Companies in Malaysia are predicted to face fiercer competition for retention of top talent from regional competitors. To win this battle, organizations are turning to their HR departments to address these issues through strategic support, thereby transforming HR from an administrative wing to a strategic and value-adding branch of the organization. This business trend has already taken hold in developed countries like USA, Europe and parts of Asia and it is now up to developing countries like Malaysian companies to transform their HR departments so to remain more competitive and dynamic for the continued economic growth.

HR Transformation in Malaysia and its Competitive Advantage

Talent is more critical for any business success today. An organization's competitive advantage resides in its employees. Depending on how an organization attracts, retains, rewards, motivates and trains its people can become an enduring source of competitive advantage.

The overall goal in HR transformation in Malaysia is to create a more strategically assisting and supportive HR department. The primary HR activities like relevant workforce data, employee self-service, leave management systems, etc. – remain crucial to the smooth running of any company and should not be neglected. However, a transformed HR department can move out of the box and can help the company in strategic planning to develop the overall business.
HR can enable business growth by developing standard business models that make it quick and easy for the business to enter new geographic markets. HR transformation in Malaysia can also facilitate business growth by developing new staffing models that help in retaining talent pools.

So, HR transformation in Malaysia not only improve the efficiency of the company; it can also provide more strategic assistance by developing a robust human capital strategy.
HR Shared Services-Role in HR Transformation in Malaysia

Instead of having a generalist HR approach to cover all your business needs, foreseeing Malaysian companies have already started adopting HR shared services which allow businesses to reduce costs, improve quality and organizational change.

HR shared services are customer focussed where he decides which services to take up. HR shared services helps in HR transformation in Malaysia by outsourcing time taking and administrative activities to optimize your HR department operational efficiency. HR shared services providers have people with the expertise and knowledge to take over highly functional tasks. This way, your internal HR team can be freed up to manage their domestic strategic activities like people management, retaining talent staff and developing organizations talent pool.

Ultimately, the HR shared service model allows companies to improve HR capabilities and helps overall HR transformation but without a huge expenditure.

Top HR consulting firms in Malaysia:

Some of the top HR Consulting Firms in Malaysia which can maintain the entire human resources of your business at an affordable cost. Britay Asia-Established in 2001, Performance enhancement, executive coaching, and skill development are some of the many areas on which Britay Asia works to strengthen the skills of your employees.
Irsad HR Consulting-they helps you to achieve your ultimate goal through integrated, strategic and solution-oriented services. Esther Group is another company that provides a wide range of HR services which include recruitment, HR consulting, payroll outsourcing, corporate training and development and many more.

Due to increasing competition for business and talent retention, it is essential for Malaysian companies to transform the basic functionality of HR. Its high time for the Malaysian companies to drive this change within their organizations to leverage the strategic benefits of HR transformation.