How can capacity in debt collection be increased?
The pros and cons of recruiting, outsourcing and automating
Financial pressures on consumers are continuing to make life difficult for many households. According to the Money Charity, average total debt per UK household was £65,665 in August 2024. Some individuals are experiencing the debt collection process for the first time as they struggle to meet their obligations. It’s logical to plan for the resulting impact on capacity in your collections department and how you will cope with a sustained increase in demand.
Recruit
It may be the right decision to grow your collections team before you become overextended and customer support levels suffer. Investing in new team members who can hopefully commit to years of service, secures your team for the future. But, this is an expensive option and one that takes time and resources. You may not see the full benefits in time to solve your current capacity issues.
To make matters worse, good quality collections advisors are in short supply, hard to recruit and retain. With employment levels relatively high, trainees are harder to find. If you can recruit successfully, you may be left with too many agents in the longer term, having invested in training and resources for the expanded workforce.

Outsource
Outsourcing makes sense if you want to limit the time and cost burden of recruiting extra staff. It quickly relieves capacity pressures; however, outsourcing inevitably means losing some control over customer experience. It can be unpopular with customers, potentially upsetting the longer-term creditor/customer relationship.
Outsourcing works best if you can find the right agency for your needs, but it comes at a cost, which may be hard to sell internally if your organisation is looking to control costs.
Automate
If you prefer to keep control and manage fluctuating demand in-house, automation is the logical choice. Modern technology can deliver results quickly and cost-effectively, and the business's immediate needs can be met quickly.
For example, digital self-service can take over reminders, payments, arrangements, affordability assessments and more. It transforms contact centre capacity and can flex to meet any level of demand. It frees your team to focus on where their specialist skills and human touch are most needed. Self-service has a positive effect on customer service metrics like first call resolution and call-waiting times.
Conclusion: quick and cost-effective solutions to boost capacity
Managing capacity is a delicate balancing act between expensive overcapacity and overstretched and frazzled staff who can’t meet customers' needs. Luckily, there is a third route that avoids these pitfalls and is the first choice before launching a recruitment drive or paying for outsourcing.
Automation can focus on those parts of the collections process where gains are immediate, such as digital customer self-service, or to augment existing system shortfalls where time savings will be most effective. The choice is yours.
Talk to our team about your options and discover the quick gains you can make, regardless of your underlying technology.