Managing Collector Performance

In the previous tips within this series we discussed some important aspects of a best practice model for performance management in a collections environment, which included setting performance standards, coaching and remote evaluation. In this month’s tip we focus on the importance of regular feedback and training to improve collector performance.

Feedback

Feedback provides information to Collectors regarding their performance and can change unacceptable behaviour and maintain or motivate positive behaviour.

To ensure that feedback adds value it should be specific, must take place regularly and as close to the event as possible. Feedback should be based on a set of specific data that is observable and verifiable. Vague feedback adds no value, can be disputed and often leads to confrontation between the Collector and the Manager.

An example of poor quality feedback to a non-performing collector:

"Your low scores on your assessment suggest that you are ineffectual and that you lack commitment"

This feedback is vague, the collector does not know exactly where the problem is, what was incorrect or what he fail to do.
The feedback can be seen as a personal attack on the Collector and merely the Managers perception. There is no evidence to showing the lack of commitment.

An example of good quality feedback to a non-performing collector:

"You scored 60%, which is lower than the department average of 82% and your last evaluation of 66%. Your performance has deteriorated and management cannot accept this standard of performance. The areas that require attention are your ‘negotiation skills’ with a score of 3 out 8 and ‘client education’ with a score of 2 out of 10."

With specific feedback, the collector understands the level of performance and is aware of those areas that require improvement.
There is no room for dispute and the score can be referenced against the performance standards set and the taped conversation with the client.

Training
A formalised training plan should be developed to support the Collectors and help them improve their performance. This training plan should be discussed with each Collector to ensure they meet the performance expectations.

Considered the following when planning training:

The training plan must be based on the individual’s performance measurement results whilst supporting the organisation’s objectives. Training plans designed per individual are more focused and saves time and costs.
Training plans must enhance the overall quality of the collections department and sustain Collector performance at a level which meets or exceeds expectations.
Training on strategic, technological and operational changes should be included in the training plans.

Training has the following important advantages:

Maximises investment in collections technology and fulfils collection strategies.
Reduces stress levels and increases motivation.
Increases promotional opportunities and reduces staff turnover.
Increases the overall collection results.

Performance measurement will add no value unless Collectors receive regular feedback on their performance. Training is the key to improving collector performance and collection results.

Beverly Govender is a Consultant at PIC Solutions, the largest customer management solutions company based in the Southern Hemisphere. She has over 5 years of experience in human resources, specialising in learning and development and performance management. As Head of Training for Consumer Credit, a Durban-based division of Nedbank Limited, she focused on the key areas of effective risk management and collections. She was responsible for the implementation of a leading edge performance management and training solution for the collections environment. This implementation resulted in significantly improved collector quality and productivity levels contributing to record collections results. She is a SETA qualified Assessor, currently finalising a B.Com degree in Business Management and a Member of the Institute of Credit Management.