Why should you offer a mobile phone to your employees?

Increase employees’ productivity and flexibility

No matter whether you work for an SME or big company, having a team of happy and productive employees is a priority for your business success.

Providing an employee with a company mobile can be seen as the first step in a move to offer more flexible working arrangements. ACAS suggests that offering flexible working to employees can help recruit and retain staff, and can reduce absenteeism amongst others.

In addition, replying to work e-mails, taking important calls before and after traditional work hours can be done quickly and easily with a company mobile. Sometimes it’s important to close a deal, tie up a loose end.

Improve internal communication

Managers and Professionals use mobile devices not only for basic tasks such as email, text and calls, but they also access to more sophisticated apps.  Another advantage that Mobile Phones have on staff productivity is that they help to improve internal communication.

For instance, an increasing number of Managers are using Whatsapp as a tool to communicate with their employees. A recent study of Ohio State University found that instant messaging has a positive effect on productivity.  Whatsapp can be used to send out weekly newsletters, to exchange information between teams and departments and to share news and updates. A WhatsApp group chat can also come in handy when a team member heads out of the office for a meeting with a prospect and forgets bite-sized but critical information.

Tax-free mobile phones for businesses

Since 1999 mobile phones have been one of the most popular tax-free benefits employers could give to their employees. The HMRC clearly states that employers don’t have to report anything to HM Revenue and Customs if the following conditions are met:

• The employer provides its employees with only one mobile phone or SIM card
• the phone contract is between the employer and the supplier

Cheaper than a pay rise

In any environment, perks can be an excellent way of adding value to employees and keep them motivated when salaries are frozen. However, lots of companies find difficult to choose the right perk for their employees.

Mobile Phones are often seen as the perfect solution for business who want to reward their employees and keep costs down.

Example: An employee who earns £43,000 per annum

If a Business wants to offer a pay rise of £500 to its employee, it would have to pay 40% tax on this as it would push them into the higher rate tax bracket.

Consequently, a £500 pay rise to the employee would only equate to a net increase of £300 per year or £25 per month, equal to the average cost of a retail mobile tariff.
Therefore, the cost that the company has to bear for a single pay rise would be over £47 per month including National Insurance.

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