Enterprises overspend on BYOD reimbursements by $2.6 billion each year, says report
Bring Your Own Device (BYOD) policies have become increasingly more popular in enterprises as a way to increase productivity, save money, protect information and reduce risk. According to an enterprise employer survey released today from mobile platform and services provider Syntonic, 59 percent of enterprises surveyed has a BYOD policy, with 69 percent actively reimbursing employees for work-related use of their smartphone.
“BYOD is quickly becoming an established policy in the enterprise with nearly 81% of companies in the United States supporting BYOD today or planning to within the next 12 months, as identified by our survey,” said Gary Greenbaum, co-founder and chief executive officer of Syntonic, in a press release sent to SiliconANGLE.
The survey, which was conducted by Information Solutions Group, shows that more and more enterprises are looking to implement a reimbursement policy to keep employees happy and attract new ones, but also to ensure compliance with labor laws. Cochran v. Schwan’s Home Service in California requires employers reimburse employees for work-related usage on personal devices. However, in an attempt to implement these policies, the survey found that enterprises are overspending due to lack of awareness (36 percent) and time (34 percent).
Of the companies surveyed who offer a reimbursement policy, 47 percent provide employees with a fixed monthly stipend. While 29 percent have employees submit an expense report based on a manual calculation of work-related smartphone use. Enterprises site the biggest challenge when it comes to reimbursement is calculating the correct amount to pay each month.
On average employees are reimbursed $71.40 each month. Of the enterprises surveyed, only five percent have implemented an expense reimbursement solution. Four out of 10 had never heard of split-billing solutions.
“We were surprised by how much is being overpaid in reimbursement costs due to a sheer lack of awareness and pressure to comply with labor laws,” said Greenbaum.
The survey also found that there was confusion regarding who should be responsible for the BYOD program, with 79 percent of CEOs believing they should manage it. On the other hand CIOs (73 percent) and CFOs (51 percent) believe ownership of the program should reside with IT or the CIO role. Decisions regarding BYOD programs will need to be resolved quickly as 77 percent of enterprises expect smartphone usage at work to increase over the next 12 months.
Image credit: niekverlaan; Pixabay
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