How have post-pandemic hiring challenges affected the credit and debt collection industry?
The COVID-19 pandemic struck without warning, and companies were left blindsided as they struggled to adapt and maintain financial strength as global economies started failing, one after another. A year later, as we are making our way through the crisis, businesses are gradually recovering and adapting to the new normal, but a new challenge has presented itself in the form of a shortage in manpower.
Companies are now finding that they are unable to fill in open positions due to a lack of workers, and to exacerbate the problem, employees are now looking to change jobs. More than a quarter of employees plan to quit their jobs once the pandemic ends. In a survey conducted by the National Federation of Independent Business, it was observed that 42-percent of owners are struggling to fill in vacant positions. 91% of companies looking to hire are not finding suitable prospects or none at all.
For a lot of employees, a job during the pandemic meant security. However, with the country gradually coming out of the pandemic, people are now looking to quit their jobs. The projected increase in turnover rate can be attributed to disengagement with the company and a strong sense of burnout. As more companies have started to adopt the work-from-home model, employees often feel that their employers doubt their productivity and work much harder to compensate.
All aspects of a business’s operations are being tested. Financial strength, in particular, has taken a direct hit and for companies with due receivables, collection is a major concern. Companies that have an internal call center or operate out of a central office are facing a shortage of staff members to carry out early and late-stage collections. In addition to a shortage of prospective employees, a lot of money has to be spent on just finding people and training them.
This is where collection agencies, like First Credit Services (FCS), can help your business. FCS specializes in credit collection services, particularly First Party and Third Party collections. In uncertain times like these, FCS can help your business save precious financial and human resources. With an industry experience of over 25 years, catering to numerous industries, FCS has cultivated a culture that has allowed them to retain staff during challenging times. Our reputation for being one of the best places to work in collections makes it easier for them to recruit qualified candidates to meet clients’ needs. First Credit also offers Extended Business Office (EBO) services for our clients in the healthcare industry along with Customer Engagement Outsourcing.
The pandemic has exacerbated the challenges that businesses face. Now, more than ever, businesses need to maintain a steady flow of income to maintain a healthy PnL. This necessitates that receivables are collected on time, and the process has become all the more difficult due to the pandemic. It is, thus, wise for businesses to outsource their credit collection duties to agencies rather than devote their already stretched out resources.