The need for more training in basic skills, both related to credit fundamentals and the various “soft skills” that enhance performance, headlined Part 1 of Credit Today's 2021 Training Survey findings. That evaluation delved into the types of training needed by credit executives individually and by their organizations as a whole.

In this Part 2, we explore how training is best delivered or accessed in light of budgetary constraints and those credit training needs. The overall impression is that while credit executives understand the importance of training, it is not a very high priority in most organizations. Only a third reported having a training budget and those tended to be modest.

Lacking a budget for training, most credit executives are left to their own devices. Without a corporate culture that encourages professional development, or management support and resources for formal training, credit department training will necessarily be ad hoc.

Some of this may be the times we live in. There was a clear bias towards online educational programs, despite the recognized value of in-person venues. As the Covid-19 Pandemic wanes allowing for at least some work to move back to the office along with an increase in travel, credit executives should be able to realize a wider variety of training opportunities moving forward. 

Even so, there appears to be a need to implement more structure into the training of credit personnel, especially since business credit is not a career most people choose (as confirmed by several participants). Accreditation programs are one way of addressing this issue, but the emergence of so many different credit-related certifications may be counterproductive and was cited as being required for employment by only 22% of our study participants.

Training does not have to be costly, so there are clearly many things credit department heads can do on their own to facilitate more structure with in-house training and better monitoring of the skills development of their staff members. The bottom line is performance improvement and a modest amount of time invested in training should go a long way towards that goal.

As you review these findings, we suggest that you compare them to your own situation. Once you identify your baseline, you can then review what your peers are doing in order to identify opportunities to enhance your own professional development and that of your staff.

Executive Summary

• Only a third (34%) were able to affirm that their organization had a budget for credit department training - the bigger the firm (based on revenue), the more likely they were to have a credit department training budget.
• For those with training budgets, the median credit department training budget was $5,000, while the median amount allocated to individual credit staffers was $1,000.
• Those who do not supervise others attended almost twice as many training sessions (13.2) over the course of a year, the assumption being that non-supervisors are new, less experienced employees who are in need of more training, while supervisors (6.8 training sessions per year) have previously had more training in the past.
• While credit professionals would like to attend training at off-site workshops or conferences, online training is currently more suited to organizational needs.
• In terms of the actual types of training being sponsored by their companies, only External Workshops/Webinars (61%) and Online Courses (51%) were selected by a majority – the absence of any in-person training being reported by a majority is likely due to the Covid-19 pandemic.
• However, in terms of past training, a majority reported participating in Online Webinars (80%), Professional Conferences (68%), External Workshops or Seminars lasting no more than a day (66%), Online Courses (62%), and External Workshops or Seminars lasting 2-5 days (55%).
• Over half of the training in which our respondents have participated was provided through either a credit management association (29%) or a credit industry group (23%).
• While most organizations (78%) did not require our respondents to hold some sort of credit professional accreditation to get their job, 61% in fact hold some sort of certification, which is consistent with the majority of organizations (54%) encouraging the credit department staff to pursue a professional accreditation.
• The four most popular are CCE (19%), CBA (19%), CICP (16%) – all NACM designations – along with Six Sigma process improvement training (17%). Furthermore, Six Sigma training came in second as a requirement, tied with the CBA designation and behind the CCE.
• More than a third (34%) indicated they did not monitor the professional development of their team members, and of those that do, it is mostly done to varying degrees via the periodic employee review process.

Results: Training Budgets

Notes: In the largest organizations (over $1 billion in revenue) half (50%) reported having a credit department training budget – smaller organizations were roughly at 25%.

Question: What is your credit department's annual training budget?

• Range: $1,000 to $100,000
• Median: $5,000

Question: How much training budget is allocated annually per employee?

• Range: $200 to $10,000
• Median: $1,000

Results: Training Frequency and Formats

Notes:

• The average number of training sessions for all respondents was 7.6 (the median was 5).
• Those who do not supervise others attended almost twice as many training sessions over the course of a year, the assumption being that non-supervisors are new, less experienced employees who is in need of more training, while supervisors have experienced more training in the past.

Question: What is your preferred mode for credit and collections training?

There wasn't any preference for a particular training scenario, rather a wide variety of modes were acceptable (see below chart) with the top three garnering similar response rates. These three training scenarios are:

• Off-site workshops and/or conferences (24%)
• Customized peer-to-peer or manager-led instruction (23%)
• Live online workshops and webinars (21%)

Question: Considering your credit & collections organization's future training needs, which format will work best for your team & budget?

When the question instead focuses on organizational needs (see below chart), as opposed to personal preference, two scenarios stood out:

• Online customized interactive workshops, presentations, multi-session classes, etc. (33%)
• Live online workshops and webinars (29%)

Notes: We suspect that the popularity of training that is done in person has been suppressed by the Covid-19 pandemic

Results: Professional Accreditation

Notes:

• Accreditations included in the Other category: ACICM, CBF, CCP (Canada), CCRA, CGCE, ICCE, and RGCP
• The following table provides a breakdown of the different professional credentials reported for the above chart as well as the next.

Notes: Other Credentials Reported

• CGCE (ICTF)
• RGCP (ICTF)
• CCRA (NACM)
• Diploma, Graduate School of Credit & Financial Management, NACM
• CCP Emeritus, Credit Institute Canada
• SPHR, Senior Professional in Human Resources
• Certified Accounts Receivable Manager, Institute of Financial Management (IOFM)
• Certified Mediator, National Association of Certified Mediators
• GCC, Foundation Quebecoise Pour le Credit
• Shared Service & Outsourcing Pro
• MCICM, Charter Institute of Credit Management (UK)
• MCIBN, Charter Institute of Bankers of Nigeria
• PROSCI, Change management certification

Notes: While barely one out of five organizations required our respondents to hold some type of credit professional accreditation, roughly 3 out of 5 respondents reported holding some type of designation.

Question:How do you hold team members accountable for professional development and track the skill progress of your team? For example, do you track things like Continuing Education Units (CEU) or other certificates of completion? Does your in-house training include student assessments such as tests or quizzes? Do you track employee progress toward professional designations (e.g. Credit Business Associate, Certified Credit Executive, etc.)?

Of those who responded to this question, over a third (34%) indicated they did not monitor the professional development of their team members. Of those that do, it is mostly done to varying degrees via the periodic employee review process, as you can read in the sampling of responses to this question.

“Testing at end of workshops, surveys, goals, and achievements built into performance reviews.” Carlos Anderson, Credit Manager, Kravet Inc.

“In-house training includes testing. We encourage certification.” Mike Thelen, Director, Enterprise Customer Financial Services, Land O'Lakes

“Training Log.” Natalie Dickinson, Director of Credit, La-Z-Boy

“Through yearly Goals and updates 3 times a year with a year-end evaluation,” Candace Bouskill, Credit and Collections Coordinator, Conestoga Meat Packers

 “All training is done at external conferences and workshops. Employees interested in furthering their credentials and knowledge are fully supported academically. We do not track their progress; we mentor them and can easily see which employees are working toward their goals.” Terry R Nielson, Credit & Collections Manager, Meissner Mfg. Co., Inc.

“We set goals for the credit team members every year and use that as part of their annual evaluation.” Sham von Pawlak, Director of Credit & Collections, Boral Industries

“Track classes, etc.” Gerry Beckett, VP Finance & Credit, Toyota Tsusho America

“I would track them through approval processes that stay in the team members HR file.” James B Albert, Retired Senior Credit Manager, Gensco, Inc.

“Yearly goals tied to variable incentive pay.” Anonymous 

“I am having difficulty with getting the TEAM to sign up for training; it is listed as an issue in their Performance Appraisals.” Linda M. Morich, Credit Manager, U.S. Mineral Prods. Co., t/a Isolatek International

“Team members are held accountable by applying their understanding in their day-to-day job functions.” Micherra D Marshall, Credit & Collections Manager, ASSA ABLOY Entrance Systems

“I will start this year to get my direct reports to get involved in credit training.” Josh Poli, Credit Manager, A.R.T. Furniture, Inc.

“Currently we do not have a skill tracking program.” Debra Layman, Credit Manager, Sauder Manufacturing Co.

“My company is not interested in training employees for any type of credit and collections or accounts receivable. We are expected to learn on the job.” Denise Menendez, New-Line Hose & Fittings

“Team members don't get training at this time.” Robin Walters, Global Credit Manager, Keithly-Williams Seeds