The Great Resignation 2022 — Should Malaysian Businesses Be Worried?

The Great Resignation — a trend borne out of the pandemic, or something that has already been brewing over the past couple of years? As employers and HR managers, it’s something that is considerably worrying, with workers around the world leaving their jobs at historically unprecedented rates. 

In fact, around 3 percent of the entire workforce in the U.S. reportedly resigned from their jobs during a single month back in 2021, despite the economic uncertainty of the COVID-19 pandemic in the market. Many attribute this trend to a shift in mindset of the average employee, with many now prioritising personal growth and well-being when planning their careers, along with other factors such as pay expectations and employee happiness. 

If you’re an employer in Malaysia, should you be worried about the Great Resignation? 

Yes… but don’t panic

The Great Resignation has the potential to similarly affect businesses in Malaysia. A 2021 report polling over 1,000 Malaysian professionals showed that around 61% of employees planned to find a new job at some point in 2022 — the majority of these potential job-leavers were from the 35-and-under demographic. The main reasons for this, according to the survey: 

• Lack of career development 
• Lack of appreciation/development
• Lack of training opportunities
• Insufficient remuneration (pay)
• Overworked
• Inflexible work arrangements 
  

However, you shouldn’t panic — not just yet. The Malaysian Employers Federation (MEF) reported that resignation rates remained manageable in 2021, although economists have also warned that there needs to be significant improvement in certain conditions for employees in order to prevent a talent drain in Malaysia across 2022. 

This is arguably even more relevant when it comes to workers from the younger generation, who have a strong preference for work-life balance (sometimes, even over financial gains). You aren’t powerless, however, and we’ve got a couple of suggestions to help you handle these obstacles. 

How to mitigate the Great Resignation for your company in Malaysia

The logical thing to do for employers and HR managers is to get ahead of any potential employer retention issues. Here are some quick steps that you can use to mitigate the Great Resignation for your company: 

• Identify underlying causes 
• Introduce clear progression pathways 
• Review remuneration packages 
• Introduce flexibility in your way of work (find out how) 
• Review your corporate culture 
  

Try to address the most prominent drivers behind employees leaving companies, including job security, toxic workplace culture, or even the uncertainty that has come along with the pandemic.

Tip: Download our FREE Checklist to ensure that your company is ready for the Great Resignation 

Your company should, of course, also be undergoing the absolutely necessary process of digitalisation. Over the past two years, it’s become clear that companies looking to survive — and thrive — in 2022 and beyond must be fully digitalised in order to be best prepared for potential obstacles, and to be digitally resilient. 

As any company’s people are its greatest assets, it’s crucial to take the necessary measures in order to prevent a talent drain for your business in Malaysia. Start by digitalising the end-to-end of HR with Malaysia’s best HRMS: altHR.