MALAYSIA - Market & Employment Update

With the first quarter of 2020 behind us, I thought it was a good opportunity to provide you with an update on what we at Michael Page Malaysia are seeing from a market and employment perspective. Two weeks in and most people are now fully settled into their business continuity plans with workforce's fully operational and working from home. For some this was a seamless process. For many it was a scramble to quickly understand what percentage of employees had the hardware and WiFi access to connect and operate remotely. If you were the latter, fear not, you were not alone.

Agility depends on leaders

Firstly, the landscape is changing rapidly. Visibility for most organisations is week to week, for some it’s day to day. This in itself creates challenges and companies who fare best are those whose leaders remain agile and proactive opposed to cautious and slow in decision making. 

Some industries are thriving

As with all past crises, there are certain beneficiaries in such situations and the COVID-19 pandemic is no different. There are sectors that have seen significant revenue, profit and headcount increase in the past 4 months. As you would no doubt expect, FMCG and the supermarkets and grocery stores industry is booming. Medical devices, especially personal protective equipment suppliers, simply can’t produce goods at a fast enough pace to meet both domestic and overseas demand, and the pharmaceutical industry is following similar suit.

Big Data and Data Analytics professionals are experiencing a continued rise in standing as organisations quickly turn to large data sets that can be dissected, interpreted and presented as meaningful information to support decision making processes. Organisations see Data Analytics as being key to not only identifying cost reduction opportunities but also unearthing a deeper understanding of customer behaviour.

Some digitalised online platforms that don’t require traditional consumer activity such as online food delivery companies are thriving as families break the shackles of yet another home cooked meal and indulge in a moment of pre-lockdown normality. Online education is another industry sector experiencing significant growth due to schools and other educational facilities closing the world over. E-commerce, FinTech and e-payment companies also continue to remain active in hiring to cope with a continuing shift in consumer behavior.  

Supply Chain functions and the logistics industry are key to keeping B2B and B2C ecosystems connected. During the months prior to Movement Control Order (MCO) being put in place, we observed a noticeable increase in hiring activity for supply chain and logistics professionals, both within internal supply chain teams and within specialist 3PLs as they responded to an increase in demand. This trend also extends beyond domestic supply chains with many regional and global shared service centers having to increase heads to cope with demand pressures within their global production and distribution networks.

The impact on hiring and onboarding

From a recruitment perspective, we’ve interestingly seen a reduction in average time to hire within some companies, especially those fully embracing technology. This may seem strange however never before have candidates been so accessible and available for interview. Whilst we’re only two weeks into the MCO, it already seems an age since employed candidates were required to request half day annual leave to attend an interview. Hiring manager availability has also generally increased with key decision makers grounded as a result of travel restrictions, all leading to a more fluid recruitment process and reduced time to hire.

To counter this, whilst many companies have embraced virtual interviews, one of the biggest market adaptations has been the ability to digitally onboard talent. For some, this is business as usual, for others a significant challenge and for the most progressive of organisations, the new normal perhaps. There are certainly some sectors such as Shared Services / Business Process Outsourcing that have been able to adapt faster in being able to digitally onboarding talent. This in part is due to the recurring nature of the role itself as well as the systems and SOPs already in place.

Useful resources for you:

Best practices for virtual interviews

Tips on digitally onboarding new hires

The World Health Organisation predicts a mid-April peak of COVID-19 cases in Malaysia and if correct, I personally foresee at least another 4 weeks of working from home. Whilst I’m looking forward to returning to the office when it’s safe to do so, I’m pleased to see how our own typical work processes at Michael Page have been challenged with new and improved ways of working realised. In time, COVID-19 will be remembered as being responsible for the greatest shift in employer attitude towards digitalising it's workforce in modern time. Notwithstanding the significant challenges that still lie ahead, there may just be some positives that arise from this devastating crisis.

If have any questions or would like an update specific to your industry, please do feel free to contact me directly.

Lastly and most importantly, please do keep yourself and your loved ones safe.

Nic