Credit Unions: Preparing People Resources for Growth in 2012

Efficient processes for training and performance management are essential for supporting long-term financial growth within this highly regulated industry

Bank Transfer Day had a significant impact on credit unions. Not only did the movement generate more public awareness of CUs, it also resulted in new member gains. According to the Credit Union Times, the one month spike of 210,000 new members was “incredible” compared to recent years. In fact, membership growth in September and October 2011 represented 75 percent of CU’s 2010 growth. 

Experts estimate that this growth opportunity for CUs will extend into 2012, and those who have the right resources in place to take advantage of it will be rewarded with increased memberships and loans.

Additionally, it is also projected that 2012 will see a lot more consolidation of small credit unions. In October 2011, there were 7,409 credit unions, and the Credit Union Times predicts that number will dip below 7,100 in the coming year.

Obviously one of the more important resources in CUs and any other organization are its people. Efficient processes for employee training, development and performance management are essential for supporting long-term financial growth within such a highly regulated industry. And when merging organizations, establishing consistent learning and performance management initiatives becomes even more critical.

Improving Efficiencies and Reducing Costs

One example of a CU that has taken steps to better support its employee development goals and meet evolving industry requirements is GECU, El Paso’s largest locally owned financial institution and one of the largest credit unions in the state of Texas. GECU employs more than 700 people to serve over 298,000 members across its 14 branches, call center and support departments located within its Operations Center.

GECU had historically used instructor-led training for its employee base. However, as the credit union continues to grow, the dedicated resources and oversight required for in-person training, coupled with the time and travel required for having employees attend these sessions, was no longer efficient or cost-effective.

The CU decided to invest in a learning and talent management software solution that could help the organization increase its utilization of e-learning, which in turn would help to reduce employee training costs and reduce the time spent on managing employee development programs. Additionally, GECU aimed to streamline its internal and external reporting and compliance processes, as well as automate its employee performance management initiatives.

In particular, GECU wanted to invest in a software-as-a-service (SaaS) solution to support these initiatives. They wanted a technology solution that would be configurable and reliable enough to not only address their HR and employee development needs today, but also easily scale with the business as it continued to grow.

Immediate Impact

Since GECU implemented its learning and talent management software solution and updated its processes for learning and development and employee performance management, they’ve seen an immediate impact on the organization. With increased access to and use of online courses, the CU is on track to significantly reduce its reliance on manpower-heavy instructor-led training. For example, using the system’s reporting and analytics tools has helped GECU reduce time spent compiling reports by 75 percent.

And, managers and employees now have greater access and control over uploading, forecasting and customizing training courses. This has led to a more relevant and streamlined schedule of coursework for all employees. 

For credit unions looking to take advantage of the growth opportunities ahead in 2012 -- or enable improved consistency and alignment following a merger -- now is the time to invest in and enable your human capital. To read more about GECU’s leaning and development and people management initiatives download the case study here.