Employment in Credit Unions (Part II): Salaries & Benefits

This is the second article of a 3-part series on employment trends and statistics focusing on headcount, salaries & benefits and productivity in the credit union industry from December 2000 to December 2005.

 
 

Note: This is the second article of a 3-part series on employment trends and statistics between December 2000 and December 2005. The other articles discuss Headcount and Employee Productivity.

At the end of 2005, the average salaries and benefits paid to credit union employees stood at $49,491, a 3.8% increase over the previous year. Salaries and benefits in credit unions have risen steadily since 2000, although the growth rate has slowed over the past three years.

Total salaries and benefits paid out in 2005 for all credit unions was $10.9 billion.

Average salaries and benefits per FTE was $38,606 in December 2000, an increase of 4.6% over the previous year. This rate of growth continued for the next two years, peaking at 6.4% in 2002. Since then, salaries have been slowing. The compounded annual growth rate for the five year period (December 2000 to December 2005) is 5.1%.

Average Salaries & Benefits per FTE by State

The average salaries and benefits per FTE of the fifty-four states and territories vary greatly in dollar terms. The national average is $49,491.

At $62,468, Alaska has the highest average salaries and benefits followed by California and Connecticut at $61,105 and $56,866. At the opposite end of the scale, Montana is at $38,159 followed by West Virginia and Idaho at $38,321 and $39,119, respectively.

In terms of growth over the previous year, Mississippi saw the biggest jump of 11.1% in salaries and benefits. The next two states – Utah and North Carolina – saw salaries increase by 8.9% and 8.8%, respectively.

Illinois was the only state where average salaries and benefits declined, but only -0.5%. Tennessee and Virginia were the other two states that had salaries grow less than one percent at 0.3% and 0.4%, respectively.

The national average for salary growth was 3.84%.

2005 Avg. Salary & Benefits Growth

 

 

 

 

 

 

 

 

 

 

 

State/Territory

% Growth

 

State/Territory

% Growth

 

State/Territory

% Growth

 

 

Alabama

3.8%

 

Kentucky

5.4%

 

Ohio

3.3%

 

 

Alaska

7.0%

 

Louisiana

7.5%

 

Oklahoma

3.9%

 

 

Arizona

5.8%

 

Maine

2.6%

 

Oregon

7.1%

 

 

Arkansas

6.5%

 

Maryland

4.0%

 

Pennsylvania

2.6%

 

 

California

4.8%

 

Massachusetts

3.5%

 

Puerto Rico

0.3%

 

 

Colorado

2.4%

 

Michigan

2.0%

 

Rhode Island

4.2%

 

 

Connecticut

3.2%

 

Minnesota

1.4%

 

South Carolina

2.4%

 

 

Delaware

2.7%

 

Mississippi

11.1%

 

South Dakota

3.7%

 

 

Dist. of Columbia

3.6%

 

Missouri

2.7%

 

Tennessee

0.3%

 

 

Florida

4.2%

 

Montana

5.6%

 

Texas

5.2%

 

 

Georgia

3.2%

 

Nebraska

7.4%

 

Utah

8.9%

 

 

Guam

3.0%

 

Nevada

7.0%

 

Vermont

6.3%

 

 

Hawaii

1.2%

 

New Hampshire

2.8%

 

Virgin Islands

2.8%

 

 

Idaho

3.6%

 

New Jersey

6.1%

 

Virginia

0.4%

 

 

Illinois 

-0.5%

 

New Mexico

4.8%

 

Washington

1.1%

 

 

Indiana

1.8%

 

New York

5.6%

 

West Virginia

1.9%

 

 

Iowa

3.0%

 

North Carolina

8.8%

 

Wisconsin

4.1%

 

 

Kansas

1.9%

 

North Dakota

6.1%

 

Wyoming

4.9%

 

 

Source: Callahan & Associates Peer-to-Peer software

 

 

 

 

 

 

 

March 27, 2006


Comments

 
 
 
  • Great data. Good to compare with a credit union's trends.
    Anonymous
     
     
     
  • The article is interesting and useful. Also wanted to add that I have just spent a little time helping a client work through the numbers (using my Peer-to-Peer, of course!). This analysis represents the average "salary & benefits" figure for credit unions nationally and by state. It appears the asset comparator is not utilized (which will affect this figure). Salary differentials (geographically-based) vary greatly within the same state (e.g., San Francisco vs. Los Angeles, CA or Dallas vs. El Paso, TX). Also, salary & benefits will vary depending on the treatment of employee health premiums and type and/or richness of retirement plans (not to mention 457 plans). Finer factors will include: org structure (% of executive, management, staff positions), type of membership (high, average, or low average account balance), electronic services delivery (members who are primarily high-tech vs. high-touch), number of offices, cash vs. cashless, etc. Over the years, we have constructed a comprehensive HR productivity analysis model. As spreads get thinner, credit unions are more interested in the HR side of the modeling. Thanks for giving this some airtime. Salary & Benefits is the largest line item operating expense that is truly a resource. When this resource is carefully considered, planned & effectively managed it is truly "the resource" to a credit union's success. Rhonda Cooke, Pres/CEO Cooke/Andres, Inc.
    Anonymous