Credit Departments Still Operate in a 'Do More with Less' Environment

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Columbia, MD: April 7, 2011-While the most recent employment reports showed a number of notable job gains, a majority of credit departments said their companies are not hiring, or planning to hire, any new credit staff in the near future. In the most recent National Association of Credit Management (NACM) monthly survey, when asked "Is your company hiring, or planning on hiring, new credit staff?" 76% of respondents answered "no." Only 19% of respondents answered "yes" and the remaining 5% weren't sure. Many participants who noted their companies would be hiring credit staff in the near future commented that this was often to replace other staff members who were leaving or retiring.

Others noted that their company's decision to hold off on hiring had less to do with the economy and more to do with the fact that they simply weren't in need of any more staff. One respondent noted that their company would not be hiring new credit department staff "at least not until we see a significant increase in sales where we can then justify adding staff. We have made some technological advancements that have enabled us to maintain our portfolio with a reduced staff." This was true for other participants too, who cited increased efficiency due in part to technological solutions as the reason for their company's reluctance to add new employees. "We have found updated software, computer systems and automated procedures that allow us to operate with the staff we have without expanding," said one respondent.

Industry concerns have also kept some companies from adding new hires, especially those in the construction or building sectors. "The housing market/construction industry is still in no shape to consider hiring new people in any department. In fact, some builders and building material suppliers are still laying off and closing doors. I know of three people so far this year that have lost their jobs in our industry," said one respondent. "Our company has been laying off people for the past three to four months. We have lost people with 12-15 years of service," said another. "The building industry, as everyone knows, is on its ear and I see no turnaround for another two years or longer. Wages have been frozen here for five years as well, and some people have suffered cut hours and reduced pay."

Some respondents noted that, despite sales increases, their company was relying on less permanent staffing solutions, like shared service environments or temporary hires, to maintain performance without having to add to department headcount. "Regardless of the increase in transactional and dollar volume, ‘do more with less' is the continued policy," said one participant.

In order to stay abreast of the pressures in this "do more with less" business atmosphere, credit and finance professionals from around the globe will convene in Nashville for NACM's 115th Credit Congress and Exposition from May 22-25, 2011. The largest of its kind, this annual conference provides the solutions and training that helps these professionals protect their companies' largest asset: accounts receivable. Sessions include topics in general business and technical skills, credit management, financial analysis, international credit, leadership and management, and the legal environment of credit.

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NACM, headquartered in Columbia, Maryland, supports more than 16,000 business credit and financial professionals worldwide with premier industry services, tools and information. NACM and its network of Affiliated Associations are the leading resource for credit and financial management information and education, delivering products and services, which improve the management of business credit and accounts receivable. NACM's collective voice has influenced legislative results concerning commercial business and trade credit to our nation's policy makers for more than 100 years, and continues to play an active part in legislative issues pertaining to business credit and corporate bankruptcy. Its annual Credit Congress is the largest gathering of credit professionals in the world.

NACM has a wealth of member experts in the fields of business-to-business credit and law. Consider using NACM as a resource in the development of your next business story.

Source: National Association of Credit Management

Contact: Caroline Zimmerman, 410-740-5560, carolinez@nacm.org
Credit Congress Press Passes: Dan Larusso, 410-740-5560, danl@nacm.org

Website: www.nacm.org

 

 

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