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US Banks Payroll Trends / Staffing Reflect Customer Activity

US Banks Payroll Trends / Staffing Reflect Customer Activity

US Banks payroll trends / staffing

Bank transactions involving a teller averaged 5,600 in 2013 falling from 7,600 in 2008 and forecast to drop to 4,800 in 2016.  So, how is this affecting US Banks payroll trends / staffing?

As visits to bank branches decline and competition for revenue increases, smaller banks are examining strategies to reduce staffing.  Since staffing makes up two-thirds of branch expenses and fewer visits mean fewer customer interactions, staff reduction can improve profitability.  Branches with fewer than 4,000 transactions a month are opportune for downsizing.

In reviewing resource allocation and efficiency, managers look at volume, transaction types, processing time and deposit per full-time employee.  One innovation that many small banks have embraced is the concept of the universal banker where branch employees are cross-trained to handle a variety of tasks all focused on customer satisfaction.

In some cases, universal bankers work the lobby with the aim of welcoming each customer within 5 seconds of entry.  After that, the universal banker provides the necessary service from new account opening to completing loan and insurance applications.  Handing off only the more complex investment, business loan and mortgage requests to specialists, universal associates complete 95% of business requests.

Most of the time branch managers will work along with the associates, but also have responsibility for training and coaching.  Banks with a universal banker position have achieved a 50% productivity increase in processing teller transactions.

Despite increased turn-over, some small banks save by employing college students part-time to cover absences and busy periods without having to offer full benefits.  The students catch on fast and are familiar with current technology.

In addition to innovative staffing changes, banks are using more technology for indirect customer operations.  Teller cash recyclers which substitute for the cash drawer, allow accepting, storing and dispensing currency in a secure environment.  Image-enabled and video ATMs offer increased self-service and free-up associates for customer-focused product sales.  Check scanners immediately scan and error-check deposited checks.

Universal banker entry-level positions command a 10% higher compensation rate than the average teller.  As banks refine the universal banker job description, they are placing greater emphasis on sales skills and tend to hire people with an outgoing, consultative personality.  After all, nowadays bank customers expect that their customer experience will be as accommodating as their last online or retail store interaction.

Mobility is transforming customer banking activity. Please contact us for information on how to achieve more profit in your commercial loans.

Alan Lee