Dinesh Divekar
Business Mentor, Consultant And Trainer
Nashbramhall
Learning & Teaching Fellow (retired)
Harsh Shukla
Ceo And Md Of 3 Uk Based Mnc's
Sandeephr96
Vp-hr And Administration
+2 Others

Thread Started by #sandeephr96

Dear friends,
One of the common problems that I have seen is the non-returning of company assets such as Laptops, Blackberry etc by the exiting employees. This problem becomes even more serious when the company is quite big with many locations. Some employees just put in their resignations and stop coming.
May I seek your kind support in seeking your kind views to encounter such an eventuality?
Kind regards
Sandeep Sharma
11th July 2013 From India, Mumbai
Hi Sandeep,

Company assets such as laptops, cell phones etc are a valuable assets, not only in terms of cost but also the information contained within them. This information belongs to the company as well.

Therefore, it is imperative that the asset and the information is protected at all times, but especially when an employee resigns or is terminated.

To do this, you must have a robust policy, which must be referred to in the offer letter. The policy must mention the consequences of returning the equipment within a set time period ( I usually set a period of 24 hours).

The consequences can range from withholding pay and/or relieving documents to reporting the equipment as theft as well as theft of company information.

The procedure should start with the employee signing a declaration of receipt of such assets; their use, limitations and duty of care.

The assets should be periodically checked by a manager.

The employee must sign a declaration upon resignation, handing back the equipment via a Handover Form.

In the case where an employee resigns and stops coming their manager should pay a house visit to recover the equipment immediately.

Where the company has several locations then this should be controlled by the local manager, who by virtue of his/her position automatically assumes responsibility. (This too should be covered in the policy).

I hope the above helps.

Regards,

Harsh
11th July 2013 From United Kingdom, Barrow
Dear Sandeep,
You main problem is you do not have proper policy on allotment of company assets to the employees.
It appears that your audit department is also laid back. Why they did not raise this point earlier?
Anyway, for making policy on allotment of company property to the employees, you may check my following previous replies:
https://www.citehr.com/336602-policy...ml#post1544266
https://www.citehr.com/375356-ex-emp...ml#post1725508
Ok...
Dinesh V Divekar

11th July 2013 From India, Bangalore
Hi Sandeep,
As Mr.Dinesh said earlier you have to make a proper policy while employee joining the organization.you have to take a written confirmation from the employee if he didn't return the assets with in given time period you will take a legal action accordingly.
Thanks & Regards
Mounika
Hr Recruitment Lead
Blackrock Systems

13th July 2013 From India, Chennai
Dear Sandeep,
To avoid this problem, there is a best solution which i used in my previous company "Company Dues Form". My company offices was into various location. First i did the study of the things which is giving by company and then prepared the form and distributed to each location under the leadership of station head.
This form include the all department detail like sales, accounts, HR,admin & IT.
Note: now i am looking a job in HR generalist profile or Administration. Kindly suggest me for the same........
email id: ,
Kasim Ansari
+91 9757297856
13th July 2013 From India, Mumbai
#Anonymous
Hi all,
I think it should be mentioned strictly in the employee agreement as well you can withhold the exit documents and offcourse during the full and final settlement you make a separate letter which mentions about the company assets and terms and conditions while he/she serves notice, Make sure the employee's current address, numbers everything is in place and reference details are done carefully this will definitely help you for absconding cases. Create a exit checklist the minute you get a resignation mail, start the process.
17th July 2013 From India
Dear friends,
There is another area connected with this that I notice. In no policy, such as the laptop policy or for that matter any other assets policy, we define the following:
1. The role and the duties of the stores department which is responsible for the purchase of such items-reconciling their records on a regular basis etc etc.
2. The role and the duties of the audit department towards the audit of company assets on a regular basis.
Would appreciate if you could kindly throw some light on this especially covering the duties in detail.
Very kind regards
Sandeep Sharma
9th August 2013 From India, Mumbai
Dear Sandeep,

Ideally Asset Register should be maintained by stores professionals. However, in India the quality of stores professionals is so low that we cannot assign them this kind of work. If not stores, then someone else should maintain the asset register. That also does not happen.

Now a days advance softwares are available to track, monitor the company's assets. For every asset mentioned in the register, there should be loan card. The assets that are allocated for the use of some department, i.e. computers, printers etc, HOD is responsible for their ownership. This loan card is part of their handing/taking over process if they leave their job or go on long assignment.

If the assets are allotted to the individuals then for each personal allocation there should be loan card. This loan card should be renewed every quarter. They are expected to surrender when they quit their job. Those who fail to surrender, proportionate economic value should be debited from their full and final settlement.

Companies do not maintain their assets properly because most of the companies start as private limited companies. Owner might not have worked in professional company. Above all there could be ego that "we are doing business for thousands of years". Secondly, the owner's relatives occupy many positions. Trust is the driving factor to occupy these positions and not necessarily professionalism. As the company grows these persons become Directors. Since the Asset register is not maintained properly, at later stage it is given short shrift. I have seen couple of companies when they were forced to introduce asset register when they went public.

Your second question is about audit of the assets. It is the job of internal auditor to audit the company's assets. In most cases, internal auditors report to CFO or Head Finance. If audit is not done properly then it appears that your Finance Head is also laid back. Tell CFO or Head Finance to make the duties for internal auditor.

Your last sentence "Would appreciate if you could kindly throw some light on this especially covering the duties in detail." is not compatible with the designation that you hold. I can understand if some HR Asst or HR Executive asks "details". Lot of discussion has happened earlier and that should be sufficient for the person of your stature. Spoon feeding would lower the dignity of your designation and we not wish that to happen in open forum. My comments are quite straight forward. But I feel that these are needed too.

Thanks,

Dinesh V Divekar
9th August 2013 From India, Bangalore
I take the liberty of making a general appeal. We should search CiteHR first for information already available using the RESEARCH facility at the top before posting a query; and then ask precise questions giving enough information about the scenario. For example, if a search had been conducted we would have found links in the sidebar at the side of the box.
I searched the web, as my wont, and found a good policy document at http://www.ubuhlebezwe.org.za/wp-con...ION-POLICY.pdf
9th August 2013 From United Kingdom
Dear Dinesh,
Thanks for your contribution. Remember, a man can always learn and more importantly you are never perfect. Seems you never understood what was implied. Anyways............
Wonder, you will agree with what I say ?!?
Kind regards
Sandeep Sharma
9th August 2013 From India, Mumbai
Dear Sandeep,

Question is not of what I agree and what I do not. Question is also not of my understanding. Two things are important. One is that "nobody is perfect" is a too generalised statement and it cannot be used as alibi to hide our weakness. The second is when, where and how to display our imperfection is one's choice.

Now coming to your priorities. I feel that you should form "Asset Management Committee" (AMC) immediately. This committee could be comprised of seniors from procurement, technical, commercial and accounts/finance department. They should develop "Asset Management Register" (AMR). However, to do this first you should do codification of the assets. Asset codification is no easy task and it requires lot of expertise. Wrong codes will create further headache for you.

You may create AMR without proper codification. However, that would be half job. It will create problems to you in future, that is for sure. For this, first AMC should design "Asset Codification Policy".

If you are unable to form AMC, then outsource this activity. Make sure that the outsourced agency has someone who has handled purchase of capital equipment.

By the way, what about your stores? Has your purchase/stores done codification of your inventory? If not, then do this activity also. It will help you in improving "Inventory Accuracy Ratio".

If you do all this then you will experience the change and how things will start running professionally. Akshay Patra, an NGO that provides mid-day meals have done all the above and they run their purchase/stores quite professionally. Incidentally, their purchase is headed by just Manager and he is barely 28 year old person. I know about them because I have trained their 14 procurement staffs.

All the best!

Dinesh V Divekar
9th August 2013 From India, Bangalore
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