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Poor asset management costs businesses far more than they realize. From lost equipment and wasted resources to compliance fines and data breaches, the financial and operational impact can be devastating.
In today’s fast-moving workplace, assets are everywhere from laptops, office chairs, ID cards, routers, work phones, and more. But when an employee leaves and no one knows exactly who has what, where it is, or whether it’s even functional, operations grind to a halt.
This is why asset management is a critical part of HR efficiency, operational control, and data security.
What Is Asset Management?
Asset management is the organized process of tracking, maintaining company assets like laptops and office furniture to buildings, internet devices, and even investments.
Managed properly, it ensures resources are available when needed, prevents wasteful spending, reduces downtime caused by missing or broken equipment and supports compliance with audit and regulatory requirements.
Poor asset management, on the other hand, occurs when there is little to no system for recording, monitoring, and maintaining company resources. This often results in lost or misplaced items, duplicate purchases, delayed workflows, unnecessary expenses, compliance failures, and security breaches. In short, it’s when a business does not have full control over what it owns, who is using a particular asset, and its condition thereby leading to both operational and financial damage.
At its core, asset management is about getting the maximum value from what your business already owns.
The Cost of Poor Asset Management
When asset tracking is inconsistent or non-existent, the damage goes far beyond a few misplaced devices:
1. Financial Losses – Companies often replace equipment that is not missing, buy duplicates unnecessarily, or pay for maintenance on unused assets.
2. Productivity Delays – Employees waste time waiting for tools they need, slowing projects and frustrating teams.
3. Security Risks – Untracked laptops and mobile devices containing sensitive company data can easily lead to breaches.
4. Compliance Failures – Regulatory bodies, such as Nigeria’s Data Protection Commission (NDPC), expect businesses to know what assets they have and where they are. Poor records can result in fines and failed audits.
5. Brand Damage – Clients and employees lose confidence in companies that appear disorganized and careless with resources.
Example: Imagine a company with 200 employees, each issued a laptop, router, and ID card. Without a proper tracking system, recovering these assets during offboarding becomes difficult leading to lost items, wasted money, and possible data leaks. Now scale that scenario to a business with multiple branches or thousands of employees, and the risks grow exponentially.
Challenges in Asset Management
Below are some of the challenges that come with asset management:
1. Visibility Issues – Tracking asset location, user, and condition is difficult without a central database.
2. Inconsistent Data – Multiple spreadsheets across departments create conflicting records.
3. Manual Processes – Paper lists and Excel sheets are slow, error-prone, and hard to update.
4. Lifecycle Tracking Gaps – Assets need regular maintenance and timely replacement. Without a system, these timelines are often missed.
5. Security & Compliance Risks – Lost or untracked devices can compromise sensitive data and cause compliance failures.
The Effect of Good Asset Management
Implementing a solid asset management system delivers measurable returns:
1. Cost Savings – Reduce unnecessary purchases and maintenance costs.
2. Faster Onboarding – New hires get their equipment immediately, creating a smooth first impression.
3. Easier Offboarding – Exiting employees return all assigned items without confusion.
4. Stronger Data Security – Track devices to prevent unauthorized access to company data.
5. Audit Readiness – Provide clear records instantly when regulators request them.
How BizEdge Makes Asset Management Effortless
With BizEdge HR software, asset management becomes an easier part of your HR workflow:
- Instantly see who collected what, when, and why
- Avoid relying on memory, sticky notes, or endless email threads
- Assign laptops, modems, and welcome kits to new hires in minutes
- Ensure smooth offboarding with automatic return tracking
- Keep detailed records for audits and compliance checks
When a new hire starts and receives their equipment immediately, it sends a message: “We’re ready for you and you’re in good hands.” When an employee exits, every asset is accounted for, reducing risks and eliminating awkward follow-ups.
