BUSINESSES that have successfully implemented the Productivity-Linked Wage System (PLWS) have shown a median increase in wage and salaries (10%), productivity (15%) and profitability (10%).
This was revealed in a statement by the Malaysia Productivity Corporation (MPC) released yesterday, announcing that MPC will be awarding the businesses that have successfully implemented the PLWS with an e-Shared Prosperity Organisation (eSPO) Acknowledgement Certificate.
With the official launch expected to be held on Dec 17, 2020, the eSPO is a pilot project whereby 49 out of 64 participating companies have already been acknowledged.
The PLWS is a flexible wage system that reflects mutual benefits where incentives are distributed based on the performance and productivity of employers and employees.
“The introduction of the eSPO is hoped to encourage more companies to adopt PLWS, so that companies can become the business of choice for employees, potential employees and clients alike. This is an effective gain-sharing method,” said MPC director general Datuk Abdul Latif Hj Abu Seman.
“Simply put, employees financially benefit when their performance and productivity are as expected or beyond, and at the same time employers garner more profits and optimise their resources better when their workers perform productively,” he added.
Successful implementation of PLWS by eSPO organisations are expected to contribute to the Government’s goal in its Shared Prosperity Vision 2030 (SPV2030) towards providing a decent standard of living to all Malaysians by 2030. – Dec 12, 2020
