With good economic growth prospects for Malaysian businesses going forward, the overall salary increase in the general industry in Malaysia is expected to grow from 5.3% in 2013 to 5.7% in 2014, according to Towers Watson’s 2013 General Industry Total Rewards Survey.
Over 350 organisations from across industries in Malaysia participated in the annual survey.
Consequently, employee turnover rate in the general industry in Malaysia has increased from 12.3% in 2012 to 13.2% in 2013.
Manufacturing, conglomerates and financial services industries were experiencing high staff turnover, with manufacturing experiencing 24% employee churn, conglomerates at 14%, BPO at 19% and financial services at 13.3% in 2013.
One of the key reasons for the higher turnover rate in the Malaysian general industry was employees felt that the Malaysian economy would remain stable despite the uncertain global economy.
“Organisations in Malaysia are also actively taking steps to improve their employee value proposition to attract top talent besides offering higher salaries and faster growth opportunities” says Sean Darilay, practice leader, Global Data Services, South-East Asia, Towers Watson.
Interestingly, Towers Watson’s 2012 Global Workforce Study suggests that 51% of Malaysian employees felt that they have to switch to another organisation to advance in their career or to achieve higher job level, with an alarming 83% of them willing to relocate to achieve this.
Sean Darilay comments, “It is unsurprising that career development is a priority for employees in Malaysia where growth prospects are brighter. As the working class population expands, many young workers are demonstrating a strong desire to build a successful career in line with their aspirations to achieve a better quality of life.”
“Employers should also recognise that while pay is still an important element in the equation, the key is to be able to design a comprehensive employee value proposition that balances different drivers and motivators of performance.”
Entry level salaries for fresh graduates increased by 8% in 2013 and ranges between RM2,400 and RM2,800 per month. In comparison to this, entry level salaries for MBA graduates range between RM2,600 and RM3,000 per month.
Positions in sales, information technology, finance, marketing and customer services/technical support remain as hot jobs.
This is due to the continuous need for organisations to strengthen their brand, improve sales leading to improved ROI and reduce operations costs by improving technology efficiency and productivity.
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