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The Changing Environment of Employee Management
The Changing Environment of Employee Management

The Changing Environment of Employee Management

Malaysia, with its good physical infrastructure system, export (varied) sector, fin tech, and professional services, is currently aiming towards global competitiveness and employee management. As a result of the changing employee behavior and management landscape, there is a need for small businesses to develop strategies with which to cope with the current changes and demands with employee management.

The ever-increasing burden of litigation by employees against small businesses is a dark cloud that hangs over business operations and rouge management practices. To be proactive; will require a rethink or review of existing people management practices more than ever.

Importance of Employee Management

The importance of employee management remains crucial to any organization and even the nation’s economy. Businesses have incurred over MYR186 million in wrongful dismissal claims from 2014-2017 which is an alarming rate. The fact that employee management does not remain an impersonal science could necessitate the weaving in of legal threads in areas that are personal to individual employees and situations.

The Need to Maintain Your Employees

Because employees – particularly talented ones – are the most valuable asset in any business, the cost of replacing employees could be far higher than expected. Therefore, there is need to give consideration about employee management. Because, there is this downside on your business if or when your top talent leaves to work for your competitors. Even, if unavoidable, it does have a significant impact on the rest of the employees and team dynamics.

Resources invested in recruiting and onboarding new employees, does undoubtedly impact operational expenses. The reputation of your company could even be at stake. What is obtained in the best companies today is that managers are evaluated based on their hiring and retention of great talent. As a good manager or business owner then, you should strive to keep your team committed and engaged.

Nevertheless, satisfying your employees should not deter you from informing them, as soon as possible, of any mistakes made, or shortfalls in performance. Offer them listening ears afterwards.

The Employment Act of 1955 governs the Employment law in Malaysia. The Act protects the interests and rights of employees who fall within clearly spelt-out categories. It sets out the minimum benefits or a baseline for all businesses to follow. As small businesses, you can prepare and protect your business in the following simplistic ways:


Show your Employees Respect

Serving as one of the best and critical ways to keep or maintain your best talent. Treating your employees professionally, and with a sense of dignity, they have no reason not to be productive. This practice is self-perpetuating as it as well engenders respect for you as the manager. When your employees feel disrespected, they might not stay committed for long, even when they love the job and are well paid. They may also go to the extent of seeking revenge in their way with potential constructive dismissal claims in Malaysia.


Praise and Recognize them

Generally, employees want to get appreciated for their efforts and positive contributions. Thus, thanking them for a job well done is crucial to their feeling of value, irrespective of the level; this recognition of staff or unit publicly helps build loyalty. However, the praise you offer to them should be objective and not manipulative; else, it will backfire. For instance, it could be counterproductive if used to pit one group over the other, either robotically, or given in the same way each time. Put in place shorter and regular employee performance appraisals; as we have seen many organizations moving away from annual employee evaluation.


Show them Emotional Intelligence

Consider being empathetic, friendly, supportive, courteous, and respectful to your employees. The reason behind the emphasis on ‘people smarts’ by fastest growing companies across the globe is simple: though you can have the world’s best technical skills, if you tolerate an insensitive, self-centered, or disruptive work culture, then be prepared for a revolving door. This does not imply you have to be fully aware of the personal lives of your employees, giving a sense of empathy will go miles in ensuring the retention of your talent.

Be authentic, real, transparent, and honest, they should not expect less from you as well. When challenges or negative news arises, your employees should get the ugly truth instead of cover- ups. Appreciation for your sincerity and potentially wanting to endure situations with you, even if it is not favorable to them.

Be Consistent

Your employees usually understand what it takes to succeed. When your business or organizational goals are constant and consistent – without surprises – your employees will attain an optimal level of productivity. Otherwise, you might lose their support when the rules get changed that they become confusing or unfair. The contributions of small businesses to the economy cannot be undermined; however the perils of poor people management practices add to the complexities and threats we face in our businesses.


In short, it is our responsibility as entrepreneurs and leaders to recognize the need to develop the capabilities of our people and manage to broaden the sources of the growth while also sustaining the same. The Employment Act in Malaysia sits in place to protect the interests and rights of employees who fall within clearly spelt-out categories. Therefore, the good treatment accorded to employees will translate into increased efficiency and productivity and in turn, results in growth, profitability and sustenance.

To explore more, join our Executive MBA or our Master in Human Resource Management double certificate program with SHRM (Society for Human Resource Management) and IUKL (Infrastructure University Kuala Lumpur).

Author picture

Dr. Roy is the Group Managing Director & Chief Executive Officer and holds responsibility for the overall strategic management & leadership in achieving the graduate schools’ vision & goals. His own belief for lifelong learning, as well as his drive for business management excellence, has brought him to achieving his passion for being part of the postgraduate education sector in Malaysia.

Dr Roy Prasad

(Hon Professor) FInstAM 

MHRM (MY), Grad Mgt (AU)

Group Managing Director &
Chief Executive Officer

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