Here are a few ways Compt\u2019s reimbursement stipends are improving lives, and in our users\u2019 own words:<\/strong><\/p>\n\n\n\n Instead of an intranet page full of logos and potential vendors (which can be overwhelming), a stipend approach simplifies the process and lets employees get what they truly need. <\/p>\n\n\n\n Many large companies have extensive benefit packages (again, with many logos and processes to navigate), but this allows companies of any size to compete for the same talent successfully. <\/p>\n\n\n\n The ongoing administrative process<\/a> of stipends is simpler and takes less time. HR can support software that reduces administrative burden and makes them look brilliant.<\/p>\n\n\n\n With these software options, you can turn it into your entire perk offering or use it as a supplemental add-on to what you’re already doing to add personalization and inclusivity.<\/p>\n\n\n\n Stipend programs<\/a> are easy to update for your entire company. This is much easier than removing a culture-related perk like pet insurance.<\/p>\n\n\n\n Regardless of whether you\u2019re scaling up or down, stipend software can help you do it with ease.<\/p>\n\n\n\n What does your company want to reinforce behavior around? Whether it’s learning<\/a>, health<\/a>, or something else, stipend reimbursement software can help you create perk programs that align with your overall goals.<\/p>\n\n\n\n With stipend reimbursement models, you\u2019ll reduce the budget wasted on unused perks, save time picking rarely used perks, and reduce the hassle of managing them all.<\/p>\n\n\n\n In alphabetical order, the following perk software you may want to look into are the following:<\/p>\n\n\n\n Remember that this approach differs from the legacy approach of corporate discounts, which you\u2019ll see with Reward Gateway or social recognition software like O.C. Tanner or Achievers.<\/p>\n\n\n\n We put price first on the list because everyone has a budget, and sticking within its confines is essential to getting stakeholder buy-in for a new tool.<\/p>\n\n\n\n Most HR tech benefit software costs between $1 and $8 per employee and includes an implementation fee \u2014 stipend management tools are no different.\u00a0\u00a0<\/p>\n\n\n\n With these types of software, you pay an additional amount, which is how much you\u2019d like to allocate to each team member per period (monthly, quarterly, semi-annually, or annually).<\/p>\n\n\n\n For example, instead of bringing in catered lunches, you could give each employee $100\/month to spend on their lunch of choice. <\/p>\n\n\n\n Questions to consider:<\/strong><\/p>\n\n\n\n Psst: For way more information on the budget side of things, you should check out our post on how to set up your employee stipend<\/a>.<\/p>\n\n\n\n A big reason to buy software is to automate and streamline the administrative processes that might be weighing down your team and its operational capacity.<\/p>\n\n\n\n This is especially true when it comes to offering stipends because you’ll either need a way to track the funds distributed to employees to add to their W2s for payroll taxes for taxable stipends (wellness<\/a>, travel<\/a>, family<\/a>). Or for nontaxable stipends (like equipment<\/a>, professional development<\/a>, tuition reimbursement<\/a>, relocation<\/a>, or work-from-home<\/a>), you’ll need receipts in the event that your company goes through an audit.<\/p>\n\n\n\n The key is choosing software that prioritizes accuracy, safety, taxes, and can manage the complexity of personalization without adding too much work for you or your people.<\/p>\n\n\n\n Questions to consider:<\/strong><\/p>\n\n\n\n We know what you\u2019re thinking: If you take the time to roll something out to your people, you want to ensure they\u2019ll love it. Love translates into a metric through participation or utilization rates. <\/p>\n\n\n\n If you aren’t familiar with participation rates or utilization rates, here are two definitions with examples:<\/p>\n\n\n\n Participation rates<\/strong> are the percentage of your employee population who has access to software, that actually uses it. Utilization rates<\/strong> are the percentage of allocated stipend funds that employees spend. A stipend management approach generally has higher usage rates. Unlike individual perk vendors like meditation apps, onsite\/virtual yoga, and dry cleaning, which only satisfy a small percentage of your people, stipends allow you to offer something for everyone. <\/p>\n\n\n\n When connecting with vendors, ask them about their typical engagement rates to understand which people are engaging with.<\/p>\n\n\n\n Questions to consider:<\/strong><\/p>\n\n\n\n When evaluating stipend software, one of the most important decisions is how employees will access and use their benefits. There are three main models: marketplace-based<\/strong>, debit card-based<\/strong>, and reimbursement-based<\/strong>. <\/p>\n\n\n\n Each has tradeoffs in flexibility, control, and participation which we’ve outlined below:<\/p>\n\n\n\n A reimbursement model is the most flexible option. Employees spend their stipend however they want (within HR-approved categories) and submit receipts for reimbursement. This approach opens up the widest range of possibilities:<\/p>\n\n\n\n The significant difference is that there are no vendors to choose from, meaning people can buy whatever is best for them, from their favorite meditation app to a healthy meal delivery kit or local yoga studio.<\/p>\n\n\n\n Marketplace models work like a points redemption platform. Employees choose from a curated list of vendors selected by the software provider. These platforms often have polished user experiences and make it easy to manage spending\u2014but they come with significant limitations:<\/p>\n\n\n\n Some platforms offer company-issued debit or prepaid cards. These give employees more flexibility than a marketplace but still carry challenges:<\/p>\n\n\n\n Debit cards offer speed and ease but less control and reliability for tax reporting or budget management.<\/p>\n\n\n\n Questions to consider:<\/strong><\/p>\n\n\n\n We know you probably don’t want to think about this; because isn’t IRS compliance in finance’s hands?<\/p>\n\n\n\n But the reality is, most of the perks you offer your employees (from food to yoga to pet insurance) are taxable income for your employees.<\/p>\n\n\n\n\n
<\/li>\n<\/ul>\n\n\n\n\u2714\ufe0f Increased engagement rates with company perks <\/h3>\n\n\n\n
\u2714\ufe0f Competitive advantage<\/h3>\n\n\n\n
\u2714\ufe0f Automated processes<\/h3>\n\n\n\n
\u2714\ufe0f All-in-one or supplemental perks<\/h3>\n\n\n\n
\u2714\ufe0f Flexible for HR<\/h3>\n\n\n\n
\u2714\ufe0f Scalable perks<\/h3>\n\n\n\n
\u2714\ufe0f Aligns with company values\/goals<\/h3>\n\n\n\n
\u2714\ufe0f Zero waste<\/h3>\n\n\n\n
Stipend Management Tools, Vendors, and Software<\/h2>\n\n\n\n
\n
Top 6 Criteria to Consider when Buying a Stipend Software Solution<\/h2>\n\n\n\n
1. Price<\/strong><\/h2>\n\n\n\n
\n
2. How much administrative time and effort you’ll need<\/strong><\/h2>\n\n\n\n
\n
3. Desired participation rates<\/h2>\n\n\n\n
Example: So if 1,000 employees have access, and only 200 use it, that is a 20% employee participation rate. While traditional wellness benefits see ~20-40% employee participation, Compt’s platform delivers 2x the industry average participation, with zero wasted spend.<\/p>\n\n\n\n
Example: If $60 spent from $100 allocated to an employee, that’s 60% utilization.<\/p>\n\n\n\n\n
4. Reimbursement vs. Debit Cards vs. Marketplace: What Model Works Best?<\/h2>\n\n\n\n
Reimbursement-Based Models<\/strong><\/h3>\n\n\n\n
\n
Marketplace-Based Models<\/strong><\/h3>\n\n\n\n
\n
Debit Card Models<\/strong><\/h3>\n\n\n\n
\n
\n
5. IRS Compliance<\/strong><\/h2>\n\n\n\n
![\"generic-guides-demo-cta\"](\"https:\/\/no-cache.hubspot.com\/cta\/default\/3919194\/interactive-182042453609.png\")
\n <\/a>\n<\/div>\n\n\n\n