Libro Credit Union Case Study Example PDF

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Case Study Example of a sample case, Libro Credit Union. Unit 2. BUS2257. Study Material. Reference Material. 2018-2019....

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Running Head: LIBRO CREDIT UNION

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LIBRO CREDIT UNION Student’s Name Professor’s Name Institution Course Date

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Libro Credit Union Company Background Libro Credit Union is a financial institution that is located in Ontario, Canada. It is owned by stakeholders who are the directors of the organization’s decision. As a credit union, Libro Credit Union offers numerous financial services such as mortgages, financial coaching, saving accounts, investments, loans, and offering advice to business owners and consumers (Union, 2018). In the case of deposits, they are insured by the Ontario Insurance Corporation. Basically, Libro offers access to a full range of financial services, and everything one could expect in a financial institution. Across the Southwestern Ontario, there are 660 employees who work with Libro Credit Union across 31 branches. What’s more, the institution has more than 103,000 members whom they work hand-in-hand when delivering services, and assets that amount to $4.2 billion under administration. Determination of Pay for New Hires in Relation to the Existing Staff Over and again, Libro Credit Union has been known by AON as one of the institutions with top employers and for some specific reasons. It, therefore, stands out because of the warm atmosphere and conducive environment it provides to the team and the professional development. Those working in this institution are like a family. Libro Credit Union pays $14.37 per hour for a Customer Service Representative in Canada as the average salary. Besides, salary estimates are made on the basis of 32.988 salaries that are anonymously submitted by users and employees from the Customer Service Representatives (Hessou, 2017). The payments for new

LIBRO CREDIT UNION hires is determined by the past and present job experience, where the required experience for a Customer Representative is only one year. The institution retains employees based on quality personnel by offering reasonable benefits and compensations. Training is part of the development team which is offered effectively and in details. When an employee performs beyond average, the institution recognizes and celebrates them. The supervisors are always understanding the flexible hours during their busy fixture; implying that there is always effective communication within this institution. Compensation Processes The processes used by Libro Credit Union to compensate the employees include; ✓ Basic pay – This is the simplest method preferred when paying remuneration to the employees. Employs in Libro receive remuneration packages which are assisted with other models of payments like incentives. Under this process, an employee working here is paid a fixed amount of wages. ✓ Stock option scheme – In this process, the institution offers some of the company shares to the employees as a reward for their performances. This way, employees work hard towards achieving the company’s worth and betterment as they look forward to getting returns. Simply, it is a way of boosting their level of work for the benefit of the entire institution. ✓ Payment based on performance – It’s more comprehensive than the basic pay model, where employees are paid based on the services and products that made them achieve certain targets or quality. However, the standards here are fixed for the products.

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Types of Benefits Received by Employees Employees who work in Libro Credit Union receive two kinds of benefits. They are: ✓ Benefits in kinds – This is where the institution decide to offer employees with benefits in kind. That is, the employees may receive benefits in form of gifts, medical services, free meals, vacations, or even rent accommodation (Hessou, 2013). By doing so, the institution ensured that the mind of the employee has been lifted and their sense of belongings has improved. ✓ Other benefits – Here, the institution offers employees benefits that they can use after retiring like voluntary retirement schemes, pension schemes, leave salary, and gratuity plans. In this case, the institution is capable of retaining its employees for as long as they wish. The Effectiveness of Compensation Program using basic Likert Scale The Effectiveness of

CI

I

N

P

AP

Total

Number of response

11

15

2

1

1

30

Percentage of response

3%

3%

7%

37%

50%

100%

compensation program

Note: CI - Completely Ineffective, I – Ineffective, N – Neutral (neither agree nor disagree), P – Perfect, AP - Absolutely perfect In order to keep employees motivated, Libro Credit Union provides compensations. Nonetheless, the compensation program is very challenging. Organizations are surveyed whether

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employees who work there have the possibility of receiving benefits after performing above average or not. As the table above portrays, the objective is to know the effectiveness of the compensation program on any employee and in the entire organization. It is measured on a basic Likert scale between 1 and 5, having items like Completely Ineffective, Ineffective, Neutral (neither agree nor disagree), Perfect, and Absolutely perfect. Out of 30 employees, 6% of them believes the program is completely ineffective or ineffective. On the same note, 7% neither agree nor disagree with the compensation program, while 87% believes that the program is perfect or absolutely perfect. Recommendations to Improve Compensation System To improve their compensation system, I would recommend the company executive to stay informed of the conditions in the financial market. As a competitive organization, there is the need for updated information concerning changes in the financial market to ensure the institution is on the right track following compensations. If not, the organization need to adjust in some areas, throughout that year as financial indications suggest. Also, the institution needs to increase awards on the basis of employee’s performance. Rather than awarding all employees on average, the company ought to consider rewarding the top performers with increased rewards and giving the bottom performers rewards that are lower than average. By doing this, the organization ensures that all the top performers maintain their performance levels and the bottom performers work harder. Indeed, this is a way of promoting a culture with high-quality employees and an organization with reduced turnover costs from employees. Still, the

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organization should consider the budget impact in such a way that there are recommendations for compensation plan support for the overall goals of the company. Finally, the company executive can consider using a compensation consultant, since mostly, it is difficult to take compensations because of project plans. With a compensation consultant, the institution will have someone who develops a strategy on how to pay employees fairly and competitively, in turn, helping in retaining employees who are highly valued. Every organization needs to stay competitive, especially through retaining the best and most valued employees within the institution. By following all the recommendations, certainly, Libro Credit Union will be in a position to have a solid process for equity in the program and merit increase planning entirely.

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References Hessou, H. (2013). Canadian Credit Unions Capital Buffers under Basel III. Hessou, H. (2017). Basel III capital buffer requirements and credit union prudential regulation: Canadian evidence. Journal of Financial Stability, 30, 92-110. Union, L. (2018). Libro Credit Union announces B Corp Certification and $10.4 million in profits at Annual General Meeting. Retrieved from https://globenewswire.com/news-release/2018/04/19/1481894/0/en/Libro-Credit-Union-a nnounces-B-Corp-Certification-and-10-4-million-in-profits-at-Annual-General-Meeting.h tml...