CUNA Salary Survey:
2005 Base-Pay Increases Average Less than 4%

Credit Union Magazine
February 13, 2006

Compensation consultants predict that across all industries, 2005 will be the fourth-consecutive year of average pay increases below 4%, making credit unions’ budgeted base pay increases for 2005 fairly consistent with the national trend, according to a new CUNA survey.

According the to the 2005 Complete Credit Union Staff Salary Survey, published by CUNA’s Center for Research & Advice, credit unions’ 2005 budgeted base pay increases are similar to those received in 2004, where employees received an average increase of 3.7% for nonmanagement and a 3.9% increase for management positions. Credit unions are projecting even lower pay increases for 2006.

For many workers, even moderate pay increases are encouraging after several years of salary freezes and layoffs, although salary freezes at credit unions are still more prevalent than across other industries.

The report shows that 15% of credit unions with $1 million or more in assets froze salaries in 2003. That figure dropped to 10% percent in 2004 and is estimated at 7% for 2005. In comparison, just 2% of all U.S. employers are reporting salary freezes for 2005.

In the midst of rising health-care costs and operating expenses, industry experts predict that the U.S. is heading for a severe shortage of skilled labor. Within six years, it’s likely that highly skilled workers will be able to name their price as employers compete for scarce talent.

According to the report: “In order for credit unions to recruit and retain top talent, it’s important that they understand the key components of a competitive compensation package. The second step is to make sure your compensation program is competitive using the data provided in the salary survey resources.”

New this year, CUNA is offering online peer comparisons in addition to the static survey report. Both the survey and customized report options present average salaries, incentives, bonuses, total variable pay, total cash compensation, and salary range averages for 89 full-time and eight part-time positions at credit unions with $1 million or more in assets. The report also contains job descriptions, bank comparisons, and breakdowns by various peer comparison criteria.

Credit unions may purchase unlimited online access to the 2005 online peer comparison salary survey database allowing for the creation of customized peer groups using various criteria: credit union name, asset size, number of members, field of membership, number of full-time employees, number of services offered, total loans outstanding, and geographic region. Customized report parameters include percentiles and date-specific trending.

CUNA’s 2005 Complete Credit Union Staff Salary Survey costs $225 for affiliated credit unions. Credit unions that purchase the survey are then eligible to receive special $100 introductory pricing to the online peer comparisons feature.

For more information and to order online, visit buy.cuna.org and enter stock number “26660” in the product finder. To order by phone, call 800-356-8010, press 3, and use the stock number as a reference.

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This story first appeared in the December 2005 Credit Union Magazine at www.creditunionmagazine.com and is reprinted with permission.