The national unemployment rate in September 2019 was 20 basis points lower than in September 2018. At 3.5%, it was the lowest reported rate in five decades. The labor participation rate, also, has improved. It increased 50 basis points to 63.2% as more people entered the labor market in hopes of benefitting from historic hiring trends.
Competition in the labor market has caused companies around the country to revise their staffing models. Companies are increasingly hiring more full-time workers, which was up 1.5% year-over-year to 130.8 million. The number of part-time employees in September, however, was down 6 basis points over last year to 17.0 million, according to the Bureau of Labor Statistics.
Key Points
- The number of full-time credit union employees increased 4.2% year-over-year to top 300,000. Part-time employees decreased 6.1% during the year to 24,400.
- The average salary and benefit package per FTE* was $79,335 as of Sept. 30. That’s up $3,825 from one year ago.
- The average revenue per FTE through the third quarter was $196,262, a 7.6% year-over-year increase.
- The revenue generated for every dollar spent on salary and benefits increased $0.08 over the past 12 months to $3.30.
- Annualized loan originations per FTE decreased 1.0% year-over-year to $1.7 million. In the past three months, however, average loan production per FTE was $482,430, the highest of any quarter on record.
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SALARY AND BENFITS PER FTE
SALARY AND BENFITS PER FTE
FOR U.S. CREDIT UNIONS | DATA AS OF 09.30.19
Callahan & Associates | CreditUnions.com
The average salary and benefits per FTE at U.S. credit unions has increased nearly $4,000 over the past year.
ANNUALIZED TOTAL INCOME PER FTE
ANNUALIZED TOTAL INCOME PER FTE
FOR U.S. CREDIT UNIONS | DATA AS OF 09.30.19
Callahan & Associates | CreditUnions.com
Credit union employees are continuously having a greater impact on the cooperative’s bottom line.
FULL-TIME AND PART-TIME EMPLOYEES
FULL-TIME AND PART-TIME EMPLOYEES
FOR U.S. CREDIT UNIONS | DATA AS OF 09.30.19
Callahan & Associates | CreditUnions.com
Credit unions are recruiting more full-time employees as they move toward higher-skilled universal hires.
The Bottom Line
As employee productivity rises industrywide, so, too, does compensation. Increased competition in the labor market and a restructuring across the industry toward skilled hires have meant credit unions are predominantly recruiting full-time hires and paying more to retain that talent. This dynamic has been working well as credit union employees generated the most income per dollar spent on salaries since the fourth quarter of 2011.
*FTE=Full-time Equivalent=100%FT + 50%PT
This article appeared originally in Credit Union Strategy & Performance. Read More Today.