Why Companies Should Sponsor Cell Phones

In trying to reduce the costs associated with company sponsored wireless phones, many organizations have opted to offer a stipend and have employees use their own devices. While the concept may seem cost effective, this decision can result in losses that far exceed any monies saved. Listed below are
a few examples comparing the cell phone stipend model with company sponsored cell phones. Knowing all the facts facilitates informed choices. Here are the facts:

The paramount reason the cell phone stipend model is dangerous is because privacy can be neither imposed nor ensured. This model is extremely vulnerable when it comes to HIPAA (Health Insurance Portability and Accountability Act) compliance as well as other alliances that demand confidentiality. The U.S. Department of Health and Human Services (HHS) Office for Civil Rights (OCR) recently revealed the costliest HIPAA settlement to date was a $4.8 million settlement involving New York- Presbyterian Hospital and Columbia University. The case was related to the disclosure of protected health information via an internet accessible device

Security remains another important benefit of company sponsored cell phones. If an employee requires a new phone or leaves the organization, the company can erase private information and keep it from being disseminated to the wrong people

Institutions and other organizations that provide cell phones to their employees can prescribe specific policies regarding the use of the phones, among them: prohibiting texting or calling while driving, restricting access to particular websites and monitoring specific applications. Companies using the
stipend model have little or no control over where, when and how the phone is utilized

When the stipend model is instituted, the extensive variety of wireless products on the market would necessitate personnel with the proficiency and time to manage each device and its capabilities appropriately. Obviously, this endeavor will save neither time nor money

A stipend will not eliminate the need to assist users. Even the savviest among them will find themselves technologically impaired when it comes to a work-related issue, particularly if that issue arises during a Candy Crush game

Today, there are reputable companies engaged in wireless cost management. They bring their leverage, knowledge and access to non-published pricing rates and other pertinent information to literally dissect and analyze monthly wireless charges and renegotiate your contract with your carrier to save your company money. Some of these companies offer contingency based pricing, which means you pay nothing until your savings are identified. Wireless phones are a crucial component when doing business in today's world. On the surface, the cell phone stipend appears a reasonably simple way to save money. On the other hand, a closer look at the risks associated with this model brings back to the old adage: If it seems too good to be true... it probably is.
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