Why is the Malaysian Government Recommending Businesses to Use HR Software?
Does your business still rely on spreadsheets and file folders for human resource management? If so, you are missing out on major benefits! The Malaysian government is actively encouraging companies of all sizes to adopt HR software through its digital economy push. Research shows HR software boosts efficiency, engagement, and compliance.
This article will explore the advantages of HR solutions and reasons behind the government's recommendation. By the end, you will understand how HR software can revolutionize your business like it has for others in Malaysia.
Benefits of HR Software
Managing human resources is an essential aspect of any business operation. However, many Malaysian companies still rely on manual processes and legacy systems like spreadsheets or paper records. These outdated methods lead to inefficiency, higher costs, and compliance issues. By implementing a modern HR software solution, businesses can streamline HR, improve the employee experience, and gain a competitive edge.
One major benefit of HR software is cost savings. According to the Malaysian Employers Federation (MEF), companies can reduce HR expenses by up to 20% using HR information systems. Automation and data integration eliminate manual tasks, minimizing labor required for HR administration. Software also helps cut costs by optimizing processes like payroll and benefits management.
Another advantage is improved productivity. HR software centralizes data and provides self-service options for employees and managers. Employees can request leave, submit forms, or update profiles without going through HR staff. Managers have access to dashboards for faster reporting and decision making. Automation and simplified workflows mean HR teams can focus on high-value strategic tasks rather than admin.
HR software also enhances employee engagement and satisfaction. A Deloitte study found that employees in companies using HR software had higher job satisfaction. User-friendly self-service features and strong knowledge management keep employees informed and empowered. Robust analytics provide insights to improve programs and policies.
Finally, HR software helps businesses stay compliant with complex labor regulations in Malaysia. Software automates compliance processes and provides audit trails. Customizable workflows ensure legal requirements are embedded into daily operations. This gives peace of mind and avoids penalties for non-compliance.
Why Malaysian Government is Recommending HR Software
As part of its ongoing efforts to modernize and digitize tax services, coupled with a dedication to enhancing client support, the Inland Revenue Board of Malaysia (HASiL) plans to progressively introduce mandatory electronic services (e-Services) via the MyTax Portal, effective from 1 September 2023.
The Malaysian government actively advocates for HR software adoption through initiatives like the Malaysian Digital Economy Corporation (MDEC). But why is HR technology a focus of the government's digital transformation push?
Firstly, increasing HR software usage aligns with the national agenda for digitalization and economic development. Malaysia aims to be a high-income digital economy and global tech hub. Widespread technology adoption will strengthen the digital ecosystem.
The government also wants to support SMEs, which make up over 95% of businesses in Malaysia. SMEs often lack resources to digitize operations. HR software makes workforce management more efficient and cost-effective for small teams. Tax incentives are available to further encourage usage.
Research backing HR software's business benefits influenced the government's recommendation too. The MEF found 20% HR cost reductions while Deloitte confirmed higher engagement levels in companies with HR systems. The government wants to drive these outcomes across all sectors.
Additionally, HR software aids regulatory compliance, which supports the government's labor rights and payroll policy objectives. HR technology makes it easier for businesses to track time, maintain records, and produce reports required by law.
The government itself has undergone HR digitalization for public sector workforce management. This demonstrated firsthand how HR software could enhance productivity and strategic capability. The experience provided insights that influence promotion of HR technology to private companies.
HR Software Use in Malaysia
The Malaysian government's push for HR technology adoption is steadily influencing uptake. Though comprehensive adoption data is lacking, surveys provide insights into the growing usage of HR software among Malaysian businesses.
SME Corporation Malaysia found in 2021 that only 26% of SMEs were using HR information systems, indicating room for growth in HR software implementation. However, more large enterprises have transitioned to HR technology.
According to Nielsen, around 60% of multinational corporations in Malaysia currently use HR software, attracted by the promise of digital transformation. Top global vendors like SAP, Oracle, and Workday are active in the region.
However, homegrown systems like EP Asia's ePerform also have a strong presence. The made-in-Malaysia software is popular for its localization to Malaysian employment regulations and HR best practices.
Across company sizes, frequently used HR software functions include payroll, leave management, recruitment, employee records, and performance reviews. Modules for learning management and analytics are on the rise as well.
Early adopters of HR technology, like Alliance Bank, have seen a 20% improvement in HR productivity. The bank automated workflows, giving employees and line managers more ownership through self-service portals.
Meanwhile, food manufacturer Ayam Brand transitioned its manual leave application process to online leave management software. The result was 70% faster leave processing and easier absence tracking.
As more Malaysian employers experience benefits like these, HR software adoption will accelerate. The government's active encouragement through its digital economy agenda should speed up momentum. SMEs, in particular, have room for exponential growth with the help of incentives.
Why BrioHR is the Ideal Choice for Malaysian Businesses
Considering the push for HR software adoption in Malaysia, BrioHR stands out as a top choice:
Comprehensive Features: From payroll to performance management, BrioHR offers an all-in-one solution tailored for Malaysian regulations.
User-Friendly: Over 1000 companies trust BrioHR for its intuitive design, enabling HR to focus on strategic tasks.
Local Expertise: Designed with Malaysian employment practices in mind, BrioHR ensures compliance and efficiency.
With a secure, scalable, user-friendly platform, BrioHR covers the entire employee journey from recruitment to onboarding, payroll and claims, to performance and analytics, and more.
This enables business owners and HR teams to truly focus on what matters most – people.
Visit briohr.com and get a free demo now.
Does your business still rely on spreadsheets and file folders for human resource management? If so, you are missing out on major benefits! The Malaysian government is actively encouraging companies of all sizes to adopt HR software through its digital economy push. Research shows HR software boosts efficiency, engagement, and compliance.
This article will explore the advantages of HR solutions and reasons behind the government’s recommendation. By the end, you will understand how HR software can revolutionize your business like it has for others in Malaysia.
Benefits of HR Software
Managing human resources is an essential aspect of any business operation. However, many Malaysian companies still rely on manual processes and legacy systems like spreadsheets or paper records. These outdated methods lead to inefficiency, higher costs, and compliance issues. By implementing a modern HR software solution, businesses can streamline HR, improve the employee experience, and gain a competitive edge.
One major benefit of HR software is cost savings. According to the Malaysian Employers Federation (MEF), companies can reduce HR expenses by up to 20% using HR information systems. Automation and data integration eliminate manual tasks, minimizing labor required for HR administration. Software also helps cut costs by optimizing processes like payroll and benefits management.
Another advantage is improved productivity. HR software centralizes data and provides self-service options for employees and managers. Employees can request leave, submit forms, or update profiles without going through HR staff. Managers have access to dashboards for faster reporting and decision making. Automation and simplified workflows mean HR teams can focus on high-value strategic tasks rather than admin.
HR software also enhances employee engagement and satisfaction. A Deloitte study found that employees in companies using HR software had higher job satisfaction. User-friendly self-service features and strong knowledge management keep employees informed and empowered. Robust analytics provide insights to improve programs and policies.
Finally, HR software helps businesses stay compliant with complex labor regulations in Malaysia. Software automates compliance processes and provides audit trails. Customizable workflows ensure legal requirements are embedded into daily operations. This gives peace of mind and avoids penalties for non-compliance.
Why Malaysian Government is Recommending HR Software
As part of its ongoing efforts to modernize and digitize tax services, coupled with a dedication to enhancing client support, the Inland Revenue Board of Malaysia (HASiL) plans to progressively introduce mandatory electronic services (e-Services) via the MyTax Portal, effective from 1 September 2023.
The Malaysian government actively advocates for HR software adoption through initiatives like the Malaysian Digital Economy Corporation (MDEC). But why is HR technology a focus of the government’s digital transformation push?
Firstly, increasing HR software usage aligns with the national agenda for digitalization and economic development. Malaysia aims to be a high-income digital economy and global tech hub. Widespread technology adoption will strengthen the digital ecosystem.
The government also wants to support SMEs, which make up over 95% of businesses in Malaysia. SMEs often lack resources to digitize operations. HR software makes workforce management more efficient and cost-effective for small teams. Tax incentives are available to further encourage usage.
Research backing HR software’s business benefits influenced the government’s recommendation too. The MEF found 20% HR cost reductions while Deloitte confirmed higher engagement levels in companies with HR systems. The government wants to drive these outcomes across all sectors.
Additionally, HR software aids regulatory compliance, which supports the government’s labor rights and payroll policy objectives. HR technology makes it easier for businesses to track time, maintain records, and produce reports required by law.
The government itself has undergone HR digitalization for public sector workforce management. This demonstrated firsthand how HR software could enhance productivity and strategic capability. The experience provided insights that influence promotion of HR technology to private companies.
HR Software Use in Malaysia
The Malaysian government’s push for HR technology adoption is steadily influencing uptake. Though comprehensive adoption data is lacking, surveys provide insights into the growing usage of HR software among Malaysian businesses.
SME Corporation Malaysia found in 2021 that only 26% of SMEs were using HR information systems, indicating room for growth in HR software implementation. However, more large enterprises have transitioned to HR technology.
According to Nielsen, around 60% of multinational corporations in Malaysia currently use HR software, attracted by the promise of digital transformation. Top global vendors like SAP, Oracle, and Workday are active in the region.
However, homegrown systems like EP Asia’s ePerform also have a strong presence. The made-in-Malaysia software is popular for its localization to Malaysian employment regulations and HR best practices.
Across company sizes, frequently used HR software functions include payroll, leave management, recruitment, employee records, and performance reviews. Modules for learning management and analytics are on the rise as well.
Early adopters of HR technology, like Alliance Bank, have seen a 20% improvement in HR productivity. The bank automated workflows, giving employees and line managers more ownership through self-service portals.
Meanwhile, food manufacturer Ayam Brand transitioned its manual leave application process to online leave management software. The result was 70% faster leave processing and easier absence tracking.
As more Malaysian employers experience benefits like these, HR software adoption will accelerate. The government’s active encouragement through its digital economy agenda should speed up momentum. SMEs, in particular, have room for exponential growth with the help of incentives.
Why BrioHR is the Ideal Choice for Malaysian Businesses
Considering the push for HR software adoption in Malaysia, BrioHR stands out as a top choice:
Comprehensive Features: From payroll to performance management, BrioHR offers an all-in-one solution tailored for Malaysian regulations.
User-Friendly: Over 1000 companies trust BrioHR for its intuitive design, enabling HR to focus on strategic tasks.
Local Expertise: Designed with Malaysian employment practices in mind, BrioHR ensures compliance and efficiency.
With a secure, scalable, user-friendly platform, BrioHR covers the entire employee journey from recruitment to onboarding, payroll and claims, to performance and analytics, and more.
This enables business owners and HR teams to truly focus on what matters most – people.
Visit briohr.com and get a free demo now.
