Motivation and Performance

Many people would agree that jobs in the credit department are not particularly prestigious. Very few people start their working lives aspiring to be collectors, deduction specialists, new account representatives or even credit managers. The typical credit manager has the difficult task of managing multiple priorities, including keeping his or her staff motivated given the stigma that attaches to many credit departments.  Here are some ideas to motivate the members of the credit team:

• Share the credit when things go well, and accept some (or most) of the blame when they do not,
• Use positive motivation.  This involves establishing a goal and providing individual incentives for individuals that meet or exceed established goals,
• Be sure performance appraisals are conducted on time,
• Hold subordinates accountable for their mistakes and errors - especially ones that cost the company a significant amount of money,
• Make sure that the work being evaluated is for the year or period under review.  It would be inappropriate and unfair to the employee to bring forward problems, errors or issues that occurred in a prior review period,
• Make certain everyone understands in detail what performance is expected of them, and how their performance will be evaluated,
• Treat employees fairly (because they will be quick to notice unfair and inequitable treatment). Do not play favorites.  Inconsistency in the way individuals are evaluated and treated hurts morale, and opens the door to discrimination claims,
• Speak candidly to them about their successes, and their shortcomings. (Sugar coating a performance problem is not doing you or the employee any favors in the long term).
• Provide employees with opportunities to grow in their position, to learn new skills and to advance within the department or within the company,
• Encourage subordinates to offer their ideas, comments and suggestions. Offer feedback and suggestions, and quickly adopt and implement good ideas,
• Take the time to explain both how a certain task is done, and also why it is done and why it is important that it is done in a certain way,
• Solicit the opinions of your subordinates as part of the credit decision-making process. With the possible exception of the salesperson, no one in your company knows your customers better,
• Promote from within. Look for people with these characteristics in particular:

1. Ambition,
2. Eagerness to learn,
3. Enthusiasm,
4. Excellent communication skills,
5. Intelligence, and
6. Maturity.

Shrinking head counts, job stress, an economy in decline and a lack of respect and prestige make working in the credit department difficult. An experienced credit manager recognizes that people working together are the key to success for any credit department and will give teamwork and team building a high priority. 

© 2010.  Michael C. Dennis.  All Rights Reserved.  Michael is the author of "Credit and Collection Handbook."