UEM EDGENTA BERHAD Integrated Annual Report 2025 64 EVOLVING WORKPLACE CHALLENGES Overview Labour market pressures persisted in 2025, driven by structural constraints on talent availability and rising expectations around wages, benefits and employee experience. Given the labour-intensive nature of our service delivery, evolving regulatory requirements further contributed to cost pressures during the year. Risks • An uncompetitive employer value proposition may hinder our ability to attract and retain high-quality talent. • Wage increases heighten the need for productivity gains and disciplined workforce planning to mitigate margin pressure. • Sustained demand for digital, engineering and sustainability capabilities may constrain talent availability and increase competition for critical skills. Opportunities • Differentiating ourselves through an employer value proposition centred on capability building, focusing on workforce sustainability and future readiness as we continue our efforts to build AI awareness and its adoption across the organisation. • Future-proofing the business by building a sustainable leadership pipeline through clear progression pathways and structured succession planning, ensuring that future leaders are systematically prepared and monitored for readiness. Our Response • Rolling out our Employee Satisfaction Survey (“ESS”), which serves as a ‘pulse-check’ to better gauge our momentum on improving the employee satisfaction and experience, with ESS scores included as part of senior leaders’ KPIs. • Driving our capability building efforts by normalising Individual Development Plans (“IDPs”) as an embedded, measured practice within employee KPIs, reinforcing self-directed learning and targeted development in areas such as digital skills and sustainability. • Continuing to offer flexible working arrangements, supporting employees’ professional and personal responsibilities while driving engagement and enhancing satisfaction, including working from home. • Continuing to uphold diversity, equity and inclusion as core values embedded within our culture. • Launching the “FIRST in AI” learning roadmap to strengthen internal AI and digital capabilities. • Mitigating wage pressures by maintaining a strong focus on driving operational cost efficiencies across the Group. Outlook Looking ahead, we are focused on evolving the way we work by defining an operating model for the Group that delivers enterpriselevel cost efficiency, while preserving strong governance, service quality and competitiveness across our operating segments. Furthermore, to strengthen our succession planning initiatives, we are recalibrating our talent management strategy by reviewing our development ecosystem. This ensures that successors are identified, developed and systematically monitored for readiness at the Group level, strengthening our leadership continuity beyond the segmental level. Additionally, we are sharpening our development agenda to accelerate capability building and intensifying our focus on AI-enabled skills, equipping our workforce to adapt to our evolution as a Technology-Enabled Solutions Company. Together, these efforts are underpinned by continuous monitoring and review of workforce costs, with disciplined prioritisation of spend to sustain productivity and strengthen organisational resilience. LINK TO Material Matters M8 Stakeholders S1 S3 Risks R5 Capitals OPERATING ENVIRONMENT AND KEY MARKET TRENDS
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