The financial services industry is struggling with high turnover. Four out of five financial institutions face staffing shortages, driven by wage stagnation, job dissatisfaction, pandemic effects, and demand for remote work.
Credit unions are especially vulnerable. The average CU employee is 38 years old — squarely in the age group seeing the biggest spike in resignations. Replacing talent is expensive and hurts member service.
To win the battle for talent, credit unions must act. In a recent discussion, John Harris (CEO, CU Benefits Alliance) spoke with Brad Calhoun (President & CEO, Teachers Federal Credit Union) and Kari Stansberry (Chief Administrative Officer, iQ Credit Union) about real strategies that are working.
Key Insights from Credit Union Leaders
- iQ Credit Union saw turnover nearly double from its 25-year low in 2021 to 2022, prompting aggressive action.
- Calhoun views the situation as the “Great Competition” — not just a resignation wave. Credit unions must improve employee satisfaction to compete.
Effective Retention Tactics
iQ Credit Union’s successful moves included:
- Higher merit increases
- Increased 401(k) matching
- Adding fully-paid dependent care to its already fully-paid employee health plan
- Offering enrichment days for team members
Stansberry noted a concern: rapidly raising pay for new hires can create internal pay equity issues, especially since credit unions already lag the broader financial sector on compensation.
Teachers Federal Credit Union is also competing harder on pay while acknowledging CUs were already playing catch-up before 2020.Beyond Compensation
- Flexibility matters: Both credit unions introduced remote and hybrid options where possible, even for some public-facing roles.
- Culture is critical: iQ emphasizes inclusion and belonging with a dedicated task force, strong brand, and efforts to let employees show up as their authentic selves.
Smart Recruitment Strategies
The panel shared practical tactics:
- Employee referral incentives
- Partnering with professional recruiters for specialized roles
- Collaborating with local colleges and hiring interns
Calhoun stressed the importance of your employer brand: “Part of your broader recruiting strategy is the story you’re telling.” Monitor and manage your presence on Glassdoor, Indeed, and similar sites to ensure accurate, appealing messaging.
Positive Outcomes Emerging
Despite the challenges, both leaders saw encouraging results:
- More internal promotions and career growth opportunities
- Renewed sense of collaboration and “family” feeling
- Employees stepping up and succeeding in new roles
Bottom Line: Credit unions can win the talent war by combining competitive compensation, flexibility, strong culture, and clear communication.
Better benefits and intentional retention efforts not only reduce turnover — they create a more engaged, productive team.