Managing Collector Performance

In the first tip of this series we reviewed a best practice model for performance management in a collections environment, concentrating specifically on setting reliable performance standards. In this month’s tip we focus on measuring Collector performance.

Performance measurement, which is also referred to as performance assessment or performance evaluation is the process of assessing and summarising an individual’s work performance against a set of pre-determined standards. It is important that the Collector knows exactly what is expected and fully understands the performance criteria.

There are a number of reasons for this:

It is unfair on Collectors to expect them to perform if they do not know what the expectations and standards of the organisation are.
Collectors may not buy into the performance measurement process and may perceive it as an unpleasant experience.
When Collectors are unaware of the performance criteria they can be expected to score poorly.
There is no benefit to the Collectors or organisation if the results are not achieved.

There are 2 types of performance measurement methods:

Coaching
This process involves both the Collections Manager and the Collector. The Performance Manager obtains the recorded calls, randomly selected. The Performance Manager and the Collector will then rate the qualitative aspects against the pre-defined qualitative performance standards.

The quantitative performance is then reviewed by both parties, they are discussed and rated. Advantages of coaching include that the Collectors are fully aware of their strong areas and those that require development. The Collectors can also receive the relevant training and coaching to rectify errors and improve on areas that require development. Collectors can listen to their own calls, which create performance awareness. One of the most important advantages is that Collectors buy into the performance measurement process.

The disadvantages are that it may be time consuming, due to the discussion or possible debate between the Collections Manager and the Collector and there may be disagreements that may lead to possible confrontation. This can usually be resolved effectively and easily by ensuring that the performance standards are objective and observable.

Remote Measurement
This process is generally performed in isolation and is an audit function, the main objective is to ensure that the correct approach of handling calls is consistently used. This process is therefore volume based. Collectors cannot sit through every call that is being reviewed. The process involves the Collections Manager or Quality Assurer measuring calls and performance statistics in isolation and then feeding back the measurement results to the Collectors.

Advantages include the ability to motivate and ensure appropriate treatment of all accounts consistently. It is also less time consuming to measure calls in isolation than with the Collector present. The disadvantages are that it is an audit done without the input of the Collector and as such, the Collector cannot use the process to learn and develop. Collectors generally do not buy-into the results, especially if the results are used for incentive programs. Collectors may also feel victimised and perceive that the results are biased.

In summary it is valuable to use both coaching and remote measurement to manage Collectors and gain the advantages of both.

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.