Flexible Work Arrangement Policy in Malaysia: Types of Flexible Work Arrangements

Flexible Working Arrangements (FWAs) have been rolled out in Malaysia to boost productivity and provide better work-life balance. This article lists the types of FWAs available to the workforce in Malaysia.

Flexible work options have become common, even as some companies choose to return to the office full-time. Flexible work arrangements empower employees to better balance their personal and professional commitments. Other benefits include better retention and engagement rates and increased productivity at the organizational level.

10 Types of Flexible Working Arrangements in Malaysia

The flexible work arrangement policy in Malaysia aspires to encourage a healthy balance between work and personal obligations while providing innovative ways to complete tasks. A poll by recruitment agency Randstad showed that 48% of Malaysian respondents want more flexible work arrangements. Listed below are the various forms of flexible work arrangements available to the workforce in Malaysia. Knowledge of the many flexible work possibilities can assist you in setting a work environment that best suits your needs, those of your employees, and those of your business.

1. Hybrid work arrangement

In a hybrid work arrangement, employees can choose to work on-site on certain days and not on others, depending on their goals and their personal preferences. It may also be the case that some employees may work on-site every day, while others may telecommute or work remotely full-time. Research says that providing such choices across the organization leads to a happier and more productive workforce.

2. Telecommuting

In telecommuting, employees are partially remote. Employees who telecommute typically reside close to the workplace, so they can visit the office occasionally. It can mean working remotely from home, but depending on accessibility and the specific corporate policy, it could also mean working from any public space. Several types of research worldwide establish that this kind of flexibility can improve employee morale and discourage absenteeism and turnover.

3. Remote work

Remote work means working away from the office permanently. Employees can live and work anywhere worldwide because they are not required to travel to the office. In-person team-building exercises and office-based meetings are typically not necessary for remote employees, but they may participate through video conferencing. According to a Microsoft survey, 77% of Malaysians prefer permanent flexible remote work options.

4. Condensed workweeks 

The total weekly working hours are spread out over fewer days than usual. The specific arrangement can differ, but this will typically lead to a week with fewer workdays than a five-day work week. Better work-life balance may be possible with compressed workweeks. However, it does mean that each working day will be longer, which may not be suitable for all employees.

5. Flexi hours

Flextime gives employees the freedom to decide when they want to start and finish their workday. While the company may set aside specific hours to work, employees usually have the choice of starting and ending their workday at a time that works best for their schedule. As long as their weekly or monthly contracted hours are met, employees may also choose to work more one day while working fewer hours the next.

6. Part-time work

Any employment that offers fewer weekly hours than a full-time job is referred to as part-time work. Although the definition of what counts as full-time work varies from place to place, 30+ hours a week tends to be the standard. Employers may find it advantageous to hire workers for part-time jobs that will not require enough time from the employee to warrant a full-time position. Part-time work is preferable for some workers since it allows them to balance earning money with other commitments like studying or raising children.

7. Shift work and shift swapping

This is a popular strategy for businesses that are open 24 hours a day, seven days a week. A working day is divided into various shifts, which are then assigned to employees. As a result, multiple groups of workers will be doing their jobs at various times during the day. Employees may be asked to work hours different from the typical 9 to 5 workday and may even be required to work a different schedule daily or week to week. Workers can also choose to work night shifts rather than day shifts. The arrangement also provides flexibility for shift workers to trade shifts with each other.

8. Job sharing

Job sharing is splitting a full-time position and the necessary working hours with at least one coworker. Employers get the equivalent of one full-time employee through this arrangement, which effectively functions like part-time work for employees. Pay, benefits, and vacations may be impacted by job sharing. The appeal of this arrangement is that it gives employees the freedom to balance work with other obligations. In some cases, finding two people willing to work part-time hours may be more advantageous for businesses, and in theory, the amount of work accomplished is the same as if a full-time employee were recruited.

9. Staggered hours

It describes a situation where certain workers have different start and finish timings than other workers. In other words, workers will start and end their shifts at the exact location as other workers and put in a set number of hours, but at various times throughout the day. In most cases, staggered working hours mean establishing a predetermined variation from the typical 9 to 5 working day.

10. Phased retirement

Employer and employee decide on a timetable that progressively reduces an employee’s full-time work commitments. For instance, a company might opt to gradually reduce the employee’s workload over a period of months or years as they move closer to retirement. The employee can use this phased period to train their replacement, plan for restructuring, or give coworkers time to adjust to new task allocations.

Why Should You Consider a Flexible Working Arrangement Policy for Your Organization?

Employees with flexible work schedules can better manage their personal and professional lives. It results in increased employee engagement and better retention rates at the organization. With the rollout of Flexible Working Arrangements in Malaysia, companies can take advantage of these provisions to provide additional flexibility and develop an edge over the competition in hiring top talent and attaining their objectives.

Download this exclusive guide to further explore and navigate the Flexible Work Arrangements in Malaysia.