What’s minimum wage in Malaysia?

I REFER to the Minimum Wages Order which the Human Resources Minister made by notification in the Gazette on July 16.

Although the said Order comes into operation on Jan 1, it is frustrating and appalling that it does not define what components can constitute “wages” to make up the minimum wage of RM900 for Peninsula Malaysia and RM800 for Sabah, Sarawak and the Federal Territory of Labuan.

Throughout the Order, the term “wages” is used repeatedly without denoting clearly and explicitly whether the term refers to merely basic pay and/or includes fixed and regular allowances paid to employees e.g. shift allowances, attendance allowances, meal allowances, overtime meal allowances, laundry allowances, competency allowances, etc.

To add to the ambiguity, the illustration in Section 4 of the Order, introduces yet another undefined term “current basic wage”.

Is this meant to suggest that only basic wage can be part of the minimum wage?
While I understand that it is only an illustration, this does not help for purposes of clarity.
The National Wages Consultative Council Act 2011, under which the said Order was made, defines wages as having the same meaning assigned to it in section 2 of the Employment Act 1955.

The definition of wages under the Employment Act 1955 is “wages refer to basic wages and all other payments in cash payable to an employee for work done in respect of his contract of service.”

It excludes five types of payments which are mostly clearly defined. The definition of wages in the Employment Act 1955 is by no means a clear science.

Debate rages in the Labour Court even now, some 50 plus years after the Act was made law, as to what amounts to wages or not.

If one refers to paragraph three of the First Schedule of the Employment Act 1955, it states: “For the purposes of this Schedule wages means wages as defined in section 2 but shall not include any payment by way of commission, subsistence allowance and overtime payment”.

This means that under section 2 of the Employment Act 1955, commissions are part of wages. And since “wages” in the said Order refers to the definition of wages in section 2 of the Employment Act 1955, it follows that commissions are part of wages to make up the minimum wage.

Say if I hire a salesman and pay him a basic of RM500. In some months, when sales are good, he earns commissions in excess of RM400, and therefore his wages are more than RM900.

In other months, when sales are bad, his commissions are below RM400 and thus his wages are below RM900. It follows then that for the months where sales are good, I as an employer have not flouted the said Order whereas in the other months, I am in breach of the said Order.

Am I as an employer expected to watch the commission trend of each of my salesmen?

Imagine a car dealer who has 50 dealerships each hiring 20 salesmen. How am I to track this?

I do not underestimate the complexity of the issue of what components should or should not be part of wages.

I will be the first to agree that it is not an easy subject. However, if we are inclined to come up with a minimum wage with such uncertainty revolving around the word “wages”, surely the fixing of a minimum wage is to put the proverbial cart before the horse.

Let me remind the learned folks at the Human Resources Ministry and the Attorney-General’s Chambers that all these ambiguities are not doing any good to the employers or the employees; neither is it going to assist in its smooth implementation.

Unless a holistic and precise approach is made to the question of what constitutes “wages”, this very attempt to introduce a new regulation on minimum wages appears to be hurried through for political expediency and far removed from the concept of a high income society.\

FRUSTRATED HR PRACTITIONER
Kuala Lumpur

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Malaysia's Minimum wage’s benefits and effects 
Malaysia's minimum wage, and its implications 
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LinkedIn's Growth Continues: Fueling the Corporate Talent Machine

 Another amazing quarter from LinkedIn: revenues of $188.5 Million, up 101%, with the “hiring solutions” business now driving $102.6 Million or 54% of company revenue. LinkedIn’s revenues in the corporate recruiting market are now larger than Taleo (just acquired by Oracle for $1.9 Billion), SuccessFactors (just acquired by SAP for $3.4 billion), Kenexa, and nearly every other software company which sells recruiting solutions.

Let me highlight how LinkedIn is “fueling the corporate talent machine.”

LinkedIn has become the “must have” in corporate recruiting and is expanding its footprint.

With more than 161 million professional users in its network, LinkedIn is now the “must-have” tool for corporate recruiters around the world. The company’s “hiring solutions” business continues to deliver innovative products which leverage the data in the LinkedIn network for corporate and contract recruiters.

These products include:

• Highly effective job placement ads (recruiters tell me LinkedIn ads generate 2-3X the quality of candidates of other ad placements)
• Licensing  LinkedIn Recruiter, the recruiter’s “secret weapon” which lets corporate HR managers and staffing professionals search, find, and source candidates
• Branded career pages – an offering that lets companies of all sizes create a highly personalized candidate portal within the LinkedIn garden of  professionals
• Talent Pipeline, a new feature set within LinkedIn Recruiter which lets recruiters manage the entire process of “candidate relationship management” – a hot new application area within corporate HR.

And the company has much more to come.

The Corporate Talent Acquisition Market


Corporate recruiters are in a war for talent. Lloyds of London’s 2011 risk assessment survey points out that “Talent and Skills Shortages” are the #2 rated risk among 100 business risks today (following the risk of “losing customers.”)

Despite the high unemployment rate in most countries, companies tell us over and over that there is a paradoxical mismatch between demand and supply of skills. And great candidates are not looking for work.

And the cost of sourcing and recruiting is very high.

The average employer spends over $3500 per hire on all areas of recruiting (from our Talent Acquisition Factbook®), and the spending is much higher in executive positions. This means the entire US marketplace for talent acquisition is around $130 billion by our estimates, so LinkedIn still has a lot of whitespace to cover.

I just finished meeting with the head of corporate recruiting for Pfizer (who is on LinkedIn’s advisory council) and she reinforced that LinkedIn’s network is truly global and has become one of their primary tool for finding great candidates.

Pioneering the shift from cloud-based software to BigData applications.

LinkedIn is benefiting from something else here. The company understands that its future relies in leveraging BigData and the power of the network over the existing markets for cloud-based HR or talent acquisition software.

Raj de Datta describes the shift well in his TechCrunch article “The Rise of BigData Apps and the Fall of SaaS.” The next big thing is data. BigData.

I’m not ready to write-off enterprise software businesses by any means, but ultimately cloud-based applications do become somewhat commoditized. Now that most major applications are “in the cloud,” differentiation comes down to architecture, features, and level of integration with other cloud-based systems.

If you’re an HR manager, can you really tell a huge difference between Oracle, SAP, Taleo, SuccessFactors, Cornerstone, SumTotal, and PeopleFluent? Workday claims they are the “next big thing” – but ultimately even new products like Workday become replaceable. This year I’ve talked with at least a dozen companies who are coming up for renewal on their cloud-based software and they are very willing to switch platforms. So the future of cloud-based software is wrapping all these great applications in rich, highly-integrated data.

A great example of this is trend is Salesforce.com.  We are a big user, and it always bothered me that we have to clean and maintain our own database of accounts when every other Salesforce customer is doing the same thing. Voila. Salesforce acquires Jigsaw, and now Data.com is born. You can now buy data to go along with your new CRM system.

Data, unlike software, becomes increasingly valuable as you collect more. In the enterprise Human Resources market companies are dying to get more data – data about candidates, data about workforce skills and demographics, data about salaries, and data about their own brand. Once this data is integrated with your cloud-based application, the value to a client skyrockets.

And even when you do buy your brand-new cloud-based applications for talent management, you still need to load them with data in order to make them work. Not only do you have to load all types of data about your employees, you also have to load job profiles, assessments, training modules, and dozens of other types of third party data. As HCM software companies mature, they will start building and adding their own data products to their offering.

Companies in the HR space are starting to figure this out. SHL, a leading global assessment provider recently launched its new Talent Analytics ”big data application.” This new platform gives customers access to tens of millions of assessments to compare candidates against the market and their competitors.

Data is sticky, proprietary, and ever-increasing in value.

The acquisition of Slideshare drives even greater data value – fueling both memberships and recruiting revenue.

LinkedIn also announced the acquisition of SlideShare, a great little company that has become the “YouTube” of corporate presentations. Slideshare is an addictive application that encourages you to share your best slide sets with others.

Not only does Slideshare further ignite LinkedIn’s membership business by extending the data people can add to their profiles, it also brings tremendous value to the corporate recruiting segment.

Think about this: Slideshare is a vast database of knowledge and expertise, all published through Powerpoint presentations that are easy to view, download, and share. Some of the most powerful thinkers and practitioners in all industries publish their deep expertise in SlideShare, and the content is trivially easy to find and view.

Once Slideshare is fully integrated into LinkedIn, we can expect the company to link data about slides to data about people.  (The company claims that there are already 9 million content uploads and we can expect that to explode.)

Every time an individual uploads one of their favorite Powerpoint decks their “profile” becomes more valuable to others. And since people can “like” and “comment” on slide sets, LinkedIn can start to see who the real experts are throughout the network.

Imagine the power of using this information to assess someone’s skills and experience. By looking at the traffic and ratings of an individual’s slides, and the relative “authority” of those who link and recommend these slides, LinkedIn can create one of the most powerful expertise-networks in the world.  The company has been working away on its “skills” functionality for a few years (look at the “skills” application under the “beta” link). This will further ignite LinkedIn’s ability to characterize and understand who the real experts are.

Why is skills information so valuable? Because when recruiters search for candidates, one of the most important challenges they face is “finding the right skills.” Companies pay search firms tens of thousands of dollars to find the best highly-skilled candidate. Putting more “skills-related” information into LinkedIn creates a new measure of authority and expertise.

(Skills have become the new currency of success. While experience and raw talent still matter, our research shows that jobs are becoming more and more specialized every year, so deep skills are what makes you succeed.  Read “The End of a Job as you Know It” for more details. )

Plus, of course, Slideshare dramatically increases the amount of information each LinkedIn user can upload – making the whole network far more valuable for individuals and members.

By the way, I noticed that LinkedIn recently removed several features from its free membership service (the ability to see who clicked on your profile, for example). Every time the company adds a new type of data-driven content, LinkedIn can come up with new, higher-value membership packages as well.

LinkedIn is really firing on all cylinders.  Watch the company continue to grow as it “fuels the corporate talent machine.”

I would expect LinkedIn’s hiring solutions segment to continue its growth as a percentage of revenue in the coming quarters. And with little competition in the BigData market for candidates, we should see this growth accelerate as the economy picks up steam.

By  Josh Bersin, Forbes Contributor

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How CEOs Can Build A Better Work Team In 2012

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By Deborah Sweeney, Forbes Contributor, West Coast CEO who knows small business and entrepreneurs.

 

 Truly a Lightbulb Moment

Got a resolution for 2012 at the workplace yet?

Or better yet, what are the resolutions that your employees have for the company next year?

These resolutions could be lofty. Nab every sales call, land the biggest accounts, open offices in every major city overseas. They could be set on a smaller scale too. Leave earlier in the morning to avoid getting caught in traffic, ask for more beverage options in the kitchen, delegate tasks to other department members more often. All good goals for any team to work towards, but difficult for a CEO to process when they don’t know what their staff resolves to work towards, if they plan on working toward anything at all.

If you’re stuck in a place where the progress forward looks cloudy, this is the time to work on building a better work team for 2012. A team that is roaring and ready to go and certain of how their place in the company can lead to its eventual success. Building this team takes time, talent, and creativity. Sometimes it requires hiring new people and firing those who aren’t doing their part. More than just shooting off a couple of emails and hoping for the best, your team for 2012 will rely on you to think outside of the box as well as inside at some of the common sense bits that get overlooked. From new hires to clones, here are my tips on the building for the better within your company team.

1. Look Beyond Business BAs and MBAs

Not every person who gets hired for your business needs to be strictly all about business. Who will handle the legal division of your firm, the public relations aspect of your brand, the IT work for when the computers suddenly crash? A grad degree in business is attractive on paper, but not useful in every setting. Look into hiring candidates with backgrounds in other studies like communications that you would typically pass over.

2. Don’t Hire A Clone Of Yourself

Great minds think alike, but a greater mind will want to work with a team that expresses a slew of opinions and ideas across the board. Working with a team that is just like you won’t challenge your company to grow in a new direction if you all agree on the same things all the time. It’s easy to want to hire someone just like you, but more rewarding in the long run if you get someone to offer what you cannot to the table.

3. Allow Employees To Be Involved In The Hiring Process

Get an idea of whether or not a potential employee will be a good fit within their department by inviting the managers and senior staff members to the job interviews. They may have questions and concerns related to their field that you won’t touch on that decide whether or not a future hire is the best decision to make



4. Explain Company Culture To Your New Team Members Early

Welcome to the team! Beyond just your employee handbook, there are rules to the game of working within the company. Some work teams are much more by-the-book in terms of how to conduct yourself and may be much more quiet and soft-spoken. Others are willy-nilly and a lot more extroverted and open to embracing new ideas with members encouraged to leave their shyness at the door. A new hire needs to know the company culture early on so this isn’t so much of a shock to their system.

5. Answer Questions, Communicate Often

Future goals and upcoming projects will have a series of questions that come with them, especially if a team member is new. Hold plenty of open discussions and meetings to provide insight into what you’re working on. Keeping communication lines between all team members and yourself is key to the success of the project and the overall organization as a whole.

6. Hire People With Different And Complimentary Personalities

Much like not having dozens of clones of yourself, don’t do a similar thing with your favorite employee (and don’t play favorites either). It’s cliche to say it, but your team needs to have the snowflake effect where no two think or behave exactly the same despite having similar strengths in their field. Personality goes a long way and can work to give your company the face and voice it needs if it doesn’t already have a defined one.

7. Hire Milliennials

They are young, eager to please, tech savvy, and well educated. And if you treat them well, they will stay with your company (though not forever which is to be expected). Interview the bright young things and bring them on to see what they’re made of. You might find yourself to be pleasantly surprised.

8. Pay Your Interns

It isn’t a practice that every company commits to or can commit to, but at the very least offer a stipend if you decide to bring in seasonal interns.

9. Don’t Outsource Your Social Media Team

Gets kind of hard to create a voice for your online persona if the person creating it has never visited your office or interacted with your employees before doesn’t it?

10. Offer Flexible Schedules

This is a rule of thumb for both new hires and longtime employees. Circumstances do arise where not every member of the team can be there to make a meeting. If multiple members can’t do it or aren’t ready just yet, offer to reschedule the event. Employees with additional commitments outside of work like family or school will also appreciate a flexible schedule in being able to accommodate their lives and still work.

11. Encourage Employees To Pursue Outside Interests

Beyond just being a CEO, you may serve as a mentor to some of your staff. And your staff isn’t here solely for the company itself. They may be actively pursuing acting on the side or writing or engaging in other hobbies that could turn into their next career move later on. Have lunch with your staff both new and old to see what they’re all about on the side of their full-time job. Encourage them to share their published work with you or invite you to the opening of a gallery they have a painting featured in. Your acknowledgment of what they are truly passionate about is worth more than you think it might be.

12. Create Jobs Based On Valuable Skills

Want to a hire a new employee, but have nowhere to put them where you know they will really fit in at? Create  a position based off of their skill set. You may even wind up creating an entirely new and much needed department!

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