Programme 2: Productivity Enhancement Through PLWS Implementation

Government Initiative

The white paper on the Progressive Wage Policy was tabled in Parliament in November 2023 to ensure that workers receive higher wages in line with increased productivity. Economy Minister Rafizi Ramli, says the government’s aspiration to restructure the economy towards Malaysia as a high-income nation by introducing a wage policy that reduces income inequality as well as enhances worker productivity and business competitiveness.
https://www.thestar.com.my/news/nation/2023/12/14/towards-a-progressive-wage-policy
Rafizi stated that the Progressive Wage Policy features three main mechanisms – participation criteria, annual salary increases, and incentives based on rates and worker groups – complements existing policies such as the Minimum Wage Policy and the Productivity Linked-Wage System (PLWS).

Why PLWS:

Gaps in the economic growth and standard of living among various nations can occur due to employee productivity. We need to consider that a country’s ability to improve quality of life over time relies on its ability to improve the output of employees. Furthermore, it is widely acknowledged that productivity and wages will increase when the nation becomes more competitive and developed. Therefore, employees must acquire substantial gains from increased employee productivity to achieve a standard of living through the increase in given wages.

The Malaysian government has recognized the importance of improving productivity to enhance economic growth and competitiveness. Implementing productivity-linked wage systems can be seen as a strategy to incentivize workers and businesses to increase their efficiency and output. Ministry of Finance strongly affirms Productivity-linked wage system to benefit employers, employees.

Therefore, PLWS is a flexible and competitive wage system that allocates wealth created based on employers and employee’s performance as well as productivity to enhance the firm’s shared prosperity and competitiveness.

Enterprises that embrace the PLWS experience improve teamwork and build a healthier workforce with a stronger sense of belonging to the firm among employees. Consequently, flexibility in the employees’ remuneration systems and workers’ positivity results in employee-employer engagements as well as harmonious industrial relations.

Overview

This 3-day program builds upon the foundational knowledge of PLWS introduced in the previous course. Participants will delve deeper into practical aspects such as diagnosing and managing productivity, formulating incentives, and implementing PLWS. Additionally, they will learn to develop Key Performance Indicators (KPIs) based on diagnostic data and gain insights from real-world case studies.

Objective

• Develop strategies for reducing waste and inefficiency within the organization.
• Navigate complexities of modern business environments and make informed decisions
• Learn techniques for formulating KPIs to enhance processes and outcomes.
• Foster a collaborative and inclusive organizational culture that encourages innovation and continuous learning.

Output

Participants will acquire advanced skills in diagnosing productivity issues, implementing PLWS, and fostering a culture of productivity and quality within their organizations.

Course Outline

Duration:

2 days

Delivery Methodology

• Theory and Conceptual Understanding on the core concepts
• Practical Application:
  • Performance Metrics: Explain how performance will be measured under PLWS and introduce the specific metrics that will be used.
  • Goal Setting: Guide participants in setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals that align with PLWS objectives.
• Simulation Exercises where participants can experience the implementation of PLWS in a controlled environment.
• Access to Resources where  participants will access resources such as guides, templates, and online materials to support their understanding of PLWS

For more information, please contact:

• • • Customer Hotline – +601175726090
      
    • Email Enquiry – info@axsel.com.my