How to hire a collections representative

How to hire a collections representative, step by step

Here's a step-by-step collections representative hiring guide:

• Step 1: Identify your hiring needs
• Step 2: Create an ideal candidate profile
• Step 3: Make a budget
• Step 4: Write a collections representative job description
• Step 5: Post your job
• Step 6: Interview candidates
• Step 7: Send a job offer and onboard your new collections representative
• Step 8: Go through the hiring process checklist

What does a collections representative do?

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1. Identify your hiring needs

   Before you start hiring a collections representative, identify what type of worker you actually need. Certain positions might call for a full-time employee, while others can be done by a part-time worker or contractor.

   Determine employee vs contractor status

   Is the person you're thinking of hiring a US citizen or green card holder?

   Yes

   No

   A collections representative's background is also an important factor in determining whether they'll be a good fit for the position. For example, collections representatives from different industries or fields will have radically different experiences and will bring different viewpoints to the role. You also need to consider the candidate's previous level of experience to make sure they'll be comfortable with the job's level of seniority.

   This list presents collections representative salaries for various positions.

   Type of Collections Representative	Description	Hourly rate
   Collections Representative	Bill and account collectors, sometimes called collectors, try to recover payment on overdue bills. They negotiate repayment plans with debtors and help them find solutions to make paying their overdue bills easier.	$12-20
   Collections, Customer Service	A collections customer service or collections agent is the person who is in charge of collecting past-due bill payments. Collections agents establish a list of individuals who failed to make their payments... Show more	$12-18
   Collections/Accounts Receivable	An officer for collections/accounts receivable is in charge of a company's financial activities, ensuring that they receive payment from clients. They primarily focus on overseeing all billing and invoices, processing and verifying all receipts and rendered services, maintaining an accurate record of all transactions, producing reports and presentations, reviewing account and payment histories, and ensuring the accuracy of all processes involving the matter... Show more	$14-23

   Show more

2. Create an ideal candidate profile

   Common skills:

   • Payment Arrangements
   • Customer Service
   • Delinquent Accounts
   • Past Due Accounts
   • Customer Accounts
   • Debt Repayment
   • Debt Collection
   • FDCPA
   • Collection Efforts
   • Inbound Calls
   • Outbound Calls
   • Outbound Collection Calls
   • Computer System
   • Overdue Accounts

   Check all skills

   Responsibilities:

   • Protect A/R assets by managing a portfolio of accounts to maximize gainful sales and reduce debt losses.
   • Maintain effective communication and utilize negotiation skills with internal and external customers to effect collections while maintaining customer good will.
   • Submit all reconsideration and appeals if need.
   • Conduct periodic data cleaning of queues balances deny with deny appeals.
   • Resolve valid or authorize NSF charges due to decline credit cards or ACH transactions.
   • Collect and count inventories, reconcile purchases and scan UPC's and inputting price information.

   More collections representative duties

3. Make a budget

   Including a salary range in your collections representative job description is a great way to entice the best and brightest candidates. A collections representative salary can vary based on several factors:

   • Location. For example, collections representatives' average salary in delaware is 42% less than in california.
   • Seniority. Entry-level collections representatives earn 38% less than senior-level collections representatives.
   • Certifications. A collections representative with a few certifications under their belt will likely demand a higher salary.
   • Company. Working for a prestigious company or an exciting start-up can make a huge difference in a collections representative's salary.

   Average collections representative salary

   $16.35hourly

   $34,015 yearly

   ---

   Entry-level collections representative salary

   $26,000 yearly salary

   Updated December 19, 2025

   Average collections representative salary by state

   Rank	State	Avg. salary	Hourly rate
   1	California	$43,249	$21
   2	Oregon	$37,720	$18
   3	Colorado	$37,673	$18
   4	Arizona	$35,388	$17
   5	Missouri	$35,058	$17
   6	Connecticut	$34,554	$17
   7	Utah	$34,350	$17
   8	Texas	$33,644	$16
   9	Minnesota	$32,868	$16
   10	Georgia	$31,831	$15
   11	Alabama	$31,719	$15
   12	Florida	$31,171	$15
   13	Illinois	$31,022	$15
   14	Maryland	$30,578	$15
   15	Kansas	$30,247	$15
   16	Wisconsin	$29,938	$14
   17	South Dakota	$29,577	$14
   18	Louisiana	$29,565	$14
   19	Indiana	$28,667	$14
   20	Iowa	$28,326	$14

   Average collections representative salary by company

   Company

   Rank	Company	Average salary	Hourly rate	Job openings
   1	University of California-Berkeley	$45,696	$21.97
   2	Medical University of South Carolina	$42,663	$20.51	2
   3	LUFKIN Industries	$41,690	$20.04
   4	Huron Consulting Group	$39,726	$19.10	8
   5	Dominion Energy	$39,572	$19.02
   6	BD	$39,566	$19.02	4
   7	Student Conservation Association	$39,306	$18.90	1
   8	JBS USA	$39,193	$18.84
   9	Affinity Credit Union	$39,076	$18.79
   10	Fresenius Medical Care North America Holdings Limited Partnership	$38,821	$18.66	1
   11	Hastings Mutual Insurance	$38,758	$18.63
   12	Cognizant	$38,518	$18.52	5
   13	Santander Bank	$38,478	$18.50
   14	BNP Paribas	$38,103	$18.32
   15	City National Bank	$37,989	$18.26	20
   16	Baptist Health Home Care	$37,875	$18.21	7
   17	Philips	$37,789	$18.17
   18	Harley-Davidson	$37,617	$18.09	4
   19	Medline	$37,553	$18.05	4
   20	HomePro	$36,932	$17.76	1

4. Writing a collections representative job description

   A good collections representative job description should include a few things:

   • Summary of the role
   • List of responsibilities
   • Required skills and experience

   Including a salary range and the first name of the hiring manager is also appreciated by candidates. Here's an example of a collections representative job description:

   Collections representative job description example

   Snap-on Industrial is seeking a great candidate to join our team. This position will analyze portfolios, perform account/payment reconciliation and communicate with customers by phone and email regarding amounts due or past due in order to secure payment arrangements. Must have previous credit and collections work experience in a mid-sized to large corporation.
   Responsibilities • Analyze portfolios. Perform account/payment reconciliation.
   • Communicate with customers by phone and e-mail regarding amounts due or past due and establish strong business relationships. Diffuse and resolve challenging customer service situations.
   • Document daily collection activities.
   • Identify, document and recommend delinquent accounts requiring external collection efforts and bad debt or financial exposure.
   • Review, prepare, analyze and document accounts receivable aging reports and other ad hoc reports.
   • Meet collection targets as defined by finance department.
   • Follow the procedures and protocol established by the company. Qualifications • Minimum 1- 3 years of related credit and collection experience in a mid-sized to large corporation
   • High School diploma or equivalent, Associates degree in Accounting is a plus
   • Proficient with Microsoft Suite software including strong Excel skills
   • Customer service oriented with strong interpersonal skills. A strong team player and emphasis on customer service
   • Ability to work in a fast-paced environment, quickly transitioning from one account to the next.
   • Must have the ability to remain calm under pressure in order to promote good customer relations both within and outside the company
   • Excellent written and verbal communication
   • Great attention to detail and analysis skills
   • Willingness to flex as the position evolves and/or needs of the department change
   • Ability to work overtime, as assigned
   • Ideal candidate will have the flexibility to work out of our Kenosha, WI location or Crystal Lake, IL facility as business needs dictate Snap-on offers a competitive compensation package and a complete benefits package which includes which includes medical, dental, vision, life insurance, an employee assistance program (EAP), a 401k Savings plan, a pension plan, a legal services plan, an employee stock purchase plan, a discount on Snap-on products and more. Snap-on offers a drug free work environment and welcomes all qualified candidates to apply. Snap-on is an Equal Opportunity Employer, Minority/Female/Disabled/Veteran.

   Copy this example

   

5. Post your job

   There are various strategies that you can use to find the right collections representative for your business:

   • Consider promoting from within or recruiting from your existing workforce.
   • Ask for referrals from friends, family members, and current employees.
   • Attend job fairs at local colleges to find candidates who meet your education requirements.
   • Use social media platforms like LinkedIn, Facebook, and Twitter to reach potential job candidates.

   To find collections representative candidates, you can consider the following options:

   • Post your job opening on Zippia or other job search websites.
   • Use niche websites that focus on engineering and technology jobs, such as efinancialcareers, financialjobsweb.com, careerbank, financial job bank.
   • Post your job on free job posting websites.

6. Interview candidates

   To successfully recruit collections representatives, your first interview needs to engage with candidates to learn about their interest in the role and experience in the field. You can go into more detail about the company, the role, and the responsibilities during follow-up interviews.

   It's also good to ask about candidates' unique skills and talents to see if they match your ideal candidate profile. If you think a candidate is good enough for the next step, you can move on to the technical interview.

   The right interview questions can help you assess a candidate's hard skills, behavioral intelligence, and soft skills.

7. Send a job offer and onboard your new collections representative

   Once you have selected a candidate for the collections representative position, it is time to create an offer letter. In addition to salary, the offer letter should include details about benefits and perks that are available to the employee. Ensuring your offer is competitive is vital, as qualified candidates may be considering other job opportunities. The candidate may wish to negotiate the terms of the offer, and it is important to be open to discussion and reach a mutually beneficial agreement. After the offer has been accepted, it is a good idea to formalize the agreement with a contract.

   It's also important to follow up with applicants who do not get the job with an email letting them know that the position is filled.

   Once that's done, you can draft an onboarding schedule for the new collections representative. Human Resources should complete Employee Action Forms and ensure that onboarding paperwork is completed, including I-9s, benefits enrollment, federal and state tax forms, etc. They should also ensure that new employee files are created for internal recordkeeping.

8. Go through the hiring process checklist

   • Determine employee type (full-time, part-time, contractor, etc.)
   • Submit a job requisition form to the HR department
   • Define job responsibilities and requirements
   • Establish budget and timeline
   • Determine hiring decision makers for the role
   • Write job description
   • Post job on job boards, company website, etc.
   • Promote the job internally
   • Process applications through applicant tracking system
   • Review resumes and cover letters
   • Shortlist candidates for screening
   • Hold phone/virtual interview screening with first round of candidates
   • Conduct in-person interviews with top candidates from first round
   • Score candidates based on weighted criteria (e.g., experience, education, background, cultural fit, skill set, etc.)
   • Conduct background checks on top candidates
   • Check references of top candidates
   • Consult with HR and hiring decision makers on job offer specifics
   • Extend offer to top candidate(s)
   • Receive formal job offer acceptance and signed employment contract
   • Inform other candidates that the position has been filled
   • Set and communicate onboarding schedule to new hire(s)
   • Complete new hire paperwork (i9, benefits enrollment, tax forms, etc.)

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How much does it cost to hire a collections representative?