Spring/Summer, 2002 - "You may already be a winner!" There's a good reason why so many sales pitches begin with those words. People like contests because of the fun factor and the excitement of possibly winning, according to research published by the American Statistical Association. Professional collectors are no different, which is why so many teams make contests a big part of their operations.

         In fact, contests are so widely used in the collections industry that they can sometimes be taken for granted. When contests are allowed to become routine, they are less effective than they should be. But infused with the right mix of inspiration and imagination, contests can be highly effective team builders, boosting both morale and productivity.

         "Our collectors just love contests, and the crazier the better," says Melissa Wood, collections manager at Jacksonville, Texas – based Stage Stores, a chain of more that 340 mid-market department stores in 13 states around the country. Stage Stores has about 120 agents in its collections operation, and it uses contests both there and in its customer service division.

         "The competition aspect of contests injects fun into the workplace, and it really motivates me as a collector," says Terrie Shafer, a recovery collector at Stage Stores and a 17-year veteran of the industry. "I won a ‘pie-in-the-eye' contest recently and got to put a pie in my manager's face. Talk about fun – that was priceless! Contests are definitely a great motivational tool."

         Each of Stage Stores' contests are tied to the Western Union® Phone Pay® service, Wood says, and each includes prizes. "Phone Pay is one of the most important tools we use, and every contest we run is Phone Pay-generated," she explains. "Collectors are encouraged to suggest Phone Pay on every call they make. We've made it a standard in our review process."

         Because many of the contests are built around team competition and offer prizes that capitalize on tweaking the relationship between collectors and managers – in a friendly manner, of course – Stage Stores' contests are great morale builders. Supervisors might end up pushing watermelons down an aisle with their noses, or collectors might get their feet kissed by managers. One particularly conservative 6-foot-4-inch supervisor had to come to work dressed as his mother, with his hair spray-painted.

         By stimulating the inherent competitive tendencies that already exist among collectors, contests also boost productivity. "We are all competitive people, and competition drives motivation," says Aurelia Wallace, who works in manual collections at Stage Stores. "I think everyone in our department feels that way."

         There's no arguing with the strategy's success. Since tying all its contests to the Phone Pay service, Stage Stores' volume has jumped from under 4,000 per month to sometimes topping 10,000, Wood reports.

         Retail collections isn't the only area where contests can boost productivity and morale. Cenlar FSB is a Ewing, NJ – based wholesale bank that specializes in subservicing residential loans. It is a very different business from Stage Stores, but it uses contests just as creatively and effectively in its collections operation, which includes about 25 collectors and support personnel.

         "Contests are great icebreakers," observes Angela Pulli, second vice president, collections/loss mitigation manager at Cenlar, who has been in the collections industry for 23 years. "Collections can be a very stressful occupation. Collectors have to listen to other people experiencing difficult circumstances many times throughout the day. Contests help boost collectors' sense of self-worth and the feeling that they are making an important contribution to the team."

         Cenlar also uses a wide variety of contests, including monthly contests, all built around the Western Union® Quick Collect® service and the Phone Pay service, and bimonthly challenges targeting attendance, punctuality and quality control. Like Stage Stores, Cenlar taps both internal and third-party resources to develop its contests.

         "I like the contests at Cenlar. They help build up morale and drive competition and motivation among the staff," says Duane Lee, a senior loan counselor. "The contests also take the edge off a sometimes stressful environment."

         Among the many prizes currently offered by Cenlar, one of Lee's favorites is a department store gift certificate, which just happens to be the premium most often featured in Phone Pay contests. "We average 5,000 Phone Pays and 1,200 Quick Collects every month here," he notes.

         Along with gift certificates, Cenlar also dangles Corporate Rewards Dollars, free food, gas cards, comp days and employee-of-the-month honors. Stage Stores' mix of prizes is even more eclectic, including money, clocks, shirts, lottery tickets and televisions. "I think money is the most popular," Wood ventures. "These are collectors, so money is a central theme in their lives."

         While the prizes offered are important in making the contests effective, there's a lot more at stake, to hear the collectors tell it.

         "This is a very competitive field. We in collections are challenged every day," says Pamelia Franklin Adams, a collector at Stage Stores. "Think about it. Contests have rules to follow and a built-in measurable component, as does collections." She adds that while contests help foster team camaraderie, the "friendly rivalries" that result can match the intensity of a Survivor episode. "We're go-getters at Stage, and we like to win!"

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