New labour market research found that 35% of Malaysian workers did not receive any financial support from their employers to help manage inflation and rising cost of living. Although likely to be the largest contributor to expenditures, Gen Xers are said to be the least likely to receive compensation to manage rising costs.
Randstad, the world’s largest talent company revealed early findings of its 9th annual Employer Brand Research in Malaysia. Conducted by Kantar TNS in January 2024, the study surveyed 173,000 respondents around the world, including 2,500 individuals in Malaysia, making it the world’s most comprehensive employer branding research based on general audience perceptions.
Employees who did not receive any inflation compensation are nearly 40% more likely to seek new jobs, underscoring the importance for employers to understand and meet talent expectations, particularly regarding inflation adjustments.
Fahad Naeem, Country Director at Randstad Malaysia said, “With nine years’ worth of talent expectations and employer brand data collected in Malaysia, we are able to analyse how workforce priorities have shifted, what talent are most worried about and what employers can do to effectively attract and retain talent. While the pandemic brought about solidarity, employers must now understand that talent has new and higher expectations that require them to be more proactive when engaging talent.”
Work-life balance and limited career growth top reasons why talent resigns
The research reveals that dissatisfaction with work-life balance stands out as the primary reason prompting Malaysian workers to consider switching jobs, highlighting the need for a culture that values flexibility.
A staggering 48% of respondents cited a desire to improve their work-life balance as their top motivation for considering a job change. This is followed by the aspiration for career growth, with 37% expressing a desire for roles that offer greater responsibilities and promotion opportunities. Notably, this is more pronounced among the younger demographics, with 40% of Gen Z respondents prioritising career progression, compared to 33% of their older counterparts.
Salary concerns also weigh heavily on the minds of Malaysian talent, with 34% of respondents citing low pay coupled with rising living costs as their reason for seeking new employment opportunities.
Commenting on these findings, Naeem said, “An employee’s work-life balance depends significantly on the organisational culture. Managers play a key role in this by maintaining productivity in hybrid work settings, ensuring workloads are fairly distributed to keep daily work engaging while promoting skill development. To retain and attract top talent seeking the right environment, companies must proactively understand and support their workforce’s needs. It’s about fostering an environment where employees feel valued, empowered and motivated to thrive.”
Moreover, the survey highlights the evolving job change dynamics among digital natives.
A significant 29% of Gen Z respondents are inclined to switch roles upon losing interest in their current positions. This sentiment aligns with the broader trend, as 43% of Gen Zers plan to change jobs in 2024.
Digital channels popular among job seekers, but employers should have clear talent engagement strategies
Malaysians are more likely to use digital channels to search for new jobs, as these platforms provide them with a variety of jobs to apply to.
Of the 34% of respondents who are looking for a job this year, 68% said that they will be using job boards or job search engines. Close to half the respondents (47%) said that they will be using social media channels like Facebook and WhatsApp.
Naeem said, “Malaysian job seekers leverage online platforms not just to browse and apply for jobs, but also to research company culture and evaluate if the organisation’s initiatives, policies and opportunities are aligned with their current career aspirations. This talent attraction approach puts the onus on job seekers. In a talent-scarce market, it’s important for companies to invest in people development to improve their retention rate. These people’s initiatives can also help strengthen their employer brand and attract a wider pool of qualified candidates.”
“While social media platforms like Facebook, Telegram and WhatsApp are cost-effective digital platforms to reach out to a big talent pool, it is essential for employers to promote job openings through trustworthy channels like company websites or reliable job search platforms due to the high risks of fraudulent digital job advertisements. Companies have the opportunity to use these channels to educate job seekers on their typical job search process, which requires job seekers to apply directly through official job boards or company websites instead of social media or text messaging platforms,” Naeem adds.
The Employer Brand Research is the world’s most comprehensive and in-depth research. The full research report from the survey that includes data on employee value proposition as well as attitudes towards AI developments and equity will be released by Randstad Malaysia in July 2024.
