New Syntonic-ISG Employer Survey Finds US Businesses Overspend More Than $2.6 Billion Annually on BYOD Reimbursements

SEATTLE, Sept. 20, 2016 /PRNewswire/ -- Syntonic, a mobile platform and services provider, today issued the results of an in-depth, first-of-its-kind enterprise employer survey, conducted on its behalf by Information Solutions Group (ISG), titled "Syntonic 2016 Employer Report: BYOD Usage in the Enterprise." In the report, nearly 60% of respondents acknowledged having a formal BYOD (Bring Your Own Device) policy, and a significant percentage of companies (69%) are actively reimbursing employees for work-related usage of their personal smartphone. According to the findings, one of the key drivers for implementing a BYOD policy is to increase productivity (43%), but respondents went on to express concern over new compliance hurdles and reimbursement overcompensation. When it comes to internal ownership of the program, CIO's, CEO's and CFO's are struggling to identify which management stakeholder should oversee BYOD programs.

Key findings of the survey are as follows:

BYOD Critical to Productivity; Better Visibility into Employee Mobile Usage a Must
On the bright side, the majority (87%) of companies rely on providing employees with access to mobile business apps from their personal smartphones, and claim business productivity would be impacted if BYOD was not available. An area of improvement for leadership is around the management of mobile investments and gaining better business intelligence.

• On average, 68% of companies estimate employees use their smartphone at least four hours per week outside the office, with 20% estimating at least eight hours of usage per week.
• Almost a third (29%) of companies reported that one of the reasons they created a BYOD program is to better understand how personal smartphones and mobile applications are used within the company.

Compliance Concerns Lead to Overcompensation
Among organizations with a BYOD policy, more than two-thirds (69%) currently reimburse employees for work-related use of their personal smartphones. When asked about the primary drivers for reimbursement, 36% of employers named compliance as a motivator. Enforcement of labor laws, such as Cochran v. Schwan's Home Service in California, which require employers to reimburse employees for work-related usage on personal devices, are putting pressure on leadership to implement reimbursement programs. However, the current reimbursement policies are both inefficient and lead to severe overspending.

• Roughly half (47%) of companies that reimburse for BYOD pay a fixed monthly stipend, and nearly one-third (29%) require employees to manually calculate reimbursement amounts and submit an expense report.
• 45% of CEOs are extremely concerned about the recent ruling in Cochran v. Schwan's Home Service, which requires companies to reimburse employees for work-related use of their personal smartphone.
• In states like California and Massachusetts where employers are required to reimburse employees because of existing labor law, 29% of companies are not even aware of their compliance responsibilities.

Lack of Awareness: Split Billing
According to the Syntonic-ISG research, nearly one-third (32%) of enterprises agree that the primary reimbursement related challenge is calculating the correct amount and the fees associated with processing expense reports. Other findings include:

• Employers are reimbursing an average of $71.40 per employee, per month.
• Only 5% of employers have implemented an expense reimbursement solution to compensate employees for work usage on personal smartphones.
• 50% of the enterprises recognize the value of split billing software to facilitate a better understanding of employee smartphone usage.

Issues with BYOD Management are a Function of C-Suite Chaos
The survey uncovered indecision on which office should manage the corporate BYOD program – 79% of CEOs believe they should manage the organization's BYOD program, while both CIOs (73%) and CFOs (51%) say ownership should rest with IT or the CIO role.

• Disagreements must be resolved soon because BYOD is still on the rise, with 77% of enterprises expecting smartphone usage at work to increase even further over the next 6-12 months.
• IT roles (83%) and CEOs/COOs (81%) are more optimistic about the growth of BYOD in the next 6-12 months, than CFOs (68%)

"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 CEO of Syntonic. "However, the results also indicate that business leaders are struggling to keep up with both the technical and corporate implications of BYOD. 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. It's also clear from the survey that businesses are highly dependent on mobile data but remarkably lack understanding about how mobile data is being used within the enterprise. And, while there may be a difference of opinion on internal BYOD ownership, the good news is that program adoption continues to grow."

This research was conducted by ISG in the summer of 2016. The results are based on 409 online surveys completed by members of the world's leading independent online panel and survey technology provider in the US. To qualify for the survey, individuals must work for a company with more than 100 employees, require or allow employees to use their personal device for work, and have a job title/function of CEO, COO, CFO, CIO, or other executive positions that require decision-making. To download the full report, click here.

An additional report detailing employee attitudes around BYOD usage, reimbursement and split billing will be issued this Fall.

For more information about the report or Syntonic DataFlex, click here.

About Syntonic
Syntonic (SYT.ASX) is a consumer and enterprise mobile platform services company that is transforming the mobile Internet with modern business and usage models that are appropriate for application-centric smartphones. Syntonic's Connected Services Platform™ supports both consumer sponsored content solutions and split-billing for corporate Bring-Your-Own Device (BYOD) deployments. Founded in 2013, Syntonic has developed worldwide strategic partnerships with leaders in the mobile ecosystem. To learn more about Syntonic visit www.syntonic.com.

About ISG
Since 1994, Information Solutions Group (ISG) has provided a variety of market research solutions that enable our clients to gain an in-depth knowledge about their customers, members, competitors and markets.  ISG specializes in providing its clients with full-service market research programs designed to enable organizations to make sound strategic decisions.  Our services include a wide range of custom research and analysis solutions for consumer, business-to-business and not-for-profit organizations. 

ISG uses online, telephone and mail survey methodologies and provides design, implementation and analysis services in the North American, EMEA and Asia Pacific markets.  Our services include market segmentation, customer satisfaction measurement, product development, public relations, competitive performance and pricing research.  Examples of the type of information ISG delivers can be obtained at www.infosolutionsgroup.com

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