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Collection Incentives?

  • 1.  Collection Incentives?

    Posted Jun 26, 2019 11:32 AM
    Is anyone offering incentives to collectors that you'd be willing to share?  I'm researching the possibility of creating an incentive program for my collections department staff, and would like to see what others are doing in this area.

    Martin Carter
    Astera CU
    Lansing MI

  • 2.  RE: Collection Incentives?

    Posted Jun 27, 2019 09:58 AM
    It has been awhile since I have structured incentives for collections, however I have always had them.  One thing my leadership team did that I thought was very beneficial was to call Collections "Member Solutions Team"​.  That helped the members and employees all feel more positive about what they were there to do.  Incentives, as I have structured them, were always a mix of individual and team.  Say 65% of the incentive is individually based on their own management of their collections queue and the other 35% was team based.  So you could get your incentive individually, however, there was a peer to peer push to make sure the team had reached their goal so you could get the whole incentive.  The team goal was based on the combined DQ and CO ratio (the idea I learned here from one of my prior credit union's, was that if you combine the ratios the Member Solutions Team has can manipulate one to improve the other).  On an individual incentive, it was normally based on how they managed their queue, their individual DQ and CO ratios, and the number of calls they made per day and/or week.

    E.J. Donaghey
    Citizens Community Credit Union
    Fort Dodge, Iowa
    217-722-9226 - mobile/text

  • 3.  RE: Collection Incentives?

    Posted Jun 27, 2019 10:33 AM
    I changed the collections department plan and name about 20 months ago, collections is now credit resolutions.  The plan I have in place now is on par with compliant third party agencies to retain and attract top talent.  There is no dollar goal but payouts are based in tiers as a percent to our total outstanding loan portfolio.  Payouts are made in three buckets with 4 tiers in each bucket:
    1- 29 days past due; 30-59 days past due; and total written off.  This way if one bucket is having a poor month the resolutions team can still get a partial bonus.  We also have a quarterly incentive in place on achieving the written off targets and there are deductions monthly for any complaint received to senior management due to the actions or lack of action by the resolution's team member.

    Michael Filla NCCO
    VP/First Financial Servicing
    First Financial CU
    Chicago IL