Across industries, the C-suite exodus is creating a leadership continuity crisis in the United States. Gartner reports 56% of executives—excluding CHROs—are likely to quit within two years, largely due to heavily increased workloads and stress. And that doesn’t account for the many retirees who will soon leave the credit union industry for good.

To address these challenges, CUs are shifting toward new executive recruitment trends that promise to solve both near-term hiring needs and the chronic cultural issues hindering long-term retention. Here are four strategies credit unions can adopt, along with the broader impact of these trends in the sector.

1. Building the Next Generation of Executive Leaders

Retirements in the credit union C-suite have accelerated in recent years, adding to the challenge of finding experienced leaders in the industry—yet this isn’t the only trend ramping up hiring pressures. In December 2024, the National Credit Union Administration (NCUA) issued a final rule requiring federally insured CUs to establish thorough succession plans. If this rule stays in place, boards must meet its requirements by January 1, 2026.

While traditional credit unions often prefer to hire seasoned senior leaders, the aging executive workforce (and rising competition) will urge financial institutions to broaden their talent pool. We expect more organizations to look toward younger, more diverse candidates to fill vacancies from the management level up—investing in their long-term development while leveraging their fresh perspectives for innovation.

This shift requires fresh recruitment tactics, including employer branding initiatives, that reflect the priorities of younger generations. According to Deloitte, Gen Z seeks careers that offer professional development and a deep alignment with their values—including diversity, sustainability, and social impact. For credit unions, emphasizing community contributions in employer branding initiatives can be an excellent first step toward attracting next-gen leaders.

2. Prioritizing Cultural Alignment

Community impact isn’t just a recruitment marketing tool. It’s a foundational part of the credit union identity that allows these nonprofit cooperatives to consistently outperform banks in trust factors. To retain this core differentiator—even through bank acquisitions and digital transformation—credit unions need to think beyond technical skillsets and experience in the hiring process.

In our previous discussion about aligning credit union leadership and culture, we touched on the value of implementing clear cultural assessments for current C-suite leaders. However, this is becoming just as important in the executive hiring process. Recruiting leaders who already bring a customer-centric approach and passion for community strengthens retention and drives strategic momentum.

At AJ Consultants, we anticipate cultural alignment to increasingly become a non-negotiable requirement for executive roles—and we’ve already been on top of this executive recruitment trend for over 16 years. We leverage a range of proven processes to ensure cultural fitness, including:

• Thorough collaboration with our clients to identify the core values and behaviors that top-performing executives demonstrate.
• A pre-employment assessment that objectively evaluates candidates’ cognitive and personality traits.
• Sourcing strategies that pull from our national network of financial services executives, including passive candidates, to offer a diverse yet highly curated talent pool.

3. Emphasizing Flexibility

Historically, financial services organizations have been hesitant to adopt hybrid or remote models. However, return-to-office mandates are creating a significant problem: A study of the nation’s leading tech and financial firms reported an abnormal 14% increase in turnover when these rules are enacted.

Staying competitive means embracing hybrid work. Today, 69% of financial services organizations already allow a majority of employees to work from home at least once per week. While executives often have greater tolerance for in-office work, providing more flexibility is incredibly marketable. In fact, most executives believe 60% of work time is best spent remotely.

However, hybrid work isn’t the only form of flexibility organizations can provide. Increasingly, credit unions are emphasizing benefits like four-day work weeks, flexible schedules, and childcare solutions in their recruitment marketing to attract top executives.

This executive recruitment trend has the potential to have a far-reaching impact. As flexibility becomes core to every employer brand, credit unions may increasingly seek leaders who can excel in the hybrid workplace—bringing skills like digital fluency and virtual team development to the table.

4. Hiring Data-Driven Executives

For the second consecutive year, World Economic Forum reports analytical skills have topped the list of core competencies in demand. In credit unions—which are often rooted in legacy systems with fragmented data—the need for data-driven talent is especially crucial. As financial institutions embrace digital transformation, they need leaders who can:

• Reduce customer churn by optimizing digital solutions like mobile banking while delivering personalized experiences.
• Enhance cost-efficiency by leveraging financial and operational insights.
• Leverage workforce data to enhance productivity and retention.

Key skill gaps credit unions may seek to address in their C-suites include expertise in data analytics, IT strategy, AI integration, and change management—capabilities essential for navigating an increasingly data-driven financial landscape.

Proactively embracing this executive recruitment trend can help credit unions strengthen their resilience and attract in-demand credit union executives before competition gets even tighter.

Adapting to Executive Recruitment Trends for Credit Unions

As credit unions face accelerating leadership transitions, skills gaps, and retention concerns, new executive recruitment strategies could address these concerns head-on. However, implementing these changes effectively in a competitive market often requires expertise and strategic guidance.

This is where AJ Consultants delivers exceptional value. With over 16 years of experience in credit union executive search, our team has built a nationwide network and proven methodology designed to meet the unique hiring challenges credit unions face.

We tailor each search to your specific priorities—whether you need data-driven executives, culturally aligned leaders, or a broader, high-caliber talent pool. In addition, we can provide strategic guidance to your board or leadership team, helping define the ideal candidate profile based on your organizational goals.

Stay ahead of executive recruitment trends in the credit union sector. Connect with AJ Consultants.