Malaysia’s job market continues to progress steadily, yet competitive remuneration remains crucial in attracting and retaining top talent. According to Jobstreet by SEEK’s latest Hiring, Compensation & Benefits Report, more than 75% of companies awarded performance bonuses in 2024, with average payouts rising to two months’ salary—an improvement from the previous average of 1.7 months.

Additionally, 77% of businesses implemented salary increments, keeping pace with Malaysia’s 2.49% inflation rate. In a bid to further enhance their employee value propositions, many organisations have expanded their benefits packages, introducing initiatives such as replacement leave, extended parental leave, and flexible working arrangements. Notably, 45% of employers now offer family-friendly benefits, including nursing rooms and enhanced medical coverage.

The report also observed that retrenchments, right-sizing, and strategic pivots in 2024 have contributed to a cautiously optimistic hiring outlook as companies prepare for 2025. To remain competitive and resilient, Jobstreet by SEEK recommends that employers expand their recruitment strategies to include part-time, contract, or freelance workers; align salary adjustments with inflation trends and industry benchmarks; and enhance employee benefits, particularly in offering flexible work arrangements, mental health leave, and family-focused policies.

Nearly half of Malaysian companies are planning to expand their permanent workforce in the first half of 2025, entering the new year with renewed optimism. This projected growth is driven by business expansion (83%), the creation of new roles (58%), and the need to replace departing employees (43%).

“Businesses are approaching 2025 with cautious optimism, focusing heavily on flexibility, competitive compensation, and strategic use of AI,” said Nicholas Lam, Managing Director at Jobstreet by SEEK Malaysia. “As AI becomes integral to recruitment processes, businesses must adopt it thoughtfully to ensure inclusivity and effectiveness,” he added in a statement.

Drawing insights from 2,279 human resource professionals and employers, the report highlights that while business confidence remains strong—with 83% of companies planning for expansion—2024 was largely a year of recalibration. Although 74% of respondents described the job market as active, 39% of employers reduced their workforce in 2024, marking a significant increase from 18% in 2023 and 14% in 2022.

The top three permanent full-time roles remained consistent with 2023, namely administration and HR (41% of companies that hired), accounting (33%), and sales or business development (21%).

Malaysian employers are also increasingly embracing AI in their recruitment strategies. Seventy percent of businesses now assess candidates’ AI skills during hiring, with 36% considering it a critical competency. Furthermore, 26% of recruiters are utilising AI tools to assist with job advertisement creation (71%), candidate screening (59%), and assessments (54%).

However, nearly half of employers (47%) remain cautious, expressing concerns about the potential loss of personalisation in the hiring process. The report also highlights significant progress in diversity, equity, and inclusion (DEI) initiatives. As of January 2025, women now hold 33% of board seats among Malaysia’s top 100 public listed companies (PLCs) and 27.6% across all PLCs.

“Employers in Malaysia are increasingly recognising DEI not just as a moral responsibility but also as a strategic business advantage,” Lam said.

(Source: NST)

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• Increments
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• Jobstreet
• Retrenchments
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