46 per cent of Malaysian employers expect to award salary increases of between three and six per cent during their next salary review, according to recruiting experts Hays.
The annual Hays Asia Salary Guide, now in its tenth year, highlights salary and recruiting trends in China, Hong Kong, Japan, Malaysia and Singapore. The Guide draws on research from more than 3,000 employers representing six million employees.
During their last review period, 50 per cent of employers in Malaysia awarded increases of also between three and six per cent.
“Malaysia is a resourceful nation, but given the uncertainties in the global and regional climate, employers are taking a moderate approach to salaries” says Tom Osborne, Regional Director of Hays Malaysia.
Other salary related findings from the 2017 Hays Asia Salary Guide showed that 27 per cent of employers in Malaysia expect to award increases from between six per cent and ten percent; 9 per cent plan to award over ten per cent, 13 per cent will look to award up to three per cent and 4 per cent will award no increase.
In terms of intended salary increases across the region, Hong Kong (49 per cent) and Singapore (46 per cent) will offer between three and six per cent, China (45 per cent) will increase from between six and ten per cent with Japan (60 per cent) offering up to a three per cent increase.
Malaysian employees have ambitions salary expectations
31 per cent of respondents expect to receive an increase from six to ten per cent during their next review while a further 19 per cent will be expecting an increase of more than ten per cent. With only 9 per cent of employers intending to award more than ten per cent, respondents would be advised to readjust their salary expectations.
“Respondents in Malaysia wanting a salary increase above what employers are planning to award are advised to do their homework and know why their performance merits a larger increase,” says Tom.
“Candidates also need to keep up with economic news as well as keeping abreast of market conditions to ensure their expectations are managed accordingly.”
7 per cent of employees in Malaysia are not expecting a pay rise at all with 29 per cent expecting an increase from between three to six per cent and 14 per cent up to three per cent.
Benefits
In Malaysia, 92 per cent of employers offer staff benefits in addition to salary/bonus. Most commonly provided is health/medical benefits (89 per cent), car/car allowance (57 per cent), life assurance (49 per cent), club/gym membership (17 per cent) and hardship allowance (15 per cent).
Across all countries, 85 per cent of employers provide staff benefits in addition to salary and bonuses. Health/medical remains the most commonly offered benefit (79 per cent of employers) followed by life assurance (40 per cent), a car/car allowance (34 per cent) pension (31 per cent), housing allowance (26 per cent), club or gym membership (16 per cent), other (16 per cent), hardship allowance (10 per cent), children’s education (8 per cent), tax equalisation (6 per cent) and private expenses (5 per cent).
Bonuses
In the coming year, 66 per cent of employers in Malaysia intend to award bonuses to all employees and 22 per cent to only some employees.
Of the employers in Malaysia paying bonuses, 33 per cent expect bonuses to be worth from eleven per cent to fifty per cent of staff salary; 29 per cent up to ten per cent of staff salary and 18 per cent from fifty-one per cent to ninety nine per cent of staff salary. Another 20 per cent of employers in Malaysia expect to pay bonuses worth one hundred per cent of staff salary.
Across all countries in the region, bonuses were most commonly related to company performance (88 per cent) or individual performance (84 per cent). Only 10 per cent of staff bonuses were guaranteed. A further 34 per cent of bonuses were related to team performance and a small two per cent to hours billed.
Get your copy of the 2017 Hays Asia Salary Guide by visiting www.hays.com.my/salary-guide or by contacting your local Hays office.
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About Hays
Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2016 the Group employed 9,214 staff operating from 252 offices in 33 countries across 20 specialisms. For the year ended 30 June 2016:
– the Group reported net fees of £810.3 million and operating profit (pre-exceptional items) of £181 million;
– the Group placed around 67,000 candidates into permanent jobs and around 220,000 people into temporary assignments;
– 22% of Group net fees were generated in Asia Pacific, 45% in Continental Europe & RoW (CERoW) and 33% in the United Kingdom & Ireland;
– the temporary placement business represented 58% of net fees and the permanent placement business represented 42% of net fees;
– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA.