KUALA LUMPUR – Malaysians hoping for better remuneration this year will be left frustrated following a pandemic-hit 2020, said a study by recruitment expert Hays.
In the 14th Hays Asia Salary Guide published today, the agency said most employers across Asia are predicting a stagnation in 2021 similar to last year, as businesses are forced to cut back in all areas of augmentation due to Covid-19.
“Employers in Hong Kong, Singapore and Malaysia are most likely to expect a preservation of the status quo (in salaries) at 42%,” said Hays in a statement.
The expected stagnation in pay in Malaysia is higher than the Asian average of 37%, with a further 29% of employers in the continent predicting a modest increase of up to 3% only.
Hays added that 4% of bosses envisage salary decreases this year.
It said a survey of working professionals found that they are, for the most part, resigned to limited augmentation in 2021, with 28% expecting their wages to remain the same – twice the figure last year – with a further 4% assuming a decrease.
Interestingly, in Malaysia, 17% of the employees polled predicted increments of above 10%, second only to China.
As Covid-19 swept the globe, said the agency, some 50% of companies across Asia saw their profits negatively impacted, resulting in 35% of salaries in the continent seeing a freeze in 2020 – a dramatic rise from the 9% in 2018 – and 6% registering a decrease.
The study also found that only 21% of employees in Malaysia promised bonuses as part of their remuneration package received the reward, the lowest in the region and considerably worse than the 55% average.
“As a consequence of diminished income standards, it comes as no surprise that candidates on the move consider salary to be their primary reason for seeking new employment (58%).”
Hays’ Malaysia managing director, Tom Osborne, said considering the impact of the pandemic, 2021 is not the year for employees or candidates to seek substantial augmentation to their salaries, and they should instead aim to improve other areas of their career.
However, he said, employers should look at offering more innovative enticements, such as by providing better opportunities for career progression and implementing a better apparatus for improved work-life balance, at a time when cost control is increasingly critical.
“This is especially key in retaining top talent and recruiting the best available candidate.” – The Vibes, March 31, 2021
