Balance work with rewards to attract staff employers urged

PETALING JAYA: Employers are struggling to attract and retain talent despite growing unemployment, and should balance work expectations with suitable rewards that ensure employees are well compensated, said Usha Devi Arumugam, managing consultant at a human resource consultancy.

She was commenting on figures from the Statistics Department, that revealed the unemployment rate as of March was at 3.5%, or 588,700 people.

However, the country only had 192,600 vacancies compared with March last year, which recorded 184,300 vacancies.

“With the number of vacancies presented by the department, it is surprising that employers are having trouble attracting and retaining talent,” she told theSun.

Usha Devi said gig work seemed to be in demand in the labour market, which relies heavily on temporary and part-time positions that are filled by independent contractors and freelancers, rather than full-time permanent employees.

“Although the gig economy is growing rapidly, it has its downsides for employers who rely on full-time workers. In such cases, employers may find it challenging to predict the availability of their workforce, leading to fluctuations in staffing levels. This can affect business operations.

“Employers may also lose out on loyalty, productivity and stability that full-time workers offer. This is because gig workers are classified as independent contractors and do not enjoy benefits such as health insurance, retirement savings or worker compensation.

The Statistics Department also reported that out of every five million graduates produced by higher education institutions, 200,000 remained jobless.

“To stand out in such a market, employers must offer unique perks and benefits, create a positive company culture, and improve employee engagement and retention.

“They should focus on providing an innovative compensation and benefits system to attract the best talent. Job seekers, especially fresh graduates, are attracted to multinational corporations, government-linked companies and conglomerates,” Usha Devi said.

“This is because corporations made up of multiple businesses appear to be more attractive than local setups as they offer fair salary packages, good career progression, learning opportunities at all levels, engagement activities and more structured work systems.”

A sales executive with four years’ experience at a telecommunications company, who wished to be known only as Riz, said employees want assurance that they can grow in their roles.

“A company culture that emphasises work-life balance, collaboration, open communications and employee appreciation can help create a healthy and happy work environment for its employees.

“It has been an excellent learning opportunity for me since I joined my company.

“I have had the chance to enhance my communication skills and overall, it has been an enjoyable work environment.”

However, Riz said meeting sales targets and dealing with customer complaints can be challenging. On the other hand, it is rewarding to receive compliments from customers and earn commissions.

“The positive aspect of being in my job includes having a work-life balance. The negative is that I only have one day off each week.

“The company requires me to work on public holidays as well. I don’t consider this an issue as I get learning opportunities in every task.”

To overcome employers’ struggles to attract and retain top talent, Usha Devi emphasised that creating a positive company culture and improving the brand image are vital aspects that employers need to consider.

With the power of social media, a company’s reputation is paramount to attracting employees.

“Improving employee engagement and retention is a process. One way is for employers to balance work expectations and rewards, thus ensuring employees are well compensated.”

She added that employers could also implement an attractive rewards scheme for high performers to motivate staff.

“Employees desire recognition and appreciation, so employers should tie the rewards system with results, deliverables and company values.”

She also said employers must consider offering unique perks that will stand out and provide the needed incentive for potential employees.

The ongoing trend is for flexibility in work conditions and rewards systems, specifically addressing individual or group needs.

“For example, employers making additional EPF contributions may not be attractive to younger employees. Instead, companies could use the same budget to offer other benefits such as travel and edutainment, which is a form of entertainment designed to educate as well as to amuse.

“For married employees, the same budget could be used to enhance their medical coverage. Providing constructive feedback and acknowledging their contributions would help create more significant job satisfaction and loyalty. This would improve employee retention,” she added.

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