Is workplace impropriety the elephant in the room?

First Harvey Weinstein, then Capitol Hill. Fall 2017 has had its fill of news about workplace scandals. While Hollywood and Washington D.C. may seem completely different than our less glamorous jobs, no industry is immune from the type of misconduct we have been hearing about. The stories are sickening. Yet, I also wonder about the incidents that never make headlines—the uncomfortable workplace scenarios for which there is no outright policy violation. What should someone do in these cases, especially when the instigator holds a position of power?

In my first job out of college, my manager’s boss was what I would classify as a creep. He never violated any company policies, but his “innocent” comments—paired with his obvious stares—were telling. He made me uncomfortable, but nothing he did was “reportable.” I absolutely felt my subordinate status, as well as my tender age of 22, so I ignored his behavior and tried to avoid him. My colleagues might have been dealing with the same thing, but no one talked about it. There were only rumors about his preference in hiring peppy, petite females. 

Looking back, I wish I had felt more empowered to speak up, to respectfully convey how I felt. However, I imagine he would have stressed his innocence, and I would have walked away feeling stupid and doubting myself. Who knows how speaking up would have impacted my career. Whether a blatant offense or subtle innuendo, those at the receiving end do not always have good options. A recent CNN article about Capitol Hill makes this abundantly clear. In one way or another, victims are faced with consequences, even if they ultimately triumph.

What To Do

Back to my earlier question of what to do. I strive to offer blog posts with action items, but this time I do not have clear answers. We teach children about “stranger danger” and warn teens about online predators. I’m not convinced that there is enough dialogue with young people entering the work force about the improprieties they may encounter and what their options might be. We need to better prepare them because we cannot assume that employer policies and related training, no matter how strong, will protect everyone. I realize that workers of any age can be victims. I’m specifying young people because I believe this is when the education should begin—at the ground level. However, for anyone who experiences workplace discomfort due to another employee (“reportable” or not), the best path may be to consult with HR.

Last, but not least, I have to put in a word for the truly innocent people who are falsely accused. Unfortunately, there will always be a handful of people who take advantage of the system out of spite. I don’t know what else to say. Being careful about the colleagues with whom we associate will not guarantee anything.

Final Thoughts

Commercial Card content will return for the next post. I was compelled to write about workplace misconduct this week because of my own mild experience that came flooding back to me while reading articles on the well-publicized scandals. I cannot imagine the pain that surely comes with greater ordeals.


Security Alert

On a completely different note, LinkedIn accounts are getting hacked. For more information, I published a related article today:   https://www.linkedin.com/pulse/linkedin-accounts-getting-hacked-lynn-larson/


About the Author

Blog post author Lynn Larson, CPCP, is the founder of Recharged Education. With more than 15 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more

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Middle market program challenges.

Unlike large corporations, middle market organizations tend to have fewer resources to apply to a card program. This is just one of many hurdles they may face. To get some outside perspective on the topic, Recharged Education invited Shanda Goodwin, CPCP, Heartland Financial USA Inc., to weigh in. She understands the unique aspects of this sector and how to get programs on the right track. In the article below, she outlines five common challenges and offers some insight to help the middle market begin tackling them.  


Middle Market Companies: Common challenges in developing & implementing a commercial card program as part of their payment strategy and considerations for overcoming them.

by Shanda Goodwin, CPCP, Heartland Financial USA Inc.

As a commercial card payment solution provider for a family of community banks throughout the country, many of the clients in our portfolios are middle market companies usually with revenues of $5 million or more and an average of 50 to 1000 employees. Many times implementation and ongoing management of a card program can be challenging for these clients due to a variety of reasons associated with size and resources. However, like all roadblocks, most can be overcome. Having positive partnerships and the right conversations can drive the innovation needed to create positive results.

Overcome multiple challenges by finding the right provider partner to help put your program on a clear path.

Overcome multiple challenges by finding the right provider partner to help put your program on a clear path.

Common Challenges

If you fit within the middle market arena, you likely have experienced one or more of the following challenges:

1. Finding the right fit provider/issuer

Having common values of local ownership that is focused on relationships with conversations that are consultative versus sales driven can be hard to find. Once the sales process and card issuance occur, support for ongoing development of the program is missing.

2. Lack of internal IT support needed to address implementation of card technology platforms or data feeds

So often owners and those in procurement or accounts payable also have many other roles to fill within the company, creating a lack of resources in general for the program. This, along with limited ERP platforms, can make integrating with file feeds challenging.

  • Tip: Some card technology platforms can now support integration with less robust ERP systems. Finding this information on the front end of conversations is critical for the success of the program once launched.

3. Perception that there will be a loss of control over spend if employees have a card

As a community bank issuer, many of our clients are in a transition phase with their company moving from a highly centralized style of management to roles now becoming more defined with a higher number of employees than when the company first began. Loss of control in implementing a commercial card program for an additional method of payment is a common misconception. Implementing a program actually brings MORE control and added visibility, creating new opportunities and the ability to leverage a payment strategy with vendors for the organization.

  • Research by RPMG Research Corporation has found that financial loss experienced by card misrepresentation and internal or external fraud in relation to P-Card are relatively low—well under 1% of card spend.
  • Understanding the coverage available through the Visa Liability Waiver program (or similar), along with the use of a cardholder agreement for those utilizing a card within the program, can mitigate these risks.

4. Lack of awareness of what program best practices look like

Due to their size and the need to wear so many different hats, the foundation of the card program may be missing key pieces such as:

  • Definition of roles and a separation of duties for those managing the card program
  • Defining clear objectives and goals for the program – what processes are targeted for improvement?
  • Creating policies and procedures for built-in controls, along with employee training at implementation and ongoing training requirements
  • Winning over senior management for support of the card program and its value add for the company

5. Leveraging relationships with vendors—creating a payment strategy in pricing

Maximize your negotiating power for payment terms and discounting. Identifying all payment methods, and partnering with accounts payable and procurement to incorporate commercial card acceptance into supplier contract terms, can bring everyone to the table, including suppliers, for a win. 

Our commercial card team here at Heartland consistently participates in calls with suppliers to help facilitate conversations surrounding the benefits of card acceptance including gaining a competitive advantage over other similar vendors by offering additional payment methods for their customers. We emphasize that card acceptance can provide electronic remittance records and carries less risk of return funds as these payments are secure funds tied to a credit line. On the contrary, check payments provide limited remittance information and can be returned for stop payment or lack of funds in the account. Faster, more secure and electronic methods of payment often drive better payment terms for the buyer. Card payments benefit all parties involved.

Conclusion

For successful card program implementation and ongoing program management, understand your current payment processes and where improvements are needed. Then determine which provider will “provide” the best fit to help you identify and address internal roadblocks. There are many choices available to the middle market when it comes to banking and commercial card issuers. It is always best practice to consider more than one for their overall product and technology offerings, as well as the true level of service they provide. 


About the Author

Shanda Goodwin, CPCP and CPS Account Specialist Senior for Commercial Card Payment Solutions, a division of Heartland Financial USA Inc., has more than 20 years in the community banking industry with experience in product development including retail, commercial and treasury management products, now specializing in implementation and ongoing support of commercial card programs. 

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About Heartland Financial USA Inc.

Heartland Financial USA, Inc. is a diversified financial services company with assets exceeding $8 billion. The company provides banking, mortgage, private client, investment, insurance and consumer finance services to individuals and businesses. Heartland currently has 108 banking locations serving 85 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas and California. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.

7 program staffing factors

How many full-time equivalents (FTEs) are needed for Commercial Card program management? While this sounds a tad like a “light bulb joke,” it is an important question. A common measurement reported in industry studies is program manager/program administrator (PM/PA) FTEs per number of cardholders. This is just one small part and an industry average does not necessarily represent what is ideal for your organization. To evaluate whether your card program is appropriately staffed, consider the following seven variables. You might find that the issue is not a lack of staffing, but rather gaps or hurdles elsewhere within the program.

Factors to Evaluate

Any of these can change or evolve over time:

  1. Program goals: What purchases and suppliers are targeted? What is the actual or expected transaction volume? 
  2. Geographic locations: Are cardholders local only? Is the program operational in one country or more than one?
  3. Cardholder status: Besides the number of cardholders, it is worthwhile to consider their skills and turnover.
  4. Training: Do you conduct live training (in-person or virtual), or provide recorded training?
  5. Technology: What tasks are accomplished manually versus tasks supported or executed with technology?
  6. PM/PA aptitude: Is the right person or people managing the program?
  7. Special projects: What is happening that affects those who have a program management role?

What Could Require More FTEs

  • A wide range of targeted purchases and/or suppliers
  • High transaction volume
  • A geographically dispersed program, especially one spanning more than one country
  • Cardholders who do not grasp (or read) procedures, thereby needing more ongoing help 
  • A notable number of new cardholders each month
  • Live training for every new cardholder and/or manager
  • A high number of manual tasks (e.g., transaction auditing)
  • A PM/PA who is not well suited for the role, so others have to pick up the slack
  • Projects demanding extra time, such as a request for proposal (RFP) for a card issuer or technology provider, switching issuers, or implementing new technology (e.g., an auditing solution, different ERP system, etc.)

Some of these bullet points are naturally positive things, like a program that allows all sorts of purchases. Some are neutral and depend on other factors to make them positive or negative (e.g., live training might be fine until it becomes too time consuming due to a high number of new cardholders). Some are simply a drain on time (e.g., manual tasks). Nevertheless, the more that apply to your program, the more FTEs you will need.

Conclusion

In short, your current FTE number is likely appropriate if:

  • your program is meeting or exceeding goals
  • audit results are consistently acceptable
  • the program is well received internally
  • more time is spent on strategic program activities than on operations
  • the PM/PA has a manageable workload (yes, “manageable” is subjective, so it warrants a conversation with management)

Your organization invested time to implement a card program. Doing what is necessary to help it succeed should be a priority. Many factors are within an organization’s control, such as taking advantage of technology to streamline program management. No matter what is lacking in a Commercial Card program, ignoring issues increases the likelihood that your program will not achieve its full potential.

Finding the bullseye in your program management staffing level first requires evaluating many factors.

Finding the bullseye in your program management staffing level first requires evaluating many factors.

Virtual Workshop Opportunity

P-Card and ePayables Payment Strategies, a Three-part Series

Program management FTEs directly tie in with an organization’s overall payment strategy. Attend this virtual workshop to acquire key aspects of building a cohesive payments plan: 1) understanding the options, 2) assessing your card opportunity and devising a plan, and 3) working with suppliers. Learn more...

While this event is targeted at higher education institutions, the content is applicable and suitable for all types of organizations.


About the Author

Blog post author Lynn Larson, CPCP, is the founder of Recharged Education. With more than 15 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more

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