Asset management is a highly sensitive task for HR managers, as it involves financial backups, investments, and approval from higher-ups. As an HR administrator, having proper knowledge about the guidelines, rules, and potential pitfalls of asset management is crucial for ensuring success in this task.
Here comes the asset management policy to solve the issue. Before working on asset management, you must learn and know how to execute policies for it. It’s a core part of the HR sector. So if you think you are lacking in this sector, this blog is perfect for you.
In this detailed guide, I talked about the basics of asset management, why it’s important, the considerations, disclosed a tool that you can use to help, and so on. It’s a complete guideline that will facilitate you without any doubt.
Let’s begin and get started with the basics first!
Asset Management Policy Explained
An asset management policy is a complete set of guidelines summarizing the procedures and responsibilities to control an organization’s physical and digital assets.
Still confused? Okay, let me explain it with a scenario. Suppose you’re the HR administrator of a company. Your company has 50+ employees, and they are working in different departments.
So they need to use different assets of a company. For example, computers, laptops, mobile phones, headphones, speakers, keyboards, and so on. However, they can’t directly use them.
For instance, they need to follow certain rules before using them. Such as:-
- Fill out the requisition form
- Form submission to the HR
- HR will look into it and approve it
- Then you can use the asset
Above all, the primary goal of an asset management policy is to equally and efficiently distribute the assets among the employees. A guideline will help you align things according to your company policy.
Apart from these, there are still some other things you need to understand while managing a company’s assets. I’ll discuss it in the next part below!
Why Do You Need an Asset Management Policy for Your Company?
Along with the important employees, assets are also crucial elements of a company. Plus, a major part of any company’s success. As a crucial part of HR skills, you must know how to handle and distribute the company’s assets among the employees.
Your company’s owner invests a significant amount in assets, including hardware, software, data, intellectual property, and physical property. It is your responsibility to ensure that the assets are distributed successfully.
A formal framework for managing assets throughout their lifecycle is essential, and an asset management policy streamlines this with hands-on processes. Now, what’s more? Yes, there are still some benefits you’ll get if you have a definite policy for your asset.
Here are they:
- Provides a framework for asset planning, acquisition, tracking, and maintenance
- Defines the roles and responsibilities of asset owners
- Outlines the criteria for asset classification and categorization
- Addresses asset security, access control, and data security controls
- Defines the policy review and revision process
From managing employees to distributing assets, written data is always important and helpful. It helps you make a safe shot whenever any mishap happens.
1. Improves overall asset management
We know that asset policy is a complete framework. So when you perform under any strict plan or framework, there is no chance of making any mistakes. For that, the policy improves the overall tasks making no mistakes, reducing costs, and increasing efficiency.
2. Mitages risk management
Apart from improving the overall managerial stuff, it also reduces unwanted risks. Plus, it helps HR managers make the best use of every asset and notifies them if any assets are damaged or broken, etc. This prompts them to take essential steps in due time.
3. Enhances security
Once you have reduced the risk, you can automatically empower asset security. If any of your employees damage your assets, based on the asset policy, the rule will be applied. Hence, you don’t have to do or think much about it.
4. Boosts business continuity
A smart asset management policy will tell you how many assets you have. So if any unwanted situations happen, you can easily handle them smartly and efficiently. And these incidents will not be a barrier to your business continuity.
What Should Be Included in the Asset Management Procedures?
Suppose you have a well-defined policy for your asset. But still, you’re facing some managerial issues while handling them. Then you must consider that something is not going your way or in the procedure.
At this point, as an HR admin, you need to figure out what’s wrong in the process. Therefore, some key elements come to rescue you to solve this matter. So if see that you’re missing some important aspects of your policy, you need to work on it.
The steps considered in planning, acquiring, tracking, maintaining, disposing, and securing assets include the roles and responsibilities; of asset owners, employees, and users.
These procedures provide a detailed guide on how to manage assets effectively throughout their lifecycle.
Let’s now check out some key components that you should include in your company’s asset policy.
- Proper planning and acquisition: If you have an existing plan for planning and acquisition, then you can research some other policies. And then you can combine them to prepare a fruitful one.
- Asset inventory tracking: After distributing the asset, you need to check the inventory from time to time. So when any employee requests an asset, you can properly provide it to maintain task efficiency.
- Upcoming risk measurement: Risks are not certain. They can occur or appear at any time. So are you ready to encounter these? If not, then it’s high time you should include future risk management in your current policy.
- Asset classification and categorization: If you don’t have categorized your assets, please do. It will not only help you to manage your assets smartly but also keep track of your inventory as well as. For instance, you can use Google Sheets or any asset management tool like the WP ERP Asset Manager Module.
- Security measurement: Ensure 100% security drills while planning your policies. As mentioned above, asset security will help you to stay safe from any damage created by the asset holder. I will suggest you prepare different security rules for different asset categories.
- Month-end audit: Lastly, plan for a month-end audit. Audit means you can sit your asset holders or company management. The agenda will be like this: the number of assigned, damaged, faulty, and remaining assets. Note down this information and discuss it on your monthly sit-up with your management.
It will ensure that assets are well-managed and protected throughout their lifecycle.
What Are the Roles and Responsibilities of an Asset Management Policy?
Managing the company’s assets is a huge task as it directly correlates to the company’s property. So an HR manager has to prepare a guideline where other dependable people can contribute their part.
Therefore, the asset management policy outlines the roles and responsibilities of various stakeholders involved in managing assets, including asset owners, custodians, and users.
So we’re pretty much sure that, not only HR is responsible for managing assets. Some other important persons have crucial roles to play. Here are the key roles and responsibilities defined by an asset management policy:
Asset owners are responsible for the acquisition, maintenance, and disposal of assets. They are accountable for ensuring that assets are used responsibly and are in compliance with applicable laws, regulations, and policies. They are also responsible for ensuring that assets are used in a way that supports the organization’s strategic objectives.
Asset custodians are responsible for the safekeeping of assets and ensuring that they are used appropriately. They maintain the physical custody of assets and ensure that they are properly secured, maintained, and disposed of when no longer needed.
Asset users are responsible for using assets in a way that complies with applicable laws, regulations, and policies. They are accountable for reporting any damage or loss to assets as soon as possible and for reporting any suspected misuse or abuse of assets.
Asset management team
The asset management team is responsible for developing and implementing policies, procedures, and guidelines for the management of assets. They are also responsible for maintaining an accurate inventory of assets, conducting risk assessments, and ensuring compliance with applicable laws, regulations, and policies.
How to Create an Asset Management Policy with the WP ERP Asset Manager Module
Today is a day of automation. Everything you see around you is automated. From ordering food to preparing your cooking, automation is there.
So do as for the HR sectors. As it’s a huge responsibility for an HR manager, it’s important for them to keep everything perfect and aligned with the company’s guidelines. Therefore, to make everything fast, secure, and error-free, there a a number of Automation tools to assist you.
With the manual process of preparing an important guideline like an asset policy, there might be some risk. Let’s check out how to create and manage asset policies with the WP ERP Asset Manager module:
WP ERP has a dedicated extension for managing all sorts of things about assets. On the module page, you can find this extension.
Now enable it!
Then open the HR page and hover on the “Assets” option. You can see three options; Assets, Allotments, and Requests.
Click on “Assets” and you can see the list of the already listed assets
If you want to add a new asset, click the “New Entry” button. Here fill out the form with the asset information. And then save the asset. So you have successfully added a new asset.
In the allotment section, you can allot assets to your employee. Also, here is the list of already listed asset allotments.
Click on “New Entry” and you need to fill out the form by adding the employee’s information. Then click on the “Allot” button.
Here you can see that the listed asset is appearing here.
Request for an asset (Employee end)
Now as an employee, you can request an asset. From this section, you can do that easily.
Go to WPERP>HR>My Profile>Assets.
Click on the “Request Asset“. That’s all, your asset request has been sent!
Accepting asset requests (Admin’s end)
Now click on the “Requests” section. Here you can see the recently requested asset appearing in this list.
Once you check the details, click the “Approve” button.
Here is the approved asset request.
So this is how you can create an asset policy with WP ERP Asset Manager Extension to handle your business process.
Also, you can check out the video tutorial to learn all the things at a glance.
Asset Management Tips that You Should Follow
After discussing what asset management policy, its importance, and its considerations, it’s time to share some tips with you. I hope these will help align your overall strategies a bit more.
Having an effective strategy for any goal helps to reach and achieve it with ease. But you have to know how to implement the strategy in the right way. So if you have the proper plans in hand, you can easily reduce costs, improve productivity, and increase the asset value throughout the lifecycle.
Here, I will share some of the best practices for asset management that organizations can implement to ensure that their assets are organized and protected.
01. Perform regular asset inventories
Conducting regular asset inventories helps organizations keep track of their assets and identify any differences or missing items. It is important to keep asset records up-to-date and accurate to ensure that assets are used effectively and efficiently throughout their lifecycle.
02. Use asset tracking software
Asset-tracking software can help organizations automate the asset-tracking process. It makes it easier to manage assets and maintain accurate records. Using asset tracking software can also help to reduce the risk of theft or loss of assets.
03. Implement a maintenance schedule
As a part of your HR tasks, it’s important to regularly check your asset quality. Regular maintenance is essential to ensure that assets are operating at peak performance and to extend their lifespan. For instance, you can Implement a maintenance schedule to help your organization keep track of when maintenance is due and ensure that it is performed on time.
04. Dispose of assets properly
When assets are no longer needed, it is important to dispose of them properly. Or you can replace it with a new one. For example, you can sell, donate, or recycle them. It is important to follow proper disposal procedures to ensure that sensitive data is properly brushed, and environmentally responsible disposal practices are followed.
05. Train employees on asset management
Proper training can help employees understand their roles and responsibilities when it comes to managing assets. This can include training on proper asset handling, security, and disposal procedures.
Overall, effective asset management is critical to the success of any organization. By following these tips, organizations can ensure asset quality.
Some Popular Asset Management Policy Templates to Follow
Developing an effective asset management policy from scratch can be a daunting task. Fortunately, there are several popular asset management policy templates available that organizations can follow to ensure effective management of their assets.
Here, in this section, I will shed light on some of the most widely used asset management policy templates and how they can be customized to fit the specific needs and requirements of different organizations.
01. ISO 55001 asset management
This is a globally recognized standard for asset management that provides a framework for developing and implementing asset management policies, strategies, and plans.
As you can see from the top to bottom, there are 8 steps described in the list. On the left side, you’ll find the reporting and corrective action. And in the right side, you’ll find the internal audit and management review. So the entire system looks awesome and straightforward.
02. ITIL asset management
This template is based on the IT Infrastructure Library (ITIL) framework and provides guidelines for managing the entire lifecycle of IT assets, from acquisition to disposal.
From asset planning to providing training to employees, you can find all the important steps in this framework. Also, for each section, there are some individual flaws and rules to achieve them. On the right side of the framework, you can get a separate section for feedback.
So overall, it’s a perfect blend for anyone to follow and execute.
03. NIST cybersecurity framework
This framework provides guidelines for managing cybersecurity risks and includes a section on asset management that focuses on identifying and prioritizing assets based on their criticality to the organization.
Yes, depending on the importance of your assets, you can choose what to consider or not. For example, the network security you’re using, the IT systems (database) you’re working on, and the physical security, etc.
04. COBIT 2019 framework for asset
COBIT 2019 (Control Objectives for Information and Related Technology) is a framework for IT governance and management that provides a set of best practices for organizations to ensure effective and efficient management of their IT assets.
One of the key components of COBIT 2019 is the management of enterprise assets, which includes the identification, acquisition, deployment, use, maintenance, and disposal of assets. This section of the framework provides guidelines for managing the entire lifecycle of assets, from planning and acquisition to retirement and disposal.
So these are some of the popular asset management frameworks that you can follow to uplift your asset management policy.
In conclusion, having an effective asset management policy in place can help organizations optimize their assets properly. By following the best practices discussed above and utilizing popular asset management policy templates, businesses can easily manage their assets.
Therefore, it is crucial to keep in mind that the policy of each organization must be tailored to suit its unique needs and demands. With a suitable framework in place, organizations can reach their business goals, enhance their financial performance, and gain a competitive edge.
So draw your plan, and adjust the new one with your existing plans to make your HR department successful within your company.
If you like this guide, you can read our other blog posts to enrich your knowledge about HR fields. Check out them now!