People Or Pedigree? Why Not Both!

More and more professionals from outside the financial industry are joining credit unions, making intentional onboarding and HR strategies all the more important. After all, when it comes to what differentiates cooperatives from banks, fintechs, and one another — it’s their people.

“The only way to keep up and lead is to have the right people in place to make complex decisions with confidence,” says Clifton Van Scyoc, chief information officer at Pennsylvania State Employees Credit Union ($8.7B, Harrisburg, PA). “Talent drives everything.”

The Keystone State cooperative serves nearly 600,000 members, but its executives say its identity is rooted in agility, not size.

“Our mission is about delivering accessible, affordable digital banking while improving member financial wellbeing,” Van Scyoc says.

The credit union’s digital-first ethos stretches back to the 1990s, when “PSECU-at-home” used floppy disks for transactions. Today, this focus on service and technology continues, backed by an internal culture that encourages employees to bring fresh ideas and collaborate across departments.

Talent As A Growth Strategy

In quick succession, COVID-19, the Great Resignation, and the war for talent forced a lot of credit unions, PSECU included, to think differently about hiring and culture.

“We realized we could teach the financial part,” Van Scyoc says. “What we couldn’t teach were the hard-to-find skills. Bringing in people from different industries gives us a chance to accelerate where we might be weak.”

This is an especially effective strategy for tech-specific roles like cybersecurity, where unemployment is effectively zero. The CTO himself, who moved over from the healthcare and public sectors, was primarily hired for his leadership experience.

Sandra Holzgen, PSECU’s chief human resources officer, says Van Scyoc has rotated across departments since joining the credit union eight-and-a-half years ago to fully immerse himself in its culture and operations.

“He has clear career aspirations, so we’ve worked on internal mentorship and external development,” she says. “He’s completed programs through CUES and Cardwell, all preparing him for a CEO role someday.”

Holzgen joined PSECU in March 2020 and led the effort to transform PSECU’s culture into one that is stronger and more connected She says her goal was to create an environment where employees wake up excited to go to work.

“It starts with understanding their desires and then either removing obstacles or explaining why something can’t be done,” she says. “You find someone’s strengths, then align their position to allow them to use those strengths naturally.”

Build With Intention

Holzgen established a formal process using to identify and build upon strengths and improve job performance. But she is quick to point out that IDPs are not measurement tools; instead, they facilitate continuous professional development.

“One big challenge was getting people to understand that IDPs are not the same as performance goals,” Holzgen says. “An IDP isn’t about daily tasks. It’s about personal development and how to get ready for the next opportunity.”

PSECU also conducts an annual talent review and compiles results into a report for the board of directors. More than 100 leaders from across the organization come together using a nine-box model to map out the credit union’s talent. Some are “aces in place,” meaning they’re in the right job and not looking to advance, whereas those in boxes seven, eight, and nine have the potential to do more or take on a new role.

“We work with everyone in the talent review process and encourage IDPs for those looking to advance,” Holzgen says. “I don’t want to make the plans mandatory because not everyone is in that space in their life or career. Some people have young families or just love the job they’re doing, and that’s okay.”

As of early 2025, 250 of PSECU’s nearly 900 employees had an IDP. This includes Van Scyoc, who says the personalized approach is essential.

“You can’t spread peanut butter evenly across a workforce and expect results,” he says. “It’s not just about checking boxes. It’s about making connections and making sure every employee understands how their role impacts the member experience.”

The credit union supports employees with IDPs through personalized coaching, mentoring, and cross-functional exposure. This includes weekly check-ins with supervisors and “skip-level meetings” where leaders from different business lines provide broader insights.

Teaching The Credit Union Difference

PSECU’s current turnover rate is 14.48%, compared to the 20% industry average for non-officers in financial services, and it has an internal mobility goal of 80/20 internal versus external hires. Leadership buy-in and an updated HR system that supports long-term growth, tracking, and performance analytics help the credit union meet that goal.

To keep turnover in check, Holzgen says assessing someone’s cultural fit during the recruitment process is key.

“During our interview process, I ask questions about why someone wants to leave their current institution, what kind of leadership they’re looking for, and what kind of culture they want to help build,” she says.

PSECU has had repeated success looking beyond the credit union industry for new hires. In addition to Van Scyoc, Holzgen herself worked for a bank for 30 years. She says developing a member-first mentality often means unlearning corporate urgency.

“The pace is different,” she says. “Especially when new executives join, you want them to slow down and acclimate. That sounds strange, but it’s true. We think long-term.”

Van Scyoc says new hires in his department are often surprised by how openly credit unions share with one another.

“After a benchmarking call they’ll say, ‘They just gave us all their trade secrets!’ And I say, yeah, welcome to the credit union movement,” he says.

That spirit of collaboration is core to PSECU’s identity and long-term strategy.

“Our ability to grow, innovate, and serve comes down to one thing: our people,” Van Scyoc says.

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