IFSM participated in the ASEAN Productivity-Linked Wages System (PLWS) Conference organised by the Human Resource Ministry of Malaysia and won an award (Oct 2017)
IFS Capital (Malaysia) Sdn. Bhd. (IFSM), our subsidiary in Malaysia recently participated in the ASEAN Productivity-Linked Wage Conference organised by the Human Resource Ministry of Malaysia, in Kuala Lumpur, on 10 October 2017. IFSM also won an award for Best Practices by International Company based in Malaysia for the Medium Enterprise category.
Here are the outline of the presentation:
• IFSM was incorporated in 2006 and the nature of business included Factoring, Industrial Hire Purchase, Working Capital And Term Loan Facilities To The Government’s Contractors, Suppliers & SMEs. It currently has a relatively small employee size of 25.
• IFSM went through difficult times due to high provisions for bad accounts in 2014/2015.
• For the recovery process, it identified issues and implemented various action plans to turn around the company.
These included: –
o Changing of Business Model, Target Market and Products to Offer,
o Strengthening the Marketing and Credit Risk Teams,
o Reducing Cost and Increase Productivity.
o For profitability, business volume must be increased and costs reduced.
IFSM implemented 4 elements under PLWS (Productivity-Linked Wages System):
a. Key Performance Indicators (KPI) set for all Employees (Non-Contractual Bonus/Bonus Based On Performance & Target/Increment)
b. Promotion is based on Performance, Job Scope and Responsibility , not based on Seniority
c. Specific KPI For certain category of employees
d. Incentive Trip
Element One :Setting of KPI for all employees
– Parameters are measurable and easy to administer
– Parameters can be determined by the employees
– Employees are made aware of Quantum of Rewards for Bonus
Element Two: Promotion based on Performance, Job Scope and Responsibility
– Encourage employees to take up higher responsibility functions
– Encourage Internal Transfer And Job Rotation
Element Three (Specific KPI)
– Customised KPI for certain employees (e.g. specialised function)
– Nil Non Performing Account (NPL) (Marketing Team)
– Management Of Medical And Emergency Leave
Element Four (Incentive Trip)
– Reward for employees if profitability achieved
– Combined with Team Building activities to foster better working relationship and team spirit
– Incentive Trips to Kota Kinabalu, Cherating, Eco Resort in Hulu Selangor and Bandung
Benefits To The Employees
• Fully Aware of Responsibilities And Rewards
• Rewards Assessment Is Transparent
• Encourage & Motivate Employees To Take Up Positions With Higher Responsibilities
• Certain KPI Parameters Are Within The Control Of Employees
• No Retrenchment Of Workforce
• No Pay Cut
• Savings To Be Shared With Employees in the form of better Medical Benefits and Coverage, Long Service Awards and Staff Trips
Benefits To The Employer
• Motivated Staff
• Higher Productivity
• Yearly Budget Is Linked To Performance of Employees And Employer
• Speed Up The Recovery To Profitability
• No Retrenchment And No Retrenchment Cost Incurred
At IFS Capital Limited, we understand that all businesses are different in their needs and characteristics. That is why we are happy to explore financing options that meet the unique needs of your SME.
Why not drop us a note by clicking this form here and we can discuss this in further detail with you.
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