5 Trends About Employee Productivity

Changing market conditions make employee productivity more important than ever.
Janet Lee

Revenue Per $1 Of Salary & Benefits
For all U.S. credit unions
Callahan & Associates | www.creditunions.com

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Low rates and an increase in salary and benefits during a hiring spree have caused revenue per $1 of salary and benefits to trend down since the recession began. At the end of June 2014, credit unions were generating $2.98 in revenue for every $1 they spent on salaries and benefits. Although this is less than what credit unions were earning during the recession, it is slightly more than the $2.94 credit unions were earning just one quarter ago.

Source: Callahan & Associates Peer-to-Peer Analytics

Annualized Revenue Per Employee
For all U.S. credit unions
Callahan & Associates | www.creditunions.com

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At midyear 2014, credit union employees were each earning $196,304 in annualized revenue for their institutions. This is a 1.2% decrease compared to June 2013 but is a 1.0% increase over March 2014. The quarterly growth in annualized revenue per employee is partly the result of the increased loan and interest income that credit unions posted during the second quarter, which in turn drove higher revenues.

Source: Callahan & Associates Peer-to-Peer Analytics

Assets Per Employee
For all U.S. credit unions | Data as of June 30, 2014
Callahan & Associates | www.creditunions.com

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An average credit union employee is handling more assets as of June 2014 compared to one year ago. Although the number of employees grew 2.4% annually, that could not keep pace with the 4.5% growth in assets.

Source: Callahan & Associates Peer-to-Peer Analytics

Loan Originations Per Employee
For all U.S. credit unions | Data as of June 30, 2014
Callahan & Associates | www.creditunions.com

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A 55.3% year-over-year decline in first mortgage originations at credit unions resulted in a 5.8% drop in total year-to-date loan originations through the second quarter. Likewise, year-to-date loan originations per employee also dropped to $646,337 as of June 2014. And because first mortgages tend to carry higher balances, the average loan balance originated fell 21.6% from June 2013. Despite the modest 2.4% growth in the number of employees as of June 2014, the 5.8% year-over-year decline in total loan originations was large enough to push down the amount of loans each employee originated compared to June 2013.

Although margins have started to expand and loan growth gained momentum during the second quarter, credit unions have still not recovered to the prerecession levels. As such, credit unions are looking for ways to help employees work more productively and provide superior value to members.The strategies highlighted in the following CreditUnions.com articles demonstrate how credit unions across the country are doing just that.

Stop Passing The Bucks And Start Counting Them Instead
How Langley FCU encourages communication and collaboration between departments to create shared, trackable definitions of success.

No More Distractions
With clearly designated roles, Premier America’s branch employees enjoy greater productivity and job satisfaction.

From Down And Out To Up And At Em
How one former branch manager brought out the untapped potential of his employees and gleaned valuable insights into what makes branch leadership effective.

Source: Callahan & Associates Peer-to-Peer Analytics

State Leaders In Loan Originations Per Employee
For all U.S. credit unions | Data as of June 30, 2014
Callahan & Associates | www.creditunions.com

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As of June 2014, credit union employees in North Dakota were posting $1.0 million each in year-to-date loan originations. That’s the most of any state and is 60% higher than the industry average. North Dakota has been riding a wave of economic success since the discovery of oil in the Bakken formation that lies under most of the state. This oil boom underpins the impressive financial performance for the state’s credit unions. Noth Dakota credit unions reported a 3.1% growth in total loan originations compared to the 5.8% decline for credit unions nationally. North Dakota’s No. 1 rank in loan originations per employee is even more compelling in that the number of employees in the state also grew by 3.9%, which is more than the national growth rate of 2.4%.

Source: Callahan & Associates Peer-to-Peer Analytics

September 22, 2014

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