Westpac Banking (ASX:WBC, NZE:WBC) has set "unrealistic" sales targets for employees managing home loans, risking a possible exodus of lending staff that could further reduce competition in Australia's mortgage market, Australia's Finance Sector Union (FSU) said Monday.
Some staff have seen quarterly targets rise by around 15%, while others have been hit with a 33% rise "without consultation or explanation," raising the prospect of burnout and resignations, the FSU said.
The union noted that Westpac executives have said that the Australian government's changes to the capital gains tax have already resulted in a 20% drop in investor loan applications, and forecasts for waning housing demand will exert more pressure on employees to meet the revised goals.
The new targets will hurt competitiveness in a retail home loan market that is dominated by Commonwealth Bank of Australia (ASX:CBA) and Macquarie Group (ASX:MQG) unit Macquarie Bank, according to the FSU.
The union urged Westpac to "properly consult with workers over the targets, commit to one national framework for determining targets along with more transparency surrounding the process, and adjust the targets to reflect changing market conditions."
Westpac did not immediately respond to a request for comment from.
The company's ASX-listed shares gained 1% in recent Monday trade, while Commonwealth Bank of Australia and Macquarie Group both rose past 1%.