As we all know, the past few years have been very difficult for some credit unions. Credit unions have placed their focus on keeping pay competitive, examining pay raises and containing compensation costs.
An emerging pay practice is to look at the “whole compensation package” offered to employees, not just the base salary, benefits, and variable pay. The whole compensation package includes rewards that can be tailored to the individual employee such as more time off with pay, flexible scheduling and work-from-home opportunities. This doesn’t add as much to the actual salary budget numbers, but can still give employees extrinsically valuable rewards.
Over the past few years, most credit unions have remained steady in their goal of having a compensation philosophy of paying their employees close to market. Trends show very little variance on this data from 2009 to 2012. However, there does appear to be a definite focus from organizations at keeping pay structures competitive.
Some of the influencing factors for budget allocation apart from performance are:
2013 Expected Average Merit Increases
Merit increases have continued to grow in popularity where performance can be tied to pay. The 2013 budget for this remains pretty static at 3%. Payouts for 2012 Merit Budgets have shown:
HRN Performance Solutions provides HR consulting services and automated solutions to credit unions that are focused on all aspects of compensation, merit increase budget allocations, pay for performance and HR compliance. For additional information contact Mike Dougal, director of HR Consulting at MDougal@hrnonline.com or call 800-940-7522.