It’s a common misconception that collections is simply about calling members and pressuring them to pay overdue balances. But this outdated notion limits results and weakens member relationships.
The truth is: your people are the strategy. The effectiveness of your collections department depends on the talent, skills, structure, and training of the team behind it. By investing in your people, you can transform collections from a reactive function into a proactive, member-focused driver of stability.
A comprehensive people audit helps credit unions identify strengths, address weaknesses, and unlock opportunities for improvement—potentially cutting delinquencies by 50% or more.
Here’s how to put people at the center of your collections strategy:
1. Assess Current Staff Competencies
The first step is understanding the talent you already have.
- Skill Inventory: List the core skills required for effective collections—communication, negotiation, problem-solving, empathy—and rate each team member against these benchmarks
- Performance Metrics: Review recovery rates, call resolution times, and member satisfaction scores to identify top performers
- Gap Analysis: Pinpoint where additional training or new hires are needed to fill capability gaps
This assessment shifts the focus from tasks to talent—because people drive performance.
2. Build and Refine the Team
High-performing collections teams don’t happen by accident. They’re built intentionally.
- Hire Right: Recruit individuals with the right mix of technical skill and member-centric mindset
- Let Go: If certain team members consistently underperform or don’t fit the role, create space for stronger contributors who will elevate the team
When people are the strategy, assembling the right team is essential.
3. Invest in Training and Growth
Even the best team requires ongoing development to stay sharp and effective.
- Content Review: Ensure training covers regulatory compliance, collections techniques, and soft skills—especially empathy
- Frequency: Provide training regularly and update it to reflect evolving best practices
- Feedback: Gather team input to refine training and ensure it meets real needs
Investing in your people’s growth directly improves their ability to serve members and reduce delinquencies.
4. Optimize Structure and Roles
The way your collections team is organized also impacts success.
- Role Clarity: Make sure everyone understands their responsibilities
- Chain of Command: Establish a clear hierarchy for decision-making and accountability
- Workload Balance: Distribute tasks fairly to avoid burnout and maintain consistency
A well-structured team enables your people to perform at their best.
From People to Performance
By focusing on people first, collections becomes a strategic driver of member trust and financial health. A strong collections team reduces delinquencies while strengthening relationships, ensuring your credit union thrives in both the short and long term.
At O2 Consulting, we help credit unions conduct comprehensive people audits alongside process and systems reviews. The result? Collections departments that are high-performing, member-focused, and capable of delivering exceptional results.
People are the strategy. Let’s build your collections success from the inside out.
