A survey by talent recruitment agency Randstad Malaysia has indicated that 54% of Malaysians feel that they are not receiving salaries that fairly match their work contributions, skills, and experience. This was revealed in the agency’s 2023 Salary and Bonus Expectations Survey.

In a statement, Randstad highlighted that 49% of the employees surveyed only received up to 5% of salary increment from their current employers in the past three months. Meanwhile, of the 30% respondents who changed jobs in the past year, 49% were able to negotiate a 20% wage increase. 91% of the total respondents also said that they would be willing to change employers if they are offered a higher salary.

Aside from that, 39% of the respondents surveyed said that they were informed by their employers that their salaries will not be adjusted in 2023. Another 31% were also told that they will not be receiving bonuses for this year.

“As global and domestic demands ramp up, companies need to grow and maintain their workforce to continue delivering products and services. One of the tried-and-tested ways to be successful in growing your workforce is to offer an attractive and competitive salary package,” said the country director of Randstad, Fahad Naeem.

Naeem further stressed that salary continues to be a strong motivator for many Malaysian employees, which spurs them to change employers quite regularly as that is seen as one way for them to grow their salaries rapidly.

“Receiving a higher salary increment every time they change an employer means that talent are able to match their earning power with their international peers. It can also help them meet their financial goals, like buying a car or home, earlier in their lives,” he said, adding that talent in Malaysia tend to aim for better salaries as subsequent year-on-year pay increments and year-end bonuses often do not meet their expectations.

Naeem also noted the impact that inflation and the increasing cost of living have on employees’ expectations regarding their remuneration package. “It is only natural and reasonable that employees seek a higher salary and fair bonus to feel recognised for their work and valued as an employee. To attract top talent and meet their employees’ salary expectations, companies must make a conscientious effort to review and adjust their internal salary and bonus structures to reflect new skill demands and talent expectations,” he said.

That said, Naeem acknowledged that employees’ evaluation of their salaries or true worth should not be based purely on how much work they do. It should also take into consideration other factors, such as the company’s budget, industry averages, as well as the supply and demand in the labour market. Malaysians are also encouraged to tap into resources like specialised recruiters and salary calculators that use real-time data to gain a clearer idea of how much they should be compensated.

A total of 302 respondents who were living and working in Malaysia had participated in Randstad’s 2023 Salary and Bonus Expectations Survey, offering insights on employees’ expectations of their remuneration packages in light of the current living conditions.  

(Sources: Randstad Malaysia, The Edge Markets)

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• Fahad Naeem
• Randstad 2023 Salary and Bonus Expectations Survey
• Randstad Malaysia
• Salaries
• Wages