Cell Phone Stipends for MFA in the Workplace
A quick and easy way for organizations to improve their security measures is to implement multifactor authentication (MFA). It adds an extra layer of security to employees’ accounts, making it harder for bad actors to access sensitive company data.
However, the decision to implement MFA often leads to another debate: Should the organization provide a cell phone stipend to employees required to use their personal devices for MFA?
There are arguments for and arguments against paying employees a stipend, and we’ll discuss those points and things to consider before implementing any form of compensation.
When making a decision, the most important thing to think about is: Is having a phone for work a requirement, a privilege or something in between?
- Requirement: Mandatory use of personal devices for company access.
- In Between: Encouraged use with support but not mandatory.
- Privilege: Optional use of personal devices for enhanced security.
Argument For Providing a Cell Phone Stipend
- Cost-shifting Unfairness
When an organization requires employees to use their personal devices to log in to work accounts, it shifts some of the operational costs to the employee. Because it is mandatory and not optional, the argument could be made that the employer should compensate the employee fairly.
- Security Risks
Employees almost always use their personal devices for tasks beyond company business, which poses a security risk to both personal and company data if MFA is not enabled. By providing a stipend, an organization can claim it as an investment in securing both personal and company information more effectively.
- SMS/Data Consumption Costs
If MFA is implemented through SMS text message, employees on limited talk and text plans will be charged a fee if they go over their plan’s texting limit. An organization could offset this by using an application to deliver MFA prompts. However, unless the employee is always on Wi-Fi, using an app consumes data, which could be an issue for employees on limited data plans. Providing a stipend would help employees offset any costs incurred by going over their plan’s limit.
- Legal Considerations
There is no federal law that states an employer must reimburse an employee for . However, some states do have laws requiring an employer to reimburse an employee for any costs they incur related to their job. Offering a stipend allows an employer to navigate around potential legal issues.
“There are a lot of factors to consider when deciding whether to implement a stipend to pay for employees’ phones. Discussions between an organization’s management team and its employees could help dispel concerns on both sides.”
Argument Against Providing a Cell Phone Stipend
- Minimal Impact
The data consumption that enabling MFA requires could be considered negligible, especially if the employer provides free Wi-Fi in the office. This would eliminate the need for employees to use their own data.
- Alternative Solutions
There are other ways employees can use MFA without using their personal devices. An organization could use hardware tokens or work phones solely for authentication purposes, which do not require the use of a personal device.
- Personal Responsibility
As an employee of an organization, they are responsible for their own security hygiene. Essentially, they should take the necessary steps to secure their access, which involves implementing MFA on their personal devices.
- Complexity in Execution
Managing a stipend program comes with its own set of issues. An organization might decide the perceived benefits of running such a program do not outweigh the complexity of implementing it, especially if some employees qualified but others do not.
As you can see, there are a lot of factors to consider when deciding whether to implement a stipend to pay for employees’ phones. Discussions between an organization’s management team and its employees could help dispel concerns on both sides.
Below, you’ll find a table that quickly summarizes the considerations for paying a stipend and whether your employees fall in the requirement, privilege or in between categories.
Requirement | In Between | Privilege | |
Cell Phone Stipend | Justified as compensating for mandatory operational costs shifted to employees. | Could be offered on a case-by-case basis | Not necessary, as it's an employee's choice to use personal devices for work. |
Operational Costs | Borne by the organization to ensure compliance and security. | Shared; organization might partially cover costs | Borne by the employee |
Legal Considerations | Strong argument for stipends | Mixed | Weaker argument; Using a personal phone is optional |
Employee Perspective | Seen as fair compensation for an additional work requirement. | Recognized as a supportive measure that respects personal choice while promoting security. | Viewed as an extra benefit or perk, not a necessity. |
West Michigan Managed Service Provider
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