Despite economic headwinds, nearly six in 10 executives globally expect their firms to post stable or high growth. Yet, when planning for the year, leaders in Asia are most concerned about the increasing cost of capital and debt, tight labor market, and competition for talent.
HR leaders in Malaysia echoed similar sentiments in Mercer’s Global Talent Trends (GTT) Study 2023, which includes a pulse survey conducted with close to 2,500 HR leaders globally.
In response to the challenges, the HR leaders – representing 83 companies – said they are looking to improve the employee experience for key talent (69%), design talent processes around skills (61%), improve total rewards strategies and practices (61%), and deliver total well-being strategies (54%) this year.
The GTT uncovers the ways organizations are redesigning work and the workplace, especially in light of sociopolitical and economic changes, and identifies talent-related trends to enable organizations to thrive in the future of work. Key findings of this year’s survey include the need for employers in Malaysia to enable or build skills-based organizations to future-proof themselves in an increasingly complex environment.
Work in Partnership: More flexibility given but need to be inclusive of special populations
Nearly seven in 10 employees said last year that not being able to work remotely or hybrid permanently is a deal breaker when considering whether to join or stay with an organization. In Malaysia, 63% of the companies surveyed provide flexible working options for all their employees. This is significantly higher than Asia (50%) and Global (56%) averages.
Employers in Malaysia are also more responsive in combatting an inflationary environment with 35% (versus an Asia average of 20%) adjusting pay or offering cost-of-living adjustments to those earning below the market median. They also fare better in providing wage increases for employees in the most impacted markets (30% versus 22%).
However, more can be done to provide job security for gig/freelance workers, as 71% of employers (versus an Asia average of 46%) indicated that they do not have such initiatives on their agenda.
Deliver on Total Well-Being: Prioritize employees’ overall experience and well-being
To attract and retain talent, organizations need to differentiate themselves beyond having fair pay policies, and also prioritize employee well-being, which encompasses physical, mental, social and financial well being. Employers will need to partner with employees to offer benefits that are relevant.
Companies in Malaysia (45%) lagged slightly in delivering total well-being initiatives for all their employees, as compared to Asia (48%). For example, 35% are redesigning work with well-being in mind, such as introducing no-meeting days (versus an Asia average of 39%), and only 21% of companies in Malaysia (versus an Asia average of 26%) have provided on-demand access to virtual mental healthcare. On the flipside, Malaysia (18%) fared better than Asia (14%) in investing in financial wellness programs that boost long-term financial security for their employees.
Build Employability: Leverage technology more to establish skills-based organizations
Major shifts such as the impact of a global pandemic, workplace transformation, and technology disruptions continue to affect the employability of the local workforce. Companies in Malaysia (61%) outperform Asia (56%) in understanding the talent development needs across the organization. In fact, 47% of employers reported that their upskilling and reskilling programs were effective at preparing talent to move into new areas (versus an Asia average of 33%).
However, more can be done to leverage tools and technology to meet current and future skill needs, both in Malaysia and throughout the region. Just one in 10 companies use AI to map out skills requirements while one in five conduct robust assessments of technical skills.
Koay Gim Soon, Mercer’s Career Business Leader for Malaysia, said, “As companies in Malaysia are establishing firm footing in a competitive landscape, we urge leaders to not be blindsided by the need to transform their businesses radically. Instead, they should focus on prioritizing employees’ needs, experience and well-being, and provide the necessary social, emotional, mental and financial support, especially to the special populations like older employees and gig workers. HR professionals should also alleviate manpower and resource constraints by introducing automation tools and technology to aid in their transition to skills based organizations. With more partnerships forged between employers and employees, companies will be more well-placed to thrive and succeed.”
