Talent with niche skills in Malaysia can expect to profit in 2018 with many employers willing to pay more to secure these candidates in areas where there are skill shortages, according to recruiting experts Hays.
Economic forecasters predict an increasingly stronger economy in Malaysia in 2018 but, according to the latest Hays research, employers are planning to take a conservative line on salaries to keep costs down so they can make the most of improving conditions.
The 2018 Hays Asia Salary Guide reveals 49 per cent of employers in Malaysia plan to award salary increases of only 3-6 per cent in the year ahead.
The 2018 Guide is based on a survey of more than 3,000 employers across Malaysia, Mainland China, Hong Kong, Japan and Singapore representing over six million employees and identifying the key salary and recruiting trends for the year ahead.
“Our Guide shows that most companies in Malaysia are more than willing to go well above the average when hiring those with niche skills and in areas of skill shortage,” said Tom Osborne, Regional Director of Hays in Malaysia.
“For example, specialised roles in some areas of sales, IT and accountancy & finance are experiencing skill shortages and thus commanding substantial salary increases,” he said.
“However, for the most part, salary increases will be modest so candidates are advised to do their homework on what their job role and industry is paying before deciding to move job roles in search of a higher salary.”
“Given these salary trends, the need for employers to communicate the process behind salary increases to staff will be even more important in 2018, particularly if the economy continues to show the strong improvements we saw in 2017 and are likely to see in 2018, creating the perception that there should be more budget for salary increases,” said Tom.
Salary reviews
The 2018 Hays Asia Salary Guide shows that most employers in Malaysia (50 per cent) awarded salary increases from between 3-6 per cent during their last review period. A further 29 per cent of employers increased salaries by more than six per cent, 13 per cent of employers increased salaries by up to three per cent and eight per cent gave no increases at all.
Looking ahead, 49 per cent of employers will increase salaries by 3-6 per cent in their next review while 39 per cent plan increases of more than six per cent. Nine per cent plan salary increases of up to three per cent and three per cent will offer no salary increases at all.
How Malaysia compares
The 2018 Guide shows employers in Mainland China are again the most generous when it comes to salary increases with 51 per cent planning increases of more than six per cent in 2018 and 35 per cent intending to increase salaries from between 3-6 per cent. Nine per cent expect to award increases of up to three per cent and five per cent will offer no salary increase.
In Singapore, 49 per cent of salary reviews will result in an increase from between 3-6 per cent and 14 per cent will offer more than six per cent. Five per cent of employers plan no increases and 32 per cent modest increases of up to three per cent.
In Japan, 60 per cent of employers plan salary increases of only up to three per cent in their next review and 12 per cent plan no increases at all. Only 18 per cent will award increases from between 3-6 per cent while a modest ten per cent plan increases of more than six per cent.
49 per cent of employers in Hong Kong will increase salaries from between 3-6 per cent, five per cent will offer no salary increase, 24 per cent will increase salaries up to three per cent and 22 per cent will increase salaries by more than six per cent.
Benefits
The majority of employers in Malaysia (93 per cent) award staff benefits against the average 83 per cent reported for all five countries surveyed. The most popular benefit in Malaysia by far is ‘health/medical’ benefits nominated by 92 per cent of employers. Next up was ‘car/car allowance’ (58 per cent) and ‘life assurance’ for workers (52 per cent).
Bonuses
In 2018, 55 per cent of employers in Malaysia plan to award bonuses to more than 50 per cent of staff, a three per cent decrease from the figure reported last year.
Most of our Malaysian respondents said bonuses would be based on ‘company performance’ (90 per cent) and ‘individual performance’ (87 per cent). 35 per cent cited ‘team performance’.
Candidate salary expectations
Of the candidates surveyed in Malaysia, 62 per cent are unhappy with their current level of compensation, but 58 per cent did not ask for a pay rise during their last review.
The largest proportion of candidate respondents in Malaysia (55 per cent) expect a pay rise of more than six per cent while 27 per cent expect a salary increase of between 3-6 per cent.
Get your copy of the 2018 Hays Asia Salary Guide by visiting www.hays.com.my/salary-guide
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About Hays
Hays plc (the "Group") is a leading global professional recruiting group and is celebrating its 50th anniversary this year. 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 31 December 2017 the Group employed 10,800 staff operating from 256 offices in 33 markets across 20 specialisms. For the year ended 30 June 2017:
– the Group reported net fees of £954.6 million and operating profit (pre-exceptional items) of £211.5 million;
– the Group placed around 70,000 candidates into permanent jobs and around 240,000 people into temporary assignments;
– 24% of Group net fees were generated in Asia Pacific, 49% in Continental Europe & RoW (CERoW) and 27% in the United Kingdom & Ireland;
– the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees;
– Hays operates in the following markets: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Mainland China, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA
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