Turning the Tide on Turnover
By Jessica Gomez, HR Client Executive, and Dale Keener, Senior Benefits Consultant, OneDigital
High employee turnover is one of the most expensive and disruptive challenges a credit union can face. When a trusted teller, loan officer, or member services representative walks out the door, the ripple effects are immediate. Member relationships suffer, remaining staff absorb extra workload, and the cost to replace that person can reach 30–50% of their annual salary. For tenured, member-facing roles, that figure can climb significantly higher.
The good news? Most turnover is preventable. Leaders who ask “why do people keep leaving?” instead of simply “how do I fill this role” are the ones positioned to win.
Start with the Right Mindset
The most important change a leader can make isn’t a policy or a program. It’s a perspective shift.
Rather than an HR initiative, retention is a leadership responsibility that’s achieved not by keeping people but by growing them. Leaders who adopt a growth-first mindset stop managing headcount and start investing in people. That shift, more than any compensation adjustment, is what changes the culture of an organization.
While below-market compensation will drive people out the door, decades of research confirm that salary alone doesn’t keep them. Compensation is a “hygiene factor.” It prevents dissatisfaction, but it doesn’t create loyalty or engagement. What does? Growth, recognition, purpose, and feeling genuinely valued.
Four Areas That Drive Retention
Give People Clarity
One of the most overlooked drivers of employee disengagement is ambiguity. When employees aren’t sure what excellent performance looks like, how their role connects to the mission, or what success means for their future at the organization, stress fills the gap. And that stress often leads to exits. Leaders can address this by making expectations explicit, setting clear goals, and having regular conversations about progress being made toward them. For credit unions, this is especially important at the frontline, where tellers and member service representatives are the face of your brand every single day.
Invest in Employee Growth
Lack of career development consistently remains one of the top reasons employees leave. For smaller credit unions where there may not be a clear ladder to climb, this doesn’t mean you need a formal training program or a large budget. It means giving each person at least one meaningful development goal that is written down, measurable, and revisited in one-on-ones. For example, this could include cross-training a member services representative in lending, sponsoring a professional certification, or giving a high performer a project with greater visibility. Growth doesn’t require a big investment—it requires intentional follow-through.
Connect Work to Purpose
Credit unions have a distinct advantage that many leaders underutilize. Your mission is inherently human: serving members, supporting financial well-being, and strengthening the communities you operate in. McKinsey & Company research shows that employees derive as much as 70% of their sense of purpose from their work. Leaders who regularly connect individual roles to that broader mission tap into a powerful and cost-free retention tool.
Recognize People Consistently
Research from Gallup finds that employees who receive meaningful recognition are four times more likely to be engaged. This doesn’t have to be expensive. What matters is that it’s deliberate and regular. Start team meetings with a brief shout-out, celebrate work anniversaries publicly, and encourage peer recognition so appreciation flows in all directions. When employees feel seen, they stay.
Putting It to Practice
Every manager in your credit union plays a role in creating an environment where people want to show up—not because they have to, but because they feel challenged, supported, and connected to something meaningful. HR assessments, intentionally designed employee engagement programs, and manager training tailored to this growth mindset are just some components you can use to build a more structured retention strategy.
Many small businesses partner with external HR consultants to strengthen such efforts. These individuals bring specialized expertise, objective insight, and scalable resources, giving organizations access to high-level people-strategy capabilities without the long-term cost of adding headcount. Their support enhances current producers by identifying gaps and benchmarking practices, equipping leaders with proven solutions.
In today’s workforce, high turnover may seem inevitable, and solving it demands a more advanced solution than pay bumps or a ping-pong table. It requires leaders who are committed to building a culture where people grow, feel valued, and understand why their work matters. When you do this well, the outcomes speak for themselves: turnover declines, engagement rises, productivity increases, and your employer brand strengthens.
Originally published in the August 2026 edition of CU Edge