IN today’s digital-first economy, talent is not just important, it’s everything. As businesses across Malaysia face increasing pressure to embrace new technologies and meet evolving customer demands, the strength and adaptability of their workforce have become mission-critical. Yet, a growing concern has emerged: 40% of Malaysian employers say they are struggling to retain employees due to significant skill gaps.
Many of these gaps are tied to the digital transformation sweeping through industries, and the issue goes deeper than a lack of technical training. Often, companies don’t even know what skills they should be focusing on, which makes it nearly impossible to build effective development plans. Former human resources minister V. Sivakumar highlighted in 2023 that up to 4.5 million Malaysians could face job losses by 2030 if they do not enhance their skills, particularly in response to the rise of artificial intelligence and automation.
This uncertainty presents a serious challenge. Without clear visibility into the strengths and weaknesses of their workforce, many companies risk being left behind. Rapid innovation is now the standard, not the exception, and organisations that fail to keep pace may find themselves unable to compete. Fortunately, the solution lies not in guesswork or generic training modules, but in the power of people and behaviour analytics, a smart, data-driven approach to talent development.
Turning data into development
People analytics refers to the practice of collecting and analysing employee data to inform strategic decisions about hiring, development, engagement, and performance. When combined with behaviour analytics, businesses have the opportunity to gain a holistic understanding of their workforce. This allows them to design learning strategies that are tailored, relevant, and aligned with business goals.
Building upon this integrated approach, organisations that effectively leverage people analytics experience a 25% increase in business productivity and a 50% reduction in attrition rates. Furthermore, a study by the Society for Human Resource Management (SHRM) found that companies utilising HR data analytics saw a 21% boost in productivity and a 22% decrease in turnover. These statistics underscore the tangible benefits of data-driven strategies in enhancing workforce performance and retention.
By combining insights from people and behaviour analytics, this targeted approach ensures that each employee’s learning journey is relevant, which not only improves learning outcomes but also increases engagement and satisfaction. Businesses can also craft personalised learning and development programmes that not only align with organisational goals but also foster a more engaged and efficient workforce. In this direction, employees are more likely to stay and grow in organisations that recognise their individual potential and invest in the right areas.
Using learning data to drive strategic workforce development
The importance of upskilling cannot be overstated. In a business environment where change is constant, continuous learning has shifted from being a luxury to a survival strategy. Skills that were in high demand just a few years ago are quickly becoming obsolete, replaced by new competencies in areas like artificial intelligence, cybersecurity, digital marketing, and automation. Yet many organisations continue to rely on outdated or broad training programmes that don’t address the actual needs of their teams.
For instance, if data shows that employees are consistently underperforming in areas related to digital communication or project management, a company can respond with focused learning modules tailored to close those specific gaps. At the same time, leadership teams can monitor progress over time, identifying high performers, potential mentors, and areas where further support is needed. This creates a culture of accountability and growth, where learning is not just encouraged but strategically integrated into everyday work.
This is where solutions like OpenAcademy play a transformative role. OpenAcademy empowers employers to turn learning insights into real, measurable action. By tracking course completion rates, engagement metrics, and knowledge retention through quizzes and surveys, companies gain a detailed picture of how their employees are progressing. These insights allow leaders to make informed decisions about where to invest in training, which skills to prioritise, and how to align employee development with long-term business strategies.
Building future-ready skills with data-driven clarity
People and behaviour analytics offer Malaysian companies a clear, data-driven path to building a future-ready workforce. By identifying current capabilities, forecasting future skill needs, and aligning training with business goals, organisations can ensure their development efforts deliver real impact. This not only improves performance and innovation but also reinforces a culture where employees feel recognised and supported in their growth.
Crucially, these benefits are accessible to businesses of all sizes. For Malaysia’s many SMEs, even simple analytics tools can lay the groundwork for smarter talent development and long-term success. As companies continue to navigate digital transformation, embracing analytics will be key to staying competitive, resilient, and future-focused.
This article is contributed by OpenAcademy co-founder and managing director Celine Ting.
