School grades don't matter much?

Accounting firms PwC and EY start a trend in recruitment to help business and society

 

Big Four

WE all know that good grades in school won’t necessarily land you that first job. They do however go a long way towards convincing a potential employer that you’re likely to perform well if hired. That’s why you’re routinely asked to produce certificates and transcripts during the application process. How else can the employer get a quick reading on the discipline, intelligence, diligence and knowledge of a school-leaver or a fresh graduate?

But what if an employer decides that your grades shouldn’t matter as much? How will that change things?

For the answer to that, we ought to be watching the Big Four accounting firms in Britain.

Starting in June last year, PricewaterhouseCoopers (PwC) stopped using the UCAS tariff as an entry criterion for most of its undergraduate and graduate recruitment schemes. Developed by the Universities and Colleges Admissions Service, the tariff is the British system for allocating points to those seeking undergraduate placements.

The system applies to a long list of entry qualifications — for example, A levels, City & Guilds diplomas, and music examinations — and the points for each qualification are worked out based on the levels of achievement.

Before this, a person usually must have a minimum number of UCAS points before PwC would consider his job application, even if he’s a graduate. This is apparently a common practice in Britain. With the policy change, the accounting firm can now overlook mediocre A-level results if the candidate has gone on to soar in his degree programme.

PwC says the reduced emphasis on UCAS points is because it’s important to be a progressive and socially inclusive employer, and because it wants to reach the broadest range of talented students.

“There’s strong correlation that exists in Britain between social class and school academic performance. This data suggests that by placing too much emphasis on UCAS scores, employers could miss out on key talent from disadvantaged backgrounds, because they may perform less well at school. That’s why, from an academic perspective, we’re focusing on your degree,” it explains on its website.

And then in August, Ernst & Young (EY) announced that it would remove academic qualifications from the entry criteria for its 2016 graduate, undergraduate and school-leaver programmes. Instead of insisting on certain standards for UCAS points and degree classification, the firm relies on “a new and enhanced suite of online “strengths” assessments and numerical tests to assess the potential of applicants”.

In other words, EY recruits by evaluating the candidates’ strengths and promise, not just their past performance.

This decision came after talent management firm Capp had studied EY’s student selection process over 18 months. The analysis found that EY’s strengths-based approach in recruitment, introduced in 2008, is a robust and reliable indicator of a candidate’s potential to succeed in his role in EY.

“At EY, we are modernising the workplace, challenging traditional thinking and ways of doing things. Transforming our recruitment process will open up opportunities for talented individuals regardless of their background and provide greater access to the profession,” says Maggie Stilwell, the managing partner for talent.

“Academic qualifications will still be taken into account and indeed remain an important consideration when assessing candidates as a whole, but will no longer act as a barrier to getting a foot in the door.”

“Our own internal research of over 400 graduates found that screening students based on academic performance alone was too blunt an approach to recruitment. It found no evidence to conclude that previous success in higher education correlated with future success in subsequent professional qualifications undertaken.”

It’s interesting that Stillwell describes an overriding dependence on academic qualifications as a blunt approach. Stephen Isherwood, the chief executive of Britain’s Association of Graduate Recruiters, has a similar view. The PwC press release on the firm’s move to drop the UCAS points entry criteria, quotes Isherwood: “Using a candidate’s UCAS points to assess his potential is a blunt tool and a barrier to social mobility. This is an innovative step by one of the most significant graduate recruiters in Britain. Other graduate employers should follow its lead.”

PwC definitely sees itself as a trendsetter, saying its new recruitment assessment process could drive radical change across its industry. However, these radical changes haven’t happened yet. So far, Deloitte and KPMG, the other two firms in the Big Four, are still sticking to their minimum academic requirements in Britain.

It’s too soon to conclude that the recruitment changes by PwC and EY are a failed experiment.

The war for talent is intense among accounting firms. Businesses can’t stay at the top without thinking out of the box, taking bold steps, and being caring. It should be no different when it comes to how they hire people.

By Errol Oh Optimistically cautious viewpoint

Executive editor Errol Oh joined an accounting firm right out of school. That doesn’t happen in Malaysia anymore.

Related:

Big Four Corporation

The Big Four are the four largest international professional services networks, offering audit, assurance, tax, consulting, advisory, actuarial, corporate finance, and legal services. Wikipedia

Money, money, money ... Love of money is the root of all evil !

Lets not use Money as an all-powerful weapon to buy people

ONE can safely assume that the subject of money would be of interest to almost all and sundry. ABBA, the Swedish group, sang about it. Hong Kong’s canto pop king, Samuel Hui made a killing singing about it. Donna Summers, Pink Floyd, Dire Straits, Rick James and quite a few more, all did their versions of it.

Is money all that matters? The ‘be all and end all’ of life?

This will certainly be a fiercely-debated subject by people from both sides of the divide; the haves and have nots. Just last week, my 12-year-old asked if the proverb Money is the root of all evil is true. Naturally, like most kids of his generation, he would not have a clue as to how difficult it is for money to come about. Or why, when it does come about, it has the power to make and break a person. To a Gen-Z kid, the concept of having to ‘earn’ money is somewhat alien. Simply because everything he ever needs and beyond is ‘magically’ provided for.

Forget about teaching this generation to earn their keeps, just expecting them to pick up after themselves is a herculean ask. But we are not here to talk about that, instead, is money really the root of all evil? Perhaps, the proper answer would be ‘the love of money is’.

Let’s see what sort of evil comes with this love of money. Top of mind would be corruption, covetousness, cheating, even murder, just to name a few. These, of course, are of the extreme.

What about at the workplace? How does the love of money or rather the lure of money affect the employment market? Let me take on a profession closer to my heart, the advertising industry. Annually, our varsities and colleges churn out thousands of mass communication and advertising grads. Of these, only a handful would venture into the industry. Where have all the others gone?

A quick check with fellow agency heads reveals that many have opted to go into the financial sectors as the starting packages are somehow always miraculously higher than those offered by advertising agencies. A classic case of money at work. For those who have actually joined the ad industry, some get pinched after a while because of a better offer of ... money, and more. (As if this is not bad enough, the “pinchers” are often not only from within the industry but are clients!)

The fact is there is absolutely nothing wrong in working towards being the top of one’s profession and getting appropriately remunerated for it. The problem starts when money is used as the all-powerful weapon to ‘buy’ people. Premium ringgit is often paid to acquire many of these hires, some of whom, unfortunately, are still a little wet behind the ears. Paying big bucks for talent is all right, as long as the money commensurate with the ability and experience of the person.

Case in point is if an individual is qualified only as a junior executive with his current employer, should he then be offered the job as a manager and paid twice the last drawn salary? All because some of us are just so short on resources.

Now, hypothetically, if this person was offered the managerial post anyway, would he be able to manage the portfolio and deliver what is expected of him? Would he, for instance, ask what he needs to bring to the table? After all, he has suddenly become the client service director and draws a salary of RM20k a month. Does he actually need to bring more new businesses, or what? We can call ourselves all sorts of fancy titles but the point is we have got to earn it. As they say, the proof of the pudding is in the eating.

Having served on the advertising association council for the past nine years and presiding over it the last two, it concerns me greatly to see the how money is affecting and somewhat thinning the line of qualified successors to the present heads.

The lack of new talents coming into the ad business is increasingly worrisome. Though it may look a seemingly distant issue to most clients, they must now take heed. The agencies are business partners and if there is going to be a dearth of talents it will surely affect the clients’ business in the near future. So rather than pinching the rare good ones from the agencies, would it then not be in the clients’ best interest to instead remunerate the agencies so to secure better and higher standards of expertise? Food for thought, eh?

Pardon me for being old school. I am a firm advocate of the saying that one should not chase money. First learn to be at the top of your trade and money will chase you. Then again, we are now dealing with and learning how to manage the present generation. A generation of young, smart, fearless, and somewhat impatient lot who may not be as loyal as their predecessors. A generation that loves life and crave excitement. Adventure is in their blood and ‘conforming’ is a bad word. And money, lots of it, makes the world go faster for them.

As elders, we need to look hard and deep into how to inculcate the right value of money in this new generation. These are our children. They are the future. If we make no attempt to set this right and instead keep on condoning the practice of over-remunerating them, we will be in trouble. The fact that Malaysia will soon have to compete in the free-trade region further allows money to flex its muscles more. I shudder to think what would happen to our young ones if we keep on mollycoddling them with the wrong idea that they ought to be highly paid just for breathing.

Folks, my sincere apologies if I have inadvertently touched some tender nerves but a wake-up call this has to be. For our dear clients, think about the proposition to review your agency’s remunerations – upwards I mean. This, over taking people from the industry, will save you more in the long run.

For those of us in the agencies, let us keep polishing up our skills and not let money be the sole motivator. If you are good, others will take notice. Work hard, the rewards will come. Just exercise some patience.

I leave you with a saying that one Mr Jaspal Singh said to me when I was a rookie advertising sales rep with The Star eons ago: “Man make money, money does NOT make a man”. (Or woman, of course.)

Till the next time, a very Happy Deepavali to all.

God bless!

 By Datuk Johnny Mun, who has been an advertising practitioner for over 30 years, is president of the Association of Accredited Advertising Agents. He is also CEO of Krakatua ICOM, a local ad agency.

Big bosses are watching you !

Tracking device: Asia Insight employee Steven Li conducting a survey near Bugis Junction. He is using a tablet which has mobile data collection software, allowing his employers to track his work patterns. - The Straits Times / Asia News Network

BIG bosses are watching. Firms are keeping a closer eye on their employees’ punctuality and efficiency – thanks, or no thanks, to technology.

Larger companies are investing in advanced software in mobile devices that can detect location – and record the time taken to complete tasks.

And smaller firms have found that run-of-the-mill but inexpensive instant messaging apps can also be used to monitor workers. Employees of local property valuation firm GSK Global, for example, when out at meetings are told to send a picture of the venue to their departments’ WhatsApp group chat within 15 minutes of the designated time. Those who are consistently late will get their bonuses docked.

Bosses say they are not spying on their staff. Rather, they want to improve efficiency.

GSK Global boss Eric Tan said: “I want my staff to be punctual so they can be done with work earlier and go home by 8pm.”

Market research consultancy Asia Insight chief executive Pearly Tan agrees.

Her firm engaged local tech start-up Epsilon Mobile earlier this year to develop mobile data collection software that records the time employees take to interview people and co­m­plete surveys, among other things.

It costs “a few hundred thousand” but Tan said it was worth it. The software helps the company spot patterns in the way the surveyors work, and also intervenes to reduce errors and boost productivity.

Her firm plans to use the software, which is enabled with Global Positioning System (GPS), to detect its employees’ location.

Epsilon Mobile boss William Vo said besides market researchers, organisations such as voluntary welfare groups and chain restaurants had also shown interest in his data collection software.

Similarly, tech company FPT Asia Pacific provides a few fast-moving consumer goods firms with GPS-enabled data collection software to monitor roving sales staff.

While most surveillance techno­logy now focuses on tracking location and time, firms may soon be able to use it to monitor their wor­kers’ interactions with customers.

Local tech company FXMedia is in talks with some retailer groups to roll out a visitor analysis system in stores. The software detects the number of customers and consu­mers’ emotions using webcams.

However, bosses admit there are some drawbacks to using workplace surveillance technology; workers face extra stress and loss of privacy. — The Straits Times / Asia News Network

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It is a small world

The world is actually quite small

EVERY week, I go to the nearby wet market to stock up on provisions. One of the stalls I have to stop by is run by a young man who knows that I am there to collect my weekly quota of 20 kampung eggs.

Recently I asked him if he might want to consider starting up an online service to provide home delivery to his regular customers. After all, even the major hypermarkets are going big time in providing such a service to tap into the trend of people being so busy that grocery shopping needs another approach.

His reply tells me once again that true wisdom rests among ordinary people who truly know what the real world is all about. You can grab quotations from wise men and manage­ment gurus but sometimes the real gems are from people like my egg seller.

He basically told me that it is better for me to come out and get the chance to meet people rather than stay in the house. Every moment in any public area, he said, is fresh and unpredictable.

“You can bump into people you have not met for a long time or come across something interesting that cheers you up when you are feeling down,” he said.

The egg seller is correct to say that every moment in public is fresh and unpredictable. I have always believed that nothing happens by chance. Some call it divine appointments but it is this connection of one human to another that opens up a myriad of possibilities.

Through such encounters, we learn that the world is actually quite small once we start connecting the dots and learn that the person we have just met is actually not quite a stranger after all.

As much as I love the written word, I find that it is the spoken word, with all the body language appended, that conveys the true meaning of what we want to say.

To tell someone you are sorry through a card is easy even if you do not really mean it. But to say you are sorry up close and personal, you’d better mean what you say or else.

Those who are less socially inclined than I am will disagree when I say that we are not created to be solitary beings. We need company to flourish in thought and in deed.

We can talk about feeling the pulse of the people and of being connected to the grassroots, but if we are only doing so from the comfort of our living room or office, we will never get the real picture.

Some of the things I read online will make me think there is absolutely no hope left in the country, but when I am out there, I realise that this is just not the case.

Take a ride on the bus or the LRT, drop in to see a friend at the hospital, take a walk around the neighbourhood, have a chat with the grasscutter ...

Then you will learn that the world we live in is a wonderful place because the people make it so.

And we do so by not merely looking out for our own personal interests, but also for the interests of others.

In this season of Christmas, it is my hope that we do our part to reach out and love one another. We can, and we will, make a difference.

Contributed by Soo Ewe Jin. He wishes all Christian readers a blessed Christmas with a gentle reminder that this is the season not only for giving but for forgiving as well.

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Get pay from spying?

Whistleblowing hero: Germans holding up pictures of Snowden while protesting in front of the Reichstag building which houses the Bundestag (lower house of parliament) in Berlin . — AFP

Heavy-duty spying does not pay 

The hidden costs, and the controversy, of the massive US global spying operation keep on growing.

IF officials behind the US-based “Five Eyes” spying network had hoped the scandal would soon fade away, their obvious disappointment should be an object lesson about their excesses and abuses.



US, British, Canadian, Australian and New Zealand spies – together with their Singaporean and South Korean co-conspirators – had violated the implicit trust placed in their governments by friendly and ally nations around the world.

Former US intelligence contractor Edward Snowden had exposed how the conspirators had tapped into fibre-optic cables in 20 locations worldwide and infiltrated 50,000 computer networks.

This unprecedented scale of spying makes no distinction between friend and foe. It has provoked questions about the value of being a friend or “ally” of these Western countries.

Countries in the world’s main regions have routinely been spied on: Europe, East Asia, West Asia and Latin America. The spying exceeds all norms of intelligence gathering to target the personal cell phones of national leaders, from German Chancellor Angela Merkel to Indonesian President Susilo Bambang Yudhoyono and even his wife Ibu Ani Yudhoyono.

Snowden’s leaks reveal that Spain, for example, had been spied on so much as to have 20 million phone calls tapped each day. For the US authorities to insist that it was all for the sake of fighting terrorism is too much of a stretch.

The spying covers economic as well as political purposes. It was revealed that a foreign government’s confidential information picked up from spying is also used to give an unfair advantage to US companies against other companies in bids for international contracts.

Today’s supercomputers can do a lot of work in very little time. The ones used in the US global spying scheme apparently had very little ethical human supervision, precisely because that was the intention.

It has long been a “given” that all countries gather intelligence, to varying degrees, through some of their diplomats, expatriates and other undercover operatives. The extent of this activity also varies with the distance in relations between the spying country and the one spied upon.

Between friendly countries, discussions on issues of common interest and concern are the means of updating one another on events. Excessively intrusive and invasive spying, however, such as the kind Snowden has revealed, is supposed to be for untrustworthy governments and enemy nations.

Such universal perceptions and expectations lie at the heart of the current spying controversy. There is little wonder that countries so sordidly spied on take the matter so seriously.

Such spying shows the United States would enforce its will on all other countries, as opposed to sharing information between equal partners with mutual respect. It also implies that rules will be made by the US alone.

At the bilateral meeting in Jakarta during the week between Malaysian Prime Minister Datuk Seri Najib Tun Razak and Susilo, Malaysia declared full support for Indonesia in placing the spying scandal on the agenda of the next Asean Summit in Myanmar.

In seeking a satisfactory corrective for spying intrusions that breach all known limits, granting a regional profile to the problem is the least that Indonesia and Malaysia can do. Thailand is another Asean country targeted by these spies operating in part from the respective Australian embassies.

France and Germany are particularly outraged by “Five Eyes” snooping. Italy, the Netherlands and Spain are also concerned, as the scandal unites political parties within individual nations as well as European countries throughout the EU – except for Britain.

The aggrieved countries find the excessive spying violating privacy rights, their national sovereignty as well as their domestic laws. US officials predictably reject its seriousness.

The EU now wants a new law requiring private IT companies to inform European regulators if a foreign snooping request is made on any European citizen. That effort could clash with an existing US law that bans any company whose “cooperation” is required from telling anyone.

The potential conflict would pit European determination against US intransigence. It would further test the trans-Atlantic alliance in the post-Cold War period.

As the initial leaks started to provoke European anger, clandestine efforts tried to dilute or divert the upset.

It was somehow also “leaked” that the French government had been spying on its own population, followed by allegations that the German government had known about and even used information obtained by US-connected spies. The truth of these “mitigating” leaks was, however, less clear.

As expected, such efforts at damage control had a very limited effect. The harm perpetrated by US-led spying on the trust, goodwill and relations with Europe was far more serious, and remains a main feature in the foreground.

In Latin America “south of the border”, Brazil, Colombia, Mexico and Venezuela are particularly disturbed by US-led spying activities. Argentina, Bolivia, Chile, Ecuador, Nicaragua, Paraguay and Uruguay are also concerned.

Several of these countries have already offered asylum to Snowden, who hopes to avoid prosecution in the US after his current one-year asylum stay in Russia. The more Washington pressures and threatens these countries, the more keen they are to protect whistleblowers like Snowden.

The Union of South American Nations (Unasur) is currently working on a new, alternative communications system that will cut the prospect of US spying in the region. As a sign of seriousness, the region’s defence ministers who form Unasur’s defence council are tasked with developing the new system.

Unasur’s 12 member countries may be disadvantaged in lacking sophisticated technological inputs for the system. However, they also enjoy certain advantages in a renewed unity, determination and strength of purpose.

Brazilian President Dilma Rousseff, whose email had been hacked by US spies, has accused Washington of violating human rights and crime. Four days ago, she followed this with a defence procurement contract that spelt out clearly where Brazil stood.

Capping a 10-year plan, Rousseff announced on Wednesday that Brazil would buy 36 of Sweden’s Saab Gripen fighter jets instead of Boeing’s F/A-18s in replacing the air force’s ageing fleet. Brazil had bargained the price down from US$6bil (RM19.8bil) to US$4.5bil (RM14.8bil).

US officials privately grumbled over having lost “a US$4bil deal” but in fact the cost of NSA spying on Brazil is almost twice that. Boeing’s price for the F/A-18s was US$7.5bil (RM24.7bil).

Over the longer term, the cost to the US economy is likely to grow if Washington does not or cannot seriously mend its ways. US-based companies like Google, Yahoo! and Microsoft are often seen by other countries as part of the problem in having to comply with US laws and demands.

Unasur is already showing the way forward by working on an alternative. In time, other regions like Europe and countries such as Russia, India and China may also develop their own communications systems and software, taking more business away from US companies.

In the short term it is always tempting to blame the messenger such as Edward Snowden rather than the problematic nature of the message itself. Ironically, the development of modern communications has raised awareness of privacy and sovereignty rights – and of their violations.

To level the playing field, IT development as well as spying activities may need to become more equalised. By serving the greater interests of the greater number, that would be democratisation indeed.

Contributed by Bunn Nagara, who is a Senior Fellow at the Institute of Strategic and International Studies (ISIS) Malaysia, The Star/Asia News Network

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Tips on courting investors

IN this penultimate column, I would like to explore the world of romance, courtship and partnership. Why some marriages are happy and long lasting and why some end in a messy divorce. I will also talk about quickie engagements, marriage of convenience and spouse for hire.

No, I am not Aunty Thelma providing counsel on your turbulent personal life. Neither am I qualified to talk about politicians and rent seekers. This discussion is confined to entrepreneurs who need partners to help them kick start their business. Occasionally, desperately sourcing capital for survival and sometimes needing a healthy dose of cash injection to grow.

For new startups, courting the investors will be the most stressful stage. Before they part with their money, they will question the viability of your business, sustainability of your business model and most importantly, the potential to scale. You are advised to be well prepared with facts and figures supporting your proposal. If a knowledgeable investor tears up your assumptions and forecast, swallow your pride and rebuild your model if necessary. You will be better prepared to face the next potential investor.

Knowing the type of investors that you would like to “sleep with” will save you unnecessary stress and avoiding misaligned discussions. Short-term investors think very differently from long-term investors. Temporary relationships means moving in together and having fun without any responsibility. Breaking up is not hard to do.

Long-term relationships requires patience, understanding and tolerance between both parties. Like all marriages, there will be fights and misunderstandings but both sides will make up and continue for the sake of the children, albeit on an uneasy truce.

If you have a quick turnaround project with an early exit plan, then you will click immediately with short-term investors who will be willing to take on higher risks but expecting immediate returns on invested capital. Normally they do not mind having a smaller equity share as long as they see good upside but you will have to pay interest or dividends on their different class of preferred shares. It is best you find out more on terms like convertible cumulative preferred stocks and RCCPS (redeemable convertible cumulative preference shares) etc ... If you want to be on the same page as these savvy investors.

If your project has a long gestation period, get a rich investor who looks for steady recurring income with an eye for capital asset growth. Be conservative with your forecast and highlight your cashflow management skills. Nothing pleases the long-term investor more than having a mature thinking partner who will conservatively build a meaningful asset business in a steady environment.

Once you have the investor interested, the real negotiation starts. Assuming all investors are fools, you will be able to load the investors with a high valuation, retain majority equity and management control and yet raise a lot of capital by giving little away. Alternatively, assuming you are the desperate fool, you would end up working for the new investors, saddled with a low valuation and stuck with minority equity stakes. Nobody likes playing the fool so either one of these relationships will definitely end up in divorce.

Basically, the whole negotiation rests on the basis of valuation. For a new startup with no prior track record, the valuation is based on forecast budgets normally over a five-year period. To investors, getting the forecast right determines the level of risks to be taken. But his guess is as good as your guess. Then you end up with two sides articulating their understanding on market trends, benchmarking best practices etc, just to justify their number guessing skills.

So the final numbers to be agreed upon will depend heavily on your negotiation skills or how much the Investors believe in you. If you are desperate, the Investor will see through that and you will not be negotiating from strength. A right minded investor would prefer to have a highly motivated entrepreneur at the controls of a start up so you will not be forcefully bullied. Just remember to tell him that you need to feel motivated when you wake up every morning and he will back off and see that you are fairly treated.

If the Investor pushes you into a corner, just walk away. You have not lost anything. That said, I assumed you have been realistic with your forecast numbers and have comfortably addressed the investors concerns. If not, do not be surprised if the investor walks away instead.

Understanding how investors think will help you prepare your proposal. Greedy investors look for maximum short-term returns and these are normally fund managers who wants to believe in well structured glossy presentations so that they can justify to their investors why they should invest their money into your project. It will be unfair for me to say that these professional fund managers are willing to invest in high risk projects since it is not their personal money but the pressure to perform forces them to take higher risks that carries higher returns.

Individual investors are way too careful and they prefer proposals with reduced risks and long-term asset building models. This has been my preferred business model as an entrepreneur then and even now as an investor. But the lure of fast short-term gains enjoyed by so many has whetted my appetite and I am now reconsidering my investment strategies. Greed is indeed sinful and irresistible.

Since I made a promise not to write about politicians and GLCs (government-linked corporations), I will not be elaborating on the topics of quickie engagements and marriage of convenience. I apologise if you have found this column dry and boring but I hope my advice on having safe sex in a monogamous marriage will help you live longer with a healthy bank balance by your side. Stay happy always.

ON YOUR OWN
By TAN THIAM HOCK

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To Malaysians, time to learn to live without maids!

 

I REFER to the report in “Maids may snub Malaysia” (The Star, Dec 24, reproduced below).

People may wring their hands in despair now but bear in mind a litany of abuse cases and the fact that Malaysian workplace laws regarding maids have been dragged into the 21st century with better wages and conditions is too late.

People have justified for too long the treating of maids as second-class humans by claiming all sorts of benefits that they bring to these women.

In the report, it states “If maids chose not to come here, many women would either have to give up their careers or demand for more childcare centres”.

My sister in Australia has for the last 20 years worked in a full-time job, undertaken part-time university studies, raised three children, seen to my ageing father and ran a house.

All this she has done without a maid, housekeeper or cleaner.

She has not given up her career.

What she has gained from this are children who are emotionally intelligent, responsible, able to undertake tasks such as simple cooking, cleaning their bedrooms, washing the car, walking the dog and discovering that being part of family is learning to be responsible.

I know of countless Malaysian families in the same boat as my sister. The world will not end if maids don’t come.

GORDON REID Kuala Lumpur

Maids may snub Malaysia

By PATRICK LEE patrick.lee@thestar.com.my

PETALING JAYA: Malaysia may soon be the last choice of foreign domestic maids.

With other countries paying higher wages and the current low exchange rate of the ringgit, domestic maids may prefer to go elsewhere, warn economists.

RAM Holdings group chief economist Yeah Kim Leng said that although there would be a greater demand for maids, especially with an ageing population, it would be harder to hire them.

“Unless our income is able to keep up with the rising costs, fewer people will be able to afford maids,” he said.

He said that with improving economies in countries like Indonesia, Malaysia may no longer be viewed as a potential job market.

Yeah said more locals might have to work as maids and predicted a greater demand for outsourcing of domestic chores and daycare.

“The Government will have to look into an alternative for working parents,” he said.

Yeah was commenting on an announcement by Prime Minister Datuk Seri Najib Tun Razak that both Malaysia and Indonesia had agreed to review the cost structure for recruiting maids.

There has been a trickle of Indonesian maids into the country despite the signing of an MoU between Malaysia and Indonesia on May 30 last year which set a RM4,511 agency fee for the hiring of maids.

The Malaysian Maid Employers Association (Mama) has since claimed that the cost structure was not sustainable as agents were reluctant to bring Indonesian maids into the country, leading to a shortage.

MIDF research chief economist Anthony Dass said locals would have to choose between paying more for their maids or not having any at all.

“If another country offers better (fees) for maids and agencies, why should they come here?” he said.

Dass said increased wages for maids would reduce Malaysians' disposable incomes, especially if salaries do not go up.

He said if maids chose not to come here, many women would either have to give up their careers or demand for more childcare centres.

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How to reduce childcare costs?

 Tips to avoid falling into the parent trap of spending unnecessarily

THE patter of little feet around the house is always a joy but the addition of new family members into the household can be quite expensive and a financial strained if there is no planning.

Here's how to avoid falling into the parent trap of spending unnecessarily and reducing your childcare costs.

Sharing the load 

The financial load of taking care of a child can always be better managed if both parents are working.

“The first thing one should do is to sit down and decide how the finances should be evenly distributed,” says financial adviser Wilson Low.

“Of course, it would be better if everything is determined some time before the child is born, rather than after,” he adds.

It's not necessarily a bad thing, however, if only one of the two parents is working, says Low.

“If one parent is working, then the non-working one can stay at home and look after the children full-time. This can seriously help cut down on the cost of hiring a maid or babysitter.”

Buy what you only need

Adlina Hassan, a stay-at-home mother of three, says one should only focus on getting the bare essentials or “only what is necessary” when it comes to buying food or clothing for one's children.

“There are a lot of products out there and I always like to compare. Many parents often get what their friends or neighbours buy but that shouldn't always be the way. They could be better off than you and the items they buy may not be to your budget.

“Just get what is necessary and no need to keep up with the Joneses,” she says.

According to Melissa Ram, who is a proud new mother, buying in bulk can also be a cheaper option.

“Buying in bulk would be good when there are promotional items on offer. Buying goods online can also give you savings. I shop a lot online and compare pricing to get the best deal for what I want.”

However, when buying in bulk, one needs to ensure that the goods can be consumed in time.

“I would not buy food or milk in bulk as I'm very particular about the expiration dates and such. I once bought some cereal from a hypermarket and it was expired,” says Gowri Arumainathan, a mother of two.

Melissa also says she keeps a lookout for baby fairs where she believes one can get “really good deals.”

“Another option is to buy clothes in bigger sizes as children tend to grow very fast and outgrow their clothes in a short space of time.”

Gowri also says she prefers to purchase children's goods, especially dairy products, from local sundry shops and mini-markets.

“It's definitely cheaper, at least by a few ringgit, and I also notice that the stock moves fast. This way I know I'm getting new stock of milk or cereal that I need to buy. This even applies for diapers.

“When it comes to clothes, I tend to buy most of them from the open market. It's cheaper and you'd be surprised by the quality of clothes you can find.”

Cooking your own meals

If you have the time to do it, then home-cooked food is always a cheaper option.

“I tend to make my children's meals. It's cheaper, fresh and I'm able to provide more variety to their food intake,” says Gowri.

Melissa, meanwhile, says: “In respect of the food, breastfeeding will save you a lot in the cost of milk! I also believe mothers should try to cook their own food for their children rather than to buy baby food off the rack.”

Getting extra help 

A lot of times, one needs to get extra assistance to look after their children. This could be a willing and able family member, such as a parent, or getting hired help like a maid or babysitter.

“The cheapest is surely to get your parents to look after. In our case, we have a long list of “babysitters” on hand, ranging from our parents, sister to aunties and cousins,” enthuses Melissa.

Gowri also concurs that getting a parent to look after your children is a cheaper option.

“Of course, getting a parent to look after the child is the most cost-efficient way. Especially with reports of how children are not looked after well at nurseries and day-care prices these days are all going sky high,” she says.

“It's surely the cheapest option (being looked after by a parent) and you know your child's well being is close to heart. However, at times, grandparents are often too old or unwell to run around after small kids,” Gowri adds.

With that in mind, she believes getting a maid is a better option when the child is a little older.

“Getting a maid is only an option to me if my child is bigger and able to inform me about the maid. Otherwise, I will not be able to trust my younger children with them. With all the stories you hear of what they can put in your food and do to a child, it makes you shudder to think your child's health can be in harm's way.

“Babysitters would be my next option. As they don't take care of too many children at one time, you know you are getting a more personal touch. Day-cares are just too commercialised and can have too many children to look after. So the personalised care for your child is not there.”

Adlina believes getting students as babysitters is a cheaper option.

“Of course perhaps not as full-time babysitters but I always found that getting students to look after your children can be a cheaper option.

“Students are not so demanding. They're usually looking for easy pocket-money and they're usually quite happy with whatever you offer them, most of the time!”

By EUGENE MAHALINGAM eugenicz@thestar.com.my

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Childcare services: daycare and private nursery businesses

Childcare services: daycare and private nursery businesses

Working couples hit by childcare costs

PETALING JAYA: It's a double whammy for working couples with children maids are hard to find while daycare centres have increased their fees in tandem with higher operation costs.

A check with several centres in the Klang Valley showed that they have raised fees by up to 10% over the past two years.

A staff member at a centre in Bukit Damansara, who declined to be named, said that it had to increase its fees by 10% every two to three years.

The centre, which also offers pre-school education inclusive of daycare for children aged three to six years, now charges about RM1,600 per month.

Another centre in Taman Desa, which offers only daycare for children of two years and above without pre-schooling, charges RM500 a month.

“We charged RM450 last year, but had to increase our fees because food prices had gone up,” said the principal who only wanted to be known as Stacey.

A centre in Puchong has maintained its fees at RM500 per month, but expects to raise it soon.

The centre provides lunch and two snacks, a shower in the evening and assistance with school work for the children under its care.

“We will try to hold down our fees for as long as we can, but foresee having to increase it soon as everything else is going up in price,” said its operator.

Demand for childcare centres in the Klang Valley is especially acute as many families have both spouses working while living away from their parents and relatives.

The scarcity of maids has contributed to the increase in demand.

It was reported recently that agencies were asking Malaysians to pay more for maids from Indonesia even as the Philippines was phasing out the sending of its citizens abroad as domestic workers.

Association of Registered Child-care Providers P.H. Wong said the centres had been affected by the increase in living costs as the price of goods had gone up along with public expectation of the quality of service.

“Parents who want quality service must be ready to pay more. Centres have no choice but to increase their fees to survive,” she said.

She urged the Government to introduce a subsidy for parents who need to care for their children while they were at work.

The Health Ministry had announced stricter control of daycare centres, with regular inspection of nurseries to ensure that they are fit to take care of babies in the wake of deaths from choking on milk and other incidents at these establishments.

Social Welfare Department statistics this year showed that 52% of the 3,238 nurseries nationwide were unlicensed.

However, there is no record of the number of children who died while under their care.

According to news reports, at least 22 children under the age of four were believed to have died while in nursery care between 2009 and this year.

By YVONNE LIM yvonnelim@thestar.com.my

Private nurseries struggle to stay in business

PETALING JAYA: About three million children aged four and below need daycare services in this country but many private nurseries are struggling to keep their doors open.

Association of Registered Child Care Providers Malaysia vice-president P.H. Wong said the Government should extend support to private childcare centres because of high operating costs.

As of May this year, 1,086 childcare centres had been registered with the Welfare Department: 989 were privately run, 16 set up by companies at work places, 67 in government offices and 14 were community-based.

Even for community-based childcare centres, there were few takers despite the RM50,000 set-up grant and annual RM64,000 subsidy given by the Government, Wong said.

This was because the subsidy barely covered operating costs since lower income parents could only afford to pay RM200 to RM350 for each child, she added.

A former childcare centre owner, who wanted to be known only as Cheong, said she closed her centre in Sri Petaling last month after operating for more than two years because the RM600 to RM800 monthly fees she collected from 14 parents could not cover the monthly expenses.

“It was really heartbreaking. I don't want to do it (run a centre) again,” said the 36-year-old.

She could not continue paying the RM3,000 rental for a corner unit house, pay providers' salaries, food, beverage and toys for the children, and utility bills, said Chong who spent RM25,000 to set up the centre.

She also had difficulty looking for care providers because the heavy workload made people reluctant to take the job even if she offered more than the RM1,000 to RM1,600 salaries.

Social Welfare Department legal and advocacy division director Dr Zaitol Salleh said that two nurseries had surrendered their licences from January to May, and on average five cease to operate each year.

Another childcare centre operator, who only wanted to be known as Ooi, said she had to close her nursery in a condominium after operating it for seven years because she could not get baby sitters.

“Most baby sitters prefer to work on their own at home while the young people prefer other jobs,” said Ooi, who is in her 50s.

By LOH FOON FONG  foonfong@thestar.com.my

Legal profession unattractive in Malaysia?

Malaysia is not a hub for legal services in the region. The best minds are more interested in practising in other jurisdictions where the work and pay is better.

IT’S a funny world we live in. Today’s unalterable truth may be tomorrow’s shibboleth.

For the legal profession in Malaysia, the seemingly unalterable truth is – do not join the profession unless you are prepared to face the harshness of the working conditions.

However, if you persevere, the returns can be very rewarding and fulfilling.

The National Young Lawyers Committee (NYLC) conducted a survey on the working conditions of young lawyers in late 2011, and the results which were recently released can be found at www.malaysianbar.org.my.

It indicates that there is or will be a mass exodus of young lawyers from the legal profession because of the lack of work-life balance, low pay and bad working conditions.

The survey shows that the average starting pay is RM3,000-RM3,500 in the Klang Valley and RM2,000-RM2,500 outside of the Klang Valley – just enough to support the cost of living.

The average working hours are between 51 hours to more than 60 hours a week. Almost all young lawyers work weekends.

This means that, in the Klang Valley, based on the average monthly pay of RM3,250 (RM39,000 per annum, excluding bonuses) and average working hours of 55 hours a week (2,860 hours over 52 weeks), over a year, first-year lawyers are only paid RM13.64 per hour. It is much lower for pupils.

Outside of the Klang Valley, based on the average monthly pay of RM2,250 (RM27,000 per annum, excluding bonuses) and the same average working hours, over a year, first-year lawyers are only paid RM9.44 per hour.

Some recommendations were made by the NYLC to increase the starting pay and improve working conditions.

Some quarters cynically cried out that young lawyers are making demands despite being of low quality.

They say that young lawyers should not demand higher pay unless they have proven themselves.

Pause for a moment and consider what the survey results really mean. Firstly, it means that the profession, as a whole, is not attractive.

Students, when choosing a degree, will second-think pursuing law. Law students may choose not to practise upon completing their law degree.

Some will be driven by passion, but not everyone has enough passion to endure the initial hardship.

The best minds may instead be more interested in other professions. Why isn’t the profession able to retain these talents?

Generally, Malaysia is not a hub for legal services in the region. The best minds are more interested in practising in other jurisdictions where the work and pay is better.

The profession must improve and be the main legal services hub in the region. But the paradox is, to do so, higher salary and better working conditions are also required to attract and retain the best talents.

Secondly, not having an attractive entry point does not augur well for diversity in the legal profession.

The legal profession should be diverse because lawyers are guardians of rights and liberties of people of all gender, races, backgrounds or classes.

The current starting salary and working conditions, by chance or design, targets only a single demographic – fresh graduates, middle or upper middle class, living with their family, and having little family or financial commitments.

A prospective entrant who has dependants would find it hard to pursue a career in law given the low average starting pay, the long hours and the non-existing weekends.

To quote Lord Falconer: “If you don’t catch people when they’re 15 or 16, when it comes to choosing judges 30 or 40 years later, you won’t have the diversity you need to ensure that judges reflect society”.

Thirdly, with the starting salary and working conditions of the legal profession failing to attract and retain talents and not encouraging diversity, legal access would be significantly affected. Legal access also means having access to a lawyer of your choice.

The survey shows that 28.17% of the respondents in the Klang Valley and 15.29% of the respondents outside of Klang Valley are leaving the profession in the next five years and a further 38.73% of the respondents in the Klang Valley and 48.24% of the respondents outside of Klang Valley are uncertain of their future in the legal profession.

These staggering numbers show that lawyers do not want to be lawyers anymore.

Society will be affected because the choice of lawyers would be limited. There will not be a greater pool of talent to choose from for clients or when it comes to the appointment of judges.

The quality will have to be compromised with whatever the supply is. In the long run, it will be detrimental to the legal system in Malaysia.

The results and the recommendations by the NYLC are not unjustified.

It would be convenient to blame the law schools for failing to produce competent graduates. But employers must look at themselves and ask if they have been contributing to this problem.

The unalterable truth of today must be questioned. For employers who are truly concerned about attracting and retaining the best talents, the survey results and recommendations should be taken seriously.

For those who choose to ignore the survey results and recommendations, do so at your own peril.

PUTIK LADA 

By NEW SIN YEW
newsdesk@thestar.com.my

 > The writer is a young lawyer. Putik Lada, or pepper buds in Malay, captures the spirit and intention of this column – a platform for young lawyers to articulate their views and aspirations about the law, justice and a civil society. For more information about the young lawyers, visit www.malaysianbar.org.my.

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Malaysia lures for its Gen Y youths?

KUALA LUMPUR: Gen Y youths young people usually recognised for their savvy in communications, media, and digital technology will benefit from the Government's move to draw quality high-tech and knowledge-driven investments to the country.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said with the Government's emphasis on developing the 11.4 million youths who make up 46% of the nation, it was important for Gen Y workers to have access to companies with good training, exposure and salaries.

“The Government is adopting new methods by looking beyond hard FDI (foreign direct investment) numbers,” he said here yesterday.

“Services companies are becoming more crucial to our economy, and their presence in Malaysia is relevant to the young through their (the companies') job creation.”

Mustapa said the Government was not only giving out fiscal incentives, such as tax holidays and training grants, to attract quality investments, but had also liberalised 18 services sectors this year, to follow the 27 in 2009.

He said such measures had yielded “fruitful results” with companies like Service Source, test and design company National Instrument and computer multi-national Hewlett Packard, employing large numbers of Gen Y workers.

“Service Source, a recurring revenue management company, came to Malaysia in 2010 with only 27 people.

“Last June, it surpassed 550 staff the majority being graduates or diploma holders and more than half of them are below 30.

“National Instrument is another sterling example. It offers a salary scheme to graduates equivalent to that offered by some investment banks in Malaysia,” Mustapa added.

The Jeli MP emphasised that FDI was particularly relevant to Gen Y, as the creation of employment and knowledge spillover from foreign companies allowed youths to be exposed to new technologies and cutting-edge training schemes.

He said these companies offered competitive salary packages.

“This will increase their knowledge in the industry and improve their employability,” he said, giving the example of oilfield services corporation Halliburton, which sends fresh graduates to their training centre in the United States for up to 18 months to gain specialised knowledge.

However, Mustapa said, there were challenges to attracting such investments.

“Some companies are not willing to pay more for talent, and so might face a higher turnover rate.
“There is also competition for FDIs from countries that offer bigger incentives or huge domestic markets.

“However, Malaysia offers a value proposition as we have a sound infrastructure and legal system, investor-friendly policies, and a talent pool that will be able to complement investors.”

International Trade and Industry Minister Datuk Seri Mustapa Mohamed has been working hard to bring in investments that Gen Y can benefit from. 

In an interview, he talked about the government's approaches and challenges faced.
Excerpts from the interview:

>What do you think of the state of Malaysia's economy?

There lots of of challenges globally and regionally. Europe is still in some trouble, America is not out of the woods yet. India is going through a difficult period politically and economically as well - there was a time where India was very bullish. Although growth is still good there, it's not that good as a year and a half ago. China is still going strong. The bright spots will be ASEAN, Africa, the Middle East.

Against that backdrop, our performance has been quite credible, our economy is doing okay, steady growth that is higher than the world's average. Unemployment rate is low, inflation is manageable, we have an issue with the deficit which is being managed well by the govt. We have strong reserves. Our fundamentals are strong.

Some factors leading to Malaysia's relatively strong state of economy are the fiscal stimulus, the Economic Transformation Programme, our diversified economy, and robust customer spending.

>Do you think the youth population of Malaysia will benefit from our economy?

Yes, our employment opportunities will of course benefit mainly young people. Many come out from universities and expect to get a job, a good job. Some come out and do temporary work, which is useful - working in a hypermarket or petrol station, for example - these are very important stepping stones as they allow you to get some experience.

Our graduates are not as selective as before, they are prepared to accept these jobs to sustain them for a few years before moving on to a better-paying one. Gen Y represents a big percentage of the Malaysian population, and the Government is mindful of the fact that this is a volatile and dynamic component of the population.

The issue is quality employment. Graduates being paid RM2,000 is not true reflection of what they can contribute. Some companies are not paying their graduates too well, some graduates are accepting jobs which require lower qualifications and for that reason salaries are lower.

Job opportunities are plentiful, that's not an issue here. We have lots of job opportunities in Malaysia but the challenge for us in government is to generate more quality employment opportunities.

From anecdotal evidence, many graduates are not happy with the entry-level salaries. That's why Budget 2013 focuses a lot on young people, including measures such as the Graduate Employability Taskforce with an allocation of RM200mil. This isn't new, we have Talent Corp, we have collaborated with various institutions like Mida to help young people.

We also have the 1Malaysia Training Scheme Programme (SL1M), which will increase the employability of graduates through soft skills and on-the-job training in private companies.

From MITI's point of view, our job is to stimulate investment, both domestic direct investment and FDI. We have been working very hard.

In an average year, the companies approved by the Malaysian Investment Development Authority (Mida) will normally generate about 100,000 new job opportunities. The ETP over the next 10 years will generate 3.3 million jobs, that makes 330,000 a year. That's the kind of number we are looking at, and many of these jobs will b available to young people.

>Are we making steady progress towards this goal?

Definitely. There's a company out there, Service Source international - they started small here but when I saw them two weeks ago they had a headcount of more than 500. Their plans are to add more. This is a company of graduates, most of the staff are either diploma-holders or local graduates.

Service Source have also launched a Protg Programme in the company where many fresh graduates are given on the job training at an executive pay package.

Another of fruitful result, is a company in Penang called Agilent which has 2,800 people. 900 of them work in research and development.

In Iskandar you have Legoland, people who work in these places command high salaries.

Of course in sectors like banking and finance they will be well-paid, there has been good growth in Islamic banking and finance in the country. As Islamic finance in Malaysia grows, as the country becomes a hub for the region, there are more opportunities created for young people.

>Why are foreign direct investments relevant to the young, particularly to Gen Y?

The creation of employment - without jobs, our youth will not find an opportunity to improve their economic standing.

Panasonic, for example, employs 20,000 Malaysians as executives and also as blue-collar, factory workers.

The other reason is knowledge spillover as a result of forward or backward linkages with foreign companies possessing high technology that invest in Malaysia, our youth will be exposed to new technology on their job. This will increase their knowledge in the industry and improve their employability as they move further in the industry and perhaps opportunity for them to carry out their own business operations as a vendor to the foreign investor.

Halliburton, one of the world's largest providers of products and services to the energy industry, provide specified training to its fresh graduates from six to 18 months while they are on the job.

They also send these Malaysian fresh graduates to Halliburton Technical Training Centre in the United States. This is an example of how knowledge spillover from FDI can benefit our youth.

>What is the Government doing to attract quality investments? 

We are more focused now, more targeted. We can't compete with some of our neighbours in terms of wages, but where we can compete are the areas where companies require higher skills, productivity. We target companies that are high-tech, knowledge-intensive companies.

The Government is considering GNI creation of any project or investment while also using employment creation as a complementing tool to measure a “good investment”.

In giving out fiscal incentives such as tax holidays and training grants; the Government targets knowledge-driven, research and development based companies that budget a large amount on capital spend on technology per employee.

We have to look at the supply side as well, increase the supplies of trade and human capital.

The Government liberalized 27 services sectors in 2009 and a further 18 services sectors in 2012. The intention behind this is to drive foreign investments which can create quality, high-paying jobs.

While recording low investments, services companies are becoming more crucial to our economy and their presence in Malaysia is relevant to the young through their job creation.

>Have these approaches been fruitful?

Yes, along with companies I already told you about, there's National Instrument - another sterling example, a test-and-design company. NI Malaysia offers a salary scheme to graduates that is equivalent to the salary schemes offered by some of the investment banks in Malaysia.

More importantly, it has a unique internship programme formed in 2009. In 2012, they admitted around 30 graduates and these interns were trained in R&D and manufacturing as well as IT applications.

There is also Hewlett Packard, which has its Operation Headquarters for Asia-Pacific here. We gave them a tax holiday - one of the ways we are attracting investments, as you asked before.

>But how do you know these foreign companies will hire fresh graduates rather than someone who has already been in the workforce for a while?

Well, some companies do prefer to take people from other companies rather than train fresh graduates. There are different ways to do it, and some companies to tend to take the easier way out. But I feel they should invest in youth, employ them, train them. The companies must play a better role in training youth, it can't just be left to the Government.

I'll bring up SL1M again - we've found that our graduates become much more employable after learning these soft skills - they become more proactive, more aggressive, more forthcoming. The government is doing that, but we urge and strongly encourage companies to play a more active role and train its new recruits.

>Are there any challenges when it comes to attractive quality investment?

It's a chicken and egg issue - companies will come here if we have a large pool of skilled graduates and manpower, and that will bring in more investments as well. On the other hand, if the skills are not available then they will not come. We need to increase the supply of human capital.

Companies operate on cost factors and many companies that are interested in Malaysia are still looking at low cost factors in Malaysia. Some companies are not willing to pay more for talent.

There is also competition for FDIs, Singapore, Hong Kong and Taiwan offers bigger incentives and has very liberal policies while countries such as Thailand, Vietnam and Indonesia continue to offer a huge domestic market which interests investors.

However, I am convinced that Malaysia offers a value proposition as we have sound infrastructure and legal system, investor-friendly policies and a talent pool that will be able to complement investors.

>What are some of the challenges a company may face in recruiting Gen Y workers?

In general, those companies which offer lower salaries are not so good with attracting good people. Those which are willing to pay a little more have better luck.

>Do you think these companies would be more inclined to hire expats?

In general, bringing in expats costs money, and if you add up, it will almost certainly be more than what you pay a local.

>Would local graduates be making more if they took their skillset overseas?

If you factor in other costs - rent, transport, cost of car... We found that at the top level, the gap is not that wide. Malaysians earn a decent income. The problem is the entry rates at base levels, entry point salary is where the difference is.

Once Malaysians leave, it is harder for them to come back because they've made friends, settled down, become part of the community. If our entry level salary is low, and because of that people work overseas, it will become even more challenging to build this talent pool.

In my view, if companies have better entry-rate salaries, it will help to prevent brain drain, and also solve some problems companies have when hiring.

>Do you think that the development of our Gen Y will meet the Government's aspirations of attracting quality investments?

In a way, some of our measures are short-term. We need more medium and long-term solutions, for example, reform the education system. It needs to be more hands-on, so we've got some measures like the National Education Blueprint.

We also need to regularly change the curriculum in schools and universities. Malaysians have to develop a love for skills, fight to get a job.

I would like to relate to you a story of a young girl by the name of Nani Abdul Rahman. She is an alumni of Yayasan Khazanah, which I chair. She read Law at IIUM and in her penultimate year, she interned at Khazanah. Khazanah Nasional offered her a job as an analyst and after working for a few years, she got an offer to do her Masters in Jurisprudence at Harvard University. Today, she is a senior personnel at one of the biggest Islamic banks in the world.

I have complete trust in our Gen Y. They are very confident and well exposed generation.

>How do MNCs feel about local graduates? Do they prefer those who graduated from foreign universities, Ivy Leagues and similar?

Some of our local graduate are good, some are outstanding. Many of our top corporate figures were trained in this country. Not every top corporate guy studied overseas. I don't think companies have a preference, it does depend on the person.

If you're a foreign university graduate but you're quiet, timid, aloof - the company will not want to take you on. It is the qualities a person holds.

Companies are looking for a person who is outgoing, passionate, ready to learn, good work ethics... These characteristics can come from a local or foreign graduate.

>You hold the importance of education in very high regard. 

Yes - even within my community in Jeli, the constituency I am MP for, I focus on developing human capital.

I run and fund the Darul Falah programme, which provides free tuition for students between 10-12 every Friday and Saturday. The focus is on English, Maths and Science.

The centre actually operates out of my house in Kelantan, it started about 15 years ago. I also have three other centres which have been up and running for three years now.

It is important in a rural area like Jeli, the children get some exposure. There has been improvement, but I am still not happy with it.

The programme has expanded to offer free computer classes, we hold camps, essay writing competitions in both Malay and English - I give prizes to the winners.

Last year when I was in Perth for work I met a number of students and one of them, a JPA scholar, came to me. She said she was an alumni of Darul Falah. Her father was a customs officer who used to send her back and forth on a motorcycle to Darul Falah when she was 10.

She is now a scholar reading Commerce at the University of Western Australia and she aspires to be a Partner at PriceWaterhouseCoopers.

It's moments like those that underline my conviction that education is the best investment.

>Do you have any advice for Gen Y looking to make a living in Malaysia?

Be prepared to start small, meaning, accept any job and learn while doing it. Shine in your job, by which I mean outshine others.

Discipline and passion are very important qualities. You need to be disciplined. Work ethics, passion - in my view, these are qualities some graduates are lacking. Passion and commitment are important.

The technical knowledge you earned is important, of course, but so are passion, discipline and commitment.

By TASHNY SUKUMARAN tashny@thestar.com.my

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Avoid these 6 ways to hurt your reputation in a new job

There are many ways you can inadvertently damage your reputation in a new job. As my former client found out, showing up late on your first day of work is one of those ways. Here are six ways you can sabotage your reputation that you should avoid at all costs:

#1 – Show up late on your first day of work: This is my number one “no-no” when it comes to starting a new job. Showing up late may damage your reputation because it can make you look unreliable and unable to plan for potential obstacles. If you can’t even make it to work on time, do you think your manager will trust you to finish a project on time? Always give yourself plenty of extra time to get to work for the first few weeks so you can get a feel for traffic patterns and how much time you’ll need. Bring a book or magazine to read in case you get there early.

#2 – Wear inappropriate attire, based on the company culture: Wearing a dark suit is not a good idea if you’ve been hired by a start-up company where everyone wears jeans and shorts to work. Similarly, wearing too casual attire to a company where most employees wear suits five days a week won’t work either. Take the time (before your first day on the job) to understand the company’s culture and find out from your new manager or HR representative as to what attire is appropriate. Never wear perfume or cologne to work – leave these for evenings and weekends. There’s almost nothing more annoying as a manager than having to hold a discussion with a new employee because their over-powering

#3 – Refer constantly to how your previous company did things: When you keep referring to things saying, “That’s not how we did it at ABC company,” or “Where I came from, this is how we did it and it worked much better,” you will severely damage your reputation. Why? Because nobody likes an arrogant know-it-all who thinks they are better than other employees or who believes their previous company did things better. I once led a department after the parent company had purchased and merged five companies into one. Ego-bragging about former companies was so prevalent I implemented a fun way of calling attention to this negative practice. Whenever anyone used the name of his or her former company and someone pointed this out, the person had to add $1 to an empty shoebox in my office. When the shoebox was filled with money I used it for a pizza lunch for the team and to talk about the ego-bragging and why it was so detrimental to our newly combined company. After that, the negative practice almost immediately ceased.

#4 – Question the way (and why) things are done: Like I mentioned in item #3, no one likes an arrogant know-it-all. Before espousing your opinions in your new job, take the time to identify all angles of a situation. This means understanding the stakeholders, inputs, resources, processes, and outcomes/results. Once you have this information, you can dig deeper into certain circumstances using terminology such as, “Help me understand how…” and “How does department ABC then use this information to…?” How you word things is just as important as the questions you ask, so think before you speak.

#5 – Ask for time off: You’d think this would be a no-brainer “no-no”, but you’d be surprised at how often hiring managers express their frustration to me about new employees blindsiding them with time off requests. If you receive a job offer in June and your family already has vacation plans scheduled for mid-July, let the hiring manager know immediately (before you begin your new job) and proactively work with them to ensure your vacation will not disrupt the productivity of the department. Surprising your new manager with a personal time off request can damage your reputation because it can make you seem like a deceitful and immature person.

#6 – Spend time “water cooler gossiping” to get the “dirt” on people in the department: Everyone wants to get to know the people in their new company as quickly as possible – but don’t spend time finding out through the gossip “grape vine” around the water cooler or break room. Take the time to get to know colleagues first hand and form your own opinions. Don’t let other’s nasty gossip cloud your thinking when it comes to co-workers.

As my former career-coaching client found out, it can be fairly easy to damage your reputation in a new job. Once damaged, it can take time and effort to repair your work reputation. To avoid having to go through this situation yourself, be aware of the six key ways you can harm your reputation when starting a new job – and wisely avoid them!

Lisa Quast, Contributor

 

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