Agencies Employ Diverse Tactics to Hire and Retain Collectors

BETHESDA, MD – Kaulkin Ginsberg Company, a leading M&A and strategic advisory firm to the Accounts Receivable Management industry, has published the final results of its 2004 Agency Compensation Study.

The results uncovered that 73% of agencies prefer to hire experienced collectors rather than train inexperienced individuals, but that, in reality, only about 50% of those hired have experience. ?Because of our online Job Exchange and offline executive search activities, we are quite aware of the challenge that exists to locate and retain top collection talent. The fact that only half of collectors hired have the desired experience reinforces this challenge,? said Stephanie Eidelman, Vice President & General Manager of Kaulkin Media.

The Study provides data from 193 collection agencies and includes data of keen interest to agency operators such as collector salary, commission, recruiting, training and turnover, as well as salary and benefits for other staff members.

Data is presented by agency size, as measured by annual revenues from collection activities. The report is representative of the market in that 29% were under $1 million in annual fees and 25% exceeded $10 million.

“We are constantly asked for information on compensation, benefits and other human capital topics. It is clear that detailed, comparative data is in great demand. This report offers high-quality information not available anywhere else,” said Kaulkin Ginsberg CEO Mike Ginsberg.

Approximately 50% of all firms pay a bonus to employees for referring candidates who are ultimately hired. Terms of the bonus vary greatly, with amounts ranging from $25 – $2,000.

The study also revealed that nearly 25% of inexperienced collectors voluntarily leave their positions after 90 days, while 20% are asked to leave after that same period. Small firms reported a higher rate of turnover than larger companies.

?We expected to see more similarities across firms within this established industry, but what we found is that collection agencies use a great variety of titles, compensation plans and other incentives to motivate employees.? said Eidelman. Read more about this Study at www.kaulkin.com/publications/benchmarking/compensation04.cfm.

About Kaulkin Ginsberg Company
Since 1989 Kaulkin Ginsberg has provided solutions to the accounts receivable management industry. Our Strategic Advisory Division is the most recognized source of M&A, research, consulting, and executive search services for this sector. Kaulkin Media publishes the website CollectionIndustry.com™, as well as five electronic newsletters including Credit & Collection Daily™ and Debt Portfolio News™, and is the leading source of timely information for credit and debt collection professionals. Kaulkin Partners is a one-of-a-kind sales organization that seeks out the latest in technology and services for credit and collections, and makes them available through one convenient source.

Contact:
Stephanie Eidelman
Vice President & General Manager
stephanie@kaulkin.com
301-907-0840 x109