Membership and Staff Retention in a Gen Y World

Nancy Pierce
November 14, 2007 | COMMENTS

I was standing in line at a Starbucks coffee shop waiting to place an order. Most of the people in line were young adults. I was dismayed to see most using a debit card for payment. I know a cup of java at Starbucks is not cheap; still, I thought, don't any of these people carry enough cash to pay for a cup of coffee? I watched them swipe their card, insert a pin number, and move to the side to wait for their order. The line moved fairly quickly. I placed my order and gave the server a $10 bill. Then I heard the young man behind me mutter to his female companion, “Cash! It holds up the whole line!” I had to smile as I realized he was right. My transaction created an exchange of bills and coins, not a simple swipe and pin number.

I realized then my method of payment—cash—was an outdated method to these young adults. For Generation Yers the question of “paper or plastic” is irrelevant. It's only about plastic. As more and more Gen Yers join the workforce and conduct their financial business, the world as we know it today will change dramatically. Their ability to multi-task and their all-consuming interest in technology will force industries to change product structure and delivery channels, or risk becoming extinct. Credit unions face a similar threat if they don't pick up their pace in attracting and retaining Gen Yers, as both employees and members. With the average age of credit union members hovering at 47, this new generation has to become a substantial focus within the strategic plans of credit unions.

According to the Filene Research Institute, over 31 million adult members of Generation Y are building relationships with financial institutions right now. Credit unions need a better understanding of this group to attract them as employees and members. This white paper provides ideas on how to entice young adults into the credit union world as employees and members, but more importantly, how to secure their loyalty and long-term commitment.

The paper is organized as follows:

Section 1. An introduction.

Section 2. Finding the Gen Y employee talent pool.

Section 3. Keeping the good employees.

Section 4. Having the right products for a Gen Y market.

Section 5. Attracting Gen Yers as members.

Section 6. Educating young adults to be responsible consumers.

Section 7. A summary that includes strategies, actions, and advice.

This is the executive summary to a cross-Council white paper by Nancy Pierce entitled “Membership and Staff Retention in a Gen Y World.” Read the complete paper in the "White Papers" section of the CUNA Technology Council website under the "Cross Council" tab.