17th January 2023 - 3 min read
Human resources (HR) solutions agency Randstad Malaysia has said that employees in Malaysia can expect a salary adjustment of 3% to 20% in 2023. Revealed in its latest Job Market and Salary Trends Report (2023), Randstad also said that high-growth industries in particular – such as technology and manufacturing – are likely to make more significant changes to their internal salary structures this year.
In the report, Randstad shared that recruitment activities were already at an all-time high in 2022 as companies in Malaysia strive to expand their workforce. In 2023, this trend is expected to continue, although the pace may moderate slightly, and employers will also be more focused on candidates for niche or specialised roles. Additionally, 74% of local employees indicated that salary and benefits are a key priority when looking for a new employer. Given these trends, there is a clear need for companies to review and revise their salary benchmarks to remain competitive in retaining and attracting new talent.
The agency also singled out technology, manufacturing, and construction as three specific sectors that will see the most updates to their renumeration packages as companies engage in fierce competition to attract talent. This is as there are currently more jobs than the supply of talent in these markets – all of which are set to see new transformations and trends.
The tech sector, for instance, is expected to expand significantly in the coming years, especially with the development of 5G technology in Malaysia, whereas the manufacturing sector is actively expanding its workforce to fulfil backlogs and new orders. The construction sector, meanwhile, is in need of individuals with specific skillsets to contribute to the development of commercial property and infrastructure.
That said, Randstad also stressed that companies’ hiring strategies should not rely solely on improved salaries; it should also be complemented by steps to manage talent expectations and to upskill the workforce with learning and development training programmes.
“Change is crucial to thriving in Asia’s rapidly evolving business landscape. With people serving as the backbone of any organisation’s success, business leaders must learn to address employee expectations for more effective talent attraction and management efforts,” the country director of Randstad Malaysia, Fahad Naeem commented.
On top of highlighting the likelihood of salary adjustment in 2023, Randstad noted as well that many international companies are cutting back on recruitment activities with the global economy slowing down. However, some these companies may also decide to move their business units and headcount from Europe to Southeast Asian countries as another form of budgetary control. If this happens, then Malaysia’s labour market will benefit from the creation of new jobs, as well as the inflow of top-tier global talent.
(Sources: Randstad, The Edge Markets)
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