KRA, KPI, & SMART Goals
What are these? KRA? KPI? SMART Goals? They may seem the same, but upon closer examination, you’ll realize they are distinctly different yet interconnected. Surprisingly, many individuals mistakenly believe they are interchangeable. Let’s clarify their differences and connections.
What Small And Medium Enterprises (SMEs) Must Look Out For In The Occupational Safety & Health Act (OSHA) 1994 & The Amendment Act 2022?
The OSHA 1994 is the principal legislation in Malaysia that ensures workplace safety, health, and welfare. It outlines the legal duties of Employers, Employees, and other Stakeholders to create a safe working environment. In 2022, OSHA was amended to apply to ALL workplaces, extending beyond the original industries listed in the 1994 Act. The amendments highlight several key elements that SMEs must adhere to for workplace safety. Employer’s Duty (Section 15): Employers must maintain a hazard-free and safe work environment by conducting risk assessments, offering necessary training, ensuring equipment is safe, and providing personal protective equipment (PPE) and safety devices. Employee’s Duty (Section 24): Employees are responsible for their own safety and health and that of others, must cooperate with Employers on safety measures, use PPE, and report unsafe practices or conditions. Safety and Health Committees (Section 30): Workplaces with 40 to 100 Employees must establish a Safety and Health Committee (OSHC) with 2 representatives each from both Management and Employees. For businesses with over 100 Employees, the Committee must include 4 representatives each. The Committee addresses safety issues and advises Employers on safety concerns. Safety and Health Coordinator (Section 29A): From 1st June 2024, Employers with 5 or more Employees must appoint a Safety and Health Coordinator (SHC) from their workforce. The SHC is responsible for coordinating safety issues, maintaining a safe work environment, conducting inspections, and reporting non-compliance. Failure to appoint an SHC can result in fines and /or imprisonment. Training (Section 31A): Employers must ensure that their appointed SHC completes a Certified Occupational Safety and Health Coordinator training Failure to comply results in fines and /or imprisonment. Risk Assessment and Hazard Control (Section 18A & 18B): Employers must regularly assess and control workplace hazards, including physical, chemical, biological, and ergonomic risks, and implement safety measures to mitigate them. Accident and Disease Reporting (Sections 32): Employers are required to report serious accidents, dangerous occurrences, and occupational diseases to the Department of Occupational Safety and Health (DOSH), facilitating the prevention of future incidents. Workplace Inspections (Section 27E & 27F): DOSH conducts unannounced inspections to ensure compliance, issuing notices for improvement or prohibition and enforcing penalties for non-compliance. Right to Refuse Dangerous Work (Section 26A): Employees have the right to refuse unsafe work. Employers must address the hazard before the work resumes. Occupational Health and Safety Regulations: Specific regulations address various workplace hazards, including machinery safety, chemical handling, fire safety, and manual handling, ensuring comprehensive protection for workers. In summary, OSHA 1994 and its Amendment Act 2022 impose critical safety responsibilities on both Employers and Employees. By mandating risk assessments, the formation of OSHC, and the appointment of SHC, it seeks to foster a safe and healthy working environment in Malaysia. Non-compliance with these regulations can result in severe penalties, emphasizing the importance of adherence to workplace safety standards.
Amendments to the Personal Data Protection Act (PDPA) 2010
More importantly come 1st June 2025, enforcement of the Sections 6 and 9 of PDPA 2024(A) operations will significantly impact how personal data is handled in Malaysia. PDPA 2010 aims at protecting individual privacy and personal data, and PDPA 2024(A) further strengthens this protection by introducing stricter rules and higher penalties for non-compliance. Section 6 (Duties of Data Users) revises the obligations of “Data Controllers (DC)” or those who process personal data for commercial, research, or employment purposes. The amendments introduce several new responsibilities, including: Accountability and Transparency: DC must be transparent about their data processing practices. They are required to provide individuals with clear privacy policies, outlining how data is collected, used, and shared, along with details on retention periods and recipients of the data. Data Protection Impact Assessment (DPIA): DC must conduct a Data Protection Impact Assessment (DPIA) for activities that pose high risks to individuals’ rights and freedoms. This assessment helps identify and mitigate potential risks before proceeding with data processing activities. Data Security Measures: It is mandatory for DC to implement robust technical and organizational measures to protect personal data from unauthorized access, alteration, or destruction. These measures ensure the integrity and security of data throughout its lifecycle. Breach Notification: In case of a data breach that threatens individuals’ privacy, DCs are required to notify both the affected individuals and the Personal Data Protection Commissioner (PDPC) within a specified time frame. Mandatory Appointment of Data Protection Officer: Companies must appoint a Data Protection Officer (DPO) to ensure compliance with the law and report any breaches to the PDPC. Section 9 (Penalties for Non-Compliance) outlines the penalties for failure to comply with the regulations, which are designed to deter non-compliance and ensure businesses take their data protection obligations seriously. Key aspects of these penalties include: Monetary Penalties: DCs who violate Section 6 PDPA2024(A) face hefty fines, which can range from RM 300,000 to RM 3 million, depending on the severity of the breach, the scale of non-compliance, and the harm caused to individuals. Imprisonment: In cases of serious violations, such as deliberate misuse of personal data or severe data breaches, individuals found guilty may face imprisonment for up to three years. Liability of Directors and Officers: Senior officers or directors of companies who fail in their duties regarding personal data protection can be held personally liable. This includes potential fines or imprisonment for negligence or violations under their watch. Reputational Damage: Apart from the legal penalties, businesses may suffer significant reputational harm from data breaches. Such incidents can lead to consumer distrust, damaging the company’s image and causing long-term financial losses. Conclusion Sections 6 and 9 PDPA 2024 marks a clear shift towards greater accountability and more rigorous enforcement for data protection in an increasingly digital world. The new obligations for DCs coupled with severe penalties for non-compliance, are expected to enhance public trust and encourage businesses to adopt more responsible data management practices. As the 2025 implementation date approaches, SMEs must prepare to comply with these new regulations to avoid costly penalties and protect their reputation.
2025… ARE YOU READY?
All of us are heading towards 2025 whether you like it or not. A reminder to adapt, learn, relearn and evolve, it’s an inevitable process to ensure continuity. Unless you are willing to forgo the future and reminisce about the past, then please sit there and do nothing. Otherwise, get you moving! I know some will be thinking of resolutions and things and dreams to get, yada yada yada … Setting resolutions without thinking it through is detrimental to wellness, it’s like going to war without a plan, without a process, without resources, without back-ups. Then at the end of 2025, you’ll be sitting there in that very same spot reminiscing about what went wrong. Isn’t that so demotivating? Fret NOT! Here’s a hint … be SMART about it! It’s a SYMBIOSIS of Life and HR. Whether in life or at work or owning a business, you need to set GOALS, they are the your North Stars! And not just any goals, SMART Goals! Setting goals that can give you a challenge will benefit you in the long run. So what are SMART GOALS?? A brief reminder … they are: Specific & Stretching: Set Stretching, Clear and Narrowed down goals, by asking what are you trying to achieve, can you do more, leverage your interests, skillsets, strengths and areas of improvement. Measurable: must be able to let you measure, track progress, monitor trajectory, do use dashboards Achievable: must be achievable with some efforts put into it, need to consider availability of skills and resources, asking how do you get there, may need to acquire skills & knowledge upgrade and extra resources Relevant: must be relevant to what you are doing, asking what and who may be related to the goal, amalgamate the efforts, the goals Timebound: Deadlines, pure and simple, by when should this be achieved, please set review cadence, set milestones and review periodically. Goals must be ambitious, achievable, measurable and relevant to what you plan to achieve by a certain date. And it’s imperative to review the achievements periodically as you move along the journey, if things and actions need to be tweaked, do it. If you think the trajectory is skewed, pull it back or plans have changed or goals have changed, regroup and rehash the goals using SMART Goals. Oh! One more thing, very IMPORTANT! >>> Celebrate Milestones!!!!!! Big or small, celebrate! Time to get this done! Let’s Connect! StarBPO Malaysia https://www.starbpo.my
Organizational Culture in SMEs – How Important is it?
Thank you Tony Ting for collaborating on this, appreciate it so much! The topic of Organizational Culture keeps coming up and this shows that a lot of business owners, especially in the Malaysian SME landscape, are overlooking its importance. As they fight to survive and continue to focus on their business operations and profitability, they are missing out on the benefits of a strong company culture. In my past experience, a strong company culture can actually drive the results and outcomes that a business aims to achieve. It provides talent attraction; it creates longevity and loyalty thus increases retention and directly affects and brings about good performance. Company culture doesn’t happen by itself, and it definitely doesn’t fall from the sky or one that you can pray it will happen. It takes effort, lots of it, it takes time, lots of it, and it must be intentional especially from the owners, the leaders, the managers, the teams, the employees, everyone involved. Most important of all, the leader, it is what the leader exudes, and walk the talk that counts, the leader is the one to set the tone and set the culture. We can use all the technology, systems and AI in the world, but culture needs actual people, humans, to build it. And more so for those in the people business, none other than the HR professional. The one, the HR professionals, who are expected to be “Godfather”, to be “Magician”, to be “Time-traveller”, to be “The Negotiator”, and when all hell breaks loose, the HR professional is expected to be Thanos. Hey! Company culture begins with you, yeah you.
The Importance of a Job Description in a Malaysian SME Setting
As a Malaysia’s major economic contributor, the dynamic and fast-growing SME sector, efficient workforce management is critical for success. SMEs often operate on tight budgets and limited resources, which makes it even more essential to ensure clarity and productivity in their teams. A well-crafted job description is a cornerstone of effective HR management and plays a pivotal role in hiring, managing, assessing and retaining talent. The 5 areas of importance are: Clear Role Definition In SMEs, employees often wear multiple hats due to the nature of the business. Without clear boundaries, roles can become ambiguous, leading to inefficiencies and conflicts. A job description helps define an employee’s responsibilities, scope of work, and expectations. This clarity ensures that each team member understands their role, reducing confusion and overlap with colleagues’ duties. For example, in an engineering company of 20 people, defining specific tasks for a Piping Engineer versus a Project Manager can help prevent miscommunication and wasted effort. Streamlined Recruitment Process Recruiting the right talent is one of the most significant challenges for Malaysian SMEs. A detailed job description serves as a roadmap for attracting and selecting candidates who align with the company’s needs. It communicates essential qualifications, skills, and experiences required for the role, ensuring a better match between the employer and prospective employees. In a country with a competitive job market like Malaysia, a precise job description can make an SME stand out to top talent. Highlighting unique aspects of the role, such as career growth opportunities or involvement in diverse projects, can appeal to job seekers looking for meaningful work in a smaller organization. Performance Management In SMEs, where managers often juggle multiple responsibilities, performance management can be overlooked. A job description provides a benchmark for evaluating employee performance. It helps managers measure achievements against predefined objectives and responsibilities, facilitating constructive feedback and discussions. For example, if a sales executive in a Malaysian SME fails to meet sales targets, the job description can be referenced to identify gaps and realign expectations, ensuring accountability and improvement. Legal Compliance Having job descriptions is also vital for legal compliance in Malaysia. The Employment Act 1955 and related labor laws require employers to clearly communicate terms of employment, which a job description supports. It helps protect SMEs against potential disputes by ensuring mutual understanding of job expectations and responsibilities. Talent Retention and Development A clear job description fosters employee satisfaction by giving workers a sense of purpose and direction. When employees know what is expected of them, they are more likely to feel confident and engaged in their roles. Additionally, job descriptions can guide career development within the company, showing employees a pathway to grow into new positions or take on additional responsibilities. Conclusion Job descriptions are more than just administrative documents; they are tools that enhance organizational efficiency, support employee growth, and build a foundation for long-term success, business continuity. Investing time in crafting precise and comprehensive job descriptions, it can create a productive and harmonious workplace that benefits both employers and employees and the customer alike. It’s a win-win-win situation. At the end of the day, the critical factor is to maintain positive and happy customers, while keeping compliance close to heart.
SMEs and The Importance of Succession Planning
Succession planning is a critical but often overlooked aspect of strategic management, particularly in small and medium-sized enterprises (SMEs). Unlike larger corporations that may have extensive human resources capabilities, budget & infrastructure, SMEs frequently operate with leaner teams and less formalized processes. However, succession planning is essential for ensuring long-term business continuity, stability and growth. SMEs and Why Succession Planning Matters A study by PwC found that only 15% of family-owned SMEs in Malaysia have a robust succession plan while a whopping 31% do not have a plan at all. This is very troubling, as a lack of having even a simple succession plan will lead to operational disruptions, loss of stakeholder confidence, and even business closure. This highlights the need for structured succession planning strategies to navigate leadership transitions successfully. It includes identifying, preparing and aligning potential successors with the Company’s strategic vision. SMEs face unique challenges with limited financial & people resources, talent scarcity and heavy reliance on a few individuals. Therefore, external help is usually deployed to customize. Key Benefits of Succession Planning Business Continuity: Identifying and preparing key individuals ensures key roles are seamlessly filled, ensuring operational continuity. Talent Retention: Building a culture of development and loyalty, motivating employees to stay on when they see a clear career path. Risk Management: Contingencies for emergency situations like illness or sudden departures, helps mitigate risks and the ability to respond swiftly and effectively. Strategic Growth: Future leaders trained in line with the company’s values and goals are more likely to continue the business\’s growth trajectory. The 9-Box Grid Methodology A popular and effective tool for succession planning is the 9-Box Grid, a matrix used to evaluate and plot talent based on Performance and Potential, in assessing readiness for future roles. High Performance, High Potential: Ideal candidates for succession. High Performance, Low Potential: Strong contributors who need significant development for higher-level roles. Low Performance, High Potential: Need more guidance to maximize their abilities as they have the potential. This is a structured customized approach to succession planning by identifying potentials, gaps, and development programs needed. It becomes a robust tool when combined with Performance Management using the same 9-Box Grid Methodology based on Performance and Attitude assessment. Other Recommended Methods Mentoring and Coaching Programs: Pairing senior leaders with high-potential employees for critical knowledge transfer enhances readiness. Job Rotation: Working in different roles provides a well-rounded business know-how and develops versatility. Formal Training Programs: Executive education helps equip necessary skills for higher responsibilities. External Talent Search: Scarcity of internal talents leads to inevitably external hiring. Conclusion Succession planning is a strategic imperative for SMEs to ensure business continuity, resilience and sustained growth. The use of frameworks like the 9-box grid, combined with mentoring, job rotation, and formal training, can build a strong pipeline of future leaders. Investing in succession planning today will enable SMEs to thrive in the face of leadership changes and future challenges.
Top 5 HR Metrics for SME in Malaysia
For SMEs in Malaysia, having a productive and engaged workforce is crucial for business growth. While SMEs typically have fewer resources to allocate to HR, monitoring key HR metrics can provide valuable insights into employee retention, engagement, productivity, and hiring efficiency. According to a 2023 report by SME Corp Malaysia, SMEs account for 97% of all business in Malaysia, making efficient HR practices a critical factor in sustaining Malaysia’s economic growth. Here are the top five HR metrics that drive business success and continuity. Employee Turnover Rate Employee turnover rate measures the frequency of employees leaving the organization. High turnover is very costly for SMEs, as it impacts productivity and team morale. In a Mercer Employee Experience Survey, nearly 34% of Malaysian employees were considering leaving their job in 2021, with reasons of lack of career progression to better salary. This metric helps SMEs understand reasons for employee exits and take proactive steps to improve retention, such as career development, workplace wellness and competitive benefits. Time to Hire Time to hire measures the number of days to fill a vacancy from hiring approval to the candidate’s first day at work. Prolonged hiring times leads to a reduction in workforce efficiency, impacting revenue and lost opportunities. In a fierce job market, candidates often receive multiple offers. A long recruitment process can result in the loss of top talent. JobStreet Malaysia reported that candidates in highly sought-after fields, such as technology and engineering, often receive job offers within two to three weeks. Monitoring time to hire helps streamline recruitment to attract and hire quickly. Using outsourcing services combined with technology can put a focus on recruitment. Absenteeism Rate Absenteeism rate tracks employee absences, which can indicate workplace dissatisfaction. This may reflect issues like burnout, poor management, or lack of workplace flexibility. The Randstad Malaysia survey showed 81% of Malaysian employees expect flexible work. By monitoring absenteeism, SMEs can identify early signs of employee dissatisfaction and work on solutions in creating a more flexible, supportive work environment. Employee Engagement Employee engagement and satisfaction play a vital role in productivity and retention and a way is to conduct employee net promoter scores (eNPS) survey. A Gallup report reveals that highly engaged teams see 21% greater profitability. Regularly measuring and acting on employee feedback can help SMEs improve engagement and foster a positive work culture. Revenue per Employee Revenue per employee calculates workforce productivity (revenue/headcount). This assess whether teams are operating efficiently and contributing to business growth. SMEs in Malaysia contributes 38.2% to the nation’s GDP (SME Corp), so optimizing employee productivity can significantly impact business success, continuity and overall economic growth. This can identify areas for productivity improvements that drive profitability. In conclusion, these HR metrics can provide Malaysian SMEs with the insights needed to retain top talent, enhance productivity, and foster a positive work environment. Monitoring and acting on these metrics not only supports individual business growth but also contributes to Malaysia’s broader economic development.
What is “Man-Day” and why is it important?
The term \”man-day\” is commonly used in project management. It represents the amount of work one person can complete in a single eight-hour day. It is essential for estimating labor requirements which aids in planning, budgeting, and resource allocation. Importance of Man-Day? Effort Estimation: Man-days allows project managers to estimate the effort needed for different phases of a project. By understanding the number of man-days needed, project managers can create realistic timelines and schedules, which are critical for the successful execution of the project. Resource Allocation: Understanding the total man-days required helps in allocating resources efficiently. Project managers can determine how many personnel are needed at different stages of the project, optimizing team size and ensuring that the right skills are available when needed. Budgeting: Man-days play a significant role in budget planning. By estimating the cost associated with each man-day, project managers can forecast the total labor costs and set a budget that aligns with organizational goals. This is particularly important for fixed-price projects, where exceeding estimated man-days can lead to cost overruns. Performance Measurement: Monitoring actual man-days spent against the estimated man-days helps in measuring project performance. If a project consistently exceeds the estimated man-days, it may indicate inefficiencies, scope changes, or unforeseen challenges that need to be addressed. Best Practices for Utilizing Man-Days Clear Project Scope: A well-defined project scope is critical for accurately estimating man-days. Collaboration with stakeholders to outline deliverables, timelines and specific tasks minimizes uncertainties that can affect man-day calculations. Breakdown Tasks: Dividing the project into smaller tasks allows for more accurate man-day estimates. Each task should be evaluated based on complexity and resource needs. Use Historical Data: Leveraging data from past projects can enhance the accuracy of man-day estimates. Analyzing previous project performance provides valuable insights into time requirements for similar tasks, helping to refine current estimates. Regular Monitoring and Adjustment: Throughout the project, it is essential to monitor man-days spent versus planned. This helps identify any deviations from the plan, allowing for timely adjustments to resources or timelines as necessary. Communicate Changes: If project scope changes occur, it’s vital to communicate these changes promptly to all stakeholders. Adjusting man-day estimates in real time can prevent misunderstandings and align expectations. Conclusion Understanding and effectively managing man-days is integral to successful project management. Accurate estimation and monitoring enhance resource allocation, budgeting and overall performance. Implementing best practices in calculating and utilizing man-days will lead to more predictable project outcomes, ensuring that organizations meet their goals efficiently. Man-day serves as a vital tool in project management, guiding teams toward successful project completion.
What is my Cost-of-Hiring?
In various discussions with business owners and associates, employee retention seems to be a common topic which is a very critical factor for maximizing profitability especially for SMEs. In today’s ultra-competitive job market, retaining employees enhances profitability by reducing turnover costs, sustains productivity, and nurtures a positive organizational culture. Research has shown that effective retention strategies can have a significant impact on the bottom line because companies that prioritize retention experience business continuity and benefits from the long-term skills and experience that employees bring. Studies by SHRM (Society of Human Resource Management) indicate that replacing an employee can cost anywhere from 50% to 200% of their annual salary, depending on the position. There are the Direct and Indirect costs. Direct Costs are recruitment expenses, separation processes, interviews, onboarding, and training. Indirect Costs are lost opportunities, lower productivity, additional pressure on the current team, and lower morale. Another area is employee demographics, the Millennials, who make up a significant portion of today’s workforce, are known for valuing career development, flexibility, and a positive work-life balance. Gallup reports that 60% of millennials say the opportunity to learn and grow is extremely important when choosing a job. Companies that invest in training and development programs see greater loyalty and job satisfaction among this demographic, reducing turnover rates and building a more skilled workforce. Companies like Google, known for its focus on employee satisfaction, offers unique perks like flexible work hours, on-site gyms, and continuous learning opportunities. Similarly, Salesforce invests heavily in employee well-being and personal growth programs. Both companies achieve high levels of employee satisfaction and lower turnover, thus retaining top talent and foster a highly engaged workforce that drives profitability. A further strategy for maximizing retention is recognizing the role of diversity and inclusion in the workplace. A McKinsey report highlights that companies in the top quartile for gender diversity are 21% more likely to experience above-average profitability. Retention efforts that emphasize diversity foster a culture of belonging and respect, leading to improved employee morale, creativity, and productivity. This inclusivity attracts a broader range of employees who feel valued and are, therefore, more likely to remain with the organization. The benefits of employee retention are also felt through direct cost savings via enhanced productivity and innovation. According to a study by the Work Institute, organizations that actively engage in employee retention efforts see up to 20% higher productivity rates. When employees feel secure and valued in their roles, they are more likely to contribute innovative ideas and work harder toward the company’s goals. This increased productivity directly translates to a stronger competitive advantage and a higher potential for profit. In conclusion, prioritizing employee retention is not just an HR objective but a strategic business initiative that significantly impacts profitability. By understanding employee demographics, needs and wants, investing in growth opportunities, promoting diversity, and offering incentives that align with employees\’ needs, companies can reduce turnover, enhance productivity, and drive long-term profitability. Investing in retention is, ultimately, an investment in a company’s future success.