How to Hire in Malaysia
A quick-growing business hub, Malaysia is home to a youthful labor force. To expand your enterprise, finding talent that suits your needs in ASEAN holds appeal. Finding skilled individuals crucial to the growth of your business within ASEAN appeals to many entrepreneurs. Pitfalls to watch out for during the hiring process in Malaysia to ensure smooth recruitment and company growth.
Platforms to Search for the Best Candidate or Talents
Talent may be discovered in Malaysia via different methods. Some prefer to look for jobs through online portals, including but not limited to JobStreet, LinkedIn, and WOBB.
A few foremost online task portals include:
- JobStreet: It has a big database of activity listings and lets you publish your openings to an extensive target market.
- LinkedIn: It is the best way to connect to qualified candidates and analyze greater approximately their skills and experience stated on their profile
- Hiredly (Formerly WOBB): It is an active platform for millennials in Malaysia.
- Sling: It is a platform that helps HR in scheduling and communicating.
- Adnexo: It uses artificial intelligence to match candidates with jobs that can be a very good suit for their abilities and revel in.
Besides, business networking meetups are another option where you can meet directly with potential candidates and cross-industry talents who attend the events. A referral program is another alternate tool to encourage happy employees to refer their friends or ex-colleagues to work together in the same company as they will share almost similar work cultures.
Legal & Background Checks in Malaysia Context
With background checks less stringent in Malaysia, there are legal provisions that companies need to know about.
Without consent, the collection, use, and disclosure of personal information are banned by the Personal Data Protection Act (PDPA).
In Malaysia, employers have the authority to perform multiple types of background checks (criminal, credit, training, employment, and reference) before hiring job candidates. Public data, in conjunction with social media, can enable behavior historical past tests but, privacy invasion must be avoided when dealing with candidates.
Malaysia Anti-Discrimination Laws
You cannot discriminate against job candidates or employees primarily based on their race, faith, gender, age, marital repute, incapacity, or physical disability. This means that you can not discriminate against potential candidates primarily based on those elements when recruiting in Malaysia.
The exceptions to those laws for instance, you can specify job criteria that are bona fide occupational qualifications (BFOQs). BFOQs are process requirements which are critical to the task and can not be reasonably accommodated. For instance, you can specify that a process calls for a male applicant if the activity entails running in a male-best space.
Malaysia Hiring Process
Malaysian corporate culture is hierarchical, thus decision-making is often slow-paced. Meetings, including job interviews, may start with personal conversations to build rapport. Punctuality is valued, but lateness is not uncommon.
Employment contracts are normally non-negotiable upon signing in the hiring process in Malaysia. However, it is common for employees to request modifications to the contract after signing. This is because Malaysians often prefer indirect communication, so employers need to be able to understand implicit meanings.
Malaysia Employment Laws
In Malaysia, a written employment contract is mandatory for all positions that exceed one month in duration. The contract must detail the following:
Work hours: The standard workweek in Malaysia is 45 hours, down from 48 hours as of January 1, 2023. Employees are allowed to work overtime with the condition that they must be paid a minimum of 1.5 times of hourly rate for it.
Overtime protocols: The contract should specify the overtime pay rate and how overtime hours will be calculated.
Benefits: The contract should list down all the benefits entitlement of that employee for example health insurance, gym membership, paid leave, and retirement plans.
Termination stipulations: The contract should specify the reasons why an employee can be terminated, such as for misconduct.
Salary: The contract should state the employee’s salary and how it will be paid.
Onboarding Process in Malaysia Corporate Culture
The onboarding process is when a new employee is introduced to their new company and role. It is a necessary time to set the first impression of the company and let the new employees blend into the welcoming culture and speed up the adaptation quickly.
When it comes to onboarding, there’s no universal solution, but there are best practices that can make sure new hires in Malaysia have a welcoming and positive onboarding experience.
Here are some tips for onboarding new hires in Malaysia:
- Personally review contracts with employees before their commencement. Employer cares about every hire and demonstrates a transparent and fair company culture
- If feasible, have company representatives present during the first day or week to provide a warm welcome. Company values new employees coming on board and allows for a more personal introduction to new colleagues and company culture.
- Consider group onboarding. This is the most cost-efficient way of onboarding where the new employees can know each other well and increase cross-department teamwork spirit.
- Assign dedicated HR personnel or outsource onboarding to a professional service. Employees are given the support they need through the onboarding and it accelerates the adaptation process
Benefits of Outsource Hiring
For foreign businesses that expand into the Malaysian market makes business sense to outsource the hiring. Outsourcing companies like Fastlane Group provide speedy recruitment services to the company from identifying the potential candidates to signing the employees on board. It can help the company to speed up the expansion plan in the Malaysia market.