Case study : the IBM Singapore flexible benefits scheme

• Main Authors: Low, Sandy Miang How, Siah, Seng Kiat, Lim, Tien-Ann
• Other Authors: Cheryl Tay
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Business::Operations management
• Online Access: http://hdl.handle.net/10356/63025
• Institution: Nanyang Technological University

Today's work force has become considerably more heterogeneous and has needs that are diverse and ever-changing. Employers who try to meet those needs find it more and more expensive to do so. This problem is aggravated by the fact that corporate medical expenses have been rising rapidly. The answer to the problem is Flexible Benefits Scheme (FBS), a plan in which employees have the right to make selections of the benefits they receive within some dollar limit. IBM Singapore, an American multinational corporation noted for its innovative company practices and recipient of the 1987 National Productivity Award, is again a pace-setter in this area. It is the first IBM company and the only known company in Singapore to have introduced a FBS for its employees (called FLEX in short). The success or failure of IBM FLEX would decide to a certain extent the fate of this type of plans in Singapore. Thus, a case study was undertaken to explore the "why" and "how" of the IBM experience and evaluate the effectiveness of FLEX so as to provide a learning experience for interested companies. Interviews with key IBM Singapore staff had shown that FLEX was implemented in response to employees' and company's needs. Next, a detailed description of the scheme and its implementation process was reported. A questionnaire survey conducted on the employees showed a general positive attitude towards FLEX and over 90% of the respondents had no problem adjusting to the change in the benefit plan. The study also found out the problems IBM Singapore faced in the process and how it overcame them. Lastly, relevant literature was reviewed to compare the IBM practice with theoretical ones as well as the experience of US companies in implementing FBS. The authors conclude through the evaluation of the data gathered that IBM FLEX is a success. Favourable situational factors for FBS and the recommended actions for implementing it were also highlighted. With this study, it is hoped that interested companies can refer to the IBM experience and learn to adapt its concept to their own companies.