Malaysian Organizations Warned About Talent Loss Due to Salary Concerns
A recent report has cautioned organizations across Malaysia about the potential loss of skilled employees, as a study revealed that salary continues to be a significant motivating factor influencing career decisions.
The 2023 Salary and Bonus Expectations report by Randstad highlighted that 91% of surveyed employees stated that a higher salary serves as a motivation to switch employers this year. The remaining nine percent of respondents cited various reasons for their decision:
Unfavorable workplace culture (50%)
Poor work-life balance (27%)
Excessive workload (12%)
Desire for a career change (11%)
The study’s findings emphasized that employees now anticipate higher salaries and fair bonuses due to inflation and increased living costs. Approximately 54% of respondents expressed the belief that their compensation did not adequately reflect their contributions, skills, and experience.
Despite these expectations, only 49% of respondents reported receiving a salary increase of up to five percent. Additionally, 39% indicated that their salaries would not be adjusted this year, and 31% stated they would not receive an annual bonus for their previous contributions. These figures differ significantly from the experiences of 30% of respondents who changed employers within the past 12 months, as they reported receiving higher pay. Among them, almost half (49%) received a salary increase of over 20%. The remaining respondents received the following salary increments:
16% to 20% increase (12%)
11% to 15% increase (12%)
6% to 10% increase (11%)
Less than five percent increase (16%)
Randstad emphasized the “crucial” importance for employers to recognize the role of salary in motivating and retaining talented individuals. The company stated on its website, “To attract top talent and meet new expectations, companies must conscientiously review and adjust their internal salary and bonus structures to align with evolving skill demands, meet employee expectations, and remain competitive in the market.