More companies in Malaysia are turning to contracting professionals to manage or work on new projects. Over half, or 58%, of organisations say they use contractors for project implementation and digital transformation all of which were accelerated due to Covid-19 and the need to facilitate remote working, according to a report from Page Contracting Malaysia.

The report found that 62% of organisations in Malaysia include contracting roles in their headcount. 

According to the report, which highlights the employment of Malaysian professionals in contingent, temporary, short-term or interim positions, 30% of companies say that Covid-19 has resulted in the need for them to increase their contractor hiring.

Marlinda Zulkifli, Head of Page Contracting Malaysia says, "Before Covid-19 hit in 2020, organisations were already employing contractors to flex and scale their talent needs. The pandemic has emphasised the need for companies to reassess their growth strategy, and the stand out component was the deployment of talent, both in the short and medium term. Companies are facing greater levels of scrutiny on permanent headcount numbers, while others are engaging temporary and contract staff to execute ad-hoc projects."

On average, 3 in 5 contractors will receive a contract extension in Malaysia, and 2 in 5 get converted to permanent roles.

Zulkifli added, "An emerging trend that we're definitely seeing is that organisations are now increasingly considering interim staff for senior positions such as C-Suite roles. It offers many advantages, as they're able to benefit from specialised skillsets or knowledge for a specific period of time."

The report also showed that hiring contractors can sometimes be more challenging than expected. One in 4 companies expressed that they had difficulties in attracting contingent workers for short-term, contract roles.

Zulkifli added, "As organisations look beyond their permanent employees to create an agile workforce, they need to change their way of engaging with the contracting workforce. Traditionally, companies may undermanage non-payroll staff as temporary workers usually only stay in a company for a set period of time."