Staff retention has become a critical issue in Malaysia, where businesses are facing a challenging people resources market, particularly, where experienced and skilled professionals are in high demand but difficult to retain.
A key factor driving employee turnover in Malaysia is demand for higher salaries, largely due to inflation. This is further compounded by the favorable currency exchange rates and job offers overseas. Many offers come in the form of a 30-40% salary increase by just factoring in the currency exchange. So, there is much work to do on the non-monetary retention strategies.
Another factor is hybrid working conditions as Malaysian employees are prioritizing this factor for work-life balance, lifestyle, and building positive relationships with colleagues and managers. However, many executives and business owners still believe work is best performed in an office setting, thus creating an expectation gap that underscores the tension between employee preferences and employer expectations.
Then there is the workforce generational shift from Baby Boomers to Gen-Xs, to Gen-Ys and millennials, whereby Employee Wellness is a hot topic. Psychological Safety and DEI (Diversity, Equity and Inclusion) are some of the areas employees look for. They want to be in an Ecosystem that promotes diversity, which is representation and participation from the various groups of people, promotes equity with expectations to be treated fairly, in compensation, in opportunities, in development, and so on. Inclusion then, is about the practice of diversity whereby all individuals and groups are welcomed, supported, respected and valued.
Here are some strategies that can help to address retention challenges:
- Enhanced Career Development Opportunities and Exposure: Companies need to offer clear career plans, support for upskilling and reskilling efforts, with customized learning and development plans and structure to retain top performers and specialized talents.
- Flexible Workplace Arrangement: Embracing hybrid and remote work options that balance workplace flexibility and operational effectiveness including a review of workforce readiness for such arrangements. Companies and employees must be transparent, mutually agree and that it’s not taken for granted.
- Focus on Employee Well-being: Employers must invest in workplace wellness programs including mental health programs, stress management counselling, and build a healthy work-life balance culture. Psychological Safety for employees and employers alike, where one can be an authentic self without the fear of retribution.
- Embrace AI: Employers and employees to responsibly embrace AI to enhance their work, business and workplace, which ultimately enhances the working experience, especially to remain relevant.
Conclusion, there is a need to narrow the Expectation Gap between employers and employees to that everyone benefits. Be responsible to adapt to the new ways of working by having an agreed work arrangement and structure, including contingency plans. Nurture and build a customized Workplace Ecosystem that is sustainable, scalable, replicable, equitable, and inclusive, with special attention put on Employee Wellness from a psychological and physical perspective. And finally, AI is here to stay, and it will get better and better, embrace it to provide business and career continuity and security.
