Bank and finance workers are under sustained pressure to sell financial products regardless of customer need, said the Finance Sector Union in Australia. A survey of bank, insurance and financial services employees has found more than half have seen customers steered toward financial products that the customer may not have needed, in order to reach management driven performance targets.
The FSU survey of 3200 workers shows that despite record personal debt, the Australian community faces a continual barrage of credit offers, as finance workers continue to be rewarded for sales rather than service. “The ‘Do you want fries with that’ mentality is alive and well in the Australian finance sector, despite ballooning levels of personal debt. This approach is completely at odds with the notion of responsible lending and professional service,” said FSU National Secretary Leon Carter.
“The problem is not the finance sector workforce but the upper echelons of our big banks and insurers, who hold employees to ransom on the condition that they sell more products. Woe betide any employee that doesn’t sell the required number of credit cards, loans or whatever the product of the month is. They won’t just miss out on the next pay rise, they might also lose their job,” said Leon Carter.
The FSU surveyed workers on sales target pressure, bullying and harassment and remuneration.
90% want greater recognition of their professional customer service when measuring performance
88% say a quarter of their take home pay is generated by sales of financial products
85% would like the industry to find a better balance between the best interests of customers and corporate profit
81% believe financial incentives such as bonuses should be awarded for providing great service and professionalism rather than hitting sales targets
51% have observed customers steered toward finance products they may not have needed, because of the relationship between customer activity and employee pay
“Finance sector base rates of pay are not high. Employees can’t afford to miss out on bonuses and performance pay. They are under unrelenting pressure to sell, sell and sell some more, whether it’s good for the customer or not,” said Leon Carter.
“This is a pay model that should have been abandoned during the GFC. Instead our biggest, wealthiest finance companies, who continue to post multi-billion dollar profits, are intent on wringing as much out of the community as they can, using FSU members as a conduit. That sort of behaviour is not on, and must cease now,” said Leon Carter. |
