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Branch Staffing Case Study – Funding Growth Through Cost Savings

October 22, 2013

A Teller Management SystemTM Case Study

The $1.2 billion California-based Kern Schools Federal Credit Union (Kern Schools) has optimized their branch staffing levels with the help of FMSI’s reporting and scheduling solution, the Teller Management SystemTM.  After realizing the frustrations associated with an improperly staffed branch network, Kern Schools initiated a more sophisticated branch staffing approach to better align employee levels with their forecasted teller transaction volumes.  As a result, Kern Schools has achieved a 20% improvement in their teller line productivity and a 13% reduction in labor cost per teller transaction, while improving overall Member service.  The savings from the FMSI solution are partially funding the addition of two new branches in the fall of 2013.

A More Uniform System

Prior to utilizing the Teller Management SystemTM, each Kern Schools branch had its own method of scheduling.  The resulting inconsistencies made it difficult to manage an overall workforce optimization initiative.  For example, integrating a demand-based scheduling approach would require a significant amount of time and resources to properly implement and follow-up with each branch to measure progress.

“The FMSI solution helps us unify our team member scheduling processes amongst our different branches, and subsequently improves our overall performance,” says Chei Brown Director of Branchesat Kern Schools.  “This uniform approach, coupled with the detailed monthly reports we receive from FMSI, has specifically led to us achieving a 20% improvement in teller productivity.”

Excess Labor Cost Savings and Front Line Employee Involvement

Kern Schools has experienced $120,000 in annualized labor cost savings since deploying

Labor Cost Per Transaction
the FMSI system, and a big portion of this success can be attributed to their front-line team members’ involvement in the initiative.  The branch team members have adapted nicely to the idea of minimizing excess labor costs.  Instead of fighting the system, which at times may put them on the teller line with fewer tellers than years past, each month they are eager to see where they fall on the individual performance productivity ranking.“We have a healthy, competitive environment amongst our tellers,” adds Brown.  “Our tellers really do take pride in their performance.  I especially knew the front-line staff had bought into the FMSI program, when they stopped asking to replace team members who left through attrition. They wanted the extra transactions to help improve their individual productivity numbers, while still providing exceptional service to the members.”

Best Practices from the Director of Branches at Kern Schools

  • Use the FMSI metrics to help prepare your annual staffing budgets.  The accurate forecast decreased our budget considerably, which we were able to allocate to branch expansion.
  • Study the FMSI trending information carefully to help determine your successes.  Ask yourself, ‘Am I happy with these results?’ and, if you are not, dig deeper into the granular details of the reports to see where additional improvements can be made.
  • Incorporate more detailed lobby service, sales, and productivity reports into your monthly performance review process.  We see a lot of growth potential in this crucial area of our branch, and improving lobby reporting is a critical step to accomplish this growth.  On June 1st, Kern Schools implemented FMSI’s Lobby Tracking SystemTM, which will help improve our sales, service, and productivity on the platform side of our branch.

Kern Schools Federal Credit Unionhas systematically aligned their branch staff with the help of FMSI’s forecasting and scheduling solution, the Teller Management SystemTM.  As a result, they have experienced a more uniform scheduling approach which has led to productivity improvements and material labor cost savings.  In less than two years on the program, Kern Schoolshas taken their labor cost per teller transaction from $1.03 to $0.90—or $120,000 annualized.

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