Enhancing collections efficiency: A people audit can cut delinquencies significantly

It’s a myth that collections are just about a group of people making calls and pressuring members to pay their overdue balances. With this notion, the collection department cannot achieve optimal results. To significantly reduce delinquencies in your credit union, focusing on the credit union culture of people helping people and the staff within your collections department is crucial. Conducting a comprehensive people audit can help identify strengths, weaknesses, and opportunities for improvement. Credit union employees are different in how they approach collections: they are more empathetic, better listeners, and are truly there to help members. Here’s a step-by-step process on how to perform a people audit and optimize your collections department to significantly cut delinquencies.

Assess current staff competencies

Begin by evaluating the skills and competencies of your current team members. Consider:

• Skill and competency inventory: List the necessary skills for effective collections, such as communication, negotiation, problem-solving, and empathy. Rate each team member against these skills.
• Performance metrics: Review organizational and individual performance metrics, including recovery rates, call resolution times, and member satisfaction scores.
• Gap analysis: Identify skill gaps and areas where additional training or new hires are needed.

Clean the team

Ensuring you have the right talent is vital for a high-performing collections department. This involves:

• Hiring the right talent: Recruit individuals who possess the skills and mindset necessary for successful collections.
• Let go: Part ways with team members who consistently underperform or do not fit the required profile, allowing room for more capable individuals.

Evaluate training needs

Effective training is key to a high-performing collections team. Assess your current training materials and needs:

• Content review: Ensure the training content covers all essential areas, including regulatory compliance, collection techniques and soft skills with special focus on empathy.
• Training frequency: Determine if training is provided regularly and updated as needed.
• Feedback mechanisms: Collect feedback from team members on the effectiveness of training programs and adjust accordingly.

Analyze team structure and roles

Examine the structure of your collections department to ensure optimal efficiency:

• Role clarity: Ensure each team member has a clear understanding of their role and responsibilities.
• Chain of command: Establish a clear chain of command to streamline decision-making and accountability.
• Workload distribution: Evaluate workload distribution to prevent burnout and ensure balanced workloads.

By focusing on your team, you can create a collections department that not only excels in reducing delinquencies but also enhances member relationships. Establishing a solid foundation through a people audit can lead to a substantial reduction in delinquencies.

O2 Consulting Group can perform a people audit along with a comprehensive overview of your processes and systems to set your collections department up for success. Contact us today to get started and transform your collections department into a high-performing, member-focused team that delivers exceptional results. O2 Consulting Group has the experience and the knowledge to efficiently and effectively reduce your past due balances.