According to a survey conducted by the consulting company WTW, the Malaysia Total Compensation Survey in October 2023 reveals that companies in Malaysia continue to project an overall salary rise of 5 per cent in 2024. This involves salaries for executives, management, professionals, and support staff levels.
Despite the projected salary increase this year being slightly lower compared to 5.6 per cent in 2023, the average salary increase has continued to rise steadily over the last few years.
The data shows that inflationary pressures and concerns over a tight labour market continue to influence the projected salary.
“Although inflation is slowing down from the heights of recent years, Malaysia’s labour market is shifting,” said WTW Head of Work and Rewards for South-East Asia and Malaysia, Tan Juan Jim.
Millennials and Gen Z will dominate more than 70 per cent of the workforce by 2025
He also added that employers in Malaysia continue to face significant talent challenges, including the attraction and retention of key talent.
They will need to balance the entire rewards package, both monetary and non-monetary, to remain competitive and aligned with employees’ needs and wants.
Furthermore, the survey also unveiled that Millennials and Gen Z would dominate more than 70 per cent of the workforce by 2025.
This data is backed by industries such as banking, insurance, tech, media, gaming, shared services, and outsourcing, which hired the most Millennials and Gen Z, as reported last year.
Also, it noted that the Gen Z workforce in Malaysia grew 50 per cent year-on-year as a percentage of the total workforce since 2020 and is expected to form more than 70 per cent by 2025.
Tan elaborated that job security is no longer the primary focus, but understanding the emerging group of Gen Z employees becomes paramount.
“Organizations that provide greater work flexibility, including options for remote, onsite, or hybrid working, will attract and retain more talent.”
“This trend of working offers Gen Z more options to have multiple side hustles while maintaining their traditional-economy jobs,” he added.
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