Desire for Higher Salary & Better Benefits Unmet in Malaysia, AI Adoption Rising Quickly: Randstad Malaysia

“Salary and Benefits” records the widest gap between employee expectations and perceptions of what employers in Malaysia offer. While Malaysian talent consistently rank “Salary and Benefits” as the most important employer value proposition (EVP) when considering an ideal employer, this factor drops to 8th place when assessing their current employers.

Randstad, the world’s largest talent company, today released its full 2025 Employer Brand Research report in Malaysia. Commissioned by Randstad and independently conducted by Kantar, this annual study is the world’s most comprehensive employer brand research, surveying over 170,000 people globally, including 2,588 respondents in Malaysia.

Fahad Naeem, Country Director at Randstad Malaysia said, “Salary and benefits have consistently been the top priority for Malaysian talent, especially with the growth in job opportunities driven by rapid expansion and rising cost of living. However, annual salary increments often fall short of expectations and this gap is a key driver behind the increasing number of Malaysians seeking new employment opportunities for the salary they want.”

Respondents appreciate the convenient location of their current employers, as they experience shorter commute times as a benefit. However, when considering an ideal employer, company location is not a key priority. As flexible and remote work options become more commonplace, the importance of office location is also increasingly being replaced by the desire for flexible working arrangements.

AI adoption rising quickly in Malaysia 

AI adoption is found to be rising quickly in Malaysia, with 33% of respondents now using AI at work—an increase of 11-point from the previous year. The proportion of those who have never used AI in their roles has dropped by 13% year-on-year.

Attitudes toward AI in the workplace are also becoming more positive. This year, 2% more respondents reported feeling optimistic about AI’s impact on their job satisfaction, while 2% fewer expressed concern that AI would replace their jobs. These shifts indicate that Malaysia’s workforce is increasingly viewing AI as a valuable tool and collaborator, rather than a threat.

Naeem said, “Fostering interest in AI among employees is especially important to many companies as it directly supports their digital transformation. Effective AI training programmes not only drive these business goals, but it also equips employees to complement and integrate critical and logical thinking with AI capabilities. It is also important for employers to leverage AI tools while ensuring compliance with data protection regulations and a strong grasp of ethical AI practices.”

Malaysia talents are engaged at work, thanks to good work-life balance and camaraderie 

In 2025, 2 in 3 respondents reported feeling more engaged at work, attributing their motivation primarily to a strong work-life balance and improved workplace relationships. Conversely, 12% felt less engaged, most often due to concerns about salary and limited promotion opportunities.

The survey also revealed that less engaged employees are 23% more likely to consider changing jobs.

When examining generational differences, Generation Z stands out as the only group that values positive relationships and camaraderie above work-life balance. In contrast, Millennials and Gen X identified work-life balance as their top workplace motivator.

Additionally, both Gen Z and Millennials reported lower engagement when seeking higher pay, while Gen X expressed greater concern over job security and missed promotions.

Fahad Naeem, Country Director at Randstad Malaysia said, “Offering competitive salaries is just one part of attracting and retaining top talent. Employers must also prioritise providing a good work-life balance to their employees by providing flexible work arrangements, fostering a positive culture, and ensuring workloads are both manageable and stimulating for growth. While achieving this balance can sound challenging, today’s talent is looking for an employee experience that empowers and fulfills them.”

Top 3 reasons driving motivation among workers: generation data

Top 3 reasons why workers are less motivated in 2025: generation data

Sectoral insights on what motivates talent from different professions

The survey’s sectoral insights highlight notable differences in what drives employee engagement.

Respondents in Sales & Marketing, Technology, Administration, Secretarial, and Human Resources identified manageable workloads, work-life balance, and flexibility as their primary motivators for feeling engaged at work. In contrast, engineering professionals reported that job security and meaningful recognition are the key factors enhancing their engagement.

Across all sectors, the most common reasons for decreased engagement were limited opportunities for growth and dissatisfaction with pay.