Building and maintaining internal collections operations while remaining compliant is no small task. Effective debt collections requires specialized training, personality traits, technology, security measures, expert leadership and compliance. In addition to the expected legal consequences, the potential fallout of inadequate planning, operations and compliance at internal collections departments weighs heavily on the mental health of both management and employees. (See “Internal vs External Collections Pt 1: Compliance Defiance?”)
Management Risks and Responsibilities
Management overseeing in-house collections efforts will need to dedicate a considerable amount of time and resources to compliance in order to match an agency’s level of professionalism and knowledge. Top agencies staff certified collections officers and a legal team while continuously training collectors on the latest laws and procedures. Management lacking industry expertise can produce legal risks, personal stress and strain to employees.
Collections managers with comprehensive industry knowledge hold both the insight and ability to successfully execute collections strategies, tracking and reporting. Inexperienced and or disorganized leadership can decrease employee morale. MHA’s Work Health Survey respondents with the “unhealthiest” workplaces reported experiencing “isolations in the workplace and did not receive support from supervisors.”
Planning, budgeting, building, hiring and acquiring the appropriate tools and technology will require time that management may not be able to spare. The initial project and continual management of internal collections will require professionals to sacrifice time spent on other essential duties. When spread too thin, professionals become at risk for job dissatisfaction and an unhealthy work ethic.
Internal efforts can create emotionally taxing work for both upper level management and employees.
Alternatively, businesses that opt for external collections can transfer the collections process off to a reputable debt collection agency, alleviating stress for organizations that do not possess the resources for optimal training.
Effects on Employees
Employees in unhealthy work environments are more likely to become disengaged and search for new jobs, according to MHA. Negative perceptions towards a workplace held by employees can hinder business goals and strategies. However, “organizational leadership can reduce low levels of employee engagement by promoting agreeable, reliable, and fair workplace practices,” MHA 
cited. Furthermore, businesses that choose expertly managed external collections efforts with sound compliance training can recover lost revenue without risking loss of morale.
Employees who receive thorough compliance training can collect legally and confidently. Understanding state laws, federal laws including the Telephone Consumer Protection Act (TCPA) and professional responses to consumers on the phone will assist employees in success. Internal collection efforts with underprepared employees risk data breaches, a negative brand image, lost revenue and frustrated employees.
According to the 2015 Work Health Survey by Mental Health America (MHA), for U.S. businesses, “workplace mental health problems result in as much as 500 billion dollars of lost productivity annually”. In addition to the cost of productivity loss, internal collection operation costs may exceed company budgets. Management can save time, revenue, resources and employee mental health by offloading the collections process to an agency.
Debt Collector Traits
A top performing debt collector is knowledgeable, confident, sociable, goal driven, courteous and optimistic. Successful collectors are highly skilled at salesmanship, interviewing, listening, conveying trustworthiness and handling rejection. Employees tasked with internal collections may find the work challenging due to differing personality traits. Debt collection agencies selectively hire applicants who possess this unique blend of characteristics in order to maintain a team capable of handling the day to day aspects of collections.
Technology and Data Security
Establishments outfitted with the latest technology can optimize the collections process for effective and compliant contact with consumers and ensure data security. Leading tools allow professionals to effortlessly oversee accounts receivable management while allowing collectors to work with greater confidence and command. Management may fumble with data tracking and report building without specialized collections equipment, leading to inaccurate data, low collection results, risks of compromised data and job dissatisfaction. Employing a quality debt collection agency can ensure brand protection, data security and increased collections results.
Seeking Assistance with External Collections
A healthy work environment fosters engagement and employee satisfaction. This necessity for successful collections also affects a company’s overall performance and reputation management. Businesses conducting internal collections without the essential resources and experience jeopardize revenue, brand image and company culture. Companies interested in external collections services can sign with a top debt collection agency.
With expert industry experience, compliance, certification, a team of high performing debt collectors and the latest technology and data security measures, Optio Solutions serves businesses located across the U.S. Professionals considering outsourcing collections or looking to replace an existing agency can contact Optio today to learn how our services assist businesses in achieving collection goals.
