Five strategies to build your credit union's next generation of leaders

An NCUA rule requiring written succession plans took effect January 1, but regulatory compliance is only part of the equation. Credit unions that invest strategically in leadership development will build the talent pipelines needed to serve members for decades to come.

When an employee at PrimeWay Federal Credit Union in Houston arrived for new-hire orientation, she was overwhelmed. Returning to the workforce after years away, she cried because she struggled to keep pace with younger colleagues. Two years later, that same employee ranked among the credit union's top performers for member engagement and now trains other frontline staff.

The difference? Someone saw her potential and gave her the right tools to succeed at her own pace.

That kind of intentional development is becoming essential across the industry. The NCUA cited two primary reasons for its succession planning rule: industry consolidation and the ongoing volume of retirements of baby boomer generation credit union leaders . At the same time, the regulator found that 25% of credit unions either lacked any succession plan or had an inadequate one . Meanwhile, more than half of credit union boards still lack a formal succession plan.

Regulatory requirements raise the stakes

The National Credit Union Administration finalized a rule in December 2024 requiring federally insured credit unions to establish written succession plans. Now in effect, the rule mandates that boards identify key leadership positions, outline strategies for filling vacancies, and review their plans at least every 24 months.

Effective employee development can increase performance by up to 25%, and research consistently shows that employees stay longer at organizations that invest in their careers. For credit unions with lean staff and competing priorities, deliberate approaches to talent development become essential.

#1 Make learning accessible and self-paced

Not every employee learns the same way or at the same speed. Flexible, on-demand training platforms allow staff to build skills without disrupting daily operations.

"It is so scalable from a new person coming in to the executives," says Marsha Needham, vice president of organizational development at PrimeWay Federal Credit Union, describing the training resources her team relies on. "It offers scalable bites that allow us to be more engaged with our employees."

Credit unions can leverage resources already available through their leagues, industry organizations, or the NCUA's free Learning Management System , which provides on-demand courses for credit union staff and volunteers at no cost. Role-specific learning tracks tied to job functions help employees see clear paths from their current positions to future opportunities.

#2 Prioritize soft skills development

Technical competence gets employees in the door, but soft skills determine who rises into leadership. Communication, emotional intelligence, conflict resolution, and empathy distinguish effective managers from those who simply complete tasks.

One option is for credit unions to use structured talent assessments such as the nine-box matrix to evaluate both performance and potential, helping identify employees ready for advancement and those who need additional development. These approaches allow organizations to categorize staff based on current performance and future potential, creating clear expectations and transparent development plans communicated to each individual.

Programs focused on member counseling and relationship-building teach employees how to connect with members facing financial challenges, skills that translate directly into leadership capabilities. The League of Credit Unions and Affiliates offers an Executive Institute program that includes emotional intelligence training, helping leaders monitor their own feelings as well as others' emotions to guide decision-making.

#3 Create low-risk leadership opportunities

Future executives need practice making decisions before the stakes are high. Committee assignments, project leadership, board presentations, and mentoring newer employees all provide opportunities to develop leadership muscles in supportive environments.

The Carolinas Credit Union League's CUxEL Mentor Program pairs emerging leaders with experienced professionals from credit unions across North and South Carolina to deepen their understanding of credit union philosophy and foster personal growth. "I have been working with my mentor to become more of a leader," one program participant shared. "They have helped me with my confidence, my conflict resolution skills, and have been very supportive."

A blend of on-the-job training, coaching, mentoring, and formal training activities can create well-rounded development. Job shadowing offers a low-cost approach: a day spent observing a senior leader can inspire emerging talent and clarify what advancement looks like. Stretch assignments and rotational programs let employees experience different departments, building the enterprise-wide perspective that C-suite roles require.

#4 Build structured mentorship pathways

Mentorship bridges gaps between generations and departments, transferring institutional knowledge while giving emerging leaders personalized guidance. Effective programs match mentors and mentees intentionally, establish clear expectations, and create accountability through regular check-ins.

Industry resources can supplement internal efforts. League-sponsored emerging leaders programs, such as those offered by the Cooperative Credit Union Association and Ohio Credit Union League's GRID Network, connect rising professionals across institutions for peer learning and networking. America's Credit Unions Management School, offered in partnership with the University of Wisconsin-Madison, provides intensive executive development over three years.

#5 Incentivize continuous learning

Development programs succeed when employees feel motivated to participate. Recognition, rewards, and gamification can turn professional growth into a cultural priority rather than a compliance checkbox.

PrimeWay ties learning to its employee recognition platform, awarding points for completed certifications that can be redeemed for gift cards. Monthly raffles and year-end awards for top learners keep engagement high. The approach works: one employee completed 96 certificates in a single year.