- 49% of Malaysians who chose to stay with their current employer only received up to 5% of salary increment.
- 54% of Malaysians do not think they are being fairly paid for their work contributions, skills and experience.
- 91% of Malaysians would change employers if they were offered a higher salary.
According to a recent online survey conducted by Randstad Malaysia, 54% of local respondents feel that their salary does not adequately reflect their work contributions.
Of the 30% of respondents who changed their employers in the past 12 months, 49% were successful in negotiating for a 20% wage increase.
The 2023 Salary and Bonus Expectations report in Malaysia aims to help employers understand employee expectations of their annual bonuses and salary increments in light of the increasing cost of living and imbalanced supply and demand in the labour market. The report offers valuable insights on how to improve your talent attraction strategies in a competitive labour market.
As global and domestic demands ramp up, companies need to grow and maintain their workforce to continue delivering products and services. One of the tried-and-tested ways to be successful in growing your workforce is to offer an attractive and competitive salary package.
When asked about how much salary increment respondents received from their employers in the past three months, 49% of Malaysian employees received only up to 5% of salary increment.
91% of malaysians would change employers if they are offered a higher monthly salary
Salary is a strong motivator for many Malaysian employees. Receiving a higher salary increment every time they change an employer means that talent are able to match their earning power with their international peers. It can also help them meet their financial goals, like buying a car or home, earlier in their lives.
Companies that fail to support these goals may risk losing their top talent, adversely impacting their overall operations and revenues. It's crucial for companies to recognise the importance of salary in motivating and retaining people.
why talent have higher expectations for their salaries
Talent in Malaysia have higher expectations for their salaries due to less than satisfactory year-on-year pay increments and year-end bonuses.
Of the Malaysians surveyed, 39% of them were informed that their salaries will not be adjusted in 2023. 31% of them were informed by their employers that they will not be receiving any annual bonus for their work contributions in 2022.
Inflation and higher cost of living have changed how people choose to spend their money, leading to increased employee expectations for higher salaries and fair bonuses. To attract top talent and meet new expectations, companies must make a conscientious effort to review and adjust their internal salary and bonus structures to reflect new skill demands, meet talent expectations and remain competitive in the market.
how talent come to the conclusion that they deserve more
From our survey, we found that 35% of Malaysians self-evaluate their average pay based on their job scope and responsibilities. Only 16% of survey respondents approached recruiters and 14% used online salary calculators as independent sources when evaluating how much they deserve.
We often estimate our salaries based on how much work we do. However, it is not a fair evaluation to assess one’s true worth as there are other factors like company budgets, industry averages as well as the supply and demand in the labour market to consider.
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.
download the 2023 salary and bonus expectations report
Fill in the form to get a copy of the Randstad Malaysia 2023 Salary and Bonus Expectations Report.
connect with randstad for the latest, accurate salary benchmarks
Salaries and bonuses have been on the rise for the past few years. However, not everyone is benefiting from this trend. What can employers do to keep up with the rising salary expectations to attract and retain skilled talent in a tight and competitive job market?
Connect with our specialised recruiters to find out the latest salary expectations for talent in your industry so that you can make the right and attractive salary offer to secure your candidates.
If you are a job seeker who is curious to know how much you should be paid for your experience and skills, reach out to our recruiters for a chat or explore your career options by applying for job openings that fit your skills and expectations.