While smartphones have become increasingly important to workforce productivity and flexibility over the past two years, most businesses continue to take the Bring Your Own Device (BYOD) approach instead of providing smartphones to their employees. But a new study from Samsung and Oxford Economics finds that BYOD can cost businesses in the long run — reducing their business agility, reducing data security, and negatively impacting revenue growth and employee turnover. Affect.
As part of the Maximizing Mobile Value study, Oxford Economics surveyed 500 US executives and 1,000 US employees in small and medium-sized businesses to better understand how mobile technologies support the workforce. The study found that while smartphones are considered essential to worker productivity, only 15 percent of businesses surveyed provide phones to all their employees. When asked why they are not offering smartphones, 95 per cent cited cost as an important factor.
However, when assessing the actual investment in supporting smartphones, the study found that BYOD is saving businesses far less than they expected. Specifically, companies that adopted the BYOD approach paid an average stipend of $40.20 per month to compensate employees for using their personal phones for work, compared to mobile service plans for companies that issued smartphones to employees. The cost was an average of $42 per month.
When considering the upfront cost of equipment, management overheads and software, BYOD saved businesses an average of $340 per employee per year, but at the same time hindered their ability to leverage mobile to boost productivity and transform workflows. Occurred.
“Executives understand that they are not getting the most out of smartphones, but there are many puzzles over how to do so,” Terry Robinson, managing editor of technology at Oxford Economics, said, “Our research shows that organizations that have more mature mobile policies are better positioned to manage the future of work, increase productivity, improve employee satisfaction, and remain competitive.”
“We think businesses need to look at mobile devices and applications as a driver of productivity and business transformation, not a cost avoidance,” Chris Balsik, Head of Mobile B2B at Samsung Electronics America, said. “When mobile is used effectively, employees can collaborate more effectively anywhere, securely access important business data, feel more empowered, and enjoy greater flexibility and productivity.” can integrate life and work.
The impact of BYOD on business agility and development
The Maximizing Mobile Value study uncovered significant disparities in workforce productivity, mobile maturity, and even broader business fundamentals between companies adopting the BYOD approach and those issuing devices to some or all employees.
- 34% of companies adopting the BYOD approach believe they lag behind when it comes to mobile maturity, more than twice the rate of organizations issuing smartphones to some or all employees.
- BYOD organizations deploy fewer business apps (5.1 to 7.9), and feel that smartphones are less important for “decision-making agility and speed” (56 percent to 63 percent) and in providing “customer service and satisfaction”. play a lesser role (48 percent to 55 percent)
- BYOD companies are also leaving mobile data and apps vulnerable: Only 40 percent have mobile device management (MDM) devices, compared to 93 percent for organizations that issue devices to all employees.
- Finally, issuing smartphones to employees is related to higher growth and lower employee turnover rates. For smartphone-issuing organizations, 53 percent reported an increase of 5 percent or more over the past three years, compared to 45 percent for BYOD companies. Their annual turnover rate was more likely to be less than 10 percent – 51 percent, compared to 37 percent for BYOD organizations.
To help businesses better understand their total investment in employee mobility, Samsung has created a mobile cost calculator that is based on industry benchmarks from the study. Businesses can input their current costs and compare them to other organizations of similar size and industry. For an in-depth look at the actual costs of BYOD, download the Maximum Mobile Value Study.