Kaliannan, M. & Abraham*, M. & Ponnusamy, V. (2016). Effective talent management in Malaysian SMES: A proposed framework. The Journal of Developing Areas 50(5), 393-401.
The article titled ‘Effective talent management in Malaysian SMES: A proposed framework’ written by Kaliannan, M. & Abraham*, M. & Ponnusamy, V. (2016) discuss on developing a framework for effective talent management among SMEs in Malaysia. This study focuses on examining talent management practices that influence job satisfaction and organisational commitment among employees in Malaysian SMEs. The article highlights the crucial of managing effective talent management as SMEs in Malaysia contribute the growth of domestic economy and yet they are ineffective in developing their human capital. This article facilitates in providing insight into the conceptual framework of effective talent management comprise of talent management practises and organisational performance.
This article which stresses on challenges faced by most of the SMEs in Malaysia is ‘brain-drain which referring to lack of right talent within the SMEs. Many Malaysian graduates decide to migrate to other developed countries due to the higher remuneration package. Consequently, there is a huge cape and demand for talent especially skilled workers in Malaysia. Due to that, there are research questions proposed for this study including (1) how do SMEs implement talent pool strategies? (2) which talent management practices efficiently met the SMEs talent success goals? (3) how do the SMEs implement talent pool strategies across the company? and (4) where will improvements in talent quality drive strategic gains? The specific objectives pertaining to the questions raised are (1) to determine the talent pool strategies practiced by SMEs in Malaysia (2) to evaluate the effectiveness of talent management practices among SMEs in Malaysia (3) to assess whether the talent management systems implemented can improve the talent competency across the company and (4) to ascertain whether the talent management improvement strategies among SMEs can drive their strategic gains.
This research explores the four core talent management practices namely Staffing and Recruitment, Training and Development, Rewards and Recognition, and Retaining Practices.
The research methodology adopts qualitative research which deemed suitable in presenting these nuances in a systematic manner to consolidate the framework. In involves thirty respondents who the managers/owners/human resources executives from various SMEs in Klang Valley by are conducting a total of three structured interviews with standard questions and the feedback was documented manually. A total of 18 respondents from services (16 respondents) and manufacturing (2 respondents) completed/attended all the interviews sessions with contribute to 60% of response.
Base on the finding, although SMEs utilise various tools and strategies in recruiting in ensuring the right ‘fit’ between person-organization-job’, they are facing three challenges in retaining and attracting talent includes issues with low salary, work related challenges and size of the organization. The SMEs owners claimed that the young generation of employees prefer to work with larger organizations for ‘branding reasons’. I strongly agree if the employers might need to consider conducting online recruitment via internet, email or any type of advanced communication system specially to capture the attention of the most skilled and capable workers to reduce the traditional method of recruitment. Applicant’s reactions to the information on the online job are influenced by the perceived efficiency and ese to use and the amount of information provided by the organization regarding the job position. It has to be specific and updated and perceived to be fair in the recruiting process.(Brandão, Silva, ; Vieira, 2018)
SMEs also provide training and development programs for their employees and majority the respondents commented that training has been positive and improved performance. Addition to the findings that, the training needs analysis at the individual and job level needs to be integrated with one another at the organisational level. This implies finding out what managers use as criteria of effectiveness and trying to use training interventions to effect these. Some plan needs to be made for embedding the new learning in the job patterns. It is only in this way that good transfer from the learning situation to the application in the job can be achieved.(Bramley, 2012)
Organization has also provided both tangible and intangible rewards as part of remuneration packages to the employees. However, the preference varies based on several factors and having strategic and effective incentives can increase the employee’s performance.
Talent retention strategies should be in place includes engagement, empowerment, trust, good work environment and opportunities for career growth. Respondents agree that open communication is vital for employee-employer engagement. Addition to that, the respondents agreed on the importance of talent management. In the direction of retaining key talent, organizations must attempt to carefully match the organization’s needs and expectations with those of the employee’s.(Pandita, Ray, Pandita, & Ray, 2018).
The support and funding by related government agencies in enhancing the competencies of SMEs through SME Corporation. It is a need for more initiatives taken by relevant shareholders in ensuring effective and strategic talent management include issues of foreign workers, leaderships related issues and talent pipe-line sustainability.
Recommendation made from this research include university-SME Alliance which refers to mutual benefits by the organization and graduate in term of focusing on entrepreneurship in Business Schools, internship and attachment and SMEs benefits by having ‘first pick’ of talented graduates. From searching done, I find that these moves has been supported by research done in United Kingdom in the process of graduate recruitment and selection in the UK has become more person-related than job-oriented because many employers are more interested in the attitudes, personality and transferable skills of applicants than the type or level of qualification acquired. (Authors, 2008)
The article also stresses on recommendation pertaining to adequately defining competency by formalising and frequently updating the competencies required for a job in a firm. Further to that, I agree that one way to retain employees and improve their efficiency is to capture their commitment and employees’ job satisfaction. Mentoring is one of the tools that can establish a foundation for the study of job satisfaction and mentoring. The foundation established has generated more knowledge and arguments on mentoring in the workplace to enhance performance.(Lo, 2015)
The findings also show that combination of both financial and non-financial benefits is useful. The study also recommends the use of an online private forum only accessible by the firms’ employees for discussion and ides sharing. Enhancing the credibility of training provided by SME Corporation as government agencies is among the recommendations by put more information on how course benefited previous companies and other related useful information.
I would suggest the proposed framework of effective talent management in Malaysian SMEs be enhance to wider scope such as to another main industrial town in Malaysia besides Klang Valley, more responses from SMEs owners, effective and appropriate training specialise to business type and nature of work and diversify mode of recruiting and selection.
This research done in Klang Valley which might not represent the overall results about the issue raised in this paper. Thus, if the response could be taken from other places such as Penang and Johor then the findings would be comprehensive for the government to make plans to nurture SMEs.
Effective training and development practise stress on accurate job descriptions, understanding the company purpose and direction among others. The findings do relate to the purpose of an employee to reach for job satisfaction which contribute to achieve organization goals. In addition, for employees to be flexible and effective in their job, they need to acquire and develop knowledge and skill, and for them to believe that they are valued by the organization.
Each new employee must be properly trained not only to develop technical skills, but to make them an integral part of the organization
As a conclusion, this article can give an insight about talent management which is beneficial for both parties, SMEs owners and the Government to work together work mutually as this industry has also play curial role in the