Salary Growth of 5% Projected for Malaysia in the Current Year: Survey

Businesses in Malaysia anticipate a 5% overall increase in salaries for executives, managers, professionals, and support staff in 2024, according to the Malaysia Total Compensation Survey conducted by WTW in October 2023.

This projection, while slightly lower than the 5.6% increase seen in 2023, reflects a consistent upward trend in average salary increments over recent years. 

The survey involved over 600 companies and revealed similar patterns across various industries in Malaysia. 

Factors such as inflation and a tight labour market continue to influence compensation decisions. While inflation is decelerating from previous peaks, Malaysia’s labour market dynamics are evolving.

A rise in voluntary turnover and attrition was noted, reaching 18.5% in 2023 compared to 16.5% in 2022. This trend is expected to persist in 2024.

Posed challenges for employers include attracting and retaining key talent. To remain competitive, companies must consider a holistic rewards package, addressing both financial and non-financial aspects to meet employees’ needs.

Principal Feature:

• Industries like banking, insurance, technology, media, gaming, shared services, and outsourcing have been particularly active in hiring younger generations. 
• The survey also highlighted the increasing presence of millennials and Gen Z in the workforce, projected to constitute over 70% by 2025. 
• The proportion of Gen Z employees in the workforce has surged by 50% annually since 2020, indicating a significant shift in the workforce composition.
• The importance of understanding the preferences of Gen Z, who prioritize flexibility and purpose-driven work was highlighted. 
• Organizations offering options like remote, onsite, or hybrid working arrangements are more likely to attract and retain talent. 
• The emergence of the “gig” and “passion economy” provides additional income opportunities for younger workers, reshaping traditional notions of job security.

About Survey:

• WTW is a global advisory, broking, and solutions company that provides data-driven solutions in people, risk, and capital across 140 countries.
• The survey involved 600 companies.
• The companies are from various sectors such as Financial Services, Tech, Media & Gaming, Shared Services, Real Estate, Construction & Engineering, BioPharma & Life Sciences, Energy & Natural Resources, Education, and more. 
• The participating organizations collectively employ 323,837 individuals in Malaysia.