Technology stipend: What it is and how it works

One of the best ways to support your remote employees is by providing them with a technology stipend to help cover their digital needs.

This is especially helpful for those who cannot afford technological devices or who lack the extra funding to cover the expenses.

Continue reading this article to learn more about how a technology stipend works and how it can benefit your business and employees.

What is technology stipend?

A technology stipend is a form of financial support provided by employers to their employees. These funds help cover the employee’s technological expenses and needs.

Depending on the company’s capabilities, a stipend can be offered as a one-time payment or on a regular basis, such as monthly, quarterly, or annually.

A technology stipend can cover a wide range of technological hardware, such as the following:

• Computers
• Smartphones
• Keyboards
• Mouses
• Monitors
• Webcams
• Laptops
• Headsets
• Printers

In addition, a technology stipend can cover the costs for upgrading or repairing hardware.

Apart from physical devices, a technology stipend can also cover software subscriptions, online services, and internet connection.

How does a technology stipend work?

The company starts by creating a stipend program or policy that outlines all the relevant details, such as: 

• How much is to be given to each employee?
• How often the amount is to be given?
• The return or reimbursement policies.
• What specific equipment is deemed acceptable to purchase?

Once all details are ironed out, the employer sends the necessary amount to the employees.

It is up to the employees to determine the specific device and brand they would like to spend on. The equipment must be used for work-related purposes only and in line with what is stated in the stipend policy.

Other times, the money provided is only allowed to be used for the designated purpose. For example, if a company provides funds for internet access, the employee may not spend it on anything else.

Benefits of a technology stipend

A technology stipend has several benefits that could make your employees’ remote work setup better and more efficient.

Boosts productivity

When employees purchase their own equipment with the money from the stipend, their workstation becomes more conducive to getting work done.

This results in an increase in productivity and employees feeling more comfortable in their own ideal work environment. They can also work knowing that they do not have to buy equipment using their own money.

Promotes fairness

The equity theory states that people are inherently driven by fairness and equity, which are crucial in maintaining happiness and satisfaction.

A technology stipend helps promote fairness by ensuring all employees are financially supported. 

Moreover, a company that provides technology stipends ensures that all employees receive the same amount of compensation for their technological needs to keep it fair for everyone.

Attracts candidates during recruitment

Attracting new talent during the hiring process is not an easy process, so companies must pull out all the stops in order to find new hires.

One of the ways to do that is by offering technology stipends as part of their compensation plan when recruiting.

Stipends are a good way to convince a potential employee to apply to a certain company. It shows a certain level of trust and dependability that the company is willing to support the employee financially.

Increased employee trust and retention

Employees like to feel taken care of and valued by their company and a technology stipend is one way to help achieve this.

Providing financial assistance to your employees, especially when they are in need of it, is a great way to gain their trust and make their stay at the company better.

Having a trustworthy employer who looks out for employees is one of the keys to improving employee retention and increasing satisfaction.

Examples of technology stipends

Companies everywhere are offering or have offered their employees stipends, whether for technology or otherwise. 

Here are some examples:

Summit CPA Group

Summit CPA Group gives its employees $3000 on a prepaid business card, plus an additional $2000 a year afterward. This money is used to help cover any technology-related needs, such as broken equipment or repairs. 

Shopify

The pandemic made it difficult for everyone to adjust to a work-from-home setup, but Shopify made it easier for its employees by offering a $1000 stipend for office supplies. This helped smoothen the transition from on-site to remote work.

Noom

Noom’s helps people develop healthier habits and make better choices in areas such as nutrition, exercise, and overall well-being.

This company provides employees with a $1000 tech budget to create and design their work-from-home setups. 

Buffer

Buffer supplies employees with an annual $200 technology stipend plus an additional $500 as a one-time payment to set up their home offices. It also pays its employees’ internet costs.

Chegg

Chegg is an American education technology company that provides various online services to students. It provides a work-from-home and technology stipend worth $300 at the start of March 2020, but has recently bumped it up to $500.

Is a technology stipend necessary?

A technology stipend facilitates access to essential digital tools. It fosters an environment where individuals can harness the full potential of technology for personal and professional growth. 

By providing financial support for necessary devices and software, a technology stipend contributes to inclusivity. It ensures that everyone has the means to participate fully in the digital age. 

Embracing such initiatives reflects a commitment to bridging the technological divide and empowering individuals to thrive in an increasingly interconnected world.