3-Pronged Strategy to Employee Turnover in Collections

A Comprehensive Approach for Reducing Attrition

Let’s be honest, agents have a really difficult job.  So it’s no surprise the collections vertical is notorious for high turnover.  Some estimates put turnover rates as high as 33% or even 50%. These record turnover rates drastically impact your bottom line, adding up over the fiscal year.  Agencies are no strangers to this problem yet continue to struggle to keep employees onboard.  In this post we are going to discuss the two most popular strategies, recruiting and retention, as well as a new approach to reduce agent attrition.  Togther, these approaches illustrate a comprehensive three-pronged strategy.

Battling Turnover Head-on

Recruitment efforts should be considered the first step in any strategy to fight high turnover rates.  In theory, if you recruit and hire better candidates, they will naturally last longer than those who are less qualified.  From agency fees to pre-employment screening, recruiting is an expensive contributor to the overall cost of preventing turnover, but studies indicate that these efforts pan out.  Among popular recruitment strategies, referrals have been proven to be the best at producing new long-term employees.   Agencies should be diligent in their recruiting processes if they are to yield successful results.  Some of the recommendations for developing a quality recruitment programs include a comprehensive pre-employment assessment and dedicated hiring team, experienced in not only interviewing but selling the position they are hiring for.

Sweetening the Pot

Traditional retention efforts include regular wage increases, health benefits, and mentor programs.  In fact, surveys indicate that most workers under the age of 50 won’t even consider positions that don’t offer health benefits.  In collections it can be incredibly effective to implement an incentive program; bonus structures and contests keep employees engaged and motivated.  These should not be overlooked as a foundational strategy for retaining staff; however, modern strategies exist that are far more creative.  Many agencies are finding that changes in the work environment can sweeten the pot, like providing staff with non-traditional benefits such as gym facilitates or on-site daycare.  Though these strategies also contribute to the cost, creating an enjoyable work environment and providing employees with perks can mediate some of the more stressful aspects of a collector’s job.

A New Approach

Though standard recruiting and retention efforts are proven to get results, agencies continue to battle higher than average turnover rates.  Many agencies recognize that a new approach is needed and may discover the answer has been hiding in plain sight all the time.  Current research is revealing that the modern workforce, regardless of vertical, demands modern tools.  One study stated 92% of the working population said having the proper technological tools to help them do their job directly impacts their level of job satisfaction.  Technology is being used in every industry to automate tedious tasks and facilitate more efficient operational processes.

Rather than pile on incentives to make the job more appealing, agencies can alleviate some of the stress by making the position easier.

This strategy combats turnover expenses in a variety of ways beyond employee retention; training costs are reduced when processes are simplified and seasoned agents, freed from mundane tasks, experience a boost in productivity. Implementing technology upgrades are especially relevant for acquisition and retention in the collections industry that statistically has a younger demographic of employee because these users find it more difficult to adjust to older user interfaces.  Modern applications rely upon intuitive graphical interfaces and drag-and-drop or click through functionality; many agencies are still utilizing legacy software that operates in command prompt.  Additionally, modern applications tend to be more comprehensive while older models may require agents to utilize several programs just to take care of a single consumer.

A 3-Pronged Strategy

For the best results, agencies should combine these three strategies.  Agents will never be relieved of the occasional disgruntled consumer or headache account, but you can lighten the load by improving other areas of their work experience.  This can have a positive effect on consumer relations also by allowing agents to focus more intently on their caller.  Improving the technical infrastructure can have many rewards outside of employee satisfaction; it can boost production, efficiency, and create opportunities to gain a competitive advantage.  Also, investments in technology have the potential to curb operational expenses in the long run rather than contribute to them, lessening the budgetary burden of turnover in yet another way.

Does your accounts receivable software need an upgrade?  Take a look at ARTrail®, our all-in-one solution built by collectors, for collectors.

Media Contact:
Gerald Jonathan
541.335.2283
gerald.jonathan@kghawes.com