Even worse, BYOD is supposed to mean that the employee shoulders the cost of the phone, but companies actually will end up paying for most of it. Consider this scenario, courtesy of Slate
When an employee dips into his pocket to buy a $200 subsidized iPhone from AT&T, the cheapest two-year contract is $85 per month for 1GB. Most, if not all, of this monthly bill will be expensed. Thus the company will end up paying $2,040 over two years.
It doesn't make sense for the employee to purchase a non-subsidized iPhone for $650 and hook it up to T-Mobile. Never mind that the monthly rate from T-Mobile sans a contract would be only $60 per month for twice the data, 2GB, totaling $1,440 over two years-or nearly $600 less than the subsidized iPhone on AT&T.
In essence, the company operating under BYOD is paying for the iPhone as the carrier subsidy finds its way onto the expense report.
Employee behavior costs: Employees like those at the aforementioned anonymous tech company aren't bad people. But employee behavior naturally tends to favor their own wallets. That is, they'll ask for the highest stipend and sign up for the biggest data plan so that they won't be hit with overage charges.
Also, BYOD employees will often try to use up their entire stipend every month, in order to get the most bang for the expensed buck.
While Intel puts a lot of trust in its BYOD employees, others will use technology to watch employees. Schofield has seen many cases where globe-trotting employees expensed mobile bills worth thousands of dollars under the BYOD policy that went through because no one was watching.
The trick is to get employees to think about BYOD smartphone usage pragmatically, which includes finding a realistic plan to match their use case and taking the time to look for free WiFi spots, especially when overseas. But that's hard to do.
"A BYOD employee will tend to over-purchase," Schofield says. "You have to set boundaries."
Expense reporting costs: On the topic of expense reports, Aberdeen Group released a report earlier this year that found a typical mobile BYOD environment costs 33% more than a well-managed wireless deployment where the company owns the devices.