ALPHARETTA, Ga.—One company is questioning whether financial institutions are getting the proper return from shifting to universal associates in the branch.
“When discussing branch staffing plans for 2016 and beyond with financial services executives, we often hear they are utilizing universal associates (UA)—or plan to do so in the near future,” said Chad Davis, SVP of marketing at FMSI. “And it makes perfect sense, because in an evolving branch environment where many branches are requiring less traditional interactions, a UA staffing model is the ideal fit.”
Davis emphasized that credit unions “get the best of both worlds” with UAs. They not only align every single branch interaction between account holders and skilled sales and service representatives, they potentially realize a reduction in staffing costs through front-line staff consolidation.
“Unfortunately, many institutions are struggling to obtain these somewhat elusive benefits, causing others to tread lightly when considering the implementation of a UA program,” said Davis.
Varying Skill Sets
To get the most out of universal associate programs, Davis recommended that credit union consider making additional time and financial investments, including finding the right employees, purchasing performance management technology, and hiring universal associate specific training firms.
“In their truest sense, universal associates are front-line staff members who can successfully handle the significant majority of all branch product and service interactions,” said Davis. “In actuality, the skill sets vary widely for employees who are officially labeled UAs by financial institutions across the country.”
From employees with only traditional teller experience to others with extensive service representative experience, Davis said FMSI has seen the “entire gamut” of skill sets when reviewing universal associate models from a number of different banks and credit unions.
“You may have some front-line staff members who can transition into UA roles, but in all likelihood many will not,” he said. “When searching for outside candidates for UA positions, look for ones with any and all types of sales experience. But searching specifically in the retail industry—like the Apple Store—can be a great place to start. These individuals are adept at working with the average consumer off the street and, oftentimes, are used to working on Saturdays.”
Nebulous Concept
Davis said that if credit unions need help finding candidates, some sophisticated staff acquisition technologies are available to identify and screen potential universal associate candidates. He also believes that knowing exactly what a high-performing universal branch looks like remains a nebulous concept for many banks and credit unions.
Chad Davis, FMSI
“Furthermore, managing an ongoing UA model can be next to impossible without a well-defined performance management process,” Davis said. “Since it’s all brand new territory when it comes to navigating the UA branch, a number of banks and credit unions are leaning on outsourced performance management firms, like FMSI, to help them establish and improve their UA branches.”
For example, FMSI offers universal modeling to help with scheduling universal associates to actual need—alongside other branch employees. In addition, critical real-time universal associate sales and service metrics are available through lobby management systems, such as cross-sell ratios, wait times, assist times and product/service interaction splits.
“If a bank or credit union is investing in a true UA model, they should expect to see a considerable uptick in sales and service performance,” insisted Davis. “Allow firms with the experience in UA models to help you establish and achieve the right goals.”
Davis added that ongoing and specialized universal associate training is a critical component of a successful universal associate program. “Firms like St. Meyer & Hubbard help banks and credit unions with sales and service training tailored specifically for UAs,” said Davis.
Transforming Staff
Understanding what it takes to transform front-line employees into high-performing sales and service professionals in a universal environment can be an arduous process, concluded Davis.
“Having the dedication and expertise of outsourced training professionals can be a critical component towards a successful transformation of your branch staff,” said Davis.
The term universal associates is gaining popularity, however, simply calling your tellers universal associates and slightly changing around the branch layout will likely lead to undesirable results, cautioned Davis.
“Conversely, finding the right UA candidates, leveraging sophisticated performance management technology, and implementing UA specific sales and service training can lead to significant gains in branch sales, service and productivity,” he said.