Collectors have two ways to win at Windham Associates (Fairport, New York). One is through a bonus program. The other is through a series of contests.

Bonus Program. Each collector's starting salary is negotiated, on the basis of the previous experience he or she has had before coming to work at Windham. Then, production incentives are set, on the basis of the fees the agency charges its clients.

A bonus threshold is then calculated according to starting salary. "This threshold is usually 4.5 to 5 times the collector's base salary," explains Mark Davitt, president of both Windham Associates and the New York State Collectors Association.

A collector whose productivity is at or below the 4.5 to 5 times base salary receives only the base salary. Productivity above this level is then eligible for a bonus in three steps:

• 101% to 149%
• 150% to 199%
• 200% and above

Contest Program. To further encourage collector productivity, Windham Associates hosts a number of short-term and long-term contests on a regular basis. "We identify the goals that we're trying to achieve for our clients and translate these into contest goals," says Davitt. Three of the most common measurements are:

• number of payments,
• size of payments, and
• urgency of payments.

The company gets its contest ideas primarily from two sources:

"Barry Hutner, our vice president of Operations, is very creative in coming up with contest ideas," says Davitt. "And we also get contest ideas from other members of the New York State Collectors Association.

"Basically, we take any game that is fun and try to turn it into a contest," he adds. "We look for ways to improve productivity that are enjoyable for our collectors."

Editor's Note: The above article originally appeared in the Credit & Collection Manager's Letter, published by Prentice Hall's Bureau of Business Practices, which Credit Today purchased in 2006.