An equipment stipend* is a sum of money given to employees for them to use to purchase equipment to make working easier and more productive.
*These are not to be confused with remote work stipends which are another form of work stipend for employees that include other items like internet, office plants, etc.
Further details on what they are:
Sometimes referred to as a technology stipend in the tech world.
While some companies offer these to their on-site employees, they are mainly used for people who work from home and do not get the traditional desk set-up that most in-office people get.
Some companies are transitioning over to equipment stipends so that people can buy everything they need (beyond a desk and chair), like a computer, monitor, mouse, etc. This allows people to personalize their work experience to their preferences and needs.
Equipment stipends can be given out on a one-time basis, or a monthly, quarterly, semi-annual, or annual cycle.
Below are a few examples highlighting the unique approaches.
1. Shopify
Shopify gave their people $1,000 at the beginning of COVID to buy office supplies to help ease the transition of working remotely amid the coronavirus outbreak.
2. Smartsheet
During the COVID-19 pandemic, they have given each employee $500 to expense items to get their work-from-home office/desks set up.
3. Lively
Employees can spend up to $200 on pre-approved equipment to improve their WFH setup.
4. Chegg
Located in SF, their WFH equipment and tech stipend was at $300 from March 2020 to the beginning of May, but it was recently bumped up to $500.
5. Summit CPA Group
Summit CPA Group gives new team members a $3,000 technology stipend that’s put on a prepaid business card, and then they provide $2,000 a year afterward. These funds are used to cover any broken equipment or equipment which needs to be updated.
Lastly, there are many many more examples of companies doing this successfully. If you want to hear what our customers are doing, we’re happy to advise. Click here to talk with a perk stipend expert.
What Items do People Purchase with an Equipment Stipend?
Monitor
Chair
Desk
Monitor riser
Laptop stand
Standing desk topper
Mouse and/or keyboard
Noise-canceling headphones
Adapter/cords to connect the above items to your laptop computer
Work gear like steel-toed boots, batteries, etc.
Curious what else you can offer with an equipment stipend?
Your people will purchase the items they genuinely need to make their remote work life easier and more comfortable. When people's backs aren't hurting from sitting in their dining room chairs for eight hours, they can better focus on their work.
Increased trust
When you give your people an equipment stipend, it shows you trust them to do what's best for them and the company. Many companies find that their employees appreciate the program and very few take advantage.
Equitable
When you roll out an equipment stipend to your people, you aren't picking and choosing a few people to support (the squeaky wheels), you're supporting your people in a fair, equitable, and inclusive way.
Scalable
If you use software for managing your equipment stipends, you set up a scalable solution that won't bog down HR, finance, and IT. The right software can help you increase your team's efficiency.
Learn more about the benefits of lifestyle benefits.
Download the free guide to find out why perk stipends and lifestyle spending accounts have become the most desirable new perk for employers and employees alike.
If you choose this option, be prepared to set up a process to track purchases, receipts, balances, approval, and paid-out perks, as well as rejections or ones which need further review. Consider using Google forms to track submissions, excel, or Google sheets to track progress, and be sure to create a process to track the nontaxable vs taxable (for IRS compliance).
Select expense software to manage it.
Expense software solutions like Expensify and Concur are largely meant for business expenses like this and can be very helpful for an equipment stipend.
If using this option, make sure every employee has access to your company's expense software option.
This is the ideal option if your IT team is managing the process.
Or select stipend reimbursement software to manage it.
Stipend program solutions have become more common and are essential as companies compete for talent in a tight labor market and try to retain dispersed teams.
This kind of software can be especially helpful if it communicates your program to your team members and tracks their balances and spending.
With this option, there is less lift for HR, IRS compliance for finance, and flexibility for employees!
Other types of stipends
In addition to equipment and tech stipends, there are other types of stipends that companies offer their people as part of their lifestyle benefits. These types of stipends or allowances make it possible for companies to offer more perks, with less money, and ensure that they're personalized to meet the needs of their people.
General perk stipend: Companies combine one or more of the stipends above together to create a general perk stipend that allows employees to pick from many spending categories. The example below shows Sam's stipend which includes the learning, health, and food categories.
Sarah Bedrick
Chief Marketing Officer
Prior to Compt, Sarah worked at HubSpot for 6+ years, where she helped to build, scale, and grow the HubSpot Academy division. She is obsessed with understanding what makes a company culture great, being a career and life coach to people in tech, and creating cherished memories with her husband and two young kids. Her favorite Compt stipend category is Health & Wellness.
See how Compt is helping companies like yours
Comments from HR leaders about why they love using Compt for their Equipment & Remote Work Stipends
Compt has been instrumental for us to be able to increase employee satisfaction and utilization rates far higher than we could have ever achieved with our old perks approach.
Melissa Salcius
Director of People Operations, Fictiv
Compt helps our team members to be aware of the stipends that we're offering and empowers them to make the choices that make the most sense for them and their loved ones.
Melissa Theiss
Head of People Operations at Column
It’s been a really easy and fun way to offer perks to our employees, which has added to the experience our employees are having. It’s low lift on the HR side which goes a long way with employees.
