Westpac Lenders Face Pressure Amidst Rising Mortgage Targets
Mortgage brokers at Westpac are reportedly struggling with 'unrealistic' sales targets and performance plans, raising concerns about staff burnout and potential departures in a cooling housing market.
Westpac mortgage lenders are reportedly facing intense pressure to meet new, increased sales targets, with some fearing the measures are designed to push them out of the company. The brokers claim that targets have been raised significantly, with increases ranging from 2.5% to 33% for the quarter, and some seeing their quarterly goal rise by at least $1 million.
These adjusted targets, which were back-dated to April, were reportedly implemented in May with minimal consultation. According to the Finance Sector Union, lenders who fail to meet these objectives face 'performance consequences,' which can include dismissal. Since the new targets were introduced, some lenders have reportedly been placed on performance improvement plans (PIPs), a process often viewed in the corporate world as a precursor to termination.
Sources familiar with the situation suggest there is "no clear rationale" for the varied targets, which differ even among colleagues on the same team. Staffers claim that when they question the basis for these increases, superiors provide dismissive responses, stating the information is not "relevant" or it is not their "place" to inquire.
One Westpac employee from the home finance division described how their entire team was assigned different targets. "I asked my leader how the target increase was calculated and they said that information was not 'relevant' to my job," the staffer said, speaking anonymously. Another lender reported being pressured to take annual leave shortly before the targets were increased, further complicating their ability to meet the new benchmarks.
The increased targets come as the Australian housing market shows signs of slowing. Data indicates that auction sales in Sydney have reached their weakest level in over six years, while Melbourne's auction sales are at a nearly five-year low. This market slowdown, coupled with looming tax changes from the recent federal budget, is expected to amplify pressure on workers in the mortgage sector.
A Westpac spokesperson stated that the varying targets are based on factors such as "role, experience, portfolio mix and local market conditions" to ensure "expectations are appropriate and tailored rather than one size fits all." The spokesperson added, "Lending is one element we use to assess performance and in recent months we made a change to some targets as conditions changed." Westpac also noted that it "regularly reviews how we support our lenders and assess performance to ensure our approach reflects customer needs, market conditions and our responsible lending obligations."
The Finance Sector Union has warned that the combination of aggressive targets and a softening market could lead to widespread burnout, an exodus of lending staff, and a less competitive mortgage market in Australia. The new targets are understood to apply to all Westpac mortgage lenders except those in South Australia and the Northern Territory.