Short-Staffed? Maybe Staffing Isn't the Problem (or Solution)
By Kathy Feringa, Vice President, Member Product Support
August 2, 2022
They say many hands make light work, but I tend to disagree. Sure, when lugging groceries from the trunk to the kitchen, an extra set of hands is appreciated. But otherwise, the inverse relationship between number-of-hands and size-of-workload seems somewhat moot in this digital age. It implies that without an abundance of hands, we’re obliged to operate all-hands-on-deck.
To be fair, I acknowledge that for some organizations – including credit unions – the current labor shortage requires an all-hands-on-deck continuity plan. According to Rivel’s Benchmark Report (August 2021), four out of five leaders of U.S. financial institutions are concerned about staffing shortages. To cope, some executives are turning to human-resource-based solutions. One credit union closes its branch for 45 minutes each afternoon to give its tellers a daily lunch break. Some credit union leaders are delaying their retirements, and even asking those who have already retired to return to the branch to ease the burden on current staff. Now more than ever, it’s clear that credit union leadership must find ways to protect and support their already-overtaxed staff – but I’d argue the long-term solution is not found in bolstering the size of one’s workforce, but in finding innovative ways to do more with fewer people.
We spoke with a few credit union leaders that have found ways to do just that. Together, we have compiled a few suggestions for strategic operational changes that your credit union might consider if you’re looking to do the same for long-term, sustainable success.
In 2021, Alloya’s Vice President of Payment Strategy Jim Olney published an article, “The Truth about ITMs: ‘Look! I’m a live person!’” In that article, Jim explains how ITMs offer a virtual version of the in-person banking experience. Credit unions that have implemented ITMs cite an immediate improvement to their staffing resources by allowing employees to perform other functions or expand their existing role.
Through ITMs and cash recyclers (more on this below!), President and CEO Donna LoStocco of First Commonwealth Federal Credit Union in Pennsylvania says the credit union has “completely transformed” its financial center (branch) model. “We wanted a more scalable way to expand our retail footprint while reducing the square footage of each financial center, so we eliminated the vault and teller lines. This effectively reduced the required space for each financial center by 30-50%,” LoStocco shared.
First Commonwealth’s drive-thru lanes are operated remotely through a live video call with associates based in the credit union’s headquarters rather than inside the financial center. “One associate can run three drive-thru lanes via our ITMs, thereby reducing the number of full-time employees required to run a financial center,” LoStocco remarked. Altogether, this saves the credit union roughly one-half to one full-time employee per financial center.
United Teletech Financial Federal Credit Union in New Jersey has chosen a similar path, according to the credit union’s President and CEO Leo Ardine. The credit union has purchased cash recyclers and anticipates their implementation will be complete by November 2022. Stacy Kelly, Regional Operations Manager at United Teletech Financial, is heading up the project. After researching the possibility of incorporating automation into the credit union’s branches for roughly two years, United Teletech Financial opted for the Source Tech series 10. “It seemed like the best option for our branches,” Kelly remarked. “The surge in unemployment definitely expedited our decision to purchase the machines and install them in three locations,” Kelly added.
By implementing these cash recyclers, United Teletech Financial hopes to not only modernize their branches, but also ensure the continuity of their operations when staffing levels are low. “For the foreseeable future, our goal is to offer options to our members through a combination of tellers, kiosks and universal associates. At the end of the day, we want our members to be able to walk in and have their needs met immediately, whether that’s a face-to-face or an automated transaction experience,” Kelly stated. United Teletech Financial has found that their members have become more comfortable with digital transactions that limit face-to-face interaction since the onset of the pandemic.
Which day-to-day tasks bury your staff, leaving them chained to their desks? Chances are there are a few that could simultaneously liberate your staff and save your credit union money by outsourcing to a partner or third-party provider. Start by comparing product trends to associated staff expense and revenue dollars. This analysis can reveal areas where outsourcing may be beneficial for your back-office operations.
Check processing is an example worth considering. It’s no secret that check volumes are declining… Is it worth allocating your valued resources to a declining product? By outsourcing check processing functions, you can free up resources to focus on trending product lines and high-impact services.
Speaking of product trends, RPA is another one on the rise due to its multitude of use cases – from new membership processes to mortgage lending, to accounting and compliance, to sales and marketing, or even your back-office operations! RPA can often spare your team from performing those monotonous, time-consuming activities so they can turn their focus to more valuable tasks.
Global research and advisory firm Gartner predicts that organizations will lower their operational costs by 30% by 2024, courtesy of RPA systems and revamped operational processes. Similarly, The Lab Knowledge Work Factory claims that their RPA implementations have delivered a 10-30% increase in revenue productivity, a 20-50% gain in service improvement, and a 15-30% savings in organization capacity.
An investment in these technologies now has the potential to produce greater efficiencies, better utilize staff resources and reduce operating expenses and – most importantly – improve the overall member experience.
Lastly, while not a new technology, SFTP can also help to free-up your staff and reduce processing time. SFTP provides the ability to script your file transfers, like ACH Receipt and Member Checking, on a schedule to run at given dates and times. The files can be automatically moved from the secure file transfer system to another directory where your core processing system can pick it up and process the file. This eliminates the need for staff to be monitoring and manually downloading and uploading the files. This is often a quick implementation for minimal expense that can save crucial time for your back-office team.
Whether you decide to take on one significant operational change or a few smaller ones, they’re sure to make an impact for your valued employees and members alike! If you’d like more information or assistance with identifying solutions to ease the burden on your staff while modernizing your member experience, please contact your Alloya representative or solutions@alloyacorp.org.
Kathy Feringa can be contacted at kathy.feringa@alloyacorp.org. To reach Alloya's Member Product Support Department, contact at membersupport@alloyacorp.org.