Mergers Offer Opportunities for Credit Union Members, Employees

Banks are in business for profit, and their clientele are exactly that: customers fueling profits. The advantage of credit union banking has always been its customer service; “membership” is the advantage. Because of a credit union's not-for-profit status, credit union members get better benefits than they get at banks, including lower rates and fees.

Mergers Can be Win-Wins

When management handles an impending merger with thoughtful transparency, members and employees will focus on growth and additional benefits. Just a few of the credit union merger integration benefits include:

• Branch banking – Membership service is enhanced, and opportunities for growth are introduced, when a merger results in new branches. Sometimes, employees are promoted to better positions in the credit union’s new locations.
• Career development – A merger injects new life into a previously stale workplace! Employees will be excited to learn of career advancement opportunities and the potential for personal growth through workplace training. Often, this is viewed as a more exciting prospect than salary increases and additional benefits.
• New products, new services – A merger integration creates new avenues for business that had been difficult for a smaller credit union; mortgages and commercial loans may become easier to offer. The new partnership can provide the scale to offer a portfolio of products at more competitive pricing. Employees will be enthusiastic about new services and products they will be able to introduce after the merger. Members will be excited to be part of a larger, stronger, growing financial institution.

Mergers and Morale

Organizational trust is variable and is the first issue your human resources team will need to address as soon as employees learn about the possibility of a merger.

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Two groups of employees will be affected by the merger, and both groups have fears that can affect workplace productivity and morale. Here are three merger integration HR issues that will need fast attention to maintain employee confidence:

1. Benefits – Both organizations’ employees will be concerned about their benefits. Allay their fears as soon as possible and be sure to highlight improvements to benefits.
2. Communication – The sooner, the better. Schedule leadership meetings and establish new lines of communication before, during and after then merger.
3. Compensation – Create a general salary plan that can be shared with all employees. Will any departmental salaries change? Will any bonuses, related to the merger, be offered?

Credit Union Merger Integration Can be Key to 2017 Growth Options

Credit unions are unique environments; a closer bond exists between employees and management, and between members and credit union staff, than exists in banks. When presented with a merger, credit union employees will have just as much concern for the membership’s benefits and growth opportunities as their own! That’s why you must value and nurture what makes credit unions the best of banking.

Members and employees will be excited and eager to take advantage of the benefits the merger offers them! When handled properly – when communication channels are open and managed – you will be able to merge your two credit unions successfully. If your staff contributes to the success of the merger, their ownership adds value. This year promises to be one of opportunity and growth; if you are contemplating a merger for better customer service and employee benefits, you are on the right track.