Technology is reshaping Malaysia’s job market. Some roles are being automated while new ones are emerging. It’s the great wheel of progress turning once again. These changes have greatly affected the job market — for both job seekers and employers.
According to Malaysia’s Ministry of Finance (MOF), the downward trend of the unemployment rate in Malaysia will continue. As competition for talent increases, employers need more than competitive pay to acquire and retain talent.
That’s where people analytics comes in. By collecting and analysing employee data — surveys, reviews, exit interviews, and performance records — you can uncover insights to improve hiring, retention, development, and the employee experience.
Challenges of staying afloat in a competitive market
The pandemic has surely catalysed the drastic changes in talent expectations. These include increasing expectations for skills development amid evolving job demands, the growing importance of diversity, equity and inclusivity, as well as demands for more flexible work arrangements.
Randstad Malaysia found that 60 per cent of Malaysian employees claimed better work-life balance when working remotely. Hence, there needs to be a way for managers to better understand their workforce.
Think of people analytics like a treasure hunt. You sift through all the HR data collecting dust across your systems to find the golden nuggets — the root causes of turnover, skills gaps separated by department, and the company’s demographic trends.
The human data that statistical models overlook but are often needed for managers to make better decisions — to take targeted actions, develop skills that matter, and craft an environment where people thrive. Without it, it remains difficult for companies to take action due to gaps in internal data collection.
However, there remains a significant challenge: not all companies are gathering high-quality, usable data that can be analysed into cohesive insights. Data quality issues impact the potential of analytics, causing an inability to make decisions and take further action.
Also Read: 15 times the Malaysian startup ecosystem catches our eyes in 2023
Additionally, as most available data sits in silos — often caused by disconnected systems across departments — issues as the people impact gap can occur, causing a further rift between the HR department and leaders of other departments.
In order to improve on both ends, organisations need to improve their data architecture and close the gap between their HR metrics and their business metrics.
Surveys have shown that high-performing organisations are able to accomplish more when they practise a data-driven culture with a more robust and modern data architecture that can organise and consolidate information for and relate them to their business decision-makers.
People analytics are one of the tools that can help bridge departmental gaps and integrate HR data to improve internal processes, encouraging collaboration and more data-driven decisions.
The role of people analytics in modern HR
With the abundance of data in the 21st century, making guesses in workforce management without statistical evidence is ineffective. While traditional strategies may be tempting, 40 per cent of workers globally are still planning to leave their jobs in the near future despite the looming threats of a poor economic outlook. In addition to this, generalising theories will also risk expenditure. People analytics can help employers understand employees’ needs to take targeted retention actions.
People analytics have become an essential tool to help companies show empathy and understanding of what their employees need. It operates by helping employers identify what their organisation needs by first asking the right questions to pinpoint the right data required and provide insights to tailor an effective solution.
These analytics solutions measure productivity and workforce impact. On top of that, they provide insights and foresight into workforce and job market trends to equip the HR department for drastic changes. People analytics enables data-driven decisions that enhance employee experience, engagement and performance. It fosters a culture of learning, innovation and agility for continuous improvement.
Also Read: Are you a human resource?
A great example of the application of people analytics is the LEGO Group. In its recent digital transformation effort, the company has adopted Visier’s people analytics solution to equip its HR functions.
This step has enabled its People Analytics and Insights Team to identify priority skills gaps and align its learning and development investments with the company’s core business needs. As a result, the LEGO Group was able to accelerate the acquisition of critical skills to drive the company’s growth and innovation.
The future of Malaysia’s job market
The future is data-driven but also distinctly human. People analytics, when applied with care and vision, can guide organisations to smarter decisions and targeted people solutions. But unlocking the potential of people’s data takes work.
You have to know which questions to ask and be open to what the analysis reveals, even if it upends assumptions. With the right analytical tools and curious mindset, you can extract genuine workforce insights from the data exhaust that organisations generate.
Visier strives to help companies see their people clearly — across all their complexities. When you understand what makes your people tick, it opens up new vistas for insight-led, empathy-driven people management.
Visier looks forward to establishing an R&D centre in Singapore to serve the APAC market and give companies the localised data they need to take aim and continuously develop their workforce that’s good for business, great for employees, and even better for Malaysia.
—
e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.
Enjoyed this read? Don’t miss out on the next insight. Join our WhatsApp channel for real-time drops.
Image credit: Canva Pro.
The post Can people analytics boost Malaysia’s labour market? appeared first on e27.