Seagate Technology to reduce employee medical costs

EXCLUSIVE: Seagate Technology says co-sharing medical costs with staff will reduce the annual employee medical inflation level for its Singapore operation to 2-3% in 2012.

In 2008, the global producer of hard drives experienced medical inflation of 10.6%.

In 2010, it became one of the first companies in Singapore to introduce co-sharing. Most Singaporean employers offering a private top-up to the state health system pay the full cost.

The changes were tough to communicate to staff, but Seagate believes healthcare is a joint responsibility between the individual and the organisation.

Molly Ang, executive director of compensation and benefits at Seagate Technology, said: β€œIt was not a cost-reduction programme, it is about reducing increases. It is what HR can do for the business.”

β€œIt reduces unnecessary visits to the GP and specialists. Some 98% of staff spend within the limit. They are more mindful about using their benefits than before. Hopefully, it will change the mindset of entitlement.”

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Seagate, which employs 50,000 staff worldwide, introduced co-sharing in its Thailand operation in 2010 and plans to roll it out in Malaysia and then China.

Read more about international benefits