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10 Tips on Hiring (and Retaining) Collection Staff - March/April 2006 Collection Advisor

By Jim Finocchiaro, SC Riverside, Inc.

While other industries may have cooled their growth, the one that remains hot is collections. Think about it. The auto debt niche is steady. Cellular debt is rising, healthcare receivable services are booming, credit cards were - and are still - king, and mortgage paper soon will be on an upswing. Add to that the ridiculous costs in attending college, the potential behemoth of federal tax with agencies and a substantial increase in debt buying, and the message is clear. As long as American's spend more money than they have or should, our collection industry will continue to flourish. What kind of impact does this have on staff recruitment and retention? If there are more agencies, large and small, that have or can get the business, they currently do not have the staff to keep it. That's why staffing and retention wars exist in many agency cities. Chicago, Atlanta, Philadelphia, Minneapolis and Upstate New York, to name a few, are hotbeds for talent seeking and stealing between agencies. The demand for collectors, operations managers, dialer managers and sales people remains strong. However, there are several newer positions that agencies need to fill at a more urgent rate than ever before: data security specialists; compliance (senior level) officers; telephony specialists; programmers to customize vendor software, including programmers from Columbia Ultimate, Ontario Systems and CR Software; and scoring and modeling experts.

More than one agency executive has walked out of its national client/issuer meeting in a daze over all the requirements just dropped on them by their valued client. Many leave these meetings in a panic, not over what to pay these new team additions, but how to attract and retain the team. Whether you need more collectors, operation managers or a newer position filled such as those listed above, the sources are the same for all agencies. These include word of mouth, Internet ads, industry job postings, conferences, an outside search firm or even going to your competition.

In addition to locating qualified candidates, a critical factor is what to do with candidates after the interview process begins. After all, before you retain them, you have to hire them.

Tip #1: Be honest. Tell the candidate why you win and why you lose
Everybody has a strength and a weakness, and so does your agency. A good candidate will appreciate your candor and self-evaluation. In addition, an applicant will be more likely to express his/her weaknesses if you take the same approach. Hiring authority's continually say, "I like the candidate, but what don't I know?"

Tip #2: Brag about your culture
There are sweatshop centers that operate under a cloud of fear and intimidation. Bobby Knight's style doesn't work for everyone. Simply put, why are you different? Communicating your culture will add to "the feeling" candidates get after they leave an interview to determine whether they want the job. Here are some examples: " At an agency in Illinois, the president will call collection managers for a Saturday ball game and beverage. There is no hierarchy here! " Another agency in Alabama actually tracks thank you notes from debtors and rewards their collectors accordingly. " An Ohio agency regularly passes out discretionary bonuses at the holidays, unannounced. " In addition to having a strong bonus scale, an agency in Texas abhors collection floor ranting and will actually tell their staff to "take a day off" - unannounced.

Tip #3: What's your client fulfillment ability?
Cite any and all examples of why you win and how you do it. Without client retention, you don't grow. Eighty-five percent of candidates interviewed tell us "growth and more opportunity" is number one with them. Therefore, give them the reason they need to seriously look at your firm. If you successfully sell growth and opportunity, you will win more than you lose.

Tip #4: Treat the candidate like a guest in your home, not like a debtor.
Some of us are guilty of believing "everybody is a debtor." It's simply not true. " Don't let the applicant sit with idle time in a lobby. " Be open with your feelings and questions. If you show them yours - they are more likely to show you their feelings.. " If a team is interviewing the candidate, make sure topics are distributed prior to the interview. Candidates can tell when the interviewers do not have their ducks in a row. Avoid repetition.

Tip #5: Respond quickly after interviews.
If a candidate waits more than a week to get feedback, the candidate should walk away. This delay tells him/her that the agency is clumsy. Whether the applicant is a winner or a loser, be prompt with your feedback. You never know the source of the next referral.

Tip #6: Probe - Probe - Probe.
Granted, you cannot ask every question you would like while still respecting the law. However, there are a few simple legal questions that will give you they key to what's "under the hood" of a candidate. " What do you most desire with a new position and new company? This question is vital to you, the employer. " What are your strong suits related to the collection industry? Remember what they tell you, and if hired, remind them of this. " What are your weak suits related to the collection industry? The only bad answer here is "I don't have any weak suits." With very few exceptions, we cannot think of very many scenario where this did not eliminate the candidate. " Is there anything in your professional or personal life that would prohibit you from starting with us on xx date? You would be surprised what barriers candidates have behind the scenes … marriage, divorce, children, apartment leases, sick relatives, bankruptcy, no money to relocate … the list is endless. " Hobbies - What do you like to do when you're not working? Again, you can't believe what you'll learn about a candidate from this question!

Tip #7: Check industry references
The most valuable way to go beneath the surface is to talk with other industry people. Most good candidates will have three industry references available for the prospective employer. Above and beyond this, many times, an interview will have what is called "the name game," when collection industry people the candidate and employer have in common come up during the interview. As the employer, write these names down. Call these people and get their opinions. Many a candidate has been guilty of name dropping a person who either doesn't know them or simply saw them in a hallway eight years ago. Immediately eliminate the candidate; the same person who embellishes here will pad and fudge their numbers when they work for you.

Tip #8: Dig and research the strengths of your geographic locations
There are many factors here, including commute time, ease of transportation, a smaller city with a more affordable cost of living, a housing or rental market, a bigger city and night life, free/low-cost parking, and many others. When you have lived in a city for a period of time as the employer, you tend to take these positives for granted. Emphasize them.

Tip #9: If you please the spouse and family, you will please the candidate
In a phrase, cater to the family unit. If there is one, pay attention to it. It matters to the candidate, so it should matter to you. Many a spouse or teenaged child has been the real decision maker for the candidate.

Tip #10: Close the candidate
If you are interested in the candidate - tell him or her! Doing it face-to-face is always more effective than over the phone or via-email.

You would be surprised how many agencies have the business and the growth, but don't know how to probe into a candidate's mind or put their best foot forward in hosting a candidate interview. The industry is vibrant and will remain that way. Perfect these 10 tips and you will greatly separate yourself from your competition in the increased battle for strong talent.

Jim Finocchiaro is a 24-year veteran in the collection industry. He is the founder and president of S C. Riverside, Inc., search and recruitment specialists to the collection industry (www.scriverside.com). Contact him at receivable@scriverside.com.

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10 Tips on Hiring (and Retaining) Collection Staff - Collection Advisor, March/April 2006

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