Question

ACA International Study: Women Make Up Majority of Workforce in Collections Industry

PR Newswire

Data from the Bureau of Labor Statistics and the U.S. Census on workplace demographics, as well as data from ACA International member companies, shows how collection employee demographics counter stereotypes about the industry.

WASHINGTON, Jan. 19, 2016 /PRNewswire-USNewswire/ -- ACA International, the association of credit and collection professionals, has released a new whitepaper " Diversity in the Collections Industry: An Overview of the Collections Workforce ," which shows that the credit and collection industry has one of the more diverse workforces in the U.S.

Using U.S. Census data and information from the Bureau of Labor Statistics, ACA found that while women constitute roughly 47 percent of the overall U.S. workforce, women make up 70 percent of the total collections workforce.

As a further testament to the diversity of the industry, racial and ethnic minorities account for 40 percent of the total collections workforce today. Specifically among women, racial and ethnic minorities also account for 40 percent of the total workforce population.

"The stereotypical image of a debt collector couldn't be further from the truth," said ACA International Director of Research Josh Adams, PhD. "Women and people of color play a significant and important role at collection agencies nationwide. "

Among ACA member companies, 24 percent report being a minority of women-owned business; and these firms are creating jobs for even more people. According to the whitepaper, in a fall 2015 membership survey conducted by ACA, 95 percent of minority or women-owned firms employed an average of 22 employees. In contrast, The National Women's Business Council found that, as of 2012, roughly 89 percent of women-owned businesses "[had] no employees other than the owner."

As an industry that works with consumers from all socioeconomic, social, racial, and ethnic groups, it is important to have a workforce that reflects and represents those groups. The current trends in the industry speak to a level of responsiveness to the evolving consumer environment and an adaptability to meet those needs.

"The data shows that debt collection professionals reflect the diversity of the US consumer population," said ACA International CEO Patrick J. Morris. "The stereotype of the debt collector portrayed in the media is simply not true, and this is good for the industry as well as the consumer. More diversity in the collection agency workforce means more good ideas on how to fairly and amicably resolve accounts with a diverse consumer base."

ACA International's whitepaper is part of a new research initiative that aims to collect original and meaningful data about the credit and collection industry and to quantify the ways that debt collectors help consumers and the overall economy.

ACA International (ACA), the association of credit and collection professionals, is the largest membership organization in the credit and collection industry. Founded in 1939, ACA brings together third-party collection agencies, law firms, asset buying companies, creditors and vendor affiliates, representing tens of thousands of industry professionals. ACA produces a wide variety of products, services and publications, including educational and compliance-related information; and articulates the value of the credit and collection industry to businesses, policymakers and consumers. www.acainternational.org .

1. The ACA published a white paper entitled, "Diversity in the Collections Industry: An Overview of the Collections Workforce." What do you think was the ACA's goal in publishing this paper and why is it important?
2. What sources of data did the ACA International use to conduct its research? If the external secondary data the ACA used had not been available, what impact would it have had on the research?

Answer 1

1) Diversity within the workplace has become the norm due to globalization and unprecedented advancement in technology providing the opportunity for organisations to recruit the best talent from across the globe. It is a major factor for availing competitive advantage providing benefits to various processes. Social responsibility goals of organizations is only one area that benefits from the management of diversity. There are six other areas where effective implementation and management of diversity can create a competitive advantage: (1) cost, (2) resource acquisition, (3) marketing, (4) creativity, (5) problem-solving, (6) organizational flexibility.

For an organisation such as ACA International formally known as American collectors Association, mostly representing trade groups insisting entities related to credit and debt management such as collection agency, Creditors, debt buyers, collection attorneys and debt collection industry service providers, the image it presents becomes extremely important. Due to the natural perception of individual's within society of every agency related to debt collection being basically extremely insensitive and lacking in compassion and empathy it is important that any organisation involved in debt repayment and resolution of unpaid debts take effort to build an image depicting a compassionate and understanding attitude with the motive of helping individuals pay off their debts by providing feasible options available which would help them climb out of critical situations. For any individual to be able to trust an organisation and feel at ease requires empathy and sensitivity within the interaction between the customer and the organisation. This is optimally achieved by the association of credit and collection professional ACA, through an implicit message of caring for all I am having a non discriminatory attitude by implementation of diversity and inclusion within the staffing and culture. This helps the organisation obtain dual benefits of developing the image of the organisation along with helping improve interaction with customers having debts who are from different ethnicities, races and communities by having the option of an employee of a similar race or ethnicity handling the customer to achieve optimal outcomes with minimal resistance due to existence of a natural bond and comfort level. The release of the paper is meant to change the stereotypical perception of debt collection agency and Organisation within the minds of the consumers and society overall. the organisation is trying to project an image of a supportive organisation helping individuals to come out of critical situation with regard to their finances, and help to overcome the preconceived notion of them being an insensitive entity out to extract the death day of at any cost to the consumer whatsoever without having any regard for the condition or constraints of the consumer. By presenting an image of caring for the needs of the consumer to have ease of interaction and facilitate better understanding of their problem and find feasible solutions together.

2) The data used by the ACA was from the United States census data along with information from the bureau of labour statistics indicating the overall percentage of women within the United States work force being at 47% with the number being 70% within the collections workforce. Other data was from the member company obtained through a membership survey. Data from the national women's Business council establish that the segment was relatively non discriminatory and promoting women and minorities within the businesses with most women. Forms averaging employment of 22 individuals in comparison with most women owned businesses having no employees.

The external secondary data is extremely important for providing depth to any research as it provides important information enabling layering of the data with analysis helping to attain greater insight resizing and formation of accurate rational research outcomes and figures. With the focus upon primary information the secondary sources provide supplementary knowledge for supporting the primary while maintaining a center of focus. Secondary sources are quick and easy to access with minimal cost and time implications but extensive benefits in the comparison and analysis along with enhancing the credibility of the primary data. Within the paper presented in the secondary data has not been available to support and provide adequate comparison for the research conducted the meaning that the research provides of the benefit to women and minorities provided by the segment would have not been possible to infer. There is so much food also become meaning less for external use and limit the utility for the organisation.