During budget season, credit unions always scrutinize their biggest expenses.
Employee benefits are usually one of the top three.
The real question is: How much can reducing benefits costs improve your Return on Assets (ROA)?
ROA measures how efficiently your credit union generates income from its assets. Even small improvements in profitability can make a noticeable difference.
Real-World Example
NE Credit Union (2020)
- Assets: $1.8 billion
- Net Income: $11.5 million
- Original ROA: 0.64%
After switching to a smarter benefits strategy (recommended by CU Benefits Alliance):
- Employee benefits costs dropped by $1,194,068
- ROA increased 9% to 0.71%
That single change delivered meaningful bottom-line impact.
The Opportunity Most Credit Unions Are Missing
According to CU Benefits Alliance, many credit unions are paying about 25% too much for employee benefits.
For a credit union with just 100 employees, that often translates to over $200,000 in annual savings — simply by adjusting a few key funding strategies.
These savings come from eliminating waste that plagues the U.S. healthcare system (estimated at 25% of total spending, or $760–$935 billion annually).
Bottom Line
Reducing employee benefits costs directly boosts net income and ROA — while freeing up cash for member dividends, technology, staff raises, or other strategic priorities.
Can you afford not to explore better options?
If you want to lower benefits expenses and strengthen your ROA, contact CU Benefits Alliance today. We specialize in helping credit unions leverage group buying power for better results.