When Does Employee Benefits Becomes a Motivator?

Many cooperatives have lower compensations and benefits packages compared to other financial institutions.  So employees seldom feel that they are receiving enough for the work they do.

But considering the work requirements and the culture of cooperatives, there are benefits that are not well communicated to them.  For example, the training and travel opportunities that they get for attending seminars given by federations are not much valued as a benefit.  Other employees in the corporations have to earn their training opportunity and some even have to spend out of their own pocket to be able to improve their competencies. But in the cooperative sector, training are abundant (except for some cases of front liner employees like cashiers, who finds it hard to leave their post).

HR of cooperatives should be able to communicate the monetary equivalent of all the benefits they give to employees, to help their employees realize the value of their work.  As I have read in an article of "employeebenefits.excellenceessentials.com" (written by Lynn Lievonenn),  "Communicating effectively and regularly about the benefits of benefits plans provides a better understanding and higher adoption rate by your employees. It helps build employee engagement and a more loyal workforce that takes less sick time."

By communicating the benefit plans to the employees, they will see that the organization is not neglecting their basic needs and the plan tells them how the organization understands their needs.  If there's no schedule of increases due to the organizational performance, at least the employees would also know that if they work together and try to achieve the targets, there's a big chance that they will reap the fruit of their labor in the future.  Employees need to understand that they are stewards and partners of the cooperative, and valuing their members and being able to serve the members well, will be rewarded too.

Some cooperatives even offer opportunities for the family members of the employees to find employment in the organization.  Some cooperatives allow relatives to work at the same organization, provided that the internal control is not sacrificed.  Some co-ops also provide scholarships for the employees' children, and some give scholarship for the employees as well. 

So my advice to HR of cooperatives is to review what compensation and benefits' packages that you have and try to monetize it.  This will give you an understanding of what you can offer for recruitment and what you can tell your employees should they decide to find greener pastures. 

HR Insights: Succession Planning: Key to Effective Leadership Transition for Cooperatives

In 2014, it was an honor and a privilege to be invited as the guest speaker for the 2nd General Assembly of Bulacan Cooperative Leaders. This event brought together 24 cooperatives across four districts and a Bulacan-based federation. It was fulfilling to share my knowledge and experience in human resource management with such a passionate audience.

The topic I presented this morning was "Succession Planning as Key to Effective Leadership Transition." This is a critical issue for cooperatives, as leadership continuity ensures stability and growth. I could feel the participants’ genuine concern and eagerness to learn as they diligently took notes throughout the session.

Key Questions from the Session

During the discussion, several thought-provoking questions were raised. Here are some of the most notable ones, along with my answers:

1. As a small cooperative (20+ employees), is it okay to assign employees to different functions to test where they fit?

Answer: Absolutely, especially for smaller organizations. When your team is small, multitasking is often unavoidable. The fewer complexities in your processes and the manageable volume of transactions make it feasible to rotate employees through different roles. This approach allows staff to gain on-the-job training, better understand operations, and discover where they excel.

However, there are key considerations to ensure success:

• Document your processes. Create manuals and review policies regularly to maintain control and consistency.
• Monitor performance. Keep track of employees’ progress to ensure their skills align with the cooperative’s needs.
• Focus on long-term growth. These early experiences prepare employees for leadership roles as the cooperative expands.

2. How do we begin implementing succession planning in our cooperative?

Answer: Yes, you can start immediately, but it’s crucial to lay a strong foundation first. Here’s how:

• Update your organizational structure. Identify key positions and review the qualifications and job descriptions for these roles.
• Profile your employees. Understand their current competencies, career aspirations, and future plans.
• Close skill gaps. Create training plans to address gaps between current employee skills and the requirements for critical positions.
• Engage employees. Conduct career conversations to gauge their commitment and aspirations within the cooperative.

Succession planning is a collaborative effort involving the Board of Directors, the CEO/General Manager, and HR personnel. The board and management own the process, while HR handles the implementation.

Profiling Employees: Why It’s Essential

During the session, I noticed that some cooperatives do not yet profile their employees. This is a crucial first step in identifying potential leaders and mapping out development plans. Even without sophisticated software, you can start using Excel.

Here’s a simple list of data points to include in an employee profile sheet:

1. Name
2. Date Hired
3. Department
4. Entry Position
5. Current Position
6. Entry Salary
7. Current Salary
8. Age
9. Gender
10. Civil Status
11. Number of Children
12. SSS/TIN/PhilHealth Numbers
13. Contact Information
14. Address
15. Educational Background
16. Trainings Attended
17. Skills and Competencies
18. Desired Position
19. Certifications
20. Performance Appraisal Records

From this data, you can:

• Identify skill gaps between employees’ current roles and their desired positions.
• Design personalized training and development programs.
• Track progress over time to ensure alignment with the cooperative’s goals.

The Road Ahead

For cooperatives, succession planning isn’t just about preparing for leadership transitions—it’s about securing the future. By laying the groundwork now, you ensure that your organization will thrive for years to come. Start by establishing the basics, like a clear organizational structure, detailed job descriptions, and performance measures.

Remember, succession planning is a journey, not a one-time event. With a proactive approach, even small cooperatives can build a pipeline of future leaders ready to take on greater responsibilities.

Thank you to the Bulacan Cooperative leaders for an engaging and insightful discussion. I hope today’s session inspired you to take the first steps toward effective succession planning. Together, we can ensure the continued success of your cooperatives.

To God be the Glory!