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Turnover Costs Credit Unions More Than $60 Million Annually
Monday, July 13, 2015 6:50 AM

Credit unions are a significant employer in the Cornerstone region. With this economic impact comes a cost. In the past year, employment in credit unions grew by 669 people across the three-state area. However, overall, turnover in credit unions was close to 20 percent. For the growth to occur, credit unions had to replace 5,218 other employees.

Thus, according to the just released “Compensation 2015” survey by the Cornerstone Credit Union League, the financial effect of turnover on the region’s credit unions was an expense of more than $62.5 million.

“The math is simple,” stated Rick Grady, head of research and economics at the league. “Numerous studies indicate that the cost of turnover is roughly 20 percent of average annual salaries. The average salary last year was $59,848. That average multiplied by the turnover in employees yields a huge number.”

The “Compensation 2015” survey digs deeply into the compensation portion of credit union operations. It explores nearly every job position and slices the data by population size, region, tenure, education, and size of organization. The document condenses five months of intensive data collection and compilation by Doug Foister, director of research.

Cornerstone members wishing to obtain the study and documented tables can contact Doug Foister at dfoister@cornerstoneleague.coop or by calling 469-385-6477.