I had a very unexpected and pleasant experience last week – a conversation with an SSC Director that actually instigated a bonus scheme for his collection team as an incentive to hit target in Q4 last year.
Now, I am a supporter of bonus schemes for collection teams and have been since the early 1990’s when my employer at the time had high expectations of the O2C department and rewarded success.
I often bring this subject up and the stock answer is “why”? Why should we reward for doing the job as described , often followed by frustration at team members leaving for a relatively small pay increase.
Performance bonuses and other benefits are an expected given for sales teams so why not collections – after all they are responsible for the biggest current asset.
However, I would prefer that other members in the O2C be recognised too , the Risk Team, Cash Application, Dispute Management – all these areas contribute to the cash flow.
This approach makes the job more focused, challenging and interesting and contribute to reducing staff churn.
The bonus would at worst be cost neutral when all factors are considered.
Be a hero and implement the bonus scheme.