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Malaysian employers opt for full-time employees over freelance, gig workers, reveals survey

KUALA LUMPUR: A survey has shown that Malaysian employers are placing more emphasis on skills and are opting for full-time employees over freelance or gig workers.

The first 2022 BrioHR SME Employer Sentiment Survey among others found that there is a positive employment outlook, in that over 50 per cent of survey respondents had actively recruited more employees in the last two years compared to pre-pandemic levels.

The survey also found that employers shared that they are finding it difficult to find employees that have strong interpersonal, problem solving and creative as well as innovative skills.

"According to the survey findings, there is a talent shortage in IT, marketing, and sales. Recruiting talent in these sectors remains a major challenge for employers in 2022," BrioHR said in a statement.

Employers also said that despite a significant talent shortage in IT, marketing, and sales, 54.3 per cent of survey respondents are hesitant to hire freelancers or 'gig workers' and would still opt for full-time employees.

Recruitment via online platforms is also still preferred by employers.

"The top three platforms for recruiting employees that respondents preferred were job listings, followed by LinkedIn and referrals from existing staff," the survey revealed.

The 2022 BrioHR SME Employer Sentiment Survey was conducted from June to July 2022 involving over 1,000 respondents comprising Malaysian industry leaders from various SME sectors.

Co-founder and Chief Executive Officer of BrioHR, Benjamin Croc said the survey yielded interesting results.

"It is encouraging to see the SME sector actively recruiting, as it demonstrates that they have recovered from the effects of the pandemic over the last two years. The findings also show that it is becoming more difficult for the SME sector to find talent within the roles and skill sets required. In addition to the skills gap, they must deal with wage inflation and labour competition as many employees migrate to industries that meet their lifestyle needs," he said.

Croc said despite the scarcity of talent, it was interesting to note that more than half of survey respondents did not want to work with freelance or gig workers, despite this being the norm around the world.

This could be due to several factors he said, including company confidentiality, as these employees frequently work for multiple companies often in the same industry he adds.

It is critical for businesses to invest in the growth and development of their employees; he adds.

"Employees are less likely to look for work elsewhere if they are given the opportunity to contribute their expertise to the company's important projects.

"As a result, businesses may want to take concrete steps to win the talent competition. These include new ways of recruiting talent; improving job design; resetting the company's compensation plan and work culture; and providing employees with a more robust career experience," he said.

Croc said while most survey respondents still prefer online platforms to recruit, referrals from within the company will result in faster hiring.

"This is because employee referrals provide immediate access to talent as they are sourced through personal connections. Aside from this, referrals allow your new hires to learn about your company from the perspective of an employee. The new recruits will also have friends who can assist them in settling in quickly, reducing attrition and increasing retention. In some ways, your referral programme can also serve as an indicator of employee satisfaction."

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