Training the Next Generation: The Future of Debt Collection 

As humans we’re always learning, and your collections team is no different. That means, whether your staff comprises industry veterans or relative newbies, it’s important to put a continuous collections training program in place. 

Naturally, for those starting out in their collections career, it’s a good idea to cover best practices in debt collection negotiation. In an industry where high staff turnover continues to dominate, training is essential to ensure consistency in your team’s negotiating skill set. 

Even for experienced negotiators, however, there will be benefits to reviewing and improving their technique. From exploring new trends and technologies to refining their ability to create win-win outcomes – engaging training can kick start enthusiasm and increase returns. 

Combating collections staff turnover 

After a period of record high quits in the jobs market since 2021, most industries are beginning to see an end to the Great Resignation. Frustratingly, however, the collections industry continues to be impacted by high staff turnover. 

With many seasoned veterans either retiring or leaving the industry, it can leave your collections team floundering, potentially resulting in a knowledge gap that significantly impacts your receivables. What’s more, it can impact client relations, with some customers perceiving a dip in quality due to a lack of experienced personnel handling their case. 

Overcoming this challenge demands a comprehensive training program, both for the staff that remain and for the new hires that you recruit. 

• Basic Collections Training – Focus on cementing foundation skills to support negotiation that strikes a balance between collections success and customer relations. Roleplaying, memorizing scripts, and working with a mentor are all great ways to develop your team’s skills. 

• Expert Negotiation Tips – Advanced training can help your experienced negotiators hone their skills by working on body language and clarity. Focus on consistency and don’t forget to revisit topics such as skip tracing where new technology can support your team. 

You can find out how one company worked with Brennan & Clark to brush up the collections skills of its in-house receivables team here.  

As a leading billing and payments solutions company, they required training for their entire team. Rather than pulling up a generic training video, they arranged expert tuition from Brennan & Clark to improve the collections skills of new staff and energize those who had been working in the field for a while. 

“Afterwards, every single one of my team said they found it beneficial, and you know what, the results bear that out.” 

Hire smart, train right 

When it comes to preparing for the future of debt collection in your company, current trends in staff turnover indicate you’ll likely need to continue investing in recruitment for a while yet. 

Of course, the capabilities of those you hire will directly impact your collections rate, but remember, it’s not always about hiring candidates with direct collections experience. Recruiting people from diverse backgrounds can also pay dividends. 

Hospitality is a great example, with its emphasis on finding a resolution to disputes while prioritizing customer retention, but any sector can provide a good grounding for collections success so long as it equips individuals with: 

• people skills 

• respect 

• an ability to read others 

Think outside the box when it comes to recruitment, pay attention to previous life experience that could prepare candidates for collections success, and focus on emotional intelligence over qualifications.  

The rest will be down to the quality of your collections training program. 

Training a new generation of collectors 

Making the most of the people you hire depends on developing and improving their negotiation skills.  

In today’s digital world, it can be easy to think that AI, banking apps, and self-pay solutions have transformed the face of the collections industry, but ensuring the survival of effective negotiation practices is still a necessity.  

Of course, technology can optimize the debt recovery workflow by automating administrative tasks, but nothing can replace person-to-person communication. For the latest generation of collection professionals, this can come as something of a surprise.  

In fact, a willingness to rely on emails over a conversation can actually lead to misunderstandings rather than clarity as we explain in: The Truth About B2B Debt Collection Negotiation: Dispelling 5 Common Myths. 

For this reason, next gen debt collector training strategies should focus on person-to-person negotiation skills such as tone, emotion, and body language, all of which can be decisive in building positive rapport and engineering a win-win outcome. 

Invest in customized training  

Investing time and effort in regular training is essential to equip the next generation of collections staff with the skills they need to succeed in negotiations.  

If you’re wondering how to create a collections training program for your organization, or you just need a little help to bring new staff up to speed, Brennan & Clark can help. 

Our customizable Collections Training service can improve your internal processes, develop your collections management, and build new negotiating skills with an expert program tailored to your industry. We have a vast knowledge of several industry sectors including insurance, transport, and publishing, and we’re ready to share what we know. 

For support to improve your training strategy, contact our expert collections training team to develop a specialized program including industry specific advice and scenarios. Speak to us today to see how we can help.