After years of sluggish growth and conservative budget projections, some refreshing winds of change appear to be blowing through the corporate world. With 2017’s financial performance providing a pleasant surprise for many companies, the optimism seems to be carrying over to employee compensation.
In a recent article, the Society for Human Resource Management (SRHM) highlighted findings gathered over the course of 300 interviews with CEOs or CFOs from private companies. In the report, respondents indicated an expected increase in employee wages by 4.27% in 2018, as opposed to the anticipated 3.39% that was previously projected.
Instead of looking for answers, ask another question.
When you see wide-ranging adjustments like these, it’s natural to look for the factors that led to the changes. Are the increases due to stronger than expected financial performance in 2017? Do the improvements reflect growing confidence that the U.S. economy’s growth will continue? Have the recent changes in corporate tax laws—changes that dropped the corporate tax rate from 35% to 21%—encouraged employers to share the success with their employees?
The short answer is yes. Each of these scenarios likely plays a part in organizational decisions to raise employee wages. Across industries, much of the recent focus has centered on workforce wage increases, and rightfully so. Employee satisfaction is a significant driver of organizational success. But as you survey the professional landscape looking for reasons and answers, it may be more beneficial for you to focus on one more question: Have you considered how these changes impact your credit union’s executive compensation plan?
Effective retention requires ongoing attention.
Is your credit union taking intentional steps to retain your top executive talent? Have you invested time to determine what those steps may be? If not, a thorough analysis of your executive compensation plan is in order. Building a robust executive team is essential. Once you have your team in place, retention is vital
It takes time, energy, and resources to build a quality executive team. Keeping that team intact and inspired requires consistent commitment. They say a rising tide raises all ships, and a quick survey of current executive compensation trends indicates the economic tide is rising. Don’t let your strongest ships sail away.
Know where you are, and plan where you’re going.
At O’Rourke & Associates, we believe the primary leadership challenge of the future will be retaining your key talent and developing strategies that incorporate your organizational goals with employee compensation. Rather than applying a static compensation model to every situation, we take a consultative approach that helps us understand your credit union’s existing compensation philosophy.
Our team will benchmark your organization’s compensation structure against extensive survey data to determine your current competitiveness in relation to the dynamic environment of the financial service marketplace. Once we establish those benchmarks, we put our experience and expertise to work for you by providing recommendations and strategies designed to maximize your executive recruitment and retention.
Want to learn more about this opportunity and what it could mean for your organization? Click here!