Higher pay is always more attractive. This industry has a huge shortage…
Would you like to know which industry or which role has a huge shortage? Rule of economics, when there is a shortage of supply, prices would go up because there are just not enough and thus the supply would go to the part who is willing to pay highest first. Thus, when there is a shortage of talents for one particular industry, it’s likely that the people working in this industry will be paid higher than others and thus, it is attractive to enter. Which one is that? Read on.
Huge shortage in the industry
Article in theedgemalaysia.com According to Transport Minister Anthony Loke, the departure of 63 of 411 engineers from MAB Engineering is partly to blame for the national carrier’s recent surge in flight disruptions. Since August, Malaysia Airlines has suffered numerous technical problems with its fleet, which prompted the Civil Aviation Authority of Malaysia to launch an audit into its quality control.
“According to agencies that track human resources across the economy, the airline industry has a 17% deficit of skilled workers, which is only set to widen to 25% over the course of this year,” Shukor adds. Please do read here for the full report: Article in theedgemalaysia.com
Flight Delays, all the time?
In recent weeks, I have flown Malaysian Airlines (MAS) a few times including yesterday (KL – SG – KL). Not a single trip was delayed despite everyone saying that one should pray that the flights be on time when it comes to MAS these couple of weeks. I will continue to fly MAS because I am proud of my own national airline. “Selamat pulang ke tanahair.”
Losing people, why people can pay higher?
Recently, there has been many news about delays and one of the reasons stated was because MAS was losing a lot of their people. The reasons they are leaving is because of higher pay being offered by other companies. Actually, when the times are good again, airlines needing people will be willing to offer a substantial increase to attract people.
I give you a simple example, if I offer an airplane technician an extra RM1,000 per month, that’s already a super huge increase for them. However to the airline which is hiring because it was expanding, this RM1,000 is way better than to delay the hiring or delay the maintenance of their planes which could earn them many millions of ringgit just within one month. It’s also way cheaper than to train the person from ground up and lose all the precious time not having the person in the first place.
Why don’t MAS pay higher then?
If MAS pays higher, they have to pay higher for everyone. This is very different from an act of poaching where only THAT particular staff have an exceptional salary and no one people in that company has to know too. Plus, it is still going to be worthwhile to pay extra on top of the extra which MAS could pay because getting someone is almost immediate but training someone will take months if not years. So, it does not solve the issue yeah.
As for now, let’s hope all these companies should also realize that they better also start training people because the same thing could also happen to them if the market continues to grow at a fast pace. Ticket prices are also on an increasing trend too:
Not an easy time for airlines but for employees in the right place and the right time may just get opportunities.
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