Collector - January 2018 - 31
What can you do to address
payroll challenges? We
talked to ACA International
members about how
they use creative benefits
and efficiencies to retain
employees and manage
By Anne Rosso May
hen you sit down to look at your
company's budget, odds are
compensation costs comprise a
big chunk of it. It's much more than payroll.
We're talking bonuses, commissions, benefits
and all the perks you offer to attract and retain
good employees. It adds up, which is why it's so
important that you get it right.
Alice Ray-Graham, chief marketing officer at
Valley Credit Service, said that compensation is
her company's biggest operating cost. "If you think
about our other big expenses, like legal filing costs
and service fees, most of that is directly recoverable,"
she said. Calculating the ROI of an employee's salary,
on the other hand, or the perks you offer, is a little
more nebulous. Have you run a cost-benefit analysis
on that coffee pod drawer in the break room? You
likely don't have to look that closely to understand
that the way you treat employees and the incentives
you offer can have a tremendous affect on the work
they turn out for your business.
No matter how you approach employee
compensation-paying minimum wage for a
brand-new collector or even a triple-digit salary for
that new hotshot attorney-increasing efficiencies
in other areas can help keep your bottom line in
check. We talked to ACA International members
about their thoughts on employee compensation
trends, and creative ways they are working to engage
employees and gain efficiencies.
RISING MINIMUM WAGE:
A TRICKLE-DOWN EFFECT?
Historically, collection agencies have taken a
standard approach to collector compensation:
base pay, plus some sort of commission or bonus
schedule, usually based on factors such as call
monitoring scores (including compliance with
company policies) and revenue goals.
One benefit to this approach, aside from the
obvious motivational one, is that it can make payroll
more of a variable expense that rises and falls in line
with money coming in.
But no matter how much commission your
collectors can potentially earn each month, base pay
While the $7.25 federal minimum wage hasn't
changed since 2009, many cities and states are
implementing increases to their minimum wage. At
the end of 2017, 29 states, and Washington, D.C.,