Despite global economic uncertainty, Malaysia remains upbeat about its economic growth prospects as overall salary increase in the country is forecasted to rise from 5.3% this year to 5.7% in 2014.
This is according to Towers Watson’s 2013 General Industry Total Rewards Survey of 350 organisations across industries in Malaysia.
The report also revealed an 8% increase in entry level salaries for fresh graduates this year, ranging from RM2,400 to RM2,800 per month (S$939 to S$1,095).
The most popular positions were in sales, information technology, finance, marketing and customer services or technical support, as companies strived to strengthen their brand and improve ROI to reduce operations costs.
Employee turnover rate on the other hand, which increased from 12.3% in 2012 to 13.2% in 2013, was seen mostly in the manufacturing (24%), conglomerates (14%) and financial services (13.3%) industries.
“One of the key reasons for the higher turnover rate in the Malaysian general industry was employees felt that the Malaysian economy will remain stable despite the uncertain global economy,” Sean Darilay, Towers Watson’s practice leader of global data services for Southeast Asia, said.
“Organisations in Malaysia are also actively taking steps to improve their employee value proposition (EVP) to attract top talent besides offering higher salaries and faster growth opportunities,” he added.
Findings from the 2012 Towers Watson’s Global Workforce Study revealed 51% of Malaysians felt they had to move to another organisation for career advancement, with 83% of them willing to relocate for this.
“As the working class population expands, many young workers are demonstrating a strong desire to build a successful career in line with their aspirations to achieve a better quality of life,” Darilay said.
While salary is still critical to attracting and retaining workers, he advised employers to “be able to design a comprehensive employee value proposition that balances different drivers and motivators of performance”.