Inflation is soaring, and more than 60% of executives are bracing for a recession. What’s your business doing to weather the economic downturn? Maybe you’re scaling back physical space, cutting jobs, or slashing marketing spend. Or maybe you’re making less drastic changes, such as purchasing fewer office supplies and traveling less.
Either way, you know how tricky budget cuts are. If you reduce expenses too much short term, your business could suffer in the long run. Technology to manage physical keys is one area where you can’t afford to cut costs. Why? Let’s look at three reasons.
1. Technology Fights Inflation
With technology, businesses can fight inflation by increasing productivity and reducing operational costs. That’s why 73% of business leaders plan to spend more on digital tools despite the state of the economy.
Why invest in technology during a recession? Consider that employees account for 50% to 60% of most companies’ costs. (That number continues to increase due to employee turnover and other workforce challenges.) When you automate processes, knowledge workers don’t waste valuable time on repetitive tasks.
If you don’t modernize your key control process, your employees have less time to use the talent you hired them for. Each employee could be wasting as much as 6 minutes to remove and return keys and update the key log. Compare that to less than 2 minutes with an electronic key control system.
That time gap increases even more when it’s time to audit your keys. If you have to manually account for every key, the process can take hours, if not days. With electronic key control systems, auditing your keys is as simple as running a report. The system automatically creates a verifiable audit trail, so you don’t have to worry about human errors.
Employee accountability is another important benefit of key management. Because the system tracks each user’s activity, people are less likely to steal a key or asset. In turn, your rekeying and asset replacement costs go down.
2. You Need Both Physical Security and Cybersecurity
As more employees work from home, cybersecurity is nonnegotiable. But that doesn’t mean you should deprioritize physical security. Physical and digital security operations are interdependent.
For example, say you have an on-site data center. Key control helps prevent unauthorized access to the physical space containing the hardware. Cybersecurity helps prevent cyber attacks targeting that equipment. Together, physical security and cybersecurity protect your organization’s most valuable assets and information.
Security is so essential to business operations that security spending is nearly recession-proof. Threats don’t disappear because the economy is suffering. If anything, they increase.
3. Key Management Helps With Compliance and Insurance
On top of wasting resources, inadequate key security has compliance and insurance implications.
Does your organization need to meet regional or industry-specific key control requirements? If so, failing an audit could lead to fines, legal consequences, or reputation damage. Key management systems help you stay compliant by controlling key access and maintaining an accurate audit trail.
Since electronic key management systems reduce risk, you might even be able to negotiate lower business insurance premiums. A discount isn’t guaranteed, of course, but it doesn’t hurt to discuss your options with your insurance provider.
Cutting expenses is a normal response to economic difficulties. But don’t cut corners on technology that helps you reduce operational costs, increase security, or meet compliance requirements. Electronic key control checks all those boxes. It’s worth the investment — recession or not.