Credit Managers’ Role Gains Strength Through Troubled Times
24 May 2011
Unemployment may be a concern for most in the current struggling economy but not if you work in credit management, according to new research.
A survey of more than 8,000 Members of the Institute of Credit Management (ICM) has found that credit managers are less worried about job security than they were this time 12 months ago – almost certainly as a direct result of the rise in prominence of their role in keeping the cash flowing.
Members were quizzed about redundancies and job security within credit departments. Nearly two thirds (63%) were not worried about job security over the next 12 months – a significant rise from the 50% figure of those asked the same question in 2010.
It was also found that recruitment in the credit industry has seen a drop from 2010. More than half (55%) of those questioned said their company had not recruited in the credit department over the last 12 months, compared to 48% in 2010.
These responses strongly indicate that those responsible for cashflow management are among the most secure within a business, says Philip King, Chief Executive of the ICM: “Credit managers are telling us that they’ve seen the role of credit management rise in importance over the last 12 months,” he says.
“It is this recognition – and the recognition of their vital role in keeping the cash flowing – that I believe is protecting them from the risk of redundancy and giving them greater confidence around job security. It may also be the reason why recruitment levels have dropped, since businesses are hanging on to the managers they have.
As if to confirm this view, the survey found that 83% of Members had not been affected by redundancies over the last 12 months, a slight drop from 2010 (85%), showing that the industry has continued to be one of the safest from job losses.
“What the survey reflects is that businesses know what assets are of value to them, and the credit manager is one of the most vital assets in these challenging times,” says Philip.