Mortgage lenders at Westpac are concerned they are being pushed toward the exit as they grapple with what they describe as “unrealistic” sales targets in a slowing property market.
In May, mortgage brokers at the Big Four bank were told their quarterly sales benchmarks would be lifted, increasing the total value of loans they are expected to settle.
The revised targets, which were backdated to April, were reportedly introduced with limited consultation and little explanation.
The higher loan targets vary significantly, with some brokers facing increases of 2.5 per cent while others have been hit with rises of up to 33 per cent.
Some lenders have reportedly had their quarterly targets lifted by at least $1 million.
The new benchmarks are understood to have been applied to lenders across the country, with the exception of those based in South Australia and the Northern Territory.
The Finance Sector Union says staff who fall short of the “unrealistic targets” could face “performance consequences,” including the possibility of losing their jobs.
Since the targets were introduced in May, some lenders have reportedly already been placed on performance improvement plans.
In the wider corporate world, many workers view PIPs simply as a way to push staff out the door without going through a proper redundancy process.
As previously reported by the Mail, NAB is said to be notorious for the practice.
Westpac workers are scrambling to meet the ‘unrealistic’ sales targets by the end of the quarter
Sources familiar with the situation say there is ‘no clear rationale’ for the adjusted targets, which differ across individual brokers with people on ‘the same team… being given different targets’.
According to a source, one person could be given a new target representing a 15 per cent increase, ‘while the person sitting next to them is slugged with double that’.
Meanwhile, those who ask questions are rebuffed by their superiors and told the information is not ‘relevant’ or that it was not their ‘place’ to ask, Westpac staffers claim.
A Westpac employee from the bank’s home finance division said their whole team had been given ‘a different amount’.
‘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 on the condition of anonymity.
Another Westpac worker said they were also shut down by their manager.
‘When I asked what the justification for harder targets was, they told me that it wasn’t my place to ask questions,’ they said.
Another lender claimed they were ‘pressured to take annual leave just before the targets were increased’, making it even harder to reach the new benchmark.
The new targets apply to all Westpac mortgage lenders except for those in the Northern Territory and South Australia
‘If I had known they [the targets] were increasing again, I wouldn’t have taken leave. Why couldn’t Westpac give me more notice?’ the lender said.
Another Westpac worker slammed the changing goalposts as ‘not remotely realistic’ for the current market.
It is understood that staff were already facing immense pressure to ‘complete deals at all costs’ even before the adjusted sales targets were implemented.
The Finance Sector Union has warned the federal budget and softening housing market will exacerbate the pressure on workers, as investors look to take their money elsewhere.
Consequently, the raised bar could lead to mass burnout and resignations and an ‘exodus’ of lending staff, making Australia’s mortgage market even less competitive, the union also warns.
In the background of these aggressive targets is a slowing property market, with Sydney and Melbourne in downturn while other cities lose momentum, as the post‑boom correction coincides with looming tax changes from the latest Budget.
The latest data from Cotality shows Sydney had its weakest week of auction sales in more than six years last week.
Melbourne’s auction sales also dropped to their lowest level in almost five years.
In a statement, a spokesperson for Westpac said the varying targets for lenders were 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.’
‘Lending is one element we use to assess performance and in recent months we made a change to some targets as conditions changed,’ the statement said.
‘Westpac regularly reviews how we support our lenders and assess performance to ensure our approach reflects customer needs, market conditions and our responsible lending obligations.’
