An Industry View of BYOD & the Cass Solution
The Drawbacks of Expense Reports for BYOD Reimbursement
When companies use expense reports to manage BYOD reimbursements, they can expect to see a rise in costs to process expenses. CIO.com cites this problem in a recent article on BYOD, along with other drawbacks of using expense reports:
“In the earliest days, employees filed expense reports to get the BYOD payment, or reimbursement. It was a method riddled with problems. For instance, a globetrotting executive might file an expense report chock full of international roaming charges that add up to thousands of dollars over the course of a year. Some employees expensed entire family plans. Others signed up for and expensed maximum data plans even though they didn't need them.
"These faulty and costly expense reports fall through the cracks because finance often doesn't have a system to monitor and flag them. Without an automated system, finance simply doesn't have the manpower to go through each expense report separating business calls from personal ones. Even direct managers don't have that kind of time to spend on expense-report approvals.”
The Drawbacks of Reimbursement through Payroll
“In many cases, the employee receiving the stipend has to pay taxes on it,” says CIO.com. "Additionally, the employer may incur payroll taxes on the stipend amount."
The Advantages of the “Novel” Cass BYOD Solution
“. . . . Nationwide, with 7,000 people, chose the Cass system, an expense management system with an interesting method of doling out BYOD payments. Cass has relationships with major wireless carriers and issues payments directly on an employee's phone bill in the form of a credit. There's no expense reimbursement, no paycheck stipend."
“Cass's tiered payment system is also pretty novel.” The Cass approach allows the employer to create tiered levels of reimbursements. For example, at one company that uses the Cass solution, “BYOD employees fall into one of five categories:
- A tier-0 employee does not get any reimbursement
- A tier-1 employee rarely needs to be contacted outside the office and receives $35
- A tier-2 employee spends about half the time outside the office and receives $50
- A tier-3 employee is typically a salesperson and receives $75
- A tier-4 employee has a fully paid corporate phone
“With Cass, companies manage their BYOD workforce from beginning to end. New employees get assigned a tier by managers and enroll in the BYOD program over Cass's web portal. Employees who leave the company are removed from the system and no longer receive a credit on their wireless bill. An employee who gets promoted or whose role changes can be assigned a different tier.”
Referenced from CIO.com
The excerpts above are from the June 23, 2014, CIO.com article “BYOD Stipends May Soon Go Away (If IT Gets Its Way).” Author Tom Kaneshige discusses whether or not BYOD payment reimbursements will exist in years to come, given that some companies have chosen to withdraw reimbursement for home office WiFi use. Given the prevalence of BYOD reimbursement today, however, the author makes some very astute points about today’s BYOD management concerns related to reimbursements and the Cass solution, which he considers, “very novel.”
The Critical Nature of BYOD Reimbursement
For large enterprises concerned about protecting secure corporate networks and valuable intellectual property, Cass believes stipends are a best practice because they provide an incentive for employees to register their devices with their employer. With such visibility to the employee’s devices and usage, the employer can enact appropriate security controls. Both security threats and technologies change. The last thing employers want is to be unaware of “underground” employee devices.
BYOD Policy eBook: Get the 8-Point Guide
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Cost Strategies for BYOD
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