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A new Gartner report predicts that about half of the world’s companies will enact BYOD programs by 2017 and will no longer provide computing devices to employees. This way, the popularity of BYOD among enterprises becomes obvious.
Today a problem of BYOD reimbursement by enterprises is coming to the fore. Employees expect some compensation for the use of their personal devices at work. David Willis, the Gartner analyst, writes, “Workers with an essential need to use a mobile device in their business expect to be compensated for its use, just as companies typically reimburse for the incremental cost of mileage and travel expenses”. Thereby, companies should make it clear how much of their users’ mobile bill they intend to cover.
Many companies have started to focus heavily on the financial aspects of BYOD, namely developing a strategy for acceptable compensation of BYOD. In this blog, we are presenting you with some of them.
Fixed amount
This approach is certainly the easiest. Users receive a fixed amount of compensation usually on a monthly basis which defrays the expenses of work on their devices. The organization tries to establish a fixed monthly rate. Usually the company pays from 35% to 50%. A significant advantage of this strategy is the simplicity of the approach.
Fixed percentage
This approach differs slightly from the fixed amount approach. Due to the assessment of the balance between personal and professional use of the device, employees are paid a certain percentage of their monthly wireless bill. This strategy is more flexible, and at the same time a certain level of uniformity is maintained. However, a complexity of such a strategy is that organizations need to constantly check each user’s mobile bill to know how much their employees should be reimbursed.
Variable percentage
This approach assumes the organization and employees agree on what percentage of monthly end-user costs is work related. This strategy works in companies with a small staff.
Actual use
There are programs to track each usage event as either business or personal. This strategy is good for organizations with increased control and a need to audit mobile expenses at this level.
Thus, BYOD reimbursement approaches give a possibility to minimize opportunities for disagreement. Organizations should carefully review and approve the parameters of any plan, both to reduce overall expenses and to make sure the company isn’t prone to excessive reimbursement payments.
