Formulating the right labor mix for a Malaysian food manufacturer

Abstract

A heavy dependence on an unskilled migrant labor pool with a high turnover rate was impeding productivity for a food manufacturer in Malaysia. At the same time, the Malaysian government was encouraging industries to reduce their reliance on foreign unskilled workers and improve the training of local talent to drive growth. These circumstances led the food company's managers to reevaluate its workforce model. An internal task force, which was established to analyze the company's labor mix and make workforce planning recommendations, considered desired level of stability, internal requirements, evolving government policies and legislation, and the organization's strategic direction. The new system that was proposed decreased the company's reliance on temporary, unskilled foreign labor, improved local recruitment and training, and reduced turnover among skilled personnel.