Password management is a critical skill in our internet-based lives. Everyone in business from staff to upper management uses multiple sites to perform their job duties. If your business has no processes and no password managers, then it's suffering from a major resource drain. Remember invisible expenses™ are the ones you don't know about that are killing your profits and poor password management is a giant invisible expense. 

The Numbers Speak 

The average user has 25 logins per day and works 250 days per year. Let's be generous and say the average time spent fumbling around is two minutes for every login. The total fumbling time is 173.61 hours per year.

The Time Calculation:

• 250 days X 25 logins X 2 minutes/login = 12,500 minutes or 208.33 hours wasted hours
• Let's say the fumbling time can be reduced to 20 seconds per login with a password manager reducing the annual login time per user to 34.72 hours per year
• The total wasted time per user is 208.33 hours - 34.72 hours = 173.61 hours

If you're not shocked, you should be. This is one month and two hours of wasted time per employee per year

The Waste is Enormous

If you have ten employees, they are all wasting more than a month of work time before any actual work gets done. Let's also say the average salary for ten employees is $60,000 per year. The fumbling cost per employee is $5,208.30. 

The Cost Calculation:

• Employee works 40 hours per week 50 weeks per year with 2 weeks off
• 40-hour work week X 50 weeks = 2000 hours worked per year 
• 173.61 wasted hours / 2000 working hours = 8.68% wasted time per year
• $60,000 average salary X 8.68% = $5,208.30 fumbling cost per employee
• $5,208.30 X 10 employees = $52,083.00 annual cost for the company

Give Another Week of Vacation

Your company would waste $52,083.00 annually so your employees can be frustrated before they get any work done. Notice how this amount is almost the same as the average cost per employee of $60,000 so your company basically pays the entire salary of the 10th person to cover the invisible expenses™ that are killing your profits. It makes more sense to provide your employees with peace of mind from a password manager. Give them all one more vacation week because they'll be giving you 3 more weeks to get real work done. They'll be less stressed and come back more refreshed from vacation. 

What's the Cost of Fraud?

Password fumbling is one of the more obvious invisible expenses™. The risk of fraud skyrockets with poor password management. Your business needs the internal controls offered by password managers such as turning access on and off for employees or limiting who has access. 

Now the Expensive Part

Businesses have to shield against external hackers and more importantly the enemy hiding within. If you thought the $52,083.00 fumbling cost was expensive consider The Association of Certified Fraud Examiners reported a median cost of fraud of $145,000 in their study, The 2014 Report to the Nations. Fraud happens because your employees are excellent at exploiting weaknesses with poorly managed passwords for example, rather than applying their brilliance to making your business great. 

You Have to Wonder

Where else are the 17 invisible expenses™ eating away at your profits and how many other employees is your business paying for that you don't need. Entrepreneurs don't need to be reminded how expensive it is to hire employees including workers' comp, unemployment, Medicare, FICA and so on. Your ship is slowly sinking so stop the small leaks before its too late. You can never put a price tag on the value of peace of mind and business owners need a lot of it. 

Eliminate Your Invisible Expenses™

Password management is just one component of business automation. Last Pass, an enterprise level password manager, is required for clients of The Ultimate Paperless Back Office™ by invizibiz.biz. Become an client today. Your business can't afford to wait another day.