Motivation and Performance

Many people would agree most jobs in the credit department are not considered to be prestigious assignments. 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.

Here are some ideas to motivate subordinates:

• Share the credit when things go well, and accept some (or most) of the blame when they do not.
• Hold subordinates accountable for their mistakes and errors - especially ones that cost the company a significant amount of money.
• 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.
• 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:
  • Ambition
  • Eagerness to learn
  • Enthusiasm
  • Excellent communication skills
  • Intelligence, and
  • 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.

Source: Michael Dennis, author of "Credit and Collection Handbook" available at the NACM Bookstore.