Attracting and retaining high quality employees is a critical issue for credit unions in competitive financial services markets. To...
Jan 01 1998
Monetary Incentives for Credit Union Staffs
This monograph reports the results of a national survey of credit union CEOs about their use of employee incentive programs.
Seventy-five percent of the CEOs of credit unions with employee incentive programs are satisfied or very satisfied with the results of their programs and 94% continue to use the incentive programs. An impressive majority of employee incentive programs in credit unions are accomplishing their key objectives.
The targeted objectives most likely to be achieved are (1) better employee/management cooperation (95%), (2) increased consumer loans (91%), and (3) improved loan to share ratios (90%). CEOs of credit unions without incentive programs express many concerns and doubts about how appropriate and effective programs are. However the evidence in this study does not support their most frequent concerns, or it show that these concerns can be eliminated through the proper design of the incentive program.