What's Driving Shared Services Hiring Trends in

The shared services sector in Malaysia has seen notable shifts throughout 2024. With various market dynamics at play, businesses are refining their strategies to adapt to an evolving environment. Here’s a closer look at what’s driving these changes.

1. Slowdown in new setups

The early part of 2024 has seen a noticeable deceleration in the establishment of new shared services centres in Malaysia. Businesses are adopting a more cautious approach when considering Malaysia as a location for their operations. This hesitancy can be attributed to several factors including rising operational costs, concerns about talent availability, and growing competition from countries such as India and the Philippines.

This more restrained expansion approach has tempered overall hiring activity in the sector, as companies prioritise cost efficiency and strategic planning.

2. Proactive talent retention

In the face of competition, existing shared services organisations are implementing robust strategies to safeguard their critical talent. These efforts aim to create a compelling environment that encourages retention. Key initiatives include:

Retention bonuses: Financial rewards for top performers to deter them from seeking opportunities elsewhere.
Targeted salary adjustments: Instead of blanket raises, many firms are focusing on market-aligned, merit-based salary revisions.
Defined career roadmaps: Clear and structured career progression plans to ensure employees see long-term growth potential within the company.
Flexibilities & empowerment: Enhanced work-life balance options and increased autonomy are becoming essential in promoting job satisfaction and employee loyalty.

These measures are designed to cultivate a more engaging and rewarding workplace, reducing the risk of talent attrition.

3. Limited opportunities for mid to senior-level professionals

While professionals are eager to explore new career options, there’s currently a scarcity of mid to senior-level roles in the shared services space. This shortage has created a challenging environment for experienced professionals seeking advancement or career shifts, with fewer positions available to meet demand.

4. Salary as the key motivator

With limited opportunities, salary increments have become the primary driver for job changes in 2024. Professionals who choose to make a move are largely motivated by financial incentives, underscoring the importance of competitive compensation packages for attracting and retaining top talent in Malaysia’s shared services sector.

The shared services hiring landscape in Malaysia throughout 2024 has been characterised by cautious expansion, a strong emphasis on talent retention, limited opportunities for seasoned professionals, and salary competitiveness as a decisive factor for career moves. As businesses navigate these trends, those that adapt and align their strategies with evolving market conditions will be well-positioned to thrive. With the new year around the corner, it will be interesting to see how these trends evolve and shape the future of the shared services industry in the country.