How is AI affecting HR in Malaysia?

The employment landscape for Malaysian businesses may be tough right now. But our research tells us that professionals in Malaysia are optimistic about AI enhancements and features, and how they will benefit employees and businesses greatly. From increased speed and efficiency to improved employee performance and productivity as well as enhanced analytics, HR professionals in Malaysia are keen to reap the benefits of AI technology. They are already engaging with AI tools in the workplace, and expect to be using a lot more of it in the future, despite moderate privacy and ethical concerns.

To help you better understand how AI is affecting the world of HR and the wider working environment in Malaysia, we polled 315 HR professionals in small and large businesses alike in May 2023.

The findings might surprise you, resonate with you‌ or give you a keen insight into the what, where, how‌ and why of AI in HR right now.

We hope this report gives you valuable insight into this emerging landscape and provides some transparency on how AI is going to affect and improve things for small businesses in the years to come.

The team at Employment Hero 

What’s inside the report?

We carried out quantitative research with 315 HR professionals in Malaysia. Respondents were primarily responsible for Employee Experience, Human Resources and Payroll. Aperion Research Comms conducted the survey from the 16th to the 25th of May 2023.

With the data, we explore how:

• Creating HR content is a priority
• AI perceptions differ by business size
• Ethics and privacy concern HR leaders
• Junior employees are less sure about AI
• Opinions differ across job roles and industry
• Over half are going to measure the time saved
• Performance and data are the HR power couple
• HR leaders expect AI to save some serious time
• There are concerns about ethical use and job security
• Leaders are also undecided about giant AI experimentation
• How AI ROI is measured varies by seniority and business size
• Leaders aren’t ready to fully utilise AI on more personal tasks
• AI is already being used to identify, report, monitor and assess
• While privacy was a key concern, the need for cybersecurity skills wasn’t
• Those not in management had a slightly different idea of the major benefits

What HR leaders can do to embrace AI

The widespread use of AI in the HR industry in Malaysia highlights the importance of embracing this technology for HR leaders. Want our advice on how you could use this report to take your next step into the world of AI and HR? Here’s some advice based on our findings:

Embrace AI

Recognise that AI is already here and will continue to shape the HR industry. Be open to exploring AI-powered tools and platforms that can streamline your common tasks, enhance efficiency‌ and provide valuable insights.

Stay informed

Keep yourself updated on the latest AI advancements and how they can be applied in HR. Attend conferences, webinars‌ and workshops focused on AI in HR to stay ahead of the curve and understand the potential impact on your role.

Balance efficiency and human-centric tasks

While tools can bring ease to certain tasks and improve efficiency, be mindful of maintaining a balance between automation and the need for personal touch. Tasks like employee offboarding, compliance‌ and rewards require empathy and nuanced decision-making, which may not be best suited for AI tools right now.

Address ethical considerations

Pay attention to the ethical use of AI in the workplace. Understand the implications and potential r‌ and transparency. Advocate for responsible and ethical AI practices within your organisation.

Enhance your skill set

As AI continues to evolve, develop skills that complement AI technologies. This may include improving your data analysis and interpretation abilities, understanding AI algorithms‌ and acquiring cybersecurity knowledge to ensure the integrity and security of HR data.

Adapt to change

Embrace the transformative potential of AI in reshaping the role of HR. Be willing to adapt and upskill as AI becomes more integrated into HR processes. Stay proactive and embrace the opportunities AI presents for driving innovation, strategic decision-making‌ and improving employee experiences.

Leverage AI tools and platforms

Explore all-in-one HR and payroll systems that incorporate AI-powered tools to streamline tasks, enhance analytics‌ and improve communication and engagement with employees. Take advantage of applicant tracking systems (ATS), content creation tools‌ and AI-driven analytics to maximise the benefits of AI in your HR practices.

By following the advice off the back of our research, we hope you can effectively leverage AI technologies, enhance their efficiency‌ and navigate the evolving landscape of HR with confidence. Remember, AI is a tool to augment and enhance human capabilities, so embrace it as a valuable resource in your HR journey.

If you’re looking to find out how AI can benefit your business, our platform already hosts AI-enhanced HR and recruitment features designed to help you work easy. If you’d like to learn more, reach out to one of our team and get your demo booked in today.

Methodology and sample profile

We carried out quantitative research with 315 HR professionals in Malaysia (the comparison data came from 300 respondents in Singapore). The length of the survey was 5 minutes on average. Respondents were primarily responsible for Employee Experience, Human Resources and Payroll. Aperion research comms conducted the survey from the 16th to the 25th of May 2023.