As the macroeconomic ramifications of the COVID-19 pandemic persist, labor shortages across U.S. businesses pose pressures on wages, benefits, and skill gaps. The U.S. Bureau of Labor Statistics reported more than 10.9 million open jobs as of Dec. 31, but the hiring rate is slowing as quality candidates are scarce.
Employees have seized this opportunity to push for better pay and benefits, often switching jobs to meet their compensation goals. Despite a sharp recovery after the peak of pandemic-related job losses, the Quit Rate finished 2021 at 2.9% as talent at all levels looked for higher wages and more work flexibility. The Great Resignation, therefore, poses challenges and changing dynamics for attracting and retaining talent.
Key Points
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Total full-time equivalent employees (FTEs*) at credit unions increased 2.9% year-over-year to 327,448 as of Dec. 31.
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Average compensation expense per FTE at U.S. credit unions was $88,520 through the third quarter, up 3.7% year-over-year. Total industry-wide compensation expense reached $29.0 billion, good for 6.7% growth year-over-year.
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Revenue per employee was $259,833 as of Dec. 31. This amounted to a 1.1% decrease year-over-year.
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Loan originations per FTE topped $2.4 million in the 2021 calendar year. This is up $300,873 from 2020 totals, as average loan balances rose with higher asset prices. The number of YTD originations per FTE also increased by 13 year-over-year.
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FULL-TIME AND PART-TIME EMPLOYEES
FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.21
Credit unions took on more full-time employees through increased hiring or internally promoting part-time employees to serve a growing member base.
MEMBERS PER FTE
FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.21
Members joined credit unions in 2021 faster than the industry could hire new staff, and employees are responsible for managing more members now than ever before.
$ REVENUE PER FTE
FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.21
Year-to-date revenue earned per FTE decreased year-over-year. Many new members are not necessarily generating income for the credit union just yet.
The Bottom Line
The current labor market requires credit unions to increase employee salaries and provide new workplace flexibility options, like fully remote roles. Attracting top talent now involves competing with the whole country, not just the shop down the street, and cooperatives are doing what they can to attract and retain employees.
Despite these changes and constraints, members are flocking to credit unions in droves, as evidenced by increases in lending and members per FTE this past year. The credit union mission is to support its members-owners, and a well-equipped staff is the primary method of achieving this purpose. As membership grows and deepens, the industry must prioritize making sure employees have the resources they need to succeed.
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