KPI Benchmarks : Amount Collected per Collections Employee
- Benchmark Range
- Benchmark Average
- Benchmark Sample Size (n) 32
* Is High or Low Best: Higher is Better
Amount Collected per Collections Employee
Amount Collected per Collections Employee measures the average amount of delinquent balances collected per each collections employee. This KPI is a simple measure of employee productivity and overall work quality within the collections function. A relatively low value for this metric may be related to several shortcomings within collections operations: ineffective account prioritization and contact methods, subpar call scripts and on-phone processes, lack of employee training and development, and a high volume of manual, administrative work can all drive low productivity within the collections function. The values for this metric should be weighted against the average value of accounts in collections, as collections functions responsible for collecting on high balance accounts (mortgages, etc.) will naturally have higher values for this KPI.
The total dollar amount collected by the Collections Department, or agency, over a certain period of time divided by the average number of collections employees (including collectors, managers and administrative/support staff) working for the company over the same time period.
KPI Best Practices
- Periodically purge incorrect phone numbers from call lists to reduce number of wasted calls
- Segment delinquent accounts by amount due, likelihood to pay, likelihood to make contact, etc.
- Details of collections attempts tracked to avoid duplicate efforts
KPI Calculation Instructions Amount Collected per Collections Employee?
Two numbers are used to calculate this KPI: (1) the total amount of delinquent account balances collected by the collections function within a given time period, and (2) the average number of collections employees working for the company over the same period of time. The total amount collected is simply the dollar amount that the collections functions collects from delinquent account holders during the measurement period. For this calculation, include ALL collections function employees, including collections agents, skiptracers, managers and administrative/ support staff. To calculate the average number of collections employees over a given time period, add the number of collections employees at the beginning of the measurement period and the number of collections employees at the end of the measurement period, and divide that number by 2.
KPI Formula :
Average New Collections Account Size, Amount Collected per Account, Collections Connect Rate, Collections Liquidation Rate