During the pandemic an already upcoming trend was accelerated: remote working.
By now, remote working has become an integral part of our work routine.
The nature of debt collection work makes remote working possible.
In this article, we will discuss the benefits of remote working for debt collection, as well as the challenges that may be faced.
Benefits for Debt Collection of Remote Working
Remote working means cost efficiency
Businesses save costs with remote working. The assumption of CFOs that remote work is an efficient way to reduce costs is backed up by several studies which show that organizations that decide to go remote experience large financial benefits. For instance, calculations from Global Workplace Analytics suggest that companies can save around US$11,000 per employee per year if they allow their employees to work remotely 50 percent of the time – taking into account productivity levels, lower real estate costs, reduced absenteeism and turnover. They also offer a calculation tool for companies to calculate potential remote work savings for their business.
Also, Flexjobs estimates that US employers were saving US$30 billion every day throughout the coronavirus pandemic while their employees worked remotely.
On the other hand, the average person can save about US$4,000 per year by working remotely. For more info, check out this article.
Remote working pushes productivity
According to Flexjobs, remote workers are generally more productive than employees who work in an office setting. That’s because the ability to set their work schedule allows employees to work during the hours they are more productive, instead of the standard 9 to 5.
The hours when an employee is the most productive depends on their personality type and lifestyle, so offering a flexible work schedule can significantly increase productivity.
In addition, working from home or in a remote location also limits distractions from other co-workers who are coming to chitchat at your desk. Overly social employees can be costly for companies in regard to lost productivity. But remote work eliminates this productivity killer, and employees can get more work done with fewer distractions.[1]
Better life and work balance for employees
As for every industry and therefor also for debt collection, more liberty to decide on working hours and location, means that employees now have more opportunities than ever to create a better life and work balance. Working hours can be adjusted to the employee’s individual productivity. There is no commuting anymore, no hours lost in traffic. Employees can work from home, seeing their children grow up!
Remote working makes location irrelevant
The location where one lives, is irrelevant for remote working. The clear benefit for the employee, is that there is no need to look for a job nearby, as the job can come from anywhere. There will be no need to move to another city, state, or country.
On the other hand, the employer can look for talent anywhere, not just in or close to where the company is based. Searching for talent and contracting employees is not subject anymore to location boundaries to find the right and qualified people.
Challenges of Remote Working for Debt Collection
System security and data protection
One of the challenges for a business with people working remote, is system security and data protection. The debt collection industry deals with substantial data.
Organizations with 500–2,000 employees now use on average 805 distinct cloud apps per month, 97% of which are shadow IT apps that are freely adopted by business units and users. This leaves massive gaps that IT professionals in an organization are unable to monitor, making it easier for malware to infiltrate a company’s network.
In order to combat these threats, organizations need to implement cloud data protection (DLP) for sensitive data from internal and external threats across the web, email, Software as a Service (SaaS), and public cloud services. This can be done by implementinggranular policy controls for data protection, including controlling how data moves to and from apps, between company and personal instances, users, websites, devices, and locations. Simultaneously, DLP must be implemented for sensitive data from internal and external threats across web, email, SaaS, shadow IT, and public cloud services to make an impact on an organization’s security posture.[2]
WIFI and internet connection
If we work remotely, it is essential to have good internet and WIFI connections.
Our most common work-from-home tech issues are the ones that slow down our productivity: unreliable internet connections, low-quality video calls, software programs that are too narrowly tailored and uncomfortable work stations.[3]
To properly carry out debt collection, one should have an optimal WIFI connection and continuous access to the internet.
Remote working and availability
Connectivity and availability when working from home, is vital. Nowadays there are so many ways to stay connected: Zoom, Microsoft Teams, Google Meet, Linked-In, WhatsApp, and of course the good old email and phone.
The bond between team members, trust and information sharing have come out as the top three areas most at risk by remote working.[4]
In the case of debt collection, it is not only the availability between team members, but also towards clients and debtors.
Remote working has become part of our new normality. Also for debt collection, there are benefits and challenges. Some of the benefits are: cost efficiency, increase in productivity, a better life / work balance, and the irrelevance of location. Some of the challenges are the system security and data protection, WIFI and internet connections, and availability.
If you want to know more about remote working in debt collection, feel free to contact us via Cobroamericas, on Linked-In or follow us on Twitter.
To participate in conversations about debt collection in Latin America please join the Linked-In Group Debt Collection Latin America.
David Zannoni
[1] https://www.forbes.com/sites/theyec/2021/10/13/how-remote-work-can-increase-business-profits/?sh=56c55feb17b8
[2] https://www.securityinfowatch.com/cybersecurity/information-security/managed-network-security/article/21251030/five-big-remote-work-security-challenges-and-how-to-address-them
[3] https://www.nytimes.com/2020/03/18/technology/personaltech/working-from-home-problems-solutions.html
[4] https://www.hrmagazine.co.uk/content/other/remote-working-putting-team-cohesion-at-risk-study-finds
Debt Collection Latin America & the Caribbean 