In a recent interview with BusinessToday, Terrence Yong, Vice President and General Manager of Asia-Pacific at Visier, sheds light on the pervasive issue of brain drain in Malaysia. With a particular focus on the role of HR metrics and people analytics, Yong offers insights into the complex challenges faced by Malaysia and the potential solutions for talent retention and workforce management.
Understanding the Roots:
Brain drain, or human capital flight, is a multifaceted challenge driven by socio-political instability, economic shifts, a lack of opportunities, and persistent salary issues. In the Malaysian context, low wages and diminishing quality of life, particularly in urban areas, stand out as major contributors prompting highly skilled workers to seek opportunities abroad.
Despite an increase in the national minimum wage, the discrepancy between wages and the soaring cost of living, especially in cities like Kuala Lumpur, has fueled the brain drain phenomenon. Yong highlights that the minimum wage, though increased to RM1,500, does not align with the living standards in metropolitan areas, perpetuating the exodus of local talents.
Impacts on Local Economy and Job Market:
Yong emphasises the far-reaching consequences of brain drain on the Malaysian job market and economy. The outflow of highly skilled workers results in a shortage of talent, diminishing the potential for human capital development within the country. This, in turn, leads to a reliance on imported expertise to fill the void, especially in critical sectors like the medical industry, where a higher brain drain rate can impact the quality of services.
Additionally, the country faces potential income loss due to reduced tax collections, as skilled workers with higher salaries move abroad. This economic impact further exacerbates the challenges posed by brain drain.
Role of HR Metrics and People Analytics:
Yong advocates for the adoption of HR metrics and people analytics as essential tools for corporations seeking to attract and retain local talents. These tools empower companies to understand the needs and demands of their employees, offering insights into effective strategies for talent retention.
In the competitive landscape, companies showcasing better compensation and benefits through data-driven decision-making create a win-win situation for all stakeholders. Yong suggests that private companies can demonstrate their commitment to employees by balancing priorities and addressing the concerns of each stakeholder group.
The Significance of Employee Engagement:
Highlighting the importance of employee engagement and listening, Yong stresses that these practices form the foundation for building trust and rapport within organisations. Without a keen focus on employee needs and concerns, it becomes challenging to tailor functional strategies that benefit both employees and the company simultaneously.
Employee engagement not only contributes to talent retention but also fosters a workforce that is more inclined to contribute to the company’s milestones. It enhances brand awareness organically, creating a resilient and adaptable workforce capable of navigating change effectively.
The Power of People Analytics in Addressing Brain Drain:
While acknowledging that people analytics is not a silver bullet, Yong considers it a crucial first step in mitigating brain drain. By collectively applying people analytics, corporations can establish a solid foundation for HR metrics and workforce management. This enables business managers to access pertinent information when needed, offering insights into what drives employee loyalty and performance.
Competitive pay is undoubtedly a critical factor in attracting top talent, but the broader advantages, including career development and compensation, are equally vital for retaining the best employees. Yong suggests that people analytics can play a pivotal role in helping corporations manage their workforce and compensation strategies more effectively.
The Future of HR and People Analytics:
Looking ahead, Yong expresses confidence in the continued growth and adoption of people analytics in HR processes. As the world embraces technological advancements, human resources is expected to follow suit. The trend towards data-driven decision-making is seen as the most effective way forward for impactful and positive changes in workforce management.
Yong envisions a collaborative effort between the private sector and the government to address human capital flight and improve the local job market. With the steady progress in people analytics, he remains optimistic that Malaysia’s brain drain rate can be effectively controlled.
