What is HRD?

The Evolution of Human Resource Development (HRD)

A successful leader ensures that he builds his assets. Needless to say, your employees represent your strongest asset.

This is the mandate that human resource development (HRD) plays within an organization and through different methods.

So what is involved in human resource development?

Understanding HRD: A Holistic Approach

HRD is a systematic and deliberate process of aiding employees in acquiring knowledge and skills as well as improving existing abilities. This makes the organization more efficient in return.

Human resource development, in general, refers to both individual employees, collective departments, and the organization at large, ensuring their effective success and growth.

HR professionals focus on three primary aspects of human resource development in the HR life cycle:

• Training and development – imparting knowledge and skill needed to play future roles or responsibilities.
• Macro and micro changes to improve organizational effectiveness and well-being, organization development.
• Mentoring in improving individual career development.

It means that your employee has appropriate capabilities to perform his/her job. Moreover, it provides your employees with the relevant knowledge and strengths required to advance their careers.

The Paradigm Shift: Embracing Technological Advancements

Technological advancements leave an indelible mark on the contemporary HRD landscape. Traditional HRD practices have been revolutionized by automation, AI-driven analytics, and immersive learning platforms. With these developments companies are able to improve their recruitment programs for efficient talent acquisition, personalized learning through technology as well as data-informed decision making among others.

Cultivating a Learning Culture: Empowering Human Capital

The creation of an appropriate learning culture is another vital factor in successful HRD. Organizations that promote lifelong learning ensure refinement of skills, breed innovations, and entrench the spirit of change. Mentorship programs, e-learning modules and collaborative platforms stimulate a workforce ready for innovative changes.

Strategic Alignment: Aligning HRD with Organizational Goals

HRD excellence should include relating development activities to the larger corporate goals. This way, the HRD becomes a catalyst for growth and sustenance. This alignment makes sure that all development activities become directly related to the organization’s track of success.

Unveiling HRD’s Benefits

The benefits offered by HRD are manifold

Free Training and Analysis

HRD provides free training and analysis services for registered entities.

Tax Benefits

HRD levies are allowed as allowable expenditure in accordance with the Act of Income Tax Act 1967.

Financial Aid for Training

They can afford financial assistance to employees engaged in training, which is related to business operations.

Advisory Role

HRD advises the National Human Resource Centre on important aspects of human resource.

Keeping Pace with Trends

This enables employees to remain at par with critical skill trends in their areas of work.

Systematic Training Platform

The HRD offers a formal platform for employee training.

Upfront Claimable Training

It provides front-end trainable and claimable without on the spot payment.

Mandatory HRD Compliance in Malaysia

In Malaysia, certain companies are obligated to register with HRD:

Each employer having 10 or more Malaysian employees must be registered, with a levy rate of 1% for every employee’s monthly income per month.

For employers with 5-9 Malaysian employees registration is also a possibility at a levy rate of 0.5% of monthly payment for their workers.

Section 13 of the act stipulates that failure to register attracts penalties such as fines and imprisonment.

Registering with HRD: A Simple Process

Companies can easily register with HRD through these steps:

1. Access the HRD website.
2. Navigate to the application section.
3. Choose ‘SBL’ from the menu.
4. Fill out the provided form.

Documents required to register HRD ?

• Certificate of Incorporation / registration
  • Form 9, business license, Form 8, super form and other registration certificate
• Documents for no. of employees
  • EPF statement / SOCSO statement
• Documents for employers activities
  • Employers’ activities (company profile, annual report or other relevant documents).

Industries Mandated for HRD Registration

Several industries are mandated to register with HRD, including personal services, recreation, investment, household goods, insurance, cosmetics, technology, and science.

Grant Schemes Available for Employers

HRD offers multiple grant schemes for registered employers, such as:

• Skim Bantuan Latihan (SBL)
• Skim Bantuan Latihan Khas (SBL-Khas)
• Industrial Training Schemes (ITS)
• Future Workers Training (FWT)
• On-Job Training (OJT)
• Computer-Based Training
• Information Technology (IT)
• Recognition Of Prior Experiential Learning (RPEL)
• Training Facilities And Renovation (ALAT)

Claiming Process Simplified

To make a claim with HRD:

1. Log in to the HRD site and access E-TRIS.
2. Select the ‘Application’ icon.
3. Choose between submitting claims with grants or other claims.
4. Complete the online submission with necessary documentation and click ‘Submit.’

For comprehensive guidance on HRD registration, nominee directorship, or company secretarial services, FastLane Group offers professional assistance to Malaysian companies.

This comprehensive guide demystifies HRD in Malaysia, empowering employers and businesses to navigate its intricacies effectively.