Talent war and retention the main challenges for local employers

Written by Emily Tan

Monday, 12 July 2010 00:00

Skill shortages and talent retention are the two main issues keeping Malaysians employers awake at night. Over 70% of employers surveyed in the recently published Randstad's 2010 World of Work Report fear they will lose talent to other markets as job prospects overseas improve, while 38% foresee a war for talent this year.

Conducted in February, the study by the global HR and recruitment services firm polled 3,000 HR professionals, business managers and CEOs in Asia Pacific, including 145 from Malaysia.

According to the study published on June 18, Malaysian employees in general are optimistic despite the economic crisis last year, with 92% expecting bonuses and 47% expecting a pay increase of 5% to 10% this year. In contrast, only 46% of employees surveyed in Australia expect bonuses and 37% hope for a pay hike.

Malaysian employees in general are optimistic despite the economic crisis last year, with 92% expecting bonuses and 47% expecting a pay increase of 5% to 10% this year.

Remuneration plays a major part in talent retention as 37% of Malaysian employers believe that if their employees do leave, it will be for better pay. Additionally, 27% think the main reason employees are motivated to stay is salary. Most Malaysian employers also fear that their employees will leave for job prospects overseas (70%) compared with only 1% of employers in Asia Pacific sharing this fear.

Nevertheless, money isn't everything for Malaysian employees as 39% of employers believe the biggest focus of their employer brand should be in reinforcing employee value propositions and 29% say their employees are motivated by a strong understanding of their contribution towards corporate goals.

This is in line with a study released in May by PricewaterhouseCoopers (PwC), which surveyed 133 Malaysians in early 2010. The PwC study found that while most Malaysians desired more responsibility with a corresponding salary (45%), well over a third also desired better work-life balance. Malaysian employees also want to work for companies with strong corporate social responsibility values and 43% want jobs that "allow them to make a difference in the world", according to the study by PwC.

"Employers should address tangibles — salary and benefits; as well as intangibles — values, culture and brand affinity," said Sahun Nadarajah, general manager and director of Agensi Pekerjaan Randstad Sdn Bhd in a recent statement. He added that employees will also be more motivated, productive and loyal if the work experience truly expresses company values.

 

This article appeared on the Management page, The Edge Financial Daily, Jul 12, 2010.