KUALA LUMPUR: Salary and career progression are the top two motivators of talent retention in Malaysia, according to a recruitment consultancy survey.
The Michael Page Group said its survey showed that 64% of Malaysians rated salary and 57% rated career progression as the main reasons for them to stay on with the same company.
The report, which is based on survey findings of more than 850 employers across a range of industry sectors in Singapore, Malaysia and Indonesia, showed that recognition and benefits came in third, with 55% of Malaysians seeing it as a priority.
In Michael Page’s 2016 South East Asia Salary & Employment Outlook released on Thursday, 48% of Malaysians change jobs to increase their salary, with 37% of respondents expecting increases of 6% to 10% in the coming year.
The job market in Malaysia remained upbeat, with businesses looking for top talent in manufacturing (31%) and logistics (22%) sectors.
“Malaysia benefits as an increasing number of regional and global positions are being moved to Malaysia to reduce costs,” said PageGroup regional managing director, Greater China & Southeast Asia, Anthony Thompson.
“As the country increasingly seeks to become a manufacturing and logistics hub, demand for talent with these appropriate skills increases.
“On the other hand, the construction industry seems set to cool as large numbers of properties are completed, possibly leading to a shift in demand towards management and maintenance to handle the new buildings coming on stream,” he added.
Michael Page’s study noted that most business sectors in Malaysia continued to struggle with staff retention as employers compete for talent, with multiple opportunities available to strong candidates.
Therefore, it argued that offering more non-financial benefits such as a clear career path and building a stronger company culture would encourage greater staff loyalty.
“We have observed an increase in hiring on a national basis rather than just Kuala Lumpur and the surrounding area. While Kuala Lumpur remains dominant, we’re seeing key decisions and investment being made in other parts of the country,” Michael Page managing director for Malaysia and Thailand Paul Cooper said.
“The Malaysian government continues in its effort to encourage Malaysians working overseas to return home, through tax incentive schemes and the Returning Expert Programme.
“However, most Malaysian expatriates are attracted by the opportunities and lifestyle abroad, with the weak ringgit further dampening salaries if they return,” he added.
Michael Page said that while the formation of Asean Economic Community this year would encourage free flow of trade, investment and people among the 10 member states, including Malaysia, response to this wider pool of talent had been lukewarm.
Its study found that one-third (36%) of the respondents had yet to decide or were not interested in hiring from other countries.
“Despite pressures such as political uncertainty and the persistent low oil prices, Southeast Asia as a region continues on its path of strong growth, with recruitment ongoing across almost all sectors.
“Professional services such as human resources are increasingly being seen as a critical part of the business to deal with high staff turnover. The current market demands candidates with digital skills and regional experience as an increasing number of businesses expand their business across borders,” Thompson said.
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