According to a recent report by Randstad Malaysia, 54% of Malaysian employees feel that their salaries do not fairly reflect their work contributions. This is due to the less than satisfactory year-on-year pay increments and year-end bonuses. In light of these findings, the world’s largest talent company has released the Salary and Bonus Expectations report in Malaysia to help employers understand talent’s salary and bonus expectations.
The report highlights that 49% of Malaysian employees who changed employers in the past 12 months were successful in negotiating for a 20% wage increase. Moreover, 91% of respondents in Malaysia would consider changing their employers if they were offered a higher salary. This clearly indicates that companies need to offer an attractive and competitive salary package to retain their best talent.
Companies Risk Losing Their Best Talent if They Don’t Meet Their Salary Expectations
Fahad Naeem, Country Director at Randstad Malaysia, emphasised that companies that do not support their employees’ goals may risk losing their best talent and adversely impacting their overall operations and revenues. He also stated that a higher salary increment every time employees change employers means that talent can match their earning power with their international peers. This, in turn, can help them meet their financial goals earlier in their lives.
Of the Malaysians surveyed, 39% were informed that their salaries would not be adjusted in 2023, and 31% were informed that they would not receive any bonus for their work contributions in 2022. Therefore, companies must make a conscientious effort to review and adjust their internal salary and bonus structures to reflect new skill demands and talent expectations.
Malaysians Self-Evaluate Their Average Pay Based on Job Scope and Responsibilities
The survey also found that 35% of Malaysians self-evaluate their average pay based on their job scope and responsibilities. Only 16% of respondents approached recruiters, and 14% used online salary calculators as independent sources when evaluating how much they deserve.
“Malaysians could leverage more resources like specialised recruiters and salary calculators that use real-time data to form a more accurate view of how much they should be compensated. Our recruitment consultants often collect data from employers and job seekers which allows us to continuously refine our database and provide more accurate salary benchmarks that reflect current market conditions. The market data that we collect also empower us to negotiate on behalf of our talent so that they can receive a higher salary from their next employer,” Naeem said.
Also read: Randstad Malaysia: 56% Of Millennials Are Likely To Leave Their Jobs To Be Entrepreneurs
The Randstad Malaysia Salary and Bonus Expectations report sheds light on the growing demand for higher pay and bonus packages among Malaysians. Employers need to review and adjust their internal salary and bonus structures to meet their employees’ expectations and retain their best talent.