Malaysia attracted RM132.6 billion (USD28.4 billion) of approved investments in services (RM82.4 billion), manufacturing (RM44.9 billion), and primary sectors (RM5.3 billion) within the first half of 2023. The country continues to become a desirable destination for international organizations to invest and this is expected to see an upward trajectory in the year of 2024 as well as Malaysia is expected to transition to a high-income economy by 2028, as per the World Bank (2021).
In this article, we delve into the dynamic shifts and advancements shaping Malaysia's talent acquisition landscape, exploring the emerging trends that are set to define the recruitment narrative in the coming year.
The Rise of Contractors & Consultants/Gig-Economy
In 2023, businesses face challenges in hiring due to workforce changes, leading them to rely on contractors and consultants. This shift towards flexibility is driven by the need to address skill gaps and adapt to market changes quickly. Companies prioritize project-based hiring for specific skills, promoting work-life balance for permanent employees. To stay competitive, organizations must be agile in the dynamic hiring landscape. Government initiatives, like allocating RM40 million for 30,000 gig workers in Budget 2023 and programs such as the Global Online Workforce by Malaysia Digital Economy Corporation (MDEC), underscore the increasing significance of the gig economy in shaping employment.
Data Driven in Hiring
Using smart tools like automation, AI, and data analytics helps companies find the right people for jobs more easily. Each resume is unique, so having the right key metrics makes it easier for recruiters to pick the right person. This not only makes hiring faster but also helps companies keep their employees happy and stay with the company. In Malaysia, these tools are crucial for handling a tough job market. So, combining these smart technologies not only makes hiring easier but also creates a workplace where people want to work efficiently.
Prioritization in Skill-based Hiring
Prioritizing skills in hiring is crucial for companies to ensure they have a workforce with the right abilities. The focus on skill-based hiring extends to upskilling programs tailored to business needs, keeping employees relevant and ready for challenges. This strategic approach builds a dynamic team that not only meets current demands but also anticipates future trends, fostering long-term growth and success.
Candidate Experience
Creating a positive candidate experience is crucial because it influences how job seekers perceive the hiring process, impacting their motivation and performance. This approach, focused on respect and value, not only enhances employee satisfaction but also boosts a company's brand image. Happy candidates are more likely to become content employees, contributing to the overall success of the business. A positive candidate experience builds a good reputation, attracts top talent, and increases the likelihood of candidates recommending the company to others, further solidifying its position in the market. According to industry studies in Malaysia, companies with a strong commitment to candidate experience are 40% more likely to attract top talent.
AI in Recruitment
One word: Game-changer. As businesses grow, their use of technology becomes crucial for success. Adopting technology helps companies streamline their hiring process, saving time and ensuring a more accurate and efficient selection of candidates. Almost 96% recruiters believe that using AI improves how companies find and hire talented people, making them more competitive. With AI handling repetitive tasks, recruiters can spend more time building relationships and understanding candidates.
The government has also introduced a platform called MYDigital, an initiative that represents the government's aspirations to transform Malaysia into a digitally enabled and technology-driven high-income nation, as well as a regional leader in the digital economy.
Diversity, Equity, and Inclusion (DEI)
Bringing diversity into your company, by hiring people from all sorts of backgrounds, is super important. It makes everything more vibrant and creative. When you have a mix of people with different ideas, it sparks innovation and collaboration. This not only makes everyone feel valued and happy but also turns the workplace into a lively and welcoming space. Companies are changing the way they work, making sure everyone's unique qualities are celebrated. They're creating cultures where differences are not just accepted but to be embraced and seen. Whether through mentorship programs or affinity groups, companies are building places where every voice counts.
Continuous Learning – Upskilling Workforce
Success in your career goes beyond what you already know but it's also about continuous learning to stay relevant. Recognizing this, companies invest in online courses, workshops, and seminars as tools to help employees grow their skills. In Malaysia, the government's initiatives include platforms like e-LATiH, providing free access to online courses. Continuous learning not only improves job skills but also enhances adaptability, critical thinking, and innovation.
Approximately 47% of employees are likely to stay in their jobs when companies encourage upskilling. Despite the benefits, balancing work and learning poses challenges, requiring dedication and effective time management.
Conclusion
We expect more shifts in trends in 2024 due to various macroeconomic decisions. As we continue engaging with many business leaders, the optics show a very optimistic growth outlook. Embracing agile hiring practices, prioritizing diversity, leveraging AI in recruitment, and investing in continuous learning will likely remain focal points. Companies need to adapt to dynamic talent landscapes to thrive in Malaysia's journey toward becoming a high-income economy by 2028. Staying abreast of emerging trends will be crucial for businesses aiming to navigate the evolving employment landscape and capitalize on the positive trajectory foreseen in the year ahead.
Let Monroe Consulting Group be your strategic partner in achieving success amidst Malaysia's ambitious economic vision! Whether you're adapting to new hiring trends or using smart tech like AI, we've got your back. Our experts specialize in finding the right people for your team. Contact us today!