HR teams stretch to meet the demands of an evolving workforce

Budget constraints stemming from economic uncertainty and inflation plagued the hiring market in 2025. Employers took a prudent approach, focusing hiring efforts on critical roles and developing cost-effective talent strategies.

According to Selviah Dayangku, Manager at Robert Walters Malaysia, there was also a marked shift in workforce expectations in the past year. Employees have grown to prioritise flexibility, purpose-driven work, and well-being more than before. This has put pressure on Human Resources (HR) teams, necessitating a rethinking of team management strategies and companies’ Employee Value Propositions.

Read on to find out more about the labour market and hiring trends for Malaysia’s Human Resources professionals in 2026.

More agile, international teams

More contract and project-based roles are set to take the stage, particularly in talent acquisition (TA) and learning and development, as businesses look to build an agile, flexible workforce.

Employers will also look increasingly beyond borders. With the support of remote work and global talent platforms, they will engage talent outside Malaysia to fill niche HR tech and analytics roles.

Across HR, TA and talent development, roles will evolve, with these functions being positioned as business partners. Companies will expect professionals in these roles to drive stakeholder engagement, gather insights from other departments, and contribute to business strategy.

“Professionals should upskill in data analytics and learn to work effectively with AI tools now embedded in modern HR systems.”

Top roles and skills in demand

HR data analysts are expected to be in demand, as businesses seek support with data-driven decision-making in workforce planning and engagement.

More roles are expected in the culture and HR transformation space. These professionals will need to help companies demonstrate progress in their sustainability, diversity, equity and inclusion (DE&I) initiatives.

There will also be pronounced demand for TA specialists. This comes as companies look to cut hiring costs amid intensifying competition for talent.

The most valuable soft skills for professionals in the sector are emotional intelligence, change management and strategic thinking.

Key upskilling areas against AI

Within the HR space, the roles most vulnerable to the spread of AI are recruitment coordinators, payroll processors, and those in administration, operations, and services such as data entry.

Selviah’s advice for industry professionals is to upskill themselves in data analytics, as this allows them to interpret HR metrics that inform strategic business decisions. They should also learn to work alongside AI tools that are increasingly integrated in applicant tracking systems, chatbots and HR information systems platforms.

Advice for talent attraction and retention

In the recruitment process, most candidates today ask questions around culture and work-life balance, indicating a shift from compensation to values-aligned and lifestyle-compatible roles. To ascertain if a company is truly the right cultural fit, Selviah observes that most candidates now conduct research online and through their networks, searching for reviews from the company’s consumers and former employees.

Now that brand awareness is no longer enough, companies need to strengthen their employer branding to win talent over. They should tap into the employee experience and branding teams to drive internal and external communications that showcase the company’s purpose, culture, and impact.

Companies that support and prioritise employee well-being have a distinct advantage, particularly if they offer flexible work arrangements.

Lastly, proper talent management and succession planning are also key. Talents are more likely to stay engaged and loyal when a company invests in their upskilling and career development.

Salary expectations aligned with benefits

Due to a talent shortage, niche roles in HR tech, analytics and DE&I will command significant salary increments.

For most other roles, salaries will depend on location and work arrangement. As Selviah notes, “Candidates are willing to accept lower salaries if offered flexible or remote work options. Roles that require the candidate to be on-site every day will come with higher salary expectations.”

Find out more

Request access to our 2026 Salary Survey to benchmark salaries and to find out more about key hiring trends in the Human Resources industry in Malaysia.