The Right Sizing Dilemma and Staffing Capacity Management

Written by: Donna Thaxter, Training, Coaching and Personal Development Consultant

A primary challenge confronting regional lenders today is volume volatility, and Banks and credit unions are struggling to find the equilibrium between overstaffing and understaffing.  Lenders that downsized too aggressively during recent market cool-downs now face potential operational bottlenecks when local demand spikes. These conditions can also diminish lenders’ ability to maintain the ‘High-Touch’ service community banks and credit unions are known for. On the flip side, carrying excess capacity erodes thin profit margins.

The Impact of the Modernization of Mortgage Loan Origination

A second significant factor is the shifting of required skill sets for today’s mortgage lending staff.  Not only do we require sales-driven originators, but we also need digitally fluent sales and operations staff who can seamlessly navigate automated underwriting systems, point-of-sale tools, and strict compliance software. These evolving demands have triggered the need to upskill teams.

The Path Forward

Flexible Staffing Models are emerging in many lending institutions that are looking for practical approaches to today’s staffing challenges.  Utilizing skilled temporary staff and devoting time to cross-training staff to expand skill sets so staff can pivot from Loan Origination to Loan Servicing and other general banking functions.

The flexibility that these strategies promote, along with the protection of the workforce, can also position lenders to capture market share tomorrow. 

Looking to optimize your staffing capacity or modernize your lending workflow?

Navigating volume volatility and talent management doesn’t have to be a guessing game. Reach out to the experts at SCA today to discover how our customized management solutions and strategic consulting can help your institution build a resilient, scalable operation.