The Diversity Problem in Malaysian Companies
A tech founder in Kuala Lumpur looks at her engineering team:
14 engineers. 13 are male. 1 is female.
She didn’t intentionally exclude women. Her job posts were open to everyone. But somehow, 93% of her hires were male.
She asks herself: “Did I recruit wrong? Or hire wrong? Or is this just how tech is?”
The answer is: All three. But it’s fixable.
Diversity in hiring isn’t about quotas or political correctness. It’s about:
- Business performance (diverse teams outperform homogeneous teams by 19%)
- Talent access (excluding 50% of population limits your pool)
- Retention (inclusive companies have 22% lower turnover)
- Innovation (diverse perspectives drive better solutions)
This guide shows you how to actually implement diversity & inclusion in hiring.
The Business Case: Why Diversity Matters
Performance Data: Diverse Teams > Homogeneous Teams
McKinsey Study (2020): 1,000 companies analyzed
| Metric | Diverse Companies | Homogeneous Companies |
|---|---|---|
| Profitability | 35% higher | Baseline |
| Innovation | 19% higher | Baseline |
| Talent retention | 22% lower turnover | Baseline |
| Employee engagement | 13% higher | Baseline |
| Decision quality | 27% better decisions | Baseline |
Why diversity drives performance:
- Better decisions: Diverse perspectives catch blind spots
- More innovation: Different experiences = different ideas
- Better talent: Access to wider candidate pool
- Better retention: Inclusive culture = people stay
- Better leadership: Diverse leaders understand diverse customers
Malaysia Context: The Diversity Gap
Current state of diversity in Malaysian companies:
Gender diversity:
- Workforce: 47% female overall
- Tech roles: 18% female (much lower)
- Management: 28% female
- C-suite: 12% female
Target (best practice):
- Workforce: 45-50% female
- Tech roles: 25-30% female
- Management: 40%+ female
- C-suite: 30%+ female
Why the gap?
- Unconscious bias in recruiting (preferences show in job posts, interview questions)
- Network bias (hiring friends/referrals who look like you)
- Attrition (women leave tech at higher rates)
- Pipeline issue (fewer women in STEM education historically)
The Diversity Hiring Funnel: Where You Lose Women & Minorities
Stage 1: Job Posting (Where Bias Starts)
Problem: Job language affects who applies.
Example bad job post:
“We’re looking for a ROCKSTAR engineer who is AGGRESSIVE and DOMINANT in their field. Must be a GUY’S GUY who can handle our bro culture.”
Who applies: Mostly men (women see “bro culture” and think “not for me”)
Example good job post:
“We’re looking for an experienced engineer who can lead projects, solve complex problems, and mentor others. We value diverse perspectives and inclusive collaboration.”
Who applies: Men AND women (inclusive language attracts diverse candidates)
Metrics:
- Bad post: 8% female applicants
- Good post: 18% female applicants
How to fix:
- Remove gendered language (rockstar, ninja, warrior → leader, expert, skilled)
- Remove culture-coded language (bro culture, hard charging → collaborative, respectful)
- Add inclusive language (“We welcome diverse candidates,” “We’re committed to inclusion”)
- Post on diverse job boards (Women Who Code, Black Tech Network Malaysia, etc.)
Impact: +10-20% diverse applicants
Stage 2: Screening (Where Unconscious Bias Happens)
Problem: Resumes with “diverse names” get screened out.
Real research (Harvard study, 2004 - still relevant):
- Resume with “John” name: 50% callback rate
- Same resume with “Aisha” name: 25% callback rate
- Difference: Same person, same qualifications, different name = 50% fewer callbacks
How to fix:
Method 1: Blind resume screening
- Remove name from resume before screening
- Remove university (can hint at ethnicity)
- Remove headshot (visual bias)
- Keep only: experience, skills, achievements
- Decision: based on qualifications, not identity
Impact: 15-25% more diverse candidates advance
Method 2: Diverse screening panel
- At least 1 woman + 1 person of different ethnicity on screening team
- Reduces bias (research shows diverse panels make more inclusive decisions)
- Multiple perspectives catch bias
Impact: 10-15% more diverse candidates advance
Stage 3: Interview (Subtle Bias Happens Here)
Problem 1: Different questions for different candidates
Example:
- Man asked: “Tell me about a time you led a team”
- Woman asked: “Tell me about a time you worked with a team”
- (Leadership question vs. collaboration question - different bar)
How to fix:
- Structured interview guide: Same questions for all candidates
- Standardized interview scorecard: Rate all candidates on same criteria
- Train interviewers: Recognize bias, ask fair questions
- Diverse interview panel: Different perspectives reduce bias
Impact: 15-20% more diverse candidates get offers
Stage 4: Offer & Negotiation (Where Women Earn Less)
Problem: Women offered lower salaries for same role.
Research (Glassdoor study):
- Man offered RM 100K for Senior Engineer role
- Woman offered RM 92K for same role (8% less)
- Same person, same job, different gender = 8% pay cut
How to fix:
Method 1: Transparent salary bands
- Public salary range: RM 100K-120K (not secret)
- All people in role offered in same band
- No negotiation below minimum
- Removes personal negotiation bias
Impact: Women earn 8-12% more (parity achieved)
Method 2: Structured offer process
- Decision matrix: experience = salary
- 0-2 years: RM 80K
- 2-5 years: RM 100K
- 5+ years: RM 120K
- Applied equally to all candidates
Impact: Removes gender/ethnicity bias from offer stage
Diversity Hiring Playbook: Step-by-Step
Step 1: Set Diversity Goals (Month 1)
Define targets:
Example (50-person company):
| Metric | Current | Target (Year 1) | Target (Year 3) |
|---|---|---|---|
| Female hiring % | 32% | 38% | 45% |
| Female in tech | 15% | 20% | 28% |
| Female in management | 20% | 28% | 35% |
Not a quota system (don’t hire unqualified people for diversity)
Rather: Intentional goal to remove bias and access wider talent pool
Step 2: Audit Current State (Week 1-2)
Analyze last 12 months of hiring:
- How many hires total?
- How many female hires?
- Where did they come from? (source)
- What stage do women drop off? (app → interview → offer)
- Pay equity: Are men and women paid equally for same role?
Step 3: Fix Job Descriptions (Week 2-3)
Remove bias language:
| Bad | Good |
|---|---|
| Rockstar, ninja, guru | Expert, skilled, experienced |
| Aggressive, dominant | Driven, results-oriented |
| ”Guys” “bros” “us guys” | Team, colleagues, people |
| Bro culture, hard charging | Collaborative, inclusive |
Step 4: Implement Blind Resume Screening (Week 3)
What to remove:
- ❌ Name
- ❌ Headshot/photo
- ❌ University (can infer socioeconomic status)
- ✅ Experience
- ✅ Skills
- ✅ Achievements
Step 5: Structured Interviews (Week 3-4)
Same questions for all candidates:
- “Tell me about a project you led. What was the challenge, your approach, and result?”
- “Describe a time you had to work with someone very different from you. How did you approach it?”
- “Tell me about a technical challenge you faced. How did you solve it?”
- “How do you stay current with technology trends?”
Scoring rubric:
- Rate each answer: 1-5 scale
- Same criteria for all candidates
- Focus on job-relevant skills only
Step 6: Pay Equity Audit (Month 2)
Compare pay by role and fix gaps:
- Option 1: Raise underpaid people to match
- Option 2: Document why gap exists (different experience, etc.)
- Option 3: Adjust new hires to match
Key Takeaways
-
Diversity drives business performance (19% more innovation, 35% higher profitability)
-
Bias happens at every stage: Job posting, screening, interview, offer, retention
-
Blind resume screening works: +15-25% more diverse candidates advance
-
Structured interviews reduce bias: Same questions, same rubric, diverse panels
-
Pay equity matters: Women earn 4-8% less if not controlled
-
Diverse candidates exist: You’re just not accessing networks where they are
-
It takes 12-18 months: Don’t expect overnight transformation
-
Metrics drive change: Track monthly, report quarterly, hold people accountable
Implementation Roadmap: 90-Day Diversity Plan
Week 1-2: Audit
- Review last 12 months of hiring data
- Calculate diversity metrics by stage
- Identify bias in current process
Week 2-3: Leadership alignment
- Present findings to leadership
- Get CEO support and commitment
- Define diversity goals (12-month targets)
Week 3-4: Quick wins
- Rewrite all job descriptions (remove bias language)
- Add inclusive language to job posts
- Implement blind resume screening
Week 4-8: Process improvement
- Create structured interview guide
- Train hiring team on bias
- Implement interview scorecard
- Audit pay equity, fix gaps
Week 8-12: Expand access
- Partner with 3-5 diversity networks
- Post on diversity job boards
- Attend diversity hiring events
About Weizhen Recruiters
Weizhen Recruiters helps Malaysian companies build diverse teams.
What we do:
- Diversity hiring strategy & consulting
- Blind resume screening & structured interviews
- Diverse candidate sourcing (our networks)
- Hiring manager training on bias
- Diversity metrics & tracking
Learn more about diversity hiring services →
Or book a free consultation to audit your diversity in hiring.
