Banking on Employees
Washington – At Watermark Credit Union, a member-owned, not-for-profit financial institution, a team of employees and management designed and implemented a gainsharing plan that epitomizes the organization’s participative culture. The plan is dubbed EPIC for its components of Equity, Participation, Identity and Competence.
The gainsharing plan was reviewed and approved by management, voted on by staff and unanimously supported by the board of directors. To guide successful implementation, Watermark developed training for employees, formed department review committees and created a plan coordinator position to support the administrative needs of the program.
Watermark’s plan makes it possible for employees to be intimately involved in organizational improvements and rewarded for productivity gains. In addition to tangible rewards, the plan also provides opportunities for training, education and employee development. Staff is kept in the communication loop through a quarterly newsletter and meetings with the CEO to discuss the results of gainsharing and the financial health of the organization. Employees are encouraged to provide management and the EPIC coordinator with direct feedback about the plan. Responses are collected through an employee suggestion system and during an annual review.
The gainsharing plan has been a win-win experience for Watermark and its employees. Suggestions from staff have saved the credit union money and helped to increase efficiency. Employees feel involved in their jobs and take pride in their work, which, in turn, has improved member service and employee loyalty. In the past three years, overall employee satisfaction has increased and in 2008, employee turnover was at a low 15 percent.
Employees give the credit union high marks in terms of participation, competence and trust, and report feeling that they have a personal stake in the success of the organization. Watermark is banking on its employees for continued success. For this credit union, the productivity increases that its gainsharing program has produced have delivered solid bottom-line results.