Attracting the next generation of credit managers

The credit management industry is facing a critical juncture as an aging workforce approaches retirement, threatening to leave major knowledge gaps.

Why it matters: To address this issue, companies must get creative and innovate their approaches to appeal to younger talent.

• By leveraging modern technology, offering flexible work environments and emphasizing the exciting nature of the credit management profession, businesses can inspire a new wave of professionals to join and thrive in this essential field.

#1 Meet them where they’re at

In order to attract young professionals to the field of credit, you must find them. Go to job fairs or college campuses and find out what interests them. “Find out what inspires them instead of being critical,” said Christopher Arrington, CCE, chief credit officer at SRS Distribution Inc. (McKinney, TX).

One of the primary concerns for emerging credit professionals is understanding the trajectory of their career path. “You must articulate your vision, not just of the company and the department, but how they fit in there and how they can develop and grow their career,” Arrington said.

#2 Technology

Younger professionals are more tech-savvy because they grew up with technology, used it in school and prefer its efficient solutions. New professionals won’t want to work for a company that uses outdated and manual strategies. “Younger employees are more likely to embrace new tools, software and work methodologies, making them catalysts for innovation within their teams,” reads a Forbes article. “The key is empowering them to bring innovative ideas without fear of judgment, granting them true ownership of their work.”

Technology has the power to magnetize young professionals to the credit profession by unveiling thrilling, cutting-edge roles that let them unleash their tech prowess. “Young professionals tend to enter the workforce tech savvy, often showing older generations how to use innovations,” said Brittany Yvon, CBA, CICP, credit manager at OMG, Inc. (Agawam, MA).

#3 Education opportunities

To appeal to the upcoming generation, it is essential to emphasize opportunities for career progression. “That can be moving into a middle or senior management position or specializing in areas like risk management or international trade credit or potentially even broader roles that could open up the horizon,” said Yvon.

Companies should also consider engaging in NACM education or mentorship programs, providing valuable hands-on experience and guidance for future career growth. “My boss started training me and using NACM as a resource such as NACM’s Professional Certification Program which helped me earn my Credit Business Associate (CBA) designation,” said Kyle French, CBA, credit manager at Blue Water Industries LLC (Jacksonville, FL).

Encourage their participation in professional groups to acquire essential skills and deepen their understanding of the credit profession. For example, NACM’s Thought Leadership Forums are a virtual venue for leading B2B credit practitioners to connect monthly and discuss trends in their field.

The Emerging Thought Leaders Forum helps new credit professionals enhance their leadership skills and build meaningful connections with peers. “In the Emerging Leaders Forum, we all bounce ideas off of each other and ask each other how we handle certain situations with customers since we’re dealing with the same issues,” Yvon said.

#4 Training programs

Implementing a comprehensive and adaptable credit training program would significantly benefit the onboarding process for junior professionals. “I developed one in my new company that is appealing to young people because they create structure for the path for career growth,” Arrington said. “They’re also given possible time ranges based on what we’ve seen in the past.”

Getting them involved in the credit profession immediately is also helpful. “I watched training videos for two weeks before my boss took me to Credit Congress for the first time,” French said.

#5 Promote the value of the credit profession

Highlight the problem solving and diversity of credit management to appeal to younger professionals. “I enjoy that in credit, each day presents a new challenge,” French said. “How are we going to help this company? How do we get paid today? Or there may be an issue on the collections side.”

By showcasing the dynamic and impactful nature of credit management, companies can dispel the misconception that the profession is mundane or outdated and grab the attention of finance graduates.

“My affinity for numbers, analysis and logic as well as my love for customer interaction has kept me in the credit industry for about 34 years,” said George Demakis, credit manager at Scafco Corporation (Spokane, WA). “No matter what financial area you work in, whether that’s banking or corporate finance, you may take on credit management duties such as analyzing financial data and establishing relationships with vendors and customers.”

The bottom line: To address the impending knowledge gap in the credit management industry due to an aging workforce, businesses must innovate their recruitment strategies by leveraging technology, offering career growth opportunities and emphasizing the dynamic nature of the profession to appeal to younger professionals.