How organisations can keep their best talent from leaving Malaysia

Drawn by more career advancement opportunities, favourable working and living conditions, attractive salaries and an advantageous exchange rate, skilled professionals in Malaysia are continuing to seek opportunities abroad.

This “brain drain” issue, said Dr Murugappan, CHRO, Malaysian Communications and Multimedia Commission (MCMC), not only depletes Malaysia’s talent pool but also poses threats to economic growth and innovation.

He told HRM Asia, “To combat this trend effectively, a multi-faceted approach is necessary, encompassing educational reforms, enhanced industry collaboration, startup ecosystem development, targeted government policies, and a cultural shift towards lifelong learning.”

Where employers are concerned, there are some strategies they can put in place to increase the earning power of their employees while bridging any existing skills gaps and aligning their growth with organisational needs, as Dr Muru recommended:

1.   Performance-based compensation systems

Implementing performance-based compensation systems can significantly motivate employees and align their efforts with organisational goals. These systems tie financial rewards directly to individual and team achievements, fostering a culture of meritocracy and encouraging employees to excel in their roles.

2.   Skill-based pay increments

Offering skill-based pay increments rewards employees for acquiring and applying new skills that are critical to their roles and the organisation’s strategic objectives. This approach not only incentivises continuous learning but also ensures that employees are compensated fairly based on their evolving capabilities.

3.   Upskilling and reskilling opportunities

Providing robust opportunities for upskilling and reskilling is essential in today’s rapidly evolving job market. Clear pathways to higher pay can be established through comprehensive training programmes that equip employees with the latest industry-relevant skills, preparing them for advanced roles within the organisation.

4.   Mentorship programmes for career progression

Mentorship programmes play a crucial role in linking skill development to career progression. By pairing experienced mentors with aspiring professionals, organisations can facilitate knowledge transfer, provide guidance on career paths, and nurture leadership potential, thereby accelerating both personal and organisational growth.

5.   Partnerships with industry and educational institutions

Collaborating with industry and educational institutions allows organisations to tailor training programmes to meet specific skill requirements. These partnerships facilitate the development of targeted curricula that address industry needs, ensuring graduates are well-prepared to contribute effectively upon entering the workforce.

6.   Sponsorship/reimbursement for professional development

Offering sponsorship/reimbursement for relevant courses and certifications demonstrates a commitment to employee growth and development. This initiative encourages continuous learning, empowers employees to acquire advanced qualifications, and enhances their value within the organisation.

“By implementing these strategies, Malaysian businesses can enhance earning power for employees while bridging critical skills gaps that hinder organisational success. These initiatives not only foster a skilled workforce capable of driving innovation but also position Malaysia competitively in the global marketplace,” said Dr Muru.

To further improve their ability to retain their best talent, organisations can also enhance their total reward strategies by implementing flexible work arrangements such as remote work and work-from-anywhere options.

“You can also establish a job architecture that reflects your organisational strategy and provides sufficient mobility across teams and job roles to support all employees in their diverse career journeys.” – Dr Murugappan, CHRO, Malaysian Communications and Multimedia Commission (MCMC).

Instead of increasing wages, they can also consider variable pay, bonuses, and other non-recurring compensation, including tuition reimbursement, family forming benefits and home office stipends. Benefits and rewards should reflect diverse employee needs and organisations can consider “buffet” style benefits plans that allow employees to choose which benefits best align with their lives.

Dr Muru added, “You can also establish a job architecture that reflects your organisational strategy and provides sufficient mobility across teams and job roles to support all employees in their diverse career journeys.”

“Also, reevaluate job requirements to shift focus towards employee skills and experience as opposed to format degree requirements. Prioritise business succession, internal promotions, and the internal candidate pool for open positions, because internal promotions and development improve engagement and retention.”

To eventually eradicate Malaysia’s brain drain problem, organisations must also cultivate a sustainable culture of continuous learning in the workplace, which can present daunting challenges, acknowledged Dr Muru.

These include the need to balance productivity with learning, with organisations having to integrate learning into daily work schedules and set productivity targets that include time for learning activities.

It can also be challenging to quantify the return on investment (ROI) of learning and development programmes in terms of tangible business outcomes, Dr Muru pointed out. “To overcome this, develop metrics that are aligned with business objectives, such as increased sales, improved customer satisfaction scores, or reduced error rates,” he said, “Conduct pre- and post-training assessments to track improvements in employee performance and productivity. Lastly, collect feedback from employees and managers on the impact of new skills acquired through training on their daily work.”

Encouraging participation is another challenge, as some employees may be hesitant to engage in learning activities due to perceived time constraints, lack of motivation, or uncertainty about the relevance of training to their roles.

In such instances, organisations can offer incentives such as certifications, badges, or recognition programmes for completing modules or achieving learning milestones.

“They can also provide personalised learning paths tailored to individual career goals and interests, communicate the value of continuous learning through leadership endorsement, showcase success stories of employees who have benefited from training, and highlight career advancement opportunities linked to skill development,” said Dr Muru.

For employees who want to develop themselves professionally and advance in their careers, embracing change is non-negotiable, suggested Dr Muru.

READ MORE: Malaysia faces STEM talent drain as salaries stagnant

“Some employees may resist acquiring new skills or adapting to changes in job requirements due to fear of failure, comfort with existing routines, or scepticism about the benefits of learning. Instead, they should cultivate a growth mindset that values continuous improvement and lifelong learning.”

He recommended that employees participate in learning communities or peer support groups to exchange knowledge, share best practices, and gain confidence in applying new skills. They should also seek mentorship or coaching from colleagues or supervisors who can provide guidance and encouragement during periods of transition or skill acquisition.

However, learning new skills is only effective when employees can successfully apply them in real-world situations and derive tangible benefits for themselves and their organisation, reminded Dr Muru.

“Employees can ensure the practical application of new skills by volunteering for cross-functional projects or task forces that require the use of newly acquired skills, and seek feedback from supervisors, peers, or mentors on performance improvements resulting from skill development efforts,” he concluded.