CUs are best companies to work for--ACUC&E coverage

LAS VEGAS (6/5/07)--Why care whether employees are happy? Because happy employees make happy members. That's the main principle guiding Tom Smigielski's management decisions.

Smigielski, president/CEO of Pacific Service CU, Walnut Creek, Calif., was a panelist at Monday's Thought Leader Session on "Credit Unions: The Best Companies to Work for and Why" at America's Credit Union Conference & Exposition. He said keeping staff happy requires:

  • Challenging employees. Set high, quantifiable performance standards, and hold everyone to those standards.
  • Listening to employees. Act on their suggestions.
  • Supporting employees. Provide necessary training, equipment, and technology.
  • Rewarding employees. Pay for the best with competitive compensation and benefits, annual and project bonuses, and proactive salary adjustments. In addition to traditional benefits, Pacific Service offers part-time employee benefits, tuition reimbursement, on-site massages, flexible work hours, and free Starbucks coffee.
  • Celebrating successes. "We shut down the company after a good year and party," Smigielski said.
The Great Place to Work Institute Inc., San Francisco, named Pacific Service one of the nation's best small companies to work for, as published by HR Magazine.

The credit union shares many attributes all great companies demonstrate, said Jessica Rohman, associate consultant for the institute. Such attributes include commitment from the CEO and senior management, a belief that people are indispensable to the business's success, active communication forums between employees and management, and the shared perception of a special and unique workplace culture.

Another incentive to be a "best" workplace: such companies are more successful financially.

According to Russell Investment Group, Tacoma, Wash., the cumulative stock return for the "100 best" companies from 1998 to 2006 was 222.94%, vs. 78.83% for the overall stock market. That's in part because "best companies" have their pick of qualified employees, quality products, a culture of innovation and risk-taking, lower turnover costs, and less resistance to change, Rohman said.

Another "100 best" company among medium-size firms is Michigan State University FCU, East Lansing. It strives to create an "employment brand" to become an employer of choice, noted Dione Pena, the credit union's human resources/training manager.

"Your brand will leverage your ability to retain current staff and recruit prospective employees, creating your competitive edge," she said.

A good brand tells prospective staff members who you are, what differentiates you as an employer, what you value, and why they would want to join your team, Pena said. It also helps the credit union sell its strengths, evaluate weaknesses, and "create a reputation that no amount of advertising can buy."

She noted credit unions reach employer-of-choice status when:

  • Employee turnover is significantly below industry standards;
  • Employment applications increase in quantity and quality without advertising;
  • Your reputation is your best recruiting and retention tool;
  • Productivity and growth exceed industry standards;
  • Member service is consistently high;
  • Staff morale is high and sustained; and
  • You receive unsolicited raving feedback about your credit union as an employer.

    Best company results

    		20071990
    Assets$1.3 billion$150 million
    Membership130,00080,000
    Staff330155
    Employee turnover7% 25%
    Job applications/month200 to 30020 to 30
    Minority representation
    among staff    		19% 1.5%
    BenefitsNew benefitsCutbacks
    Source: Michigan State University FCU

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