Understanding Temporary Worker Turnover
In Malaysia’s dynamic job market, managing employee turnover is essential. Temporary and contract staff often leave before contracts end, and understanding why can save your organisation time and money.
Reasons Temporary Workers Leave Early
1. Job Insecurity
Temporary contracts inherently carry uncertainty, workers often leave once they find permanent roles elsewhere.
2. Low Engagement
Contract staff may feel undervalued if they don’t receive the same induction, feedback, or support as permanent employees.
3. No Career Path
Temporary roles rarely come with clear progression, leaving workers unsure if long-term growth is possible.
4. Pay & Benefits
Contract workers are often paid less and miss out on benefits like EPF, SOCSO, or job protection, making better offers hard to resist.
The Ripple Effect of High Turnover
Disrupted Operations: Constant onboarding interrupts workflow and strains your team.
Rising Costs: Recruitment fees, training resources, and inefficiencies add up quickly.
Knowledge Loss: Each departure takes away institutional memory that’s hard to replace.
Poor Team Morale: High turnover undermines cohesion and productivity.
How to Reduce Temporary Turnover
Provide Job Security & Engagement
Be transparent about contract duration and any potential for permanent roles.
Include temp staff in team meetings and social activities.
Schedule regular check-ins to address concerns and share feedback.
Offer Competitive Rewards
Align contract pay more closely with permanent roles; consider small benefits like training allowances.
Introduce flexible scheduling—many contract workers value autonomy and work-life balance.
Improve Hiring & Onboarding
Write clear job descriptions to match expectations accurately.
Use a thorough onboarding process that includes training, systems access, and team introductions. A strong first month can reduce early departures by up to 70%. Effective onboarding fosters belonging, boosts morale, and enhances productivity, key to long-term retention in Malaysian firms
Success Story
Reducing Temp Turnover for a Leading E-Commerce Brand
A major e-commerce player in Malaysia faced a big challenge: high turnover and no-shows among their temporary warehouse staff, especially during peak sales periods.
How We Helped:
We built a faster, more efficient recruitment process. Candidates were screened using clear criteria based on real job demands. We introduced pre-job briefings so workers knew what to expect. Our team provided close support throughout the assignment.
The result?
Faster hiring
Better job fit
Major drop in no-shows and early dropouts
With Manpower’s support, the client got a reliable, ready-to-work temp workforce, just in time for their busiest seasons.
The Takeaway
Temporary workers are a growing part of Malaysia’s labour force, and managing their turnover effectively is more important than ever. By addressing engagement, compensation, and integration, companies can build a more stable and efficient contingent workforce.
Need help stabilising your temp workforce? Reach out to Manpower Malaysia for solutions tailored to your needs.