How Well Credit Union Employees Are Paid?

Credit Union Employment

As a vital financial service sector, credit unions have a significant workforce in every state. Credit unions are also the business that hire a lot of worker on part-time basis especially the small credit unions. For example, credit unions with less two million dollar assets have three times more part-time employees than full-time ones. The table lists employees work for different peer groups of credit union at the last quarter of year 2015:credit union compensation by asset peer groups

Out of the more than a quarter millions employees, about half (51.6%) of them work for a federal chartered credit union and the rest work for a state chartered credit union.

Although number of credit unions has been continued to decline over decades, the total employment at credit unions has been increasing. The chart below illustrates the dynamics of credit union numbers and total employees since 2003.

credit union dynamics 2003-2015

Credit Union Compensation

NCUA’s 5300 call reports publish the total compensation of credit union employees on a quarterly basis. The reported compensation includes not only the annual salary but also the benefit and bonus paid to employees or on behalf of employees. Because every credit union has its own benefit or bonus structure, it is not possible to single out the actually annual salary a credit union pays to its individual employees. However, according to CNNMoney, the benefit normally impose an additional 20-35% cost to the employer. Therefore, we can roughly figure out what annual salary a credit union pays its employees on an average. But, we will use the total compensation number is this research.

Across the board, people work for bigger credit unions are paid higher than those work for smaller credit unions. In fact, employees of credit unions with $500 million or more assets enjoy almost three times (280%) higher pays than their peers at credit unions with less than $2 millions of assets, or $76,134.10 vs $27,149.89 yearly for every single employee. They are also paid about 20% more than those working for credit unions with $100-500 million assets.

Aren’t those smaller credit union underpaying their employees? The productivity, which measures the net income an employee creates for her/his credit union employer, actually tells the opposite. The chart below clearly demonstrates that both the credit unions and their employees enjoy the benefits of economy of scale.

credit union compensation and productivity 2015

Employees of state chartered credit unions, which represent 48.6% of the total credit union workforce, are paid better than most of those employed by federal chartered credit unions. This is closely related to the types of memberships (TOM) on which the credit union is formed. The following two tables list the five best and worst paid employees according to their credit unions’ TOM codes.

Five types of credit unions with best pays, with comparison to state chartered credit unions

top 5 credit union pay by TOM codes

Five types of credit union with worst pays, with comparison to state chartered credit unions

bottom 5 credit union pay by TOM codes

Similar to the effects of credit union asset size, the compensation level of credit union produce the same productivity result, namely, the higher the compensation the better the productivity.

Comparing compensations by states, Washington DC has the highest pay for its credit union employees, at $87,256/year in 2015, followed by California at $86,617, and Virginia at $82,701. On the other side, Arkansas pays the least to its credit union employees at $52,386 in 2015, followed by West Virginia at $55,122 and Mississippi at $55,813. Without counting toward cost of living (COL), it is hard to tell if one state has better pay than another. But, a comparison between average compensation of a credit union employee and the median household income in the same state may provide some insight information. The table below lists the credit union employee compensation and average salary by state:

credit union compensation and median of states

Do compensation in credit unions increase? Or what is the annual raise rate at credit unions? Without factoring in inflation, the total compensation grows from $9.5 billion in 2003 to $18.6 billion in 2015 with annual growth rate of 5.3%, outpacing the GDP growth. It indicates the credit union business as a whole has been expending. The average pay to an individual employee has increased from $47,616 in 2003 to $70,660 in 2015 revealing an annual raise of 3.08%, beating the inflation rate for the same time period.

If you happen to be a credit union employee, you may find how well your employer are paying you from this website.

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