PwC: 51% of Malaysian employees believe their organisation will not survive beyond the next decade if they continue on their current path

Wednesday, 21 June 2023: PwC has released its Global Workforce Hopes and Fears Survey 2023. 19,500 Asia Pacific employees participated, with 1,500 of them from Malaysia. Responses reveal a striking data point that highlights the challenge our region is facing today. 

39% of Asia Pacific employees believe their organisation will not survive more than 10 years if it continues on its current course - compared to the 53% of Asia Pacific CEOs who shared this sentiment in our 2023 CEO survey. The figure is even higher among Malaysian employees, with 51% believing that their organisation will not survive more than 10 years. This is aligned with 51% of Malaysian CEOs polled in our 2023 CEO survey, on the economic viability of their organisation in a decade. Sentiments reaffirm the urgency for business leaders to act now on long-term transformation.

Raymund Chao, PwC Asia Pacific and China Chairman, commented, “The new reality has taught us that change is constant. Competition continues to intensify, risks of disruption remain and societal expectations are rising, which collectively, challenges the viability of every business. To truly flourish in an environment that is continuously evolving, organisations must transform and adapt at speed. It’s encouraging to see that business leaders and employees in the region share this vision. No transformation is alike but at the core, people always matter. We need to come together in new,  interconnected ways, to build trust and deliver sustained outcomes.”

Organisations can only successfully reinvent themselves if their people are fully engaged, motivated and eager to contribute. Are workers in Asia Pacific ready for this journey? Our survey identifies six factors underpinning their reinvention readiness: business viability, employee sentiment, workforce skills, emerging technology, work environment and climate action. These results should be a wake up call for companies across the region, many of whom have already been grappling with a skill and talent shortage for years. 

‘The Great Resignation’ is far from over 

Employees in the region are even more likely to quit now than they were last year — back when everyone thought ‘The Great Resignation’ was at its peak. 28% of Malaysian employees are likely to change employers in the next 12 months (vs 16% last year), displaying a readiness to test the job market if their needs are not met in their present job. This is consistent with about 30% of their Asia Pacific counterparts who say they are likely to change jobs in the next 12 months (up 10% from 2022). 

47% of Malaysian respondents expressed an interest to ask for a pay raise and 38% are keen to ask for a promotion. This underscores the need for a more holistic rewards strategy to continue motivating employees amidst the current cost of living concerns in the market. Malaysians are not alone in seeking better rewards, with roughly 40% of Asia Pacific employees expressing a likelihood of asking for a pay raise or promotion within the same timeframe. 

Skills in the workplace are evolving, but human skills matter most

The ever-changing landscape has proven that workers’ skills will be disrupted significantly in the future. Yet our surveyed employees may see things differently. 50% of Malaysian respondents (vs 44% of their Asia Pacific counterparts) believe that the skills required for their jobs will undergo significant changes within the next five years. If employees don’t anticipate or understand how their job requirements might change, they may not be adequately prepared for the future.

Malaysian employees assign higher importance to people skills like critical thinking skills (78%), leadership skills (75%) and collaborative skills (74%) compared to technical or core business skills. There are some similarities for employees in Asia Pacific, with adaptability/flexibility (69%), collaborative skills (67%) and critical thinking (66%) being ranked higher than technical or core business skills. 

It is encouraging to note that 62% of Malaysian respondents are confident that their employers will provide them the opportunity to apply the skills that are most important to their career in the next five years. However, when considering the wider Asia Pacific region, less than half (48%) feel the same way, suggesting that skills utilisation may be uneven across the region.

Kartina Abdul Latif, Workforce Management Leader, PwC Malaysia, commented: "Undeniably, growing a healthy pipeline of talents equipped to deal with the challenges of tomorrow will be crucial, as Malaysia transitions to a knowledge based economy. Beyond finding out the critical skills gaps at the heart of the organisation, leaders can do more to explore what are the issues their employees care about and provide them an avenue to shape their careers in this volatile environment. 

Amidst the rise of remote work and a more empowered workforce, it is important to understand the impact of workforce planning decisions on employees, their wellbeing, and the ripple effect on the wider job market, in addressing the social agenda of our sustainability aspirations as a nation." 

Optimism observed around artificial intelligence (AI)

As the issue of survivability is a key theme in the survey, views around artificial intelligence offer a unique perspective of an organisation's adaptability to emerging technologies and its values around innovation. Observed against satisfaction levels over the workplace environment, this could be an indicator of the organisation's trajectory towards reinvention. 

Debra Ann Ovinis, Workforce Transformation Partner, PwC Malaysia said, "Creating a viable workforce of the future very much hinges on the strength of organisational culture. Nurturing an environment that provides leeway for small-scale failures, an attribute observed among 34% of Malaysian respondents, as well as having managers who encourage dissent and debate (observed by 35% of local respondents) can be an enabler to a more engaged and high performing workforce. 

As our survey shows, the relative openness of Malaysian respondents towards AI and its role in creating opportunities to learn valuable new skills and enhance productivity augurs well for organisations as they push the bar in transforming their workforce amidst the digital disruptions in the market."

Encouragingly, less employees fear that AI will replace their role (23% vs 31% in the previous year). 50% of local respondents think that AI will help them increase their productivity or efficiency at work (vs 41% of their Asia Pacific counterparts). 42% of Malaysian respondents (vs 34% of Asia Pacific respondents) think that AI will create opportunities for them to learn valuable new skills, while 29% in Malaysia (25% in Asia Pacific) even think that AI will create new job opportunities for them. 

As the workforce continues to evolve and employee attitudes shift, a new style of leadership is needed to steer the organisation on a path of reinvention. Our report includes eight considerations for employers and leaders to better understand their people, unlock increased capability and accomplish bolder goals. 

Read the full report here. 

Access the full set of Malaysian findings here.

ENDS