Sea Side Scrap Book » 3 Ideas Management In The Collections Industry Should Remember To Maximize Profit Part 2

3 Ideas Management In The Collections Industry Should Remember To Maximize Profit Part 2

In part one of my three part series, I mentioned that despite the fact that debt is rising, Americans don’t have the money to pay it back, and although the collections industry is booming, getting debtors to pay up has become increasingly more and more difficult. I discussed three ideas. First: network, stay “teched up” and always search for ways to improve the current debt collection team. The second idea is to improve the relationship that agencies have with their debtors, and the third idea is that management needs to remember is to be nice to their current employees.

I mentioned networking and how to use technology to improve your business, now let’s talk about improving your team. It is crucial to make these smart strategic hires if you are attempting to transform your agency. However, this represents a serious commitment of time and money. Candidates need to be trained about FDCPA provisions, and it can hurt your credibility as a hiring manager or even the company’s credibility if you end up with an unhappy new hire due to shoddy interviewing skills.

When you are on the hunt for the perfect fit for the job, bone up on your techniques. Get specific. Don’t simply ask them about what is on their resume. Try to dig below the surface and get a feel of what they are passionate about, what they do in their spare time, and how they react under stress. You don’t want a new hire getting your agency sued because he cursed out a debtor.

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Speaking of cursing out debtors, throw around the idea of teaching your collectors the concept of empathy. This is actually a common trend in the collections industry as of late. Training courses are available to instruct collectors on how to be more compassionate and mindful, and how to focus on and take responsibility for their own interactions with consumers. Trainees are encouraged to remember their own interactions with debt collectors they might have had. Did they enjoy feeling threatened when their account got sent into collections? Probably not. Bearing this idea in mind, the collection agents can put themselves in their debtor’s position and learn all of the correct things to say to keep angry debtors docile.

The research proves that these programs have shown success. After all, when a debtor is being called by one agent, they are often being called by additional ones at the same time. And when that person gets up the money to put towards paying off debt, they are most likely going to pay the person who has shown them the most empathy and compassion, the person they feel that they can work with. To Be Continued In Part Three

Mallory Megan works for Rapid Recovery Solution and writes articles on commercial collection agencies. Free reprint avaialable from: 3 Ideas Management In The Collections Industry Should Remember To Maximize Profit Part 2.