For many companies, no matter their size, economic uncertainty leads to the need for creativity in offering employee benefits. Employee benefits are important, as it allows your company to be able to recruit and maintain good employees. Creative benefits can help you keep up morale in your company while at the same time keeping your costs down. One of these benefits is offering your employees a membership at a local credit unions.
Credit unions are unique financial institutions that are run like banks but are designated as nonprofit, due to the fact that they serve specific communities and segments of the public. This means that they enjoy tax advantages that allow them to offer services as lower costs than consumer banking. Many credit unions in locales across the U.S. are willing to offer memberships to your company’s employees. Because of the money that your employees can save, it is akin to offering a raise, but it does not cost the business anything. Additionally, there are emotional connections made between employee and employer under such conditions.
Because credit unions often charge lower interest rates on loans, including mortgages, as well as smaller up front fees, the savings go right into employees’ pockets. Savings accounts at credit unions also benefit. Most credit unions actually offer higher interest returns on savings accounts and on certificates of deposit. Your employees are also afforded the special plans and promotions offered by a credit union. With all of these opportunities to stretch how far their money can go, offering a credit union membership as an employee benefit is indeed very similar to offering raises.
Other great financial benefits offered through credit union memberships include free checking (many credit unions do not require minimum balances), fewer “transaction” fees and ATM fees, special financing on auto loans, institutional credit cards with low rates, and personalized banking solutions. Additional benefits include things like special credit union deals on hotel stays, vacations, and amusement park admissions.
The emotional connection encouraged by a credit union membership is very helpful to you as a business owner. When a business goes through the effort involved in finding and recommending an institution that offers good services for less money and optimum rates, a message about the company’s concern about its employees is sent. Workers who feel that they are cared for and valued tend to work better and stay with the company. This means lower turnover and a higher quality workforce for your business.
Creative benefits like credit union memberships are great ways for your business to save money and to show your workers that you value their contributions. There are plenty of perks associated with credit union membership, and by offering the membership, you can take credit for offering the perks, without paying the costs.