For many, the year 2020 has been wild. In Malaysia, many sectors and industries were forced to modify their operations in order to adapt to the changes introduced by the pandemic. Initially, hiring was put on pause and employees retrenched as decision-makers struggled to lower their operating cost. But as restrictions relaxed and economic activities were allowed to open up again, businesses are now hiring manpower in masses to rescale their operations causing a war for talents in Malaysia.
With strict travel restrictions in place, the supply of talents in the IT field decreased with many organizations unable to fill in the gaps for tech professionals in their company. Many businesses owners had to re-strategize, switching permanent placements to contractual basis and outsourcing their recruitment process to an IT recruitment agency like BGC Malaysia. In a nutshell, 2020 has been an absolute rollercoaster ride with many lessons to note for HR leaders in Malaysia.
Here are some pointers that HR leaders should take note of from the year 2020!
1.Contract recruitment works best to avoid risks.
Hiring new employees during an economic downturn can prove to be a risky move. However, it is a move that many hiring managers have to make in order to ensure business continuity during and post-economic downturn. In order to ensure operational flexibility, businesses needed a solution that allows them to effectively increase or decrease the manpower that they need without being tied down to any potential financial burden.
The solution? Seeking help from a recruitment and HR outsourcing agency in Malaysia to source for contract workers in order to fill up the labour gap in their company. Contract recruitment has its advantages during times of uncertainty. It reduces long term labour costs, gives more financial flexibility and contract employees can be hired at a faster rate. All three points mentioned above are crucial for businesses to successfully overcome the economic crisis in Malaysia.
2. Technological elements may be a norm in the hiring process
The global pandemic has forced HR executives to adapt to a new way of recruitment, a new normal, where we become a lot more reliant on technology as an alternative to the traditional standard procedure. For example, interviews are now conducted virtually and onboarding briefing can be done remotely. Although the new norm still has plenty of room for improvement, it is widely believed that this digital practice is here to stay. While the virtual hiring process may seem easy, it is still a fairly new practice that many hiring managers have minimal experience in and has its own set of challenges. For example, it is difficult to identify behavioural qualities through online interviews. Which is why most organisations outsource it to recruitment companies, handing this hiring process to recruiters instead. With their knowledge on the latest HR technology and years of experience under their belt, recruiters know how to conduct online interviews efficiently.
3. Malaysia is expected to experience a shortage of tech talents for a few years.
The pandemic has propelled Malaysian companies’ efforts in digitalising their operations, causing a spike in demand for tech talents in Malaysia. As a result, a shortage of tech talents with multiple IT positions left unfilled, even up to this day. The Malaysian government, through MDEC, has since launched several programs in order to produce more tech talents that are up to par on international standards. However, these programs were only introduced recently and it could take years before we can see the results.
Therefore, many hiring managers would rely on the help of specialised IT recruiters to help them look for tech candidates. IT talents are mostly passive candidates who are not looking to jump to any other company. However, specialised IT recruiters know what factors impact their career decision and are able to reach out to these candidates to convince them to move to a new environment.
4. Remote working may be the best workplace trend.
One significant trend that we can observe from 2020 is remote working. COVID-19 brought upon the largest work from home experiment, as businesses closed their physical offices down. It brought about a sense of doubt and uncertainty, with organisations trying to figure out the best remote working process. However, as the year progressed, most managers realised that their employees are able to function at an optimum level despite not having to check into a formal environment like the office. Many HR experts believe that remote working will remain around for the foreseeable future.
5. Employers Are Upskilling and Reskilling Their Employees.
In the interest of filling the labour gaps in their businesses, many managers are now focusing on upskilling and reskilling existing employees rather than hiring new ones. Hiring new employees could also prove to be a risky move that should be avoided for the time being. Therefore, we should expect to see more allocations put into employee training and development in the future.
Onwards into 2021
Without a doubt, 2020 has brought about many learning opportunities for HR managers. Many new HR trends and changes were introduced to the workforce to ensure that business operations continue amidst the devastating impact brought about by COVID-19. We hope that this article has provided you with insights, and helped you to prepare and plan your recruitment strategies for 2021.
We also understand the challenges that employers face in sourcing for talents during this period. If you are an employer looking to fill in any talent gaps in your business, click here and let us know how we can help you. Our skilled recruiters will be able to provide you with solutions to all of your hiring needs!