The Scottish Government

Main Findings

The key research findings following consultations with key stakeholders, a survey and interviews with credit unions are:

• Credit unions in Scotland support a significant level of training for their staff and volunteers.
• Benefits of volunteer training exist both for individual volunteers and for credit unions and include volunteers' improved personal skills, confidence and motivation and improved organisational efficiency and effectiveness.
• Few gaps in volunteer training provision were identified by credit unions. It was perceived that gaps, if identified, could be met through existing providers, other credit unions or credit union networks or by their own internal skills.
• Despite the volume of training available and sensitivity to the need for volunteer training, questions remain about the effectiveness, quality, consistency and appropriateness of training.
• There is a need to ensure training is pitched both at higher levels for more experienced volunteers (e.g. degree/MBA level) and at the induction level for new volunteers, with better integration across different levels of training provision.
• Agencies and organisations involved in developing credit unions recognised the need for credit unions to have a broader understanding of aspects such as partnership working, emerging policy issues and funding.
• Views on accreditation of training varied from concerns that it represents a move away from the ethos of voluntarism within the movement, to a more positive perspective of accreditation as proof of participation in training. There was some interest in further consideration of other forms of recognition and quality assurance.
• Credit unions were familiar with and often used Training Needs Analysis (TNA) to identify volunteer training gaps, hence the design of a developmental toolkit for credit unions to identify and capture volunteer skills and capabilities was identified as a more appropriate way forward.
• The analysis supports the option of looking into establishing an independent national umbrella organisation to implement the proposed skills development toolkit, and to support volunteer training needs through ensuring quality, effectiveness, efficacy and efficiency of volunteer training provision.

Background

The Financial Services Authority (FSA) provides regulatory and other services to credit unions. The legal structures for this requirement came into force on 2 July 2002 (Financial Services and Markets Act 2000). Under the new regulatory framework, credit union members enjoy the same rights of consumer protection afforded to depositors of traditional financial service providers such as banks and building societies, including membership of a financial services compensation scheme. As a consequence, there is closer scrutiny of the operation and management of credit union activity.

Credit unions depend heavily on the competence, capabilities and potential of volunteers who are recruited to serve on credit union boards and committees. Volunteers also serve an important role in the day-to-day running of the credit union, often supporting or taking the place of professional, paid staff in front line office duties or providing specialised or general office support. Following the FSA's Principles for Businesses, by investing in volunteering and capacity building, credit unions can meet the challenges of compliance as specified in the FSA's Credit Union Specialist Sourcebook (CRED), by developing an effective, efficient organisation.

Research Findings

Volunteer Training

Credit unions in Scotland support a significant level of training for their staff and volunteers. Whilst the extent of training varies between individual credit unions, overall there is a sense of commitment to this process. In part, this commitment reflects the changing regulatory environment in which credit unions operate now and the realisation by credit unions that training and skills development is an essential element in volunteer retention and development. The benefits from volunteer training were identified at both the individual and organisational levels. Key benefits for volunteers themselves included improved confidence and self esteem, increased motivation and the empowerment of the volunteer to undertake their role in a professional manner within the credit union. There was recognition that training helped to improve a volunteer's personal skills and had a positive input on the future employability of volunteers outwith the credit union. At the organisational level, benefits included improved efficiency and effectiveness of the day-to-day operation of the credit union. This was seen as being especially important in the context of ensuring compliance with FSA regulations.

Gaps in Training Provision

Few gaps in training provision for volunteers were identified by individual credit unions. Agencies and organisations involved in developing credit unions were conscious of the need for credit unions to have a broader understanding of partnership working at local, regional and national levels, a more comprehensive understanding of emerging policy and of new or alternative sources of funding.

Credit unions surveyed were of the opinion that training gaps, if identified, could bet met through existing providers, through their own skills set within the organisation, or through other credit unions and credit union networks. Despite the volume of training available and the enthusiasm of interviewees for their volunteers to undertake training as and when required and when time permitted, the researchers found that there was no way of judging, for example, whether a course undertaken by one credit union was of a similar quality and consistency to that undertaken by another. Whilst credit unions are sensitive to the need for volunteer training there remain questions regarding how effective the training provided is and the quality and consistency of training, and the appropriateness of training for the needs of volunteers and for credit union development.

Concerns were raised regarding the level at which training is pitched, with the majority of training currently on offer at an introductory level only (i.e. below advanced training such as degree or MBA courses). Additionally, there is a lack of integration to more advanced training, pointing to the need for better integration with training at higher levels for more experienced volunteers (e.g. degree/MBA level) and at the induction level for new volunteers.

The potential to develop other methods of recognition of training, for example personal development portfolios detailing training undertaken also received some support. It was recognised that training undertaken by a volunteer in relation to their role in a credit union potentially could have cross-over benefits, in terms of developing transferable skills, either in an existing workplace or have a positive impact on future employability.

Accreditation

Accreditation of training is largely seen by community based credit unions who were interviewed face-to-face, as moving away from the ethos of voluntarism within the credit union movement. Concerns were expressed by community based credit unions, however, that this is a direction credit unions are moving towards. From an alternative perspective, accreditation was seen by some credit unions as a good idea, in that it was proof given at the end of participation in training. Credit unions expressed interest in looking further into the issue of other forms of recognition and quality assurance, and the possibilities for volunteer personal skills development portfolios reflecting how transferable skills could be used to help volunteers secure employment.

Toolkit

The analysis showed that credit unions were familiar with and often used a Training Needs Analysis (TNA) as a way to identify volunteer training gaps. The researchers then determined that any toolkit which simply repeated the process of undertaking a TNA would be inappropriate. Feedback provided by volunteers and credit union workers suggested that a toolkit specifically designed to act as a developmental tool, thereby assisting credit unions to identify and capture the skills and capabilities of both new and existing volunteers, would be a more positive way forward.

The volunteers' skills development toolkit would require the support from individual credit unions of a dedicated person with responsibility for training, who would work with volunteers to develop individual training plans and foster a supportive environment for volunteers' skills development.

The toolkit would act as a navigator to assist credit unions not only to understand the importance of volunteer training, but also facilitate skills development and capacity building, both at the individual and organisational level. Further details are provided in the main research report.

Delivery Mechanisms

To implement the proposed volunteer toolkit - Learning Profits! A toolkit for credit union volunteers' skills development - and support volunteer training needs, the analysis supports the option of establishing an independent, national umbrella organisation. The role of this new organisation would be to ensure quality, efficacy and efficiency of volunteer training provision for credit union volunteers throughout Scotland.

An independent, national umbrella organisation would take responsibility for the implementation of the credit union volunteers' skills development toolkit and provide guidance as a 'one stop shop' on training issues.

Recommendations

Recommendations arising from the research findings are highlighted for consideration by policy stakeholders, training providers and the wider credit union movement in Scotland:

• Information needs - to improve the existing system that records information and contact details for Scottish credit unions, to set up a central information point to support improved sharing of regulatory and generalist information between credit unions and between credit unions and other local, regional and national stakeholders, as well as to exchange information about the range of training provision available to credit unions.
• Toolkit - to endorse a skills development toolkit for volunteers, which would also require an individual with responsibility for training and skills development within each credit union
• Training standards - to evaluate all training, to consult interested parties on a quality assessment framework to include issues of quality assurance and accreditation, to agree on minimum standards required for credit union volunteers, and to identify the skill and competency levels required for key tasks and functions undertaken by volunteers in the running and development of credit unions.
• Delivery mechanisms - to explore the establishment of a new delivery mechanism to support volunteer training and skills development, possibly through the creation of a Credit Union Resource Centre.

About this Study

The research involved several stages. A desktop literature review was conducted supported by face to face and telephone consultations with key stakeholder organisations involved in training provision and volunteer skills development. A telephone survey of 40 credit unions was undertaken to determine the nature and extent of i) volunteer training activity, ii) volunteer training providers and iii) training evaluation processes. This was followed by face to face semi-structured interviews with 20 individual credit unions to gain views on the skills and knowledge base needs of volunteers in the changing regulatory climate for credit unions.

In order to assist credit unions to develop the capacity of volunteers, the final stage of analysis involved the design of a draft toolkit to support training for credit union volunteers. Finally, a sounding board of credit union volunteers and development workers was held to discuss aspects of the research in greater detail and to gain a volunteer perspective on the new regulatory framework, its implications for volunteer training, views on the development and implementation of a training and skills toolkit and alternative training delivery mechanisms.