By Associate Professor Dr Khairunneezam Mohd Noor

Malaysia’s workforce landscape has evolved rapidly in recent years, fuelled by technological progress, economic transformations, and changing social expectations. The Human Resource Management (HRM) now deals with a plethora of challenges ranging from talent retention to flexible or hybrid work models, all of which require innovative solution providing benefits to both organizations and employees.

Workers looking for more lucrative opportunities overseas

Malaysia is generally plagued by employee turnover, especially within critical industries of IT and healthcare.

According to a JobStreet report of 2022, 44 percent of workers are now actually looking for more lucrative opportunities overseas, meaning the development of retention practices is an urgent task.

The COVID-19 pandemic accelerated the adoption of remote and hybrid work. However, a PwC Malaysia 2023 study revealed that only 38 percent of companies have clear hybrid work policies, leaving many employees dissatisfied.

Companies can tackle this by involving employees in designing hybrid work policies. For instance, conducting surveys to understand their needs and providing technological support to enhance productivity when working from home can be effective solutions.

Malaysia’s workforce needs reskilling

Another pressing issue is the skills gap. The World Economic Forum reported that 50% of Malaysia's workforce needs reskilling by 2025 to stay competitive globally.

Companies must help their employees learn new skills. In addition to offering in-house training, employers can collaborate with educational institutions or online learning platforms like Coursera and LinkedIn Learning.

This allows employees to gain new skills without disrupting their daily work. Mental health has also become a growing concern.

The AIA Vitality 2023 survey found that 53% of employees are under high stress due to heavy workloads and a lack of work-life balance. Employers can provide dedicated relaxation spaces in offices, conduct regular counselling sessions, or introduce flexible work hours to help employees manage stress better.

Gender imbalance

Yet, the big challenge is gender imbalance. According to the Grant Thornton 2023 report, only 25% of women hold senior management positions in Malaysia. The companies should create equal opportunities for all employees.

For example, mentorship programs for women and leadership training will help women be more confident and advance their careers. Today’s employees demand more than high salaries.

They value flexible work arrangements, career advancement opportunities, and a balance between work and personal life. They also expect workplaces to respect everyone without discrimination.

Companies must act strategically

Companies must demonstrate their commitment to these needs by providing platforms for employees to voice suggestions and concerns.

To address these challenges, companies need to act strategically. For example, offering performance-based incentives and recognizing employees' contributions can be impactful.

Programs like CIMB's “You. Unlimited.” provide better career opportunities for employees. Companies also need to develop clearer hybrid work policies.

Petronas' “Results-Oriented Work Environment” policy, which focuses on results rather than hours worked, is an excellent example.

In addition, companies should ensure a non-discriminatory and inclusive workplace. For example, the Diversity and Inclusion Council of Top Glove works to increase the representation of women in management positions.

Companies can also carry out training programs to overcome unconscious bias in the workplace and guarantee equal opportunities for all.

The HR landscape in Malaysia is at a critical crossroads. By addressing these challenges with well-designed strategies, companies can meet employees' expectations while improving their performance. A focus on flexibility, well-being, and fairness will help companies build strong, resilient workplaces that thrive in the global economy.

-- BERNAMA

Associate Professor Dr Khairunneezam Mohd Noor is a Senior Lecturer of Da'wah and Islamic Management Program, Faculty of Leadership and Management, Universiti Sains Islam Malaysia.