A friend of mine was told by a headhunter that she was overqualified for a position. What does it mean? Usually, it is code for: (a) you are too expensive or (b) you are too old. If we give the hiring company the benefit of the doubt, we are left only with (a).
In my experience as a consultant, many companies fail to understand the potential costs of a bad hiring decision in credit management, which include but are not limited to:
• Higher bad debt write offs [not risk averse enough]
• Missed sales opportunities [too risk averse]
• Higher DSO and A/R carrying costs [inadequate follow up, or poor negotiating skills]
• Damaged goodwill [with customers, and internal customers such as Sales]
There is an old saying: If you think it is expensive to hire a credit professional, wait until you hire an amateur.
Michael is the author of the Encyclopedia of Credit (www.encyclopediaofcredit.com), a free, fast, internet resource for credit and collection professionals. He is a consultant, and the author of “Credit and Collection Forms and Procedures Manual” as well as a frequent instructor at CMA-sponsored educational events. He can be contacted at 949-584-9685.