Compensation questions answered
by. Dana Munn
There’s more to compensation than making a direct deposit into the accounts of employees twice a month. It is a strategic decision, and a philosophical one. And it’s complicated. If you’ve had questions about the right level of compensation for staff, you’re not alone. Below are some of the most frequently asked questions I field.
Why do I need to use a salary survey?
Attracting and retaining talented executives is crucial to your credit union’s success.
Compensation data helps keep your finger on the pulse of industry trends and allows you to benchmark your organization against others. The old saying, “information is power,” holds true when it comes to salary administration.
When do I use a salary survey?
It is a best practice to do a review of salaries on an annual basis, and then periodic adjustments as needed if you experience turnover or a position has changed.
What are the risks of not using a salary survey?
There are risks to both underpaying and overpaying. Paying below market may result in excessive turnover or lower caliber of employees, which would have a negative impact on member service. Excessive compensation drains earning and depletes funds that may be better used elsewhere.