Feasibility of arrangement depends on company size, sector and workforce: Expert

PETALING JAYA: With global fuel prices surging amid escalating Middle East tensions, Southeast Asian neighbours such as Thailand and Vietnam are reportedly turning to work-from-home (WFH) policies to slash energy consumption, and Malaysians are asking why the same strategy has not been widely considered here.

Calls are growing for local companies to explore temporary WFH arrangements as a way to reduce operational costs and ease the financial strain on employees facing rising commuting and living expenses.

Universiti Malaysia Kelantan human resource expert Prof Dr Balakrishnan Parasuraman said Malaysian firms could adopt WFH measures, but feasibility depends on company size, sector and workforce structure.

“During the Covid-19 pandemic, we quickly realised that many companies were unprepared for remote work.

“Yet when the crisis hit, they adapted by implementing flexible working arrangements and WFH policies.

“Now, the legal framework under the Employment Act 1955, along with Sabah and Sarawak labour ordinances, allows companies to implement the measures officially.”

He said large, service-based firms are better positioned than labour-intensive small and medium enterprises (SME), adding that a company’s operational nature plays a crucial role in determining feasibility.

He added that SME, particularly labour-intensive businesses, face greater hurdles in adopting remote work, as their survival often depends on having employees on-site.

“Medium and large companies, especially in the services sector, are better positioned to implement WFH policies.”

He also said while temporary remote work could help employees save on commuting costs and fuel expenses, it also introduces potential challenges.

Balakrishnan highlighted the psychological and financial effects of sudden shifts in work arrangements.

“Employees may experience mental stress or emotional strain when working from home, particularly if they are unsure about their wages, overtime or allowances.

“This is especially critical for those in the B40 group or middle-income households which rely on a fixed salary to cover rent, utilities, education and daily expenses.”

He emphasised the importance of government support, particularly for micro and small industries that might struggle to sustain operations during prolonged fuel price hikes.

“Companies and governments must collaborate to protect employees from financial hardship while ensuring business continuity.”

In addition to remote work, energy-saving measures such as reducing air conditioning could also impact employees.

He explained that while energy conservation is necessary, it could affect health, safety and motivation if workers are exposed to uncomfortable temperatures.

“During my research, including case studies in the steel, postal and automotive industries, we observed that employees supported temporary energy-saving measures, as long as job security was not threatened.

“Job security remains paramount; without it, the wellbeing of employees and their families is directly impacted.”

For the human resource (HR) departments, the challenge lies in balancing operational efficiency with employee welfare.

Balakrishnan said flexible arrangements, part-time shifts or reduced working hours could help companies maintain production while safeguarding jobs.

“HR managers must carefully assess any policy to ensure it does not undermine employee morale or productivity.

“It is crucial to retain committed and talented employees, as they are key to long-term value creation and company sustainability.”

He said lessons from the Covid-19 pandemic provide useful guidance.

“Companies that survived the pandemic did so by adapting policies to sustain operations without compromising workforce loyalty.

“HR departments advising CEOs effectively played a critical role in keeping businesses afloat.”

As Malaysia navigates external pressures such as rising fuel costs and geopolitical uncertainty, temporary WFH policies and energy-saving initiatives could offer short-term relief.

Balakrishnan emphasised that careful planning, employee support and government intervention are necessary to ensure that the measures do not inadvertently create financial or psychological strain for workers.

“Ultimately, both employees and employers face challenges.

“With proper preparation, transparent communication and a focus on retaining talent, companies could adapt successfully while protecting the wellbeing of their workforce.”

 The Sun Malaysia