KUALA LUMPUR: Up to 58 per cent of respondents in a recent local survey said they intend to look for a new job in the next 12 months.
The 2020 Covid-19 Labour Pulse Survey, commissioned by Randstad Malaysia, polled 531 employees nationwide between June 26 and July 5.
The study aimed to understand the local workforce's sentiments about the employment market; and the challenges and experiences of job seekers thus far.
Of the 58 per cent of respondents who intend to look for a new job, 24 per cent said they are looking to change their career or industry that they work in.
The survey also revealed that 13 per cent of respondents feel their skills and experience no longer meet their current job requirements; while 15 per cent mentioned that they had been retrenched.
Managing director for Malaysia and Singapore at Randstad, Jaya Dass, said the Covid-19 pandemic has seen companies investing in building their digital infrastructure and network, leading to a great number of jobs being digitised or displaced as a result.
"Employees whose job responsibilities have been drastically altered to meet new demands may be motivated to join other companies where their skills and experience are still relevant.
"Some may even switch industries and careers altogether, and will look for job opportunities that are perceived to be more recession-proof or can provide a greater sense of job security, such as in healthcare and technology.
"We can expect to see more movements in the job market once the economy picks up and new job opportunities arise," she said.
She added that others had cited reasons related to salary in their intention to switch employers.
Dass said 26 per cent of respondents said they took a pay cut or pay freeze, either indefinitely or for a temporary period; while 24 per cent mentioned dissatisfaction with their current salary.
"National lockdowns and slowing international trades and exchanges had severely impacted companies' financial confidence this year. A number of companies have implemented budgeting measures to keep operating costs and overheads low, and are working towards optimising operational efficiency with a leaner workforce.
"These cost management measures may result in uncertainty within the workforce, and employees may feel that the company is not financially stable enough to tide through this pandemic. To avoid being a collateral loss, some employees would choose to take the risk and join an employer that is seen to be more financially stable as soon as they can," Dass added.
She said given current labour market conditions, 72 per cent of all respondents are willing to take on professional contract or project-based jobs.
Out of the 28 per cent who are not inclined towards taking on contract roles, 70 per cent cited lack of job security and stability as reasons why they would rather wait for a permanent offer instead.
Dass explained that though contracting jobs are not what Asian talent would usually settle for due to their perceived lack of security and stability, many are starting to see them as viable options during these trying times.
"With Covid-19, many have found themselves unable to safeguard their jobs and livelihoods and these temporary jobs offer some level of income stability to stay afloat, especially for adults who have recurring loans to pay off.
"As compared to being jobless, contracting jobs may actually provide more job security. Many contractors have also shared that they were able to secure a new contract even before their existing one ended, giving them continued employment.
"We strongly encourage candidates to exercise greater levels of flexibility and openness when looking for a job, as this will give us a chance to help improve the perception of the contracting landscape," she said.
Dass added that they had also observed more companies offering term-based or project-based roles to fulfill urgent skills and talent needs, to ensure business continuity while managing headcount costs.
"Contract roles can also offer mid-career switchers a chance to get their foot in the door to gain relevant skills and experience, especially if it's in an industry or with a company they would like to build their career in.
"Given the current employment situation, people who have been retrenched may want to consider a contracting role as an opportunity to gain experience and acquire new skills that can help them stay employable. These candidates are also more likely to be able to renegotiate their salary once the market recovers, as opposed to those who halted their career development during the pandemic."