Remote employee stipend: What you need to know

A remote employee stipend is an effective way to financially support your work-from-home (WFH) team. It allows both employers and employees to save on costs for equipment and furniture.

A survey by Owl Labs revealed that 21% of employees listed remote employee stipends as one of their top 3 benefits.

Continue reading this article to learn more about remote work stipends and how they can benefit your company.

What is a remote employee stipend?

A remote employee stipend is a form of financial support or assistance that an employer provides to their employees. It is used to purchase items and cover expenses incurred while working remotely.

The amount the employer provides and what it can cover can vary depending on what the employee needs and how much can be provided for everyone.

Examples of a remote employee stipend

A remote employee stipend can cover anything work-related. Here is a quick breakdown of the possible options.

• Furniture – This includes ergonomic desks, chairs, and footstools to prevent work-from-home fatigue, muscle pain, and skeletal problems like carpal tunnel syndrome or tendonitis.
• Lighting – If the WFH staff’s work area does not allow natural light, a remote stipend could cover the expenses for lamps and desk lights to prevent eye strain.
• Hardware – A stipend helps employees save up on physical devices like computers, laptops, headsets, or printers.
• Software – Employees must have access to the necessary work-related software as well, which can be covered by a remote stipend.

Advantages of a remote employee stipend

A remote employee stipend has several advantages that could make a difference in your employees’ lives.

Cost savings

Working in a physical office can be expensive. Owl Labs estimated that employees spend around $862 per month. Meanwhile, remote employees can cut down their expenses by around half, spending around $431 per month.

Working from home allows employees to save on travel costs and have the necessary funds to cover their work-related expenses.

Boosts productivity

Employees can use their stipends to create their ideal work environment and choose their own work equipment. They also have access to the tools needed to perform their jobs well and be more productive.

Additionally, employers can relax knowing that they are using the money practically and for a good cause.

Helps with recruitment

According to a Glassdoor survey, four out of five employees prefer company perks over salary increases. A remote employee stipend is one of the many benefits companies offer when looking for potential employees.

Employers include remote stipends as part of their compensation plan, which shows that they are willing to support their employees financially. This makes them feel appreciated and entices them to apply to the company.

How to offer a remote employee stipend at work

Employers can offer remote employee stipends as a one-time payment or on a regular basis, such as monthly or quarterly.

Before offering the stipend, determine how much you want to offer your employees and how often. For example, you could offer $250/month or $1000 as a one-time payment.

It would help to outline everything in a company stipend policy. State all pertinent information regarding stipends, such as:

• How much can be delegated?
• What specific spending categories are eligible?
• What are the return policies?

If you need help interpreting your stipend policies, enlisting the help of an outsourcing company like Remote Employee is the solution you need. 

This premier offshore outsourcing provider assists with several administrative tasks and can help you create a stipend plan that works best for your company.