Asian bosses 'less likely to offer choices'

Ong and Chow said that employers here that adopt flexi-arrangements tend to be bigger companies which enjoy economies of scale in the provision of benefits, given a high headcount.

“For instance, if you choose an online system to administrate the plans, there will be costs involved,” Chow said. “For a big company with a few thousand employees, it will not be a problem. However, for an SME [small or medium enterprise] to emulate a big company, the costs might be prohibitive.” Ong added that the heterogeneous nature of many big organizations adds to the need for flexible plans.

“Bigger companies tend to be diverse, with different groups of employees, from married to single people and from young to old people. Thus, they need diverse options, rather than a one-size fits all plan, to meet employees' demand and distinguish themselves from other companies,” Ong added.

Vincent Romano, senior consultant at the human resources division of consultancy firm Robert Walters, said that because flexi-schemes give employees control over their benefits, increased workforce satisfaction will follow.

“The company can be perceived as being more responsive to the individual employee's needs by allowing him the choice of benefits,” he said. However, Romano highlighted possible difficulties in selecting the right combination of benefits so that the company does not create any disadvantage to a group of employees.

One Singapore company with a flexible benefits scheme is OCBC Bank. In 2004, it introduced a program that allows staff to use pre-allocated “flex-dollars” to purchase a range of benefits such as health-care expenses for themselves and their family members, membership subscriptions to sports and recreation clubs, as well as holiday expenses.

Jacinta Low, head of human resource planning and employee communications at OCBC Bank, said that the scheme has been well-received by employees.

“We have received positive feedback from our employees on the flexibility to opt for benefits that are most relevant to them,” she said.

The Singapore Management University in 2004 introduced a scheme where employees are provided with core benefits such as life and medical insurance, as well as “flexcredits,” which they can use for extra benefits such as additional insurance coverage and child care expenses.

An SMU spokesman said the program has given the university an edge in the hiring market, helping it to attract and retain talent.

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