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Table of Contents

Choose Your Own Device (CYOD)

  • November 18, 2024

What is ‘Choose Your Own Device’

Choose Your Own Device (CYOD) is a service that allows employees to choose their own IT equipment that best suits their working tasks and needs.

The company selects the standard products within their budget they want to offer their employees. If the employee wants to upgrade their equipment, they can pay the difference directly from their gross salary.

With ‘Choose Your Own Device’ companies can easily provide the right IT equipment without additional costs and administrative work, allowing them to focus on their core tasks while employees get the equipment they need.

This means the company avoids the hassle of purchasing IT equipment. Time-consuming ad-hoc tasks are replaced by a solution that gives employees the responsibility to choose their desired equipment that supports their tasks and needs. ‘Choose Your Own Device’ is therefore an ideal solution for both HR and IT managers.

HR Benefits of 'Choose Your Own Device'

These benefits can help the HR department promote a positive workplace and support the company’s overall goals:

  • Employee Satisfaction: Allowing employees to choose their own equipment increases satisfaction, as they feel more valued, which can lead to higher engagement and motivation at work.

 

  • Flexibility and Productivity: With the option to select the right equipment, employees typically work more efficiently, comfortably, and with greater focus. CYOD can therefore result in better performance and fewer technical obstacles.

 

  • Attractive Workplace: Offering options like CYOD can serve as an attractive incentive, improving retention of current employees and strengthening the ability to attract the right candidates.

IT Benefits of 'Choose Your Own Device'

The IT department saves a significant amount of time by not having to collect employee preferences regarding the equipment they want. They also save time on ordering and setting up devices, as these tasks are handled by the employees themselves.

  • Reliability: As the IT manager, you get a complete overview over the employees and their associated equipment. Devices can be selected and customized to ensure they are always modern and up-to-date, which can improve performance and security. If a device is no longer in use, it is also the employee’s responsibility to return it.
  • Easier Budgeting: With CYOD, IT managers find it easier to budget for equipment and allowances. Employees handle their own upgrades, and by paying for part of the equipment themselves, CYOD helps reduce hardware costs and maintenance.

Employee Benefits of 'Choose Your Own Device'

Overall, CYOD can lead to greater employee satisfaction and motivation, which often results in better outcomes for both the individual and the company. Other benefits include:

  • Increased Productivity: The ability to choose their own equipment boosts the employees’ efficiency and work quality, while also enhancing their engagement and sense of ownership over their devices and their work.
  • Flexibility and Comfort: Employees can select devices that suit their preferences and work needs — whether they primarily work in the office, on the go, or from home.

How 'Choose Your Own Device' Works

In practice, CYOD functions as a subsidy for IT and work equipment provided by the company to the employee.

If the company offers work phones, they can provide a subsidy for selected models that fit within the budget. If an employee wishes to upgrade to a better model, they can pay the difference through their gross salary. This makes it cost-free for the company and gives the employee a discount on a newer phone.

If an employee wants a product that the company does not offer a subsidy for, the company can set up a gross salary scheme, where the employee pays for the product through their gross salary — read more about gross salary schemes here

Choose Your Own Device with Cash Purchase or Leasing

There are two key factors to consider when choosing a CYOD solution:

  1. How long the product will be used by the employee before it needs to be replaced.
  2. When the employee has the opportunity to become the final owner of the product

A CYOD solution can run for 12, 24, or 36 months, with the most common option being 24 months.

The duration of the CYOD solution can impact the company’s liquidity, depending on whether the solution is combined with a cash purchase or leasing.

With leasing, the company has no additional costs each month, as the increased leasing fee is deducted from the employee’s salary.

With a cash purchase solution, the company must be aware that it covers the cost difference during the period the employee has the equipment. If the employee upgrades to a model that costs an additional 5,000 DKK, the company will only recover this amount in the budget over a longer period, depending on the duration of the CYOD solution.

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