What is IHI?
Industrial Harmony Index (IHI) is an instrument used to measure the level of relationship between employers and employees in Malaysia. An initiative by the Department of Industrial Relations Malaysia (DIRM), it was the first of its kind developed in Southeast Asia in 2017. The IHI measurement is based on 24 items across 5 Dimensions: Nurturing Relationships, Connectivity, Mutual Collaboration, Mutual Peace, and Responsibility.
The IHI was officially registered as the intellectual property of DIRM under the Intellectual Property Corporation of Malaysia (MyIPO) on 9 July 2019. The results of the IHI study support Malaysia’s ranking in international competitiveness studies, specifically the World Competitiveness Yearbook (WCY) by the International Institute for Management Development (IMD). This study serves as a primary reference to attract foreign investors to Malaysia, thereby strengthening the national economy.
The National IHI Score serves as a benchmark for the country’s industrial harmony. It is measured periodically to allow DIRM to monitor trends, providing a vital reference for employers, employees, trade unions, and foreign investors.
Furthermore, the overall findings of the IHI assist DIRM in formulating action plans to further enhance industrial harmony in the country.
What is IHI SA?
Industrial Harmony Index Self-Assessment (IHI SA) is a company self-assessment that takes into account employee views, similar to an Employee Engagement Survey (EES), based on 24 items from the 5 dimensions of the IHI instrument developed by the Department of Industrial Relations Malaysia (DIRM).
IHI SA was first introduced by DIRM in 2024, allowing companies in Malaysia to conduct standardized employee surveys. This service is provided for free through the Industrial Relations Information System (IRIS).
Company HR will act as the Employer IHI Manager (PIM), equipped with a User Account and Dashboard to monitor the implementation of IHI SA in their respective companies at their fingertips with real time data upon registering with the IRIS System.
Benefits for registered companies include the opportunity to obtain the Company IHI Score, IHI Report Card, Harmonious Company Certification (SPSH), and national-level recognition as a Syarikat Harmoni 2024 (the year follows the year of implementation).
How are IHI and IHI SA measured?
Based on 24 items (questions) from the five (5) dimensions of the IHI instrument developed by DIRM as follows:
01 |
Nurturing Relationship – 6 items
Refers to the efforts of employees and employers to build and maintain continuous good relations among themselves. |
02 |
Connectedness – 5 items
Merujuk kepada ikatan bersama atau keakraban antara pekerja dan majikan. |
03 |
Mutual Cooperation – 3 items
Refers to the willingness of members to coordinate their activities in an effort to help all members achieve their goals. |
04 |
Mutual Peacemaking – 5 items
Refers to the readiness of employees and employers to assist in preventing, resolving, or reducing destructive conflicts between employees and employers. |
05 |
Being Responsible – 5 items
Refers to the sense of responsibility of the organization and employees in fulfilling promises and in carrying out their obligations. |
There are four (4) levels within the IHI score range, as shown in the table below:
| Industrial Harmony Level | Percentage Score Range (%) |
|---|
Frequently Asked Questions (FAQ) about IHI & IHI SA
Does IHI SA have a duration/period?
The National IHI was implemented by JPPM annually starting from 2017 until 2020. As for 2022, the National IHI was implemented for the first time on a biennial basis.
Does IHI SA have a duration/period?
Companies may utilize the IHI SA service developed by JPPM annually, and it is provided free of charge.
Who is involved in the National IHI survey?
All companies and employees in Malaysia are invited to participate in the IHI survey to measure the level of industrial harmony in the workplace, thereby contributing to the National IHI.
Who is involved in the IHI SA survey?
All companies and employees in Malaysia are eligible and encouraged to conduct the IHI SA to measure the level of industrial harmony in the workplace.
How can a company participate in the National IHI?
National IHI announcements will be made on the official JPPM portal, or you may visit https://iris.mohr.gov.my/login
For any inquiries regarding the IHI, please contact us at:
- Telephone: 03 – 8886 5434
- Or email at: jppm@mohr.gov.my
How can a company participate in the IHI SA?
Participation and registration for the IHI SA can be accessed via https://iris.mohr.gov.my/login
For any inquiries regarding the IHI SA, please contact us at:
- Telephone: 03 – 8886 5434
- Or email at: jppm@mohr.gov.my
What are the benefits of the IHI score to the industry and the country?
Monitoring national harmony through the National IHI will assist the Department and the Ministry of Human Resources in formulating strategic plans to enhance and improve employer-employee relations within the country. This indirectly fosters a conducive, positive, and harmonious industrial relations environment, contributing to economic growth and efforts to increase national productivity.
What are the benefits of IHI SA to employees and companies?
1. Access to a FREE company assessment survey.
2. A dedicated Company Dashboard with the following features:
- View current and previous Company IHI Scores.
- Live monitoring of the number of respondents completing the IHI SA survey.
- Rapid distribution of IHI SA survey links.
- Access to the Company IHI SA Report Card.
- Issuance of the Harmonious Company Rating Certificate (SPSH).
3. Enjoy systematic and unbiased survey announcements and analysis from an independent third party (JPPM) unbiased daripada pihak ketiga (JPPM).
4. Identify the strengths and weaknesses of the company’s harmony levels through the IHI SA Report Card.
5. Strengthen employer-employee relations to enhance the performance and productivity of both employees and the organization as a whole.
6. Serve as a corporate assessment report for top management and company stakeholders.
7. Enhance company image through the SPSH, thereby attracting investors and job seekers.
Where can the National IHI annual scores be referred to?
The annual National IHI scores can be referred to at the following link https://jpp.mohr.gov.my/ihi-dapatan-ihi-nasional-dan-ihi-self-assessment/