The national recent turnover average for credit unions, according to Carl Fredrickson of Fredrickson Associates, is 31.1% for non-management positions. The turnover cost varies, because the pay rates vary so greatly by region.

Credit Union Executive Newsletter states that companies typically spend up to $50,000 to replace and retrain after the loss of a departing employee, counting tangible costs only - this does not take into account the non-tangible costs.

Studies show that the number one factor that distinguishes those credit union employees that stay in their current positions from those that leave is the opportunity to learn new skills, followed by feedback from supervisors. *

Other Relevant Facts . . .

With the slower economy, turnover rates are down slightly. However, according to Diane Faulkner, ACC, a former Credit Union VP/human resources, a good worker can still find a better job. It is the mediocre workers who are now staying in their current positions. It is now more important than ever that you hire the right people to begin with. You must be certain that you hire and retain quality employees in order to compete in the future.

According to the Credit Union Journal, employee dishonesty accounts for more dollars lost by credit unions than any other fraud under the basic Bond. Ten-year statistics show employee dishonesty at 36% of the total dollars lost.

Dana Turner, a security specialist with Security Education Systems, states that, "For every dollar you lose to crime, you're going to lose an additional $4 or more to identify the person (problem), learn how it happened and then prosecute the perpetrator and…recover the damages."

*SOURCE: CUES, October 2001