Based on a survey, companies in Malaysia anticipate that overall salary for executives, management and professional staff, and support staff will increase by 5.0% in 2024.
The global advisory, broking, and solutions company WTW conducted a compensation survey, and while the expected salary increase for this year was marginally less than the 5.6% increase for 2023, the average salary increase has been rising steadily over the past few years.
In October 2023, over 600 companies took part in the Malaysia Total Compensation Survey.
This year, comparable patterns have been seen throughout the nation’s industries, according to a statement from WTW. It further stated that worries about a tight labor market and inflationary pressures are still important variables.
“Although inflation is slowing down from the heights of recent years, Malaysia’s labor market is shifting,” said WTW head of work and rewards for Southeast Asia and Malaysia Tan Juan Jim.
According to him, voluntary turnover and attrition peaked in 2023 at 18.5%, up from 16.5% in 2022, and the trend appears likely to continue in 2024.
Tan went on to say that employers in Malaysia will still have a lot of difficulties finding and keeping talented employees.
In order to stay competitive and meet the needs and desires of employees, they will need to strike a balance throughout the entire rewards program, both monetary and non-monetary, he said.
According to a WTW survey, by 2025, millennials and Gen Z will make up more than 70% of the workforce. The industries that employed the most millennials and Gen Z workers last year were banking, insurance, tech, media, gaming, shared services, and outsourcing.
It stated that since 2020, the proportion of Gen Z workers in Malaysia’s workforce has increased by 50% annually.
By 2025, it projects that Gen Z and millennials will make up more than 70% of the workforce.
According to Tan, workers have choices in the gig and passion economies, which support purpose-driven creators and offer different means of generating income.
“Job security is no longer the primary focus, but understanding the emerging group of Gen Z employees becomes paramount. Organizations that provide greater work flexibility, including a choice of remote, onsite, or hybrid working, will attract and retain more talent.
“This trend of working offers Gen Z more options to have multiple side hustles while maintaining their traditional economy jobs,” he added.
