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%.