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In fact, 47% of employers reported that their upskilling and reskilling programmes were effective at preparing talent to move into new areas, compared to an Asia average of 33%.
Even in the face of economic headwinds, nearly six in 10 executives globally expect their firms to post stable or high growth. Yet, leaders in Asia specifically are most concerned about the increasing cost of capital and debt, tight labour market, and competition for talent when planning for the year.
By market, HR leaders in Malaysia shared similar sentiments, as reflected in Mercer’s Global Talent Trends Study (GTT) 2023.
In response to the challenges, the HR leaders – representing 83 companies – indicated they are looking to work on the following areas this year:
- improving the employee experience for key talent (69%),
- designing talent processes around skills (61%),
- improving total rewards strategies and practices (61%), and
- delivering total wellbeing strategies (54%) this year.
As a whole, the GTT uncovered ways organisations are redesigning work and the workplace, especially in light of sociopolitical and economic changes, and identified talent-related trends relevant to the future of work.
While more flexibility is given, there is still a need to be inclusive of special populations
Per the report, 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 organisation. In that light, a significantly higher number of companies surveyed in Malaysia were noted to provide flexible working options for all their employees (63%) compared to the average in Asia (50%) and globally (56%), it was noted.
Despite the above, executives were generally concerned about remote working — 78% were particularly concerned about the ability of remote employees to build solid interpersonal relationships with colleagues/leadership, while 75% believe they have an apprenticeship culture where people learn working side-by-side, not remotely.
From an employee's perspective, 76% believe those who work flexibly will be given the same career opportunities, while 74% believe their organisation will be more successful with remote/hybrid workers.
As the study suggests, HR will become a key mediator in bridging such a gap, with top actions being taken including:
- Offering flexible work/collaboration training,
- Creating a safe environment to share concerns, and
- Investing in enhanced collaboration technology.
Employers in Malaysia were also more particularly responsive in combatting an inflationary environment, with 35% adjusting pay or offering cost-of-living adjustments to those earning below the market median (compared to an Asia average of 20%). In terms of compensation, they also fared better in providing wage increases for employees in the most impacted markets (30% versus 22%).
However, there is still more to be done in providing job security for gig/freelance workers — 71% of employers in Malaysia indicated that they do not have such initiatives on their agenda, compared to an Asia average of 46%.
Delivering on total wellbeing
In further findings, the report highlighted that to attract and retain talent, organisations need to differentiate themselves beyond having fair pay policies, while prioritising employee wellbeing. This would encompass physical, mental, social, and financial wellbeing.
As a basis, 93% of companies surveyed are focused on how their benefits offerings can better support employee attraction, retention, and engagement this year.
Looking at the status quo, however, companies in Malaysia (45%) lagged slightly in delivering total wellbeing initiatives for all their employees, as compared to Asia (48%). For example, only 35% are redesigning work with wellbeing in mind (such as introducing no-meeting days), which is lower than the Asia average of 39%. Similarly, only 21% of companies in Malaysia have provided on-demand access to virtual mental healthcare (versus an Asia average of 26%).
On a more positive note, Malaysia (18%) fared better than Asia (14%) in investing in financial wellness programmes that boost long-term financial security for their employees.
Building employability throguh skills-based organisations
The impact of a global pandemic, workplace transformation, and technology disruptions continue to affect the employability of the local workforce, according to additional findings in the report. Currently, 92% of companies are prioritising safeguarding the future employability of their workforce. Particularly:
- 42% were targeting learning-tailored upskilling/reskilling for identified skill gaps in its current workforce,
- 40% were rewarding skill acquisition compensating employees who complete courses or certifications, and
- 39% were facilitating experiential learning using rotations, short-term projects, and internal gigs.
In this aspect, companies in Malaysia (61%) outperform Asia (56%) in understanding the talent development needs across the organisation. In fact, 47% of employers reported that their upskilling and reskilling programmes were effective at preparing talent to move into new areas, compared to 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 — only one in 10 companies use AI to map out skills requirements, while one in five conduct robust assessments of technical skills.
HR priorities in 2023
Overall, the report outlined 10 key priorities of HR professionals around the world in 2023:
- Improving the employee experience for key retention populations
- Improving workforce planning to better inform buy/build/borrow strategies
- Designing talent processes around skills
- Rethinking compensation philosophy
- Improving total rewards strategies
- Investing in workforce upskilling/reskillin
- Delivering on total wellbeing
- Redesigning work to improve agility
- Reimagining our employer brand
- Ensuring diverse workforce groups are heard and included
The GTT was built on a pulse survey of more than 13,300 respondents across 25 key geographies and industries, including close to 2,500 HR leaders.
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Lead image / Global Talent Trends (GTT) Study 2023
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