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Don't Shortchange Employees When It Comes to Equipment

Thursday, June 19 2008

Over the years, one of the not-so-positive traits I've observed about entrepreneurs is that you can sometimes be penny-wise and pound-foolish. I was reminded of this when reading an article in Monday's USA Today, which discussed a recent survey by In-Stat, a research and marketing analysis firm. The survey said that nearly 40 percent of employees bought the laptop they regularly use for business purposes and 43 percent purchased their own smart phone (such as a BlackBerry).

From the companies' point of view, this is smart business since electronics are expensive and they don't have to pick and choose which employees are provided for and which aren't. At first glance, that makes sense. No one would suggest you arm your entire staff with laptops, BlackBerrys, cell phones, or GPS devices. On the other hand, time is money and, for some of your people, having this equipment on hand would save them time and likely improve their productivity -- not to mention their attitudes and your bottom line.

Even when it comes to the more mundane devices like cell phones and GPS systems, most employers won't pony up. The In-Stat survey showed that 76 percent of workers either bought their cell phone themselves (remember, this is the phone they regularly use for business) or got it as a gift, and 92 percent used their own GPS or other navigational system. Beyond the numbers, many of the managers felt that since people aren't going to carry two phones or two laptops, if they were company-provided, the employee would also conduct non-work-related activities on their devices.

To me, this attitude smacks of the old days. You might think I'm referring to the 1950s and the glory days of The Organization Man, but really what I mean is feudal times. Seriously, this is about the haves and the have-nots. And even though the have-nots are traveling on your behalf, it seems some of you are worried they might play a game of Spider Solitaire on a 4-hour flight.

If I seem to be particularly sensitive to this issue, you're right, I am. At my last job I had to beg to get a laptop and a BlackBerry. The fact that I was traveling on company business and expected to keep in touch with my staff was lost on management for months. And the sales staff, many of whom covered multistate territories, had to wait even longer to get their Treos and Blackberrys.

I understand that times are tough, budgets are tight, and you business owners can't be spending willy-nilly. Certainly, there must be controls and rules put into place. But if you want to compete today, you need to arm your staff with the best arsenal you can. The problem, I think, is that many managers and business owners still consider electronics to be some kind of luxury item. They're not. They're business tools. You send your salespeople out with the proper marketing support materials, why wouldn't you also give them a navigational system?

This is not a one-size-fits-all situation. There's a difference between a company-provided cell phone (for which your business has to pay for the calls, some of which are just naturally going to be personal) and a laptop computer. There's a fixed cost to a laptop -- you don't pay per e-mail sent and received. It won't cost you more if your employee is also using it to write the great American novel at midnight. You need to assess the situation. What are you asking people to do? It's not about making your employees' lives easier. What you're really doing is making them more efficient and productive. Bill Hughes, an In-Stat tech analyst, told USA Today that "these [devices] do add value" and often cost far less than an employee's time. He added that the productivity boosts from equipping your staff usually outweigh the upfront costs.

There are some easy solutions here. Split the cell phone costs with your workers. It's likely easier if they buy the phone and you reimburse them for their business calls, rather than you trying to collect money from them. If you're in doubt, ask your employees how a certain device would boost their productivity. See if you can negotiate group discounts or corporate rates with your carriers and tech providers.

If you just can't swing it at this time, perhaps you can arrange for your staff to buy their own electronics through your usual store or vendor and get them at your company discount. Have your IT people load it with the appropriate work-related software. And point out that any electronics they buy for professional use are likely to be at least partially tax-deductible.

Employees who have to shell out their own money for electronics tend to become frustrated. In order to survive and even thrive in tough economic times, you need a satisfied, productive staff. Work with them to see how you can make that possible.


AllBusiness.com has just launched an "Ask the AllBusiness Expert" podcast and we want to hear from you. If you'd like podcast host Chris Bjorklund and me to answer your questions, call the "Ask the Expert" toll-free line at 1-877-49-EXPERT and leave us a message. Or you can just e-mail me at rlesonsky@allbusiness.com. I'm looking forward to hearing from you.

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Latest Comments in  posts

We switched to a web conference system a year or two ago and I initially hated it. There were just so many problems with it. For example, we always needed to keep an IT guy right there to fix any problems (of which there were many). For a lot of meetings, we didn?t even bother using the web system, and just stuck with our conference call system. This seemed to make the fairly expensive upgrade a wasted gesture.

Recently, we switched to a vastly better system and the difference was like night and day. We haven?t had a problem yet and the quality is much better than a phone system. Also, the RHUB system was more affordable and easier to use than our old one. This was the system we used, http://rhubcom.com, and I highly recommend it.
...
By: junker456 on 6/26/08 at 10:32 AM
Three years ago, my company was not very tech savvy. We had computers, but nothing really substantial. Well upper management went to a seminar with tech talk and how to save money. Not only did they get discounts from Dell and everything, but they also signed up for this organization called America's Best Companies. Here's their website, http://www.americasbestcompanies.com/

After doing some digging into finding out what they really do, they seem like one of those organizations that really cares about guys like us...A nice change of pace.
By: Max on 7/23/08 at 2:08 PM
Our company rents computer equipment nationwide and a lot of business will rent computers and try them out before upgrading or to find the right match before making a purchase. This might be an option to consider before making a purchase for some businesses and sometimes it can be deducted from the bottom line. We do short/long term computer rentals if this seems like it might be a solution for your business before purchasing. http://www.iccrents.com ...
By: Travis Melvin on 7/31/08 at 11:10 AM
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