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Malaysian employers need to increase salary scale to retain talent

Published by Afterschool.my on Sep 19, 2012, 07:11 am

  • To attract and retain talent, Malaysian employers will have to increase their salary scale "significantly". The country's renumeration package currently falls far behind its counterparts in Singapore and Hong Kong, says Kelly Services.
  • A higher salary scale will make Malaysia more attractive to job-seekers and offer the country higher chances of keeping its talent.
  • Instead of looking at human resources as a cost factor, they should be seen as an investment they must put in. Without talent investment, companies will not grow and will always continue to face staff shortage/problems.
  • Salary is one of the top three priorities people look at when considering a job. Beyond training and development, engagement and mentoring programmes, salaries do matter.
  • The Employment Outlook and Salary Guide 2012/2013 presented an optimistic outlook on the job market despite ongoing scarcity of top talent. Strong demand for skilled talent across all industries was observed as talent mobility is taking place within Malaysia with the outflow of skilled talent to regional countries and with talents increasingly willing to switch jobs.
  • The demand of talent has become more apparent especially in the banking and financial, information technology,business services and engineering industries.
  • In these growth sectors, salaries for talents armed with specialised skills and possess more than eight years job experience have seen an increase of 8% to 12% while generally, salaries for executive or senior executive level with three to five years industry experience have seen an increase of 5% to 8%.
  • On the other hand, salaries have generally registered a slight increase of 2% to 3% for semi-skilled workforce with less than three years experience.
  • Increment of salaries are tied with higher expectations on KPIs and companies expect talent to 'hit the ground running' for premium paid on salaries.
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