Reducing Turnover Through Better Screening

Is employee turnover in your collection agency hurting your bottom line?

Turnover in the collection industry has always been a problem. Regardless of the size of your agency, high turnover can severely weaken your company’s financial position by reducing your profits. Not only is your recruiting budget excessively high from replacing your failed employees, but you also loose valuable management time as your managers spend their days in an endless cycle of training new staff. Revenues per collector are harmed because a large percentage of your staff is always “new to the job”.

Most agency owners have come to accept turnover as just a cost of doing business. This issue can reduce the profits of even the smallest agency by tens of thousands of dollars each year, and larger agencies can loose 10 to 20 times that amount.

Do you know what employee turnover is costing you?

Coming up with an idea of what your turnover is costing you each year is not as difficult as you might think. Computing this number will give you a better idea of the potential profits that are being lost by not tackling this problem.

The cost for each new employee that you recruit, interview, hire, and train can average between $2500 and $5000. Including the lower collections of a new employee compared to one of your top performers can make this number even higher.

Now, figure out how many employees you turned over last year, by subtracting your average number of employees by the total number of w2's issued last year. Times this number by $2500 to $5000 and you will get find your turnover cost.

For example, if your agency had 20 employees, and a 150% turnover, then at $2500 per hire, your turnover is costing you $75,000 per year.

You do not have to just accept this loss of profit each year. Our hiring and screening system can dramatically reduce your collector turnover, and put that profit back into your pocket.

The Solution

Once we have helped you expand your applicant numbers, the next step is to use our screening tools to screen out those applicants who are most likely to fail. Each time a job seeker applies for one of your positions, they will complete a short online assessment.

This assessment will rate them on:

Integrity

Reliability

Substance Abuse

Work Ethic

These traits have been proven to lead to the failure of new hires. Included with their scores will be an interview guide that includes legally reviewed interview questions. This will help your managers conduct higher quality interviews and make better screening decisions.

Once you have screened out the worst part of your applicant pool, you can proceed to look through the remaining applicants for those who have the greatest chance of becoming top performers.