Westpac Faces Backlash Over 'Humiliating' Sales Leaderboard and Unfair Targets

Home lenders at Westpac have reportedly experienced distress and humiliation due to an internal group chat leaderboard that exposed daily sales figures among colleagues. The practice, which ranked top and bottom performers, has drawn criticism and led the bank to reconsider its previously announced lending targets.

Last month, reports surfaced detailing how staff in Westpac's home lending division were facing intense pressure from what were described as 'unrealistic' quarterly targets. These targets increased the total dollar amount of deals lenders were required to close, with some increases ranging from 2.5 percent up to 33 percent, or at least $1 million.

The challenging performance expectations were further compounded by a softening housing market, and employees claimed Westpac provided limited consultation regarding the revised goals.

Adding to the pressure, some lenders were allegedly instructed to post their daily performance numbers in a staff group chat. These figures were then compiled to create a leaderboard, publicly identifying top and bottom performers. A source familiar with the situation stated that the data was accompanied by commentary on "who has done well, and who hasn't done well."

This system reportedly left some participants feeling "humiliated" and "in tears," with a source describing it as an "unsafe tactic and negative culture." The internal leaderboards were understood to be informal and not officially implemented by Westpac management.

According to the Finance Sector Union (FSU), these group chats functioned as a "leaderboard-style ranking system" and presented a significant "psychosocial hazard" to staff. The FSU has noted that such practices echo concerns raised during the 2018 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The Royal Commission had previously identified that sales leaderboards could foster a toxic competitive environment, potentially prioritizing target achievement over customer best interests.

Following backlash and pressure from the FSU, Westpac has agreed to review its home lending targets. Previously, when staff members questioned the rationale behind the increased targets, they were reportedly told by managers that their concerns were "not relevant."

Westpac has declined to comment on the specifics of the group chat leaderboard or the reasons for agreeing to review the lending targets. However, a spokesperson provided a statement indicating that the bank regularly reviews its support for lenders and performance assessments. "The targets vary between lenders based on factors such as role, experience, portfolio mix and local market conditions. This ensures expectations are appropriate and tailored rather than one-size-fits-all," the spokesperson said. The bank also stated that it provides support, coaching, and training to help teams deliver positive customer outcomes.