THE Association for Community and Dialogue welcomes the news that as Malaysians usher in a new year, job prospects are looking brighter for fresh graduates, with ample openings in small and medium enterprises.

SME Association president Micheal Khang was reported as saying fresh graduates should seek employment with SMEs instead of big corporations to gain experience before moving forward.

Another report said according to LinkedIn, millennials now make up most of the workforce in Malaysia’s SMEs. To be exact, 76% of SME employees are those aged between 23 and 38, said the professional networking platform. These millennials, also known as Gen Y, outnumber the other generations.

Gen X workers, aged between 39 and 54, make up 15% of the staff in such companies, while 7% are from Gen Z, or those aged below 23 and have just graduated. The remaining 2% are baby boomers, aged 55 and above.

According to observers, the large percentage of young talent in SMEs may require companies to adapt to a different work culture. This includes “gig” work, or working for a number of organisations instead of being fully employed by one firm.

The statistics indicate that industrial and employee relations are moving into a new landscape at a new trajectory, which requires a fresh mindset among employers and those who represent them, such as the Malaysian Employers’ Federation. To attract millennials, there is a critical need to develop an organisational culture that is purposeful, horizontal and egalitarian, where solidarity, teamwork and empowerment take precedence over centralised control, which depicts a master-servant relationship.

The unions represented by the Malaysian Trades Union Congress should adapt to this new trend and understand that the dynamics of success in the digital world are not based merely on workers’ rights or hoping for goodwill from employers, but also the importance of acquiring knowledge and skills in the new economy, so that the bargaining process becomes balanced, leading to win-win solutions for both employers and unions.

There is also a need for workers to be prepared for futuristic structural changes, whereby data-rich markets will ultimately replace firms. In this context, workers can enrich themselves by making informed decisions based on comprehensive data.

Therefore, unless employers and unions embrace cultural and structural reforms in line with the aspirations of millennials in this digital age, we will experience another wave of brain drain, which will only delay the prospects of Malaysia becoming a developed nation. – January 4, 2020.

* Ronald Benjamin is secretary of the Association for Community and Dialogue.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.