the analysis, design, and execution of a credit union’s compensation strategy. Compease tailors salary data specifically by industry, size, and location, helping credit unions develop accurate pay ranges, ensure equity, and maintain competitive compensation.
According to CU Solutions Group, there are three major factors credit unions must take into account when reviewing compensation strategy for multigenerational staff.
The first step for credit unions is to understand their employee demographics. A credit union that’s employed several millennials may not be looking into wellness programs for veteran employees, for example. Credit unions will likely employ a range of workers across the age spectrum, so it’s necessary to plan for a diverse workforce.
Numerous surveys have shown that proper communication regarding compensation can ward off frustration and resentment. Each generation has its own preference when it comes to communication, and it’s important credit unions take that into account. Millennials tend to lean toward a public forum, whereas baby boomers tend to lean toward more private communications. It’s key to discuss compensation the right way to each generation.
Salary surveys can play a pivotal role in compensation policy plans, helping credit unions determine the market value of a position that is fair and equitable. Knowledgeable employees are also likely to do market research on their own, and salary surveys help keep credit unions’ compensation packages competitive. Market data is one of the best metrics to establish a position’s external worth, allowing the job to be assigned into a salary range for easy administration.