October 17, 2024
by Scott Butterfield
Some of my best thinking is done when I’m walking (or flyfishing!). I’m that old guy who walks with earbuds blasting the best of classic rock.
I have a lot to think about this time of year – it is strategic planning season, which means at least weekly day-long conversations with boards of directors and management teams. Sometimes, my thoughts sync with whatever song I happen to be listening to during the walk.
Last week, my reflection landed on “Signs,” an excellent 1970 (B-side IYKYK) counter-culture song by the Canadian rock group Five Man Electrical Band.
The lyrics of this song led me to reflect on two topics that have been top of mind for credit union leadership during their planning sessions:
- Human resources – recruitment, engagement, retention and succession
- Organic growth – especially identifying new groups or target markets the credit union can more competitively reach, serve, and grow.
Take these lyrics for example:
“…and the sign said Long-haired freaky people need not apply…”
This is basically a funny way of pointing out that older generations are still not quite connecting with younger folks, whether that’s attracting them to job opportunities at the credit union or getting them interested in joining the credit union as members.
As we know, many of our credit union volunteers and leaders are older and (very) conservative. More than once, I have heard this question from a board member, “Does this mean we have to hire people with tattoos and purple hair”? The good news is that our strategic conversations often focus on the younger and future credit union workforce. We earnestly work to identify their cultural touchstones, their personalities, their values, wants, and needs. And really, what it comes down to, especially when trying to attract younger employees, is offering a work experience that makes them feel welcome and that they belong.
The new generation is much more informal than my “Boomer” generation. I’m young enough to remember the dress codes of ties, jackets, and a “proper” hair length. In the 1970s or 80s, you wouldn’t have seen any visible piercings, tattoos, or colored hair. Ironically, staff and members could smoke cigarettes in the break room!
still find similar, restrictive, formal dress codes in credit union land. Don’t get me wrong; I’m not opposed to dressing for success; I support that. But we need to change the definition of dressing for success. Credit union staff and brand image should reflect the members we serve and, equally important, the potential members we want to attract. .
Dress code flexibility is one way to help recruit and retain the next generation of staff. When people can be more authentic, they are happier, more engaged, more creative, and more effective.
Beyond what they’re wearing
In addition to dress codes that are more generationally aligned, we should find other opportunities for our teams to express themselves. This can be done in many low-cost, fun, and effective ways.
Get your team engaged in your community – let them pick community causes that resonate with them and give them time to support them. Employees will feel empowered and will appreciate contributing to something important, boosting morale and the value of working for your shop.
Let your Gen Z and younger millennials have fun on Instagram and TikTok! Yes, I said TikTok. According to Wallaroo Media, 60% of TikTok users in the United States are Gen Z. TikTok’s popularity among Gen Z shows the shift from desktop to mobile social media and the desire for personalized content and short-form videos. Your staff members are on TikTok, and so should your credit union. Instagram and TikTok create a fun medium for employees to be creative, and to communicate in ways that resonate with members (and potential future members).
Certainly, inviting staff to create credit union-themed TikToks can provide a fun break from their many tasks that are honestly not the most fulfilling or creative. For many of our employees, creating TikTok videos can be a differentiator for your credit union in your market! For those employees who say creativity is one of their greatest strengths, it can also lead to retention. Strength Finder 2.0 research reported, “People who use their strengths daily are happier and healthier. They are six times more likely to be engaged in their jobs and three times more likely to report having an excellent quality of life.” Let’s let them have some fun with credit union-themed TikToks, and let’s get comfortable being outside of our comfort zone!
“You’ve got to have a membership card to get inside.”
Let’s turn to your field of membership. I argue that credit unions face a mounting “organic” growth challenge. Overall, membership growth numbers are down, and when you examine the financials of many “growing” credit unions, you see that the net growth is not organic. Instead, it’s through indirect loan purchases or loan participation. I am not opposed to either growth strategy, but the fact that credit unions are overdependent on these artificial growth strategies speaks volumes.
I consider organic membership and loan growth key metrics when determining a credit union’s brand value. If our industry has difficulty growing organically, what does that say about our collective brand value? We would see more organic growth if the credit union brand was stronger.
Our most popular strategic conversations are centered around organic growth, including the opportunity for a Multiple Common Bond charter to add Underserved Areas or for Community charters to expand to serve Rural communities.
In our many years of assisting credit unions to expand their charters, we have discovered that Underserved and Rural communities are excellent target markets, rich with organic growth opportunities!
Because many mainstream financial institutions ignore these underserved areas, they create an ideal market to grow. We have many successful stories of credit unions that expanded their charters to serve underserved geographic areas. These credit unions are now growing organically and thriving! Expanding your field of membership by adding underserved and rural communities is a great way to find people who have your “membership” card to get inside, like the song says. Not only can they get in, but with the proper mission, vision, and values – they will feel like they belong.
Signs expresses the frustration of exclusion for a generation. Let’s remember that a more inclusive tone at our shops, with our employees, membership, and fields of membership, will create stronger, more vibrant cultures and great places to work and develop financially—a place where people, including the new generation want to be, no matter their hair color or length.
