Category: jhboqhek

 

What a performance!

first_img Comments are closed. What a performance!On 20 Aug 2002 in Personnel Today Previous Article Next Article Performance related pay for senior executives rarely seems to achieve thereturns that it promises, reports Stephen OverellOne of the many useful functions of work is that it provides a way forsociety to allocate its resources. Because of their occupations, a baker is worth so much, a nursery nurse abit less, a management consultant much more and Sir Christopher Gent ofVodafone £5.1m in salary and bonuses and £9.3m in share options. Hopefully,even the great man himself, flushed as he must be with his shareholders’largesse, might agree that the values placed on certain jobs are really veryarbitrary. As time goes by it often seems that such awards are becoming even morearbitrary. With Sir Christopher at the helm, Vodafone lost £13.5bn in the yearto March 2002. From a share price peak of 399p, they now languish at around97p. Of course, the glumness of the telecoms sector is beyond his control. Butit still feels like an affront to common sense to learn that 80 per cent of thisvoluptuous remuneration package was performance-related. Yes, indeed. According to Vodafone’s 2002 accounts, the performance elementin senior management packages sits at 80 per cent of the total amount. Therules that determine executive pay are entirely geared towards growth, withsuch inscrutable measures as one year cash flow, one year Ebitda, one-year ARPUand so on. As any rational fellow would do, Sir Christopher seeks to maximise hisincome within the rules set by his remuneration committee. If it wants growth,it gives its managers incentives and viewed historically that is what they havedelivered. Value is another matter. It is a question of what companies chooseto reward that matters. Expressed like this, Vodafone’s pay policy seems entirely logical in aKafkaesque sort of way – the shareholders are happy. But to the rest of theworld it looks like fumbling in the greasy till by another name. Over recent years, researchers have been at a loss to find a clear linkbetween pay and performance – as most people would understand it – in executiveremuneration. The directors of FTSE 100 companies, for instance, received an average payrise of 28 per cent in 2000 – five times as much as the increase in the UK’saverage wage, according to pay consultants Inbucon1. Overall, 2000 was a goodyear for the economy – maybe not 28 per cent better than the previous one, butgood nevertheless. Most of the increase received by Britain’s highest paidexecutives came from performance-related schemes and share options, as onewould expect. Yet Inbucon found that even when the effect of bonus schemes and long-termincentive plans was removed, base salaries rose by 22 per cent. And who did thebest? Step forward 2000’s winner: Sir Christopher Gent with a 400 per cent payrise. If asked for an intuitive definition of what ‘performance’ should mean, manypeople might say profitability. Yet it is on this very point that thepay-performance link seems most opaque. When the research group Incomes DataServices looked at the salaries, bonus payments, incentive plans and benefitspackages of the UK’s 350 largest companies, alas, think-of-a-number culture wasmost in evidence. The researchers could find “no statistical relationshipbetween total cash movements and changes in corporate profitability”, itsreport said2. The problem has been taken to absurd levels in the US, where even those whobring about the collapse of their companies emerge from the rubble with a tidyfortune. A recent investigation into the remuneration practices of the 25biggest corporate failures since January 2001 by the Financial Times found thatthe executives who brought about bankruptcies walked away with $3.3bn (£2.1bn)in payouts and share sales. In the good times, contracts are drawn up promisingwild compensation and then the unstoppable gravy train cannot be halted. Organisations such as the Institute of Directors often point out that byglobal standards Britain’s bosses are not basking in richesse. To attract thebest in an alleged (though highly debatable) ‘global market’, pay must becompetitive. Yet the idea of ‘competitive’ remuneration depends on comparison. Those who want to see British salaries levelled up tend to draw comparisonswith the US. There, the average chief executive earns just under £100,000,against £550,000 for UK chief executives. Indeed, compared with the rest of theEuropean Union, Britain’s bosses are also doing well. In France, the averagechief executive earns £383,000, while the Germans pay the least at just under£300,0003. As has always been the case in pay negotiations, ‘fair pay’ is aquestion of who compares themselves with whom. From the point of view of chiefexecutives, it is a good thing those lower down the scale don’t choose toemploy the same logic as their bosses have to feather their nests. The wages ofmanufacturing workers in the US are a third higher than those in the UK. Despite the shortcomings of performance-related schemes, the ideal of payingfor performance remains a beguiling one – far superior to paying people forgetting older, which is what used to happen. Yet it is unclear at the momenthow far organisations recognise and are seeking to tackle the embarrassments itthrows up. IRS, the research body, says that while performance-related pay (PRP)continues to be the most common type of reward in UK companies, it has beenfalling for three years (54 per cent of them use it). Part of the reason isthat there is “mounting evidence that it doesn’t do what its advocatesclaim”. In its place, organisations are adopting some complicated systemsthat honour both outputs (targets, defined objectives) and inputs(competencies, skills, contribution and behaviour)4. However, Mark Edelstein, a consultant with Mercer Human Resource Consulting,argues it is “an absolute myth” that PRP is declining. Ninety-nineper cent of organisations want incentive pay schemes, he says, and go to greatlengths to ensure their rigour. “The results can look peculiar and there is sometimes a big reality gapbetween what looks fair now and how it will appear several years in the future.But I would dispute the claim that performance is unrelated to pay,” hesaid. It all depends what you mean by ‘performance’. The suspicion is that whatsenior executives mean is as remote from popular understanding as the corporatearistocracy is from the rest of the workforce. 1 Inbucon executive remuneration survey, August 2001; www.inbucon.co.uk 2 Incomes Data Services, salary survey, October, 1999 3 Study by Management Today, July 2001 4 Paying for Performance, IRS Management Review, Issue 20, 2001; www.xperthr.co.ukResearch Viewpoint plusRead related articles on this topic from XpertHR’s extensivedatabase free. Go to www.xperthr.co.uk/researchviewpointJoin the Xperts take a free trialBy calling 01483 257775 or e-mail: [email protected] is a new web-based information service bringing together leadinginformation providers: IRS, Butterworths Tolley and Personnel Today. Itfeatures a new Butterworths Tolley employment law reference manual, a researchdatabase and guidance from 13 specialist IRS journals, including IRS EmploymentReview. Related posts:No related photos.last_img read more

 

Physicians and APN’s for Rowan Integrated Special Needs (RISN) Center

first_imgSUMMARY: The planned expansion of Rowan University School ofOsteopathic Medicine and its clinical practice plan, RowanMedicine, is fueling a need to expand the faculty at one ofAmerica’s elite osteopathic medical schools. We are seeking severalfull-time faculty to join our Rowan IntegratedSpecial Needs (RISN) Center .Physicians and APNs Advertised: Oct 11 2019 Eastern Daylight TimeApplications close: Work with a multidisciplinary team caring for patients withcomplex intellectual, physical and developmental disabilities andtheir familiesCreate and maintain a patient centered medical home with uniqueaccommodations that introduce patients into the adult center ofcareProvide longitudinal health relationships which allow patientswith complex conditions and their families to thrive in theircommunitiesProvide compassionate accessible patient care, focused onquality and value based care, while developing models that will addto value based care for this populationTeaching medical students and residents in their clinicalskills development in the office while seeing patientsProvide compassionate patient care focused on quality and valuebased care, while developing models that will add to value basedcare for this populationParticipate in collaborative research with faculty, residentsand studentsMost positions will include an opportunity to teach medicalstudents in their first 2 years with dedicated time allocated for avariety of teaching opportunities, which include: Problem-basedLearning facilitation , assisting medical students to learnhistory-taking, physical exam, procedures and osteopathicmanipulation skills in the lab settingMay require participation in pre and post-doctoral trainingactivities, education and staff development; involvement indepartment, school and university committeesAlso Check out our website @ https://centers.rowanmedicine.com/risnlast_img read more

 

Thanks to a Bayonne police officer

first_imgTo the Editor:How does one find the right words to thank Bayonne police officer David Baccarella whose courage to seek the truth produced results? Officer Baccarella, is, by far, the most outstanding police officer I have encountered. This is a police officer whose intelligence and tenacity made all the difference. His actions resulted in making an enormous difference in one’s quality of life.My heartfelt thank you to Officer Baccarella. I will forever be grateful. DARLENE DYNEGAlast_img

 

Shut down sustainably before holiday break!

first_imgTurn down the heat (if you control you thermostat) Turn off task lighting and your office lights.Close/Shut All: We all play an important role in reducing energy and conserving resources on campus and in our offices. Our actions make a big difference in helping Harvard meet its goal to reduce greenhouse gas emissions 30% by 2016.Astonishingly, the energy used by a building to support just one office worker for a day causes over two times more greenhouse gas emissions than that person’s drive to and from work.Across Harvard, the Office for Sustainability and Campus Services are encouraging employees, faculty and students to take the Cold Turkey Pledge to shut down sustainably before you go home:Shut down your computer and turn off the monitor.Pull the plug – in the kitchen and the office. “Phantom Loads” of electricity being used by electronics plugged in but turned off add up fast and can account for 8% of energy use or $100/year. WindowsStorm Windows, where applicable – storm windows can prevent 25-50% of heat loss through windows.Blinds Printer/Fax and Copy MachineCoffee Makers, Tea Kettles, Microwaves and AppliancesUnplug Power Strips Check-in with the facilities team to learn your building specific shutdown proceduresLet your facilities team know if you see any leaky faucets/toilets or if you have any trouble with windows, thermostats, or lights during your shutdown.And, remember, before you leave for vacation last one out the door shuts off the main lights. For more information please visit www.green.harvard.edu.last_img read more

 

Braman Promotion

first_imgTwenty-seven years after joining the faculty as a fledgling researcher, University of Georgia professor Kris Braman has been named the head of the university’s Department of Entomology. “The entomology department at the University of Georgia is highly ranked and widely recognized for the strength and balance of its programs in core areas,” said Braman, whose appointment was effective July 1. As the new department head, Braman sees the entomology program continuing to address current and emerging priorities in the discipline in a way that meets the needs of agricultural, urban and industry clientele.A native of New York state, she earned a undergraduate degree in forestry at the State University of New York (SUNY) and a doctorate in entomology from the University of Kentucky. “All SUNY forestry students were required to take entomology because insects are so important in managing forest health,” she said. “I was hooked for life before I was out of my teens!” Braman joined the UGA College of Agricultural and Environmental Sciences faculty in 1989, working on the college’s campus in Griffin, Georgia. Since then she has conducted research on pests and beneficial insects of turfgrasses and ornamentals in urban settings. Her research ensures turfgrasses stay lush and aren’t destroyed by insect pests like chinch bugs, two-lined spittlebugs, mole crickets, grubs and a variety of caterpillars. By first studying the biology and behavior of both the pest and its predators, Braman develops control methods that include the use of natural enemies, pest-resistant plant varieties, alternative control technologies and insect scouting. She plans to continue conducting research as it keeps her “grounded and cognizant of issues faculty face on a regular basis,” she said. “All of my research projects have contributed to the development of decision-making guidelines that provide support to the green industry. I am exceptionally proud of the students and staff who made these projects possible, and I enjoy celebrating their successful careers.” In 2011, Braman was named director of the university’s Georgia Center for Urban Agriculture, located on the UGA Griffin Campus. There, she works closely with Georgia’s green industry and UGA Cooperative Extension agents in Georgia’s urban areas to share the research-based recommendations that UGA faculty discover. In addition to conducting research and leading the center, Braman teaches general entomology and biological control classes for both UGA undergraduate and graduate students. Most recently, she temporarily stepped into another leadership role on the UGA Griffin Campus as the campus’ interim assistant dean of CAES from October 2014 through October 2015. “Leadership just became a natural extension of wanting to help other people and programs grow and succeed,” she said. Braman has served as president of both the Georgia Entomological Society and the Southeastern Branch of the Entomological Society of America. Her numerous honors include being presented the society’s Distinguished Achievement Award in Horticultural Entomology, the Georgia Green Industry Association’s Environmental Friend of the Industry Award and being named a “Distinguished Alumni” of the University of Kentucky’s Department of Entomology.last_img read more

 

Solar to soar in Middle East, Africa this year—GTM

first_img FacebookTwitterLinkedInEmailPrint分享Renewables Now:The Middle East and Africa (MEA) region is expected to see a 170% year-on-year surge in solar deployments this year with the addition of 3.6 GW of fresh photovoltaic (PV) capacity, according to GTM Research.Demand for solar PV is seen to escalate further and lead to 20 GW of annual installations in 2020, while for the whole period between 2018 and 2023, the region will put on stream 83.7 GW of new solar parks. Big projects coming online and the heating African market will be major growth drivers, according to Ben Attia, author of the latest regional market outlook.The MEA region currently has a 12.3-GW pipeline of utility-scale contracted or under-construction projects and an additional 21 GW of pre-contract projects. Most of those schemes, apart from the UAE and Jordan, come from the utility-scale segment.Attia forecasts that in 2018, demand is expected to be mainly driven by Egypt, the UAE and Morocco, while nascent African markets are anticipated to mature in 2020 and add more than 6.4 GW of PV. Overall, the growth pace is seen to slow down after 2020 and lead to a “more measured growth” to 2023 following multiple rounds of regional tender programs and regulatory adaptation.In terms of pricing, Attia projects that the levelised costs for both utility-scale and distributed generation solar power will drop by 30% by 2022 in the major MEA markets, with prices falling below USD 30 (EUR 26.2) per MWh in tender rounds in Saudi Arabia, the UAE, Egypt and Kuwait.More: Solar PV demand in MEA set to grow 170% in 2018 Solar to soar in Middle East, Africa this year—GTMlast_img read more

 

HSBC: Annual Chinese solar installations could top 75GW by 2025

first_imgHSBC: Annual Chinese solar installations could top 75GW by 2025 FacebookTwitterLinkedInEmailPrint分享Renew Economy:China, already the biggest manufacturer and the biggest installer of solar PV in the world, is tipped to double the annual installation of solar capacity to 85 gigawatts as it ramps up efforts to meet its newly declared zero net emissions target for 2060.Analysts and close China industry watchers at HSBC say in a new report that solar installations in China could be 75GW to 85GW a year during the 14th Five Year Plan, which will cover the period from 2021 to 2025, and which forms the basis of the Chinese government’s central planning.This is significantly higher than previous run rate of 30GW to 50GW per year over the last five years, and will result in a significantly scaling down of new coal fired power, as new capacity focuses on solar and wind.“The 14th Five Year Plan (FYP) is being revised at the moment because President Xi has set a new strategy for carbon neutrality by 2060,” the HSBC analysts write in a new report. “All departments are revisiting their estimates. Wind and solar are core to this.”It is, of course, a deeply significant move. It equates to more than two thirds of annual solar installation across the globe in 2019 – 115GW – and nearly twice the capacity of Australia’s entire grid – and will result in a considerable ramp up of manufacturing capacity.It will likely take two to three years for China to ramp up to that level of installs, but it will in turn deliver a further fall in solar costs. HSBC expects the cost of solar to fall by 40-50 per cent by 2025, enabling grid parity in China to become the norm sooner without destroying margins across the solar supply chain. Its estimates are based on conversations with the China Photovoltaic Industry Association.[Giles Parkinson]More: China tipped to double solar installs to 85GW a year, pushing costs down by halflast_img read more

 

December 1, 2005 On the Move

first_img December 1, 2005 On the Move On the Move Guttenmacher & Bohatch has expanded its office to 7301 S.W. 57th Court, Suite 560, Miami 33143; phone (305) 666-1040; fax (305) 666-1020 and will be known as Guttenmacher, Bohatch & Baringo-Burch. Nancy E. Kemner is pleased to announce the opening of the Law Offices of Nancy E. Kemner located in the Village Square at Fleming Island Plantation, 2245 Plantation Center Drive, Suite 57, Orange Park 32003; phone (904) 278-1178; fax (904) 278-3220; e-mail [email protected] The firm concentrates in the areas of elder law, wills, trusts, estates, probate, guardianship, Medicaid planning, and nursing home law/patients’ rights. Kevin P. Robinson of Zimmerman, Kiser & Sutcliffe is now an associate in the commercial litigation department, representing commercial clients, insurance companies, self-insured corporations, and private individuals. Maura K. Anderson has relocated from the Atlanta office of Smith, Currie & Hancock to the Ft. Lauderdale office. Anderson represents owners, contractors, subcontractors, and surety companies in every phase of the construction process. R. Evan Bassett has opened Bassett Law Offices located at 696 First Ave. N., Suite 304, St. Petersburg 33701; phone (727) 898-1221; e-mail [email protected] lawoffices.com. The firm focuses primarily in the arena of civil litigation and trial including insurance defense, premises liability, products liability, serious personal injury, and wrongful death. Lorien Smith Johnson joined Bush Graziano & Rice in Tampaas an associate. Johnson concentrates in the areas of long-term care, medical malpractice, and environmental litigation. Alissa McKee Ellison joined GrayRobinson in Tampa as an associate. Ellison focuses her practice in the areas of commercial litigation and banking law. Susan R. Geiger joined Katz Barron in Miami. She concentrates on representing retail and development clients on matters involving leasing, acquisition, development, and disposition of real property. Sam A. Mackie has relocated to 122 South Bumby Avenue, Suite A, Orlando 32803; phone (407)894-0820. Mackie concentrates in the areas of business, corporate, administrative, governmental, and professional services law. Joseph Warren Kniskern has relocated to 1020 Stradshire Drive, Raleigh, N.C. 27614-8364; phone: (919) 847-8973; fax: (919) 847-8974; e-mail: [email protected] Kniskern also has joined Atkinson, Diner, Stone, Mankuta & Ploucha as of counsel. The firm is located at Suite 1400, One Financial Plaza, 100 S.E. 3rd Avenue, Ft. Lauderdale 33394; phone: (954) 925-5501; fax: (954) 920-2711; Web site: www.atkinson-diner.com. He will continue his commercial real estate law practice exclusively within Florida. Richard L. Allen, Jr., joined the Orlando office of Rumberger, Kirk & Caldwell as a partner. He focuses his practice in the areas of insurance defense and professional liability. Andrew Berger and Leonard Townsend joined Nason, Yeager, Gerson, White & Lioce in West Palm Beach as associates. Donna L. Kirk announces the opening of the Law Offices of Donna L. Kirk practicing in the areas of family law, special education law, wills, personal injury, real estate, and business law. The firm is located at 1000 E. Robinson Street, Suite B, Orlando 32801; phone (407) 318-7300; fax (407) 318-7337; e-mail: [email protected] Paul J. Mokris joined Dean Mead in Orlando as of counsel in the firm’s real estate department and W. Michael Black has joined the firm as an associate in the tax department. Derek E. León of Morgan Lewis in Miami was promoted from associate to partner. Robert Malinoski joined Gunster, Yoakley & Stewart in Ft. Lauderdale as an associate in the real estate department. Malinoski focuses his practice on environmental and administrative law, environmental litigation, contamination and remediation issues, and environmental counseling. Todd Engelhardt has joined Akerman Senterfitt as an associate in the Tallahassee office’s litigation group. Additionally, Adam D. Friedenberg joined the firm as an associate in the Ft. Lauderdale office’s litigation group. Burks A. Smith and Veronica D. Vellines joined Abbey, Adams, Byelick, Kiernan, Mueller & Lancaster as associates. Matt Jackson joined Brennan, Manna & Diamond in the firm’s litigation and government relations groups. Robert T. Datorre joined the Office of Legal Counsel for the Pennsylvania Department of Health as assistant legal counsel. Michael R. Ragan joined Fowler White Burnett in Miami as a shareholder. Ragan focuses his practice on the representation of health care practitioners, allied healthcare professionals, hospitals, and attorneys in civil and administrative litigation in state and federal court. Natasha Bae and Annette Lopez have joined Brigham Moore in Miami as associates. Thomas R. Weller has opened an office at 23327 N.W. Cty. Rd. 236, Suite 50, High Springs 32643; phone (386) 454-3163. He concentrates in the areas of corporations, contract law, family law, and landlord/tenant law. Roshawn Banks has opened The All Law Center in Ft. Lauderdale. The firm focuses on federal and state criminal defense, family law, and real estate closings. Jane M. Gordon was appointed general counsel for Song & Associates in West Palm Beach. Joan C. Henry joined Lusk, Drasites & Tolisano in Cape Coral. Kelly M. Smith joined Scott J. Brook, P.A., in Coral Springs as an associate attorney. Diana P. Abril joined Carlton Fields in its Miami office as an associate in the firm’s corporate, securities, taxation, and asset-based financing practice group. December 1, 2005 On the Movelast_img read more

 

How do you discover team strengths?

first_img“If you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.” – Probably Not Albert Einstein*How many new positions- roles that did not previously exist- has your credit union created in the past five years? Data Scientist? VP-Payments? Digital Marketing Manager? Roles like these—roles there was little reason to even consider before the advent of the iPhone in 2007—are now integral components of the business plan for many organizations. Now, consider the most common positions in your credit union and the skills your hiring managers prioritize when evaluating who will thrive. Likely, these positions—tellers, accountants, loan officers—require accuracy, punctuality (both in responsiveness and physical presence), and compliance with processes and procedures. These competencies tend to be rewarded in many financial institutions, but they are not the traits most important for success in the new workplace. Unconscious biases and an attraction to the familiar means that often organizational environments perpetuate homogeny. We continue to hire and promote employees who share similar characteristics to others who have been successful in our organization. Leaders who think the same, lead the same, and communicate the same continue to excel, while those who do not fit the mold become disengaged and move on. Studies on workplace engagement and organizational performance find that diverse and inclusive workplaces perform better than homogenous organizations. Even with decades of conversation on this topic, most organizations have not taken action to change the make-up of their workforce, though. As organizations still struggle to balance gender or ethnic diversity, the value of diversifying teams based on generation, personality, and skillset is also becoming clear: The workforce of the future needs to be skilled differently. Organizations must actively cultivate diverse skillsets to keep up with changing consumer demands, the technology that can help meet those demands, and the communication channels consumers choose.Likely, many employees in your organization already possess unique traits that could help your organization thrive, but your current systems and environment limit their ability to demonstrate this. Talent sits latent, unused and undiscovered, in struggling organizations. As leaders bemoan the fact they are losing the war for talent, they remain unaware of untapped talent already in their organizations.Creating opportunities where employees bring their whole selves to work can create a higher sense of comfort and give employees confidence about demonstrating the depth of their talents. One highly impactful way to provide this opportunity is through creating cross-functional teams to work in a space relevant to the credit union’s mission, but outside the scope of daily work. In 2011, Maps Credit Union (Salem, OR) organized a team of employees to partner with a local non-profit for a cultural, service-immersion trip to Oaxaca, Mexico. The team was comprised of employees from every level of the organization, including front-line staff, back-office support, management and executive team members, and Board members. Over the course of the week, the team met with Mexican financial service leaders, built a school for a community that lived at a garbage dump, and worked alongside families to renovate the school their children attended. In these rural communities, little English was spoken and only a few team members had any Spanish language skills. Oscar Porras, then a branch employee, quickly became the interpreter for the team. He describes the experience like this, “As a young Hispanic employee, putting your best foot forward while being true to yourself can be intimidating when you’re dealing with what you perceive as rich old white men who can get you fired.  As the week progressed and we came in contact with different groups, my confidence in translating, public speaking, leading, and networking grew in a way that couldn’t have happened in my everyday position.”As the most senior executive who made the trip, it also put me in a unique position. I was the fish trying to climb the tree. The skills that had earned me my position at the credit union would not help me navigate conversations with border police, complete construction with limited resources, or connect me with families who wanted to share their stories. I opened myself to learning from teammates in a new way and saw skillsets and strengths that I had not been able to see in the office. I gained an understanding about how each of them solved problems, returning from the trip with a broader group of people to consult when I wanted a different way of thinking.  As for Oscar, this experience provided him with a valuable network, too, that demonstrates the value of connecting leaders with employees at every level of your organization. “There is something to be said for associating with people at a higher level. When board members know you by first name, it gives you a sense of pride. When you have a limited circle of successful professional people in your life, experiences that help you connect with higher-ups on a human level can be career changing.” He took this experience and became an organizational and system leader, moving forward to participate in international exchanges with the World Council of Credit Unions and be promoted at the credit union.Cross-functional teams organized around a common purpose—whether a trip like this or an organizational or local project– give employees the chance to show up fully. Organizations that truly know their people are able to tap the full potential of their human capital, leveraging individual talents and strengths to improve the whole. How do you create opportunities for employees to show up as their whole selves? What impact have you seen when team members bring that level of comfort to their roles?*I love this quote as it relates to the boxes we try to put employees in to measure success potential. I do not actually know who said it, though, as many sites indicate it was not Albert Einstein, to whom it has been widely attributed. 28SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Jill Nowacki Jill Nowacki started her career with credit unions in 2001. She has taken on leadership roles at credit unions and state and national trade associations. Now, she uses her experience … Web: www.humanidei.com Detailslast_img read more

 

Why free checking still pays off for credit unions

first_imgOne of the biggest competitive differentiators credit unions can leverage against big banks and fintech “challenger” banks is not a new product type or techy: it’s free checking! In 2017, 74.9% of credit unions offered free checking. Today, only 20% of credit unions (and 19.4% of big banks) offer this product that is built around no monthly fees and no minimum balance requirements. With checking being the most penetrated credit union product (an average of 58.4% of credit union members held a checking account as of June 2019), now may be the time for credit unions to reconsider bringing the free checking strategy back to the market.Since the Durbin Amendment passed into law in 2010 (reducing the fees charged to retailers for debit card processing), financial institutions have been looking for ways to increase or maintain non-interest income. Big banks have moved away from free checking and implemented higher maintenance fees and minimum balance requirements for their baseline products. The largest of these banks, holding more than $10 billion in assets, were more negatively impacted by this legislation. However, they continue to have a competitive edge over credit unions due to broader physical presence, more attractive incentives to attract new accounts (in some cases upwards of $600) and deeper digital solutions.While credit unions holding under $10 billion in assets did not see as big of an impact to debit card interchange revenue, they continue to seek ways to increase non-interest income. Some recent trends include removing free checking and adding requirements with a low monthly fee, as well as implementing new products with “add-ons” such as identity theft packages tied to a monthly fee, which in some instances cannot be waived. Advisors Plus suggests credit unions give their members the flexibility to select these “add-ons” as an option or leverage the relationship to cover that expense, thereby rewarding members for their loyalty. ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr continue reading »last_img read more