PETALING JAYA: With improving employment opportunities in the country, employers are having to be creative and offer incentives such as smartphones and even cash of up to RM1,000 upon confirmation to attract potential hires, said Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman.
He said offering jobs to candidates has become more challenging as the unemployment rate has fallen to 3.9%, which by International Labour Organisation standards means that Malaysia has full employment.
“Attracting and retaining talent is critical to ensure sustainability and enhance competitiveness. A high attrition rate deeply concerns employers, who now have to focus on talent retention strategies as well.”
However, Syed Hussain said implementing measures to attract potential employees depended on whether the company has the budget to do so, adding that those without extra funds may not be able to offer incentives and thus lose out.
He said attracting new employees needs to be accompanied by the right strategies, while failing to implement appropriate retention measures may result in new hires leaving the organisation after only a brief term.
“Labour shortages need to be addressed urgently, and this is not just for the services industry but for the economy as a whole. The authorities need to act swiftly to address the acute shortage of manpower that is currently being experienced across all sectors.”
He said it was important for businesses to implement and embrace digitalisation, automation and new technologies.
However, the majority of employers in the micro, small, and medium enterprise sector do not have sufficient financial resources. Hence, there is still a need for government assistance and subsidies for such employers.
Event solutions firm Arena Group human resource head Srithren Krishnan said labour shortages were usually connected to the standard of living in a particular country, where blue-collar jobs often command lower wages compared with white-collar positions.
“We need a long-term blueprint to address the issue. The government must ensure that blue-collar workers can live a comfortable life on their earnings. This would help attract more locals to such skilled vocations.”
Srithren said the present shortage was caused by economic issues in the country.
“We have about 33 million people in the country. The brain drain is a serious factor. A rubbish collector can earn RM10,000 a month in Singapore, so where have we gone wrong?”.
Srithren added that sustaining the economy in the long run entails creating more incentives that would motivate employees.
“Those without a budget to reward employees could use the behavioural approach, where they can treat their workers with respect and give them time off to attend to urgent matters without deducting their annual leave or salary. This is another way to retain employees.”
Pix for representational purpose only
