HOW TO IMPROVE
COLLECTIONS AND RECOVERY IN 2008
MICHELLE DUNN
According to a review of annual trends in workplace learning and performance US companies spend $109.25 billion on training per year and 1/3 of that is on external training. On average companies spend $1424 per year per employee on training. Employers have to remember that this is really worth the money spent, trained employees improve efficiency and have a lower turn over rate which is imperative for a collection agency.
Collection agencies are always looking for more ways to train their collectors to learn the way that they do business. In the past most of this training has been done externally or outside of the office. Today there are many more options for in-house training using technology. The top reasons agency owners give for using in-house training such as webinars, or e-courses are that the collectors can learn at their own pace, the training fits into their schedules, it can be done from home or remotely, it is cost effective, and many times tapes and recordings are available so that you can review or train other employees.
The main training needs for collectors include things such as certification, laws, FDCPA, rebuttals, how to treat debtors, expectations for your specific agency, collection system training, calling debtors, customers service, sales, communication and negotiating skills. When an agency hires an experienced collector they find it takes 3-5 days of initial training and when they hire an inexperienced collector it can take 5-7 days of training to get them up to speed. This can be external training or in house or a combination of both.
There are some things an agency can do to improve their recovery rates in the coming year, one of the most important being to develop a training timeline or training plan. When you have a plan to follow you will be much more successful. When you are deciding on your plan, try to determine the key elements you will want covered, be consistent and follow the plan. Just like a credit policy is a plan for a business owner, your training plan is your map for success with your employees.
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