How to Counteract the Retirement and Resignation Trends in Your Credit Union

Your Management Team

A strategy to ensure your organization can successfully counteract the retirement and resignation trends we are currently facing is to be prepared by doing formal succession planning. Why is succession planning important for your leadership ranks?

• You are going to have turnover.
  
  
• The best way to counteract turnover is to have a bench of people developed and ready to go when it occurs.
  
  
• Doing succession planning gives people motivation to stay and grow with your credit union. Having a culture of advancement shows employees that you are interested in their development and career.
  
  
• Having formal succession plans ensures you are emphasizing the development of your employees.

Turnover is happening on credit union boards as well.

 As the baby boomers are continuing to reach retirement age and beyond, board members are also aging. The average age of a credit union board member is still in the mid-to-late 60s. What compounds the issue of board turnover is the fact that many credit unions have a difficult time finding new board members.  

Board turnover also brings the potential for:

• Major board turnover, that is, several board members, leaving in a short time
  
  
• Not having the right skills on the board
  
  
• A lack of experience in board leadership—with too much turnover, who will lead the board?

Not everyone understands the purpose of board succession planning. The purpose is not to drive long-term or “older” members out or judge the skill level of current board members. It is about being ready for inevitable turnover and knowing what skills to look for in future directors.

Now more than ever, it is incredibly important to be planning for your organization’s future by doing succession planning. The future includes a lot of turnover in the leadership and board ranks. Let’s be ready!