employee intentions report - michael page · attracting new talent retaining top performers job...

Michael Page InternationalMalaysia, 2012

Employee Intentions Report

Michael Page Employee Intentions Report

2www.michaelpage.com.my

Contents

Executive Overview: Malaysian locals

Executive Overview: Malaysian expatriates

Contact

Attracting New Talent

Retaining Top Performers

Job Market Confidence

Market Outlook


Market Outlook

4

6

8

9

11

12

3

10

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Executive Overview: Malaysian locals

Key findings MethodologyThe white collar employment market in Malaysia is strengthening in

line with positive business conditions across the broader Asia region.

Further to this, the national Economic Transformation Program is an

initiative introduced to boost the Malaysian economy in areas including

financial services, business services, consumer, healthcare, education

and resources. As part of this plan, the government is working towards

providing professionals with opportunities for training and development

through Talent Corporation Malaysia. As a result of these improved

market conditions and initiatives, businesses are expanding their

headcount to secure the best talent to drive their business forward

and employees are becoming increasingly confident about their

career prospects.

Employee confidence in the current job market is high, with some 67%

of respondents considering the market to be strong or very strong. As

companies continue to boost employee numbers, professionals are

also becoming less cautious about making their next career move. Of

the professionals surveyed for this report, some 40% believe it is highly

likely they will change jobs within the next six months.

Career development is a key motivating factor for employees in Malaysia

during 2012. For 39% of respondents, being offered the opportunity to

progress in their current role is the primary reason they would choose to

remain with their employer. For a further 46% of professionals surveyed

for the report, career growth opportunities is also a major reason in

the decision to change jobs. Companies that offer structured career

development opportunities will be in the best position to both secure

and retain top talent.

The prospect of gaining a salary increase is another influencing factor in

the decision to remain in a current role or move jobs. Over the next six

months, some 36% of the employees surveyed will be asking for a 6%

to 10% increase on their base salary in order to stay with their current

employer. To change jobs, respondents expect higher salary increases

of between 21% and 25%. Employers will need to offer increasingly

competitive market rates to secure the most skilled and experienced

professionals.

Looking ahead, the vast majority of employees surveyed are confident

about the job market outlook throughout 2012. Some 68% expect the

employment conditions for their profession to improve compared to

2011. Despite predictions of a strong local job market, a considerable

number of respondents (58%) will also be looking for work outside

the country to take advantage of the financial benefits and career

opportunities available in the broader Asia region.

The Michael Page Employee Intentions Report (Malaysian locals) is

based on the responses of an online survey distributed to nearly 2,000

white collar professionals working in Malaysia. Participants represent

a variety of professional occupation groups holding positions that

range from entry level through to senior management. The scope

of the report includes key employee insights into preferences for

attraction and retention, as well as expected levels of staff attrition and

salary expectations.

Employees confident about local and regional career prospects

“

”




Steady economic growth in Malaysia

throughout 2011 has driven a consistent

increase in the number of employment

opportunities available for white collar

professionals. Strong domestic jobs growth

is being driven by the continual expansion

of multinational companies into the country,

as well as the government initiatives in

place designed to nurture and up-skill local

Malaysian talent. With solid hiring intentions

set to continue across all professional

occupational groups in 2012, job seekers

are becoming increasingly confident about

making their next career move. Of the

employees surveyed for this report, some

40% say it is very likely they will change jobs

within the next six months.

Throughout 2012, recruitment activity is

likely to stabalise in the financial services

sector as sustained economic growth in the

broader Asia market continues to positively

impact domestic business conditions.

Over the coming year, a growing number

of professionals in support functions like

human resources, as well as sales and

marketing are also likely to take advantage

of new opportunities in the market brought

about by company expansion.

Job seeker activity

40%

43%

17%

Very likely

Quite likely

Not likely




Almost half of the employees surveyed for this

report (46%) rated the opportunity for career

progression as the most important factor in

their decision to change jobs. Professionals

at all levels are looking to capitalise on career

growth opportunities as companies continue

to invest in new talent.

An increase in salary is the second most

influential factor for respondents in their

decision to change jobs. As companies

continue to expand their headcount in line

with growing business activity, employees are

becoming more confident about changing

companies to raise their earnings. For most

respondents (30%), an increase of between

21% and 25% on base salary is required to

motivate them to leave their current job. This

level of salary expectation reflects the rising

number of job opportunties in the employment

market, coupled with the increasing rate of

inflation. In this environment employers will

need to pay competitive salaries to secure

the best talent.

Another key influence in changing roles is the

opportunity to gain international experience.

The prospect of working with an international

company is particularly attractive for

professionals wanting to increase their

employability across the Asia Pacific region

as employer demand for this experience

continues to rise. Professionals also have the

opportunity to gain international experience

from within the domestic job market as

government initiatives continue to support

the placement of Malaysian-based talent into

multinational companies expanding across

the country.

Job seeker expectations

What jobseekers are lookingforin theirnext role

20%

46%Scope for career progression

International opportunities

12%

Training and support 2%

The company's reputation 7%

More seniority

13%

Increase in salary

Salaryexpectationsfor jobchange

1-5% 1%

6-10% 6%

11-15% 15%

16-20% 20%

21-25% 30%

26% or above 28%




Increased levels of business activity has

caused skills shortages across the white

collar employment market in Malaysia and

the retention of key talent is becoming a

significant challenge for many companies.

For most of the respondents surveyed

(39%), being offered career development

opportunities is the main reason they choose

to remain with their current employer. In

a competitive market, the most forward-

thinking employers will offer a structured

career development plan supported by

training to keep their best people engaged.

Financial reward for achievements was rated

as the second most influential factor by

survey respondents in deciding to stay with

their current company. As a result, companies

will need to offer competitive market rates

to keep their top performers from leaving the

business. With job opportunities continuing

to rise across all sectors, professionals are

becoming increasingly confident about

making the move to a new employer to

boost their level of income.

Preferred retention strategies

Financial reward

Career development

Motivating manager

International opportunities

What willkeepemployeesin theircurrentrole

15%

11%

39%

35%




As economic conditions remain strong across

the broader Asia region, employers will need

to review staff salary levels. Employee wage

expectations are rising in line with inflation and

improving market conditions and employers

will need to offer strong financial incentives

for the best chance of retaining their most

talented professionals.

According to survey results, over the next

six months, some 30% of respondents

will ask their current employer for a salary

increase. Most employees are aiming for

an increase of between 6% and 10% on

their current base salary. Companies that

cannot meet these expectations will need

to offer other incentives to help retain their

top professionals, such as training and

development opportunities.

Will request a pay rise

Will not request a pay rise

Unsure

Salarypressuresover next six months

30%39%

31%

Whatemployeeswill ask forin their current role

1-5% 6%

6-10% 36%

11-15% 32%

16-20% 13%

21-25% 8%

26% or above 5%

Employee salary expectations




Business confidence remains positive with

the volume of job opportunities in the market

holding steady across all industries. Through

its training and development initiatives, the

Malaysian government continues to support

the placement of local talent into growing

businesses, which is further enhancing the

career opportunities available for skilled and

experienced professionals across the country.

With positive jobs growth predicted to

continue this year, employee confidence in

the employment market is high. Some 67%

of the employees surveyed for this report

consider the current market to be strong

or very strong. As business conditions

remain positive over the next 12 months,

staff movement is predicted to increase.

Employers will need to implement attraction

and retention strategies now to secure the

talented professionals they need to drive

future business growth.

Current job market

Very strong

Strong

Weak

9%

58%

32%

1%

Very weak

Employeeconfidencein jobmarket



Market Outlook

Positive business activity levels across

the broader Asia region is expected to

continue to boost economic conditions

in Malaysia throughout 2012. This is

supported by the national government

program to drive domestic business

activity and fuel job opportunities for

white collar professionals across all key

industries. The vast majority of employees

surveyed for this report are confident

about the number of job opportunities for

their profession over the year. Some 75%

of respondents believe that employment

conditions in their profession will improve

or significantly improve compared to the

current market.

Despite the strength of the domestic

employment market over the coming year,

some 58% of employees surveyed for this

report intend to look for job opportunities

outside Malaysia. For most of the employees

surveyed, Asia will be the focus of their

job search.

Singapore is the main destination of choice,

followed by China. As Singapore continues

to establish itself as a key regional business

hub, the number of employment opportunities

on offer for skilled and experienced

professionals will increase, particularly within

multinational companies looking to expand

their operations throughout the region.

Malaysian professionals will be looking

to take advantage of the career growth

opportunities available in Singapore, as well

as the prospect of increasing their income.

Employment conditions for 2012

It will significantly improve

It will improve

It will be worse

It will be far worse

Employeeconfidencein jobmarket2012 vs 2011

7%

68%

24%

1%

Top 5countries job seekerswill look for work

Countries RankSingapore 1

China 2

Hong Kong 3

Indonesia 4

Thailand 5

58%

42%

Yes

No

Employeeslookingfor workoutsideMalaysia in the next12 months

58%

42%

Yes

No

Employeeslookingfor workoutsideMalaysia in the next12 months

67%

22%

6%

Asia

Australia/New Zealand

Europe

Middle East/Africa

Region job seekerswill lookfor work

5%



Executive Overview: Malaysian expatriates

Key findings MethodologyThe majority of survey respondents are expatriate Malaysians that are

currently living and working in Singapore. Over the last 12 months,

Singapore’s economy has continued to strengthen, helped in part

by multinational companies establishing their regional operations in

the country. This development has increased the number of job

opportunities for white collar professionals, with competitive market

rate salaries offered by companies looking to secure the best talent

in the region. Local Malaysian professionals have therefore moved

to take advantage of career growth opportunities in Singapore, as

well as the prospect of increasing their income. Additionally, in the

survey responses from local Malaysian professionals, many identified

Singapore as a market with good employment opportunities.

For expatriates, confidence in the current Malaysian job market is

strong, as is their prediction for the country’s employment outlook for

2012. With business activity in Malaysia supported by the broader Asia

region and government initiatives in place to up-skill local professionals

to fill talent shortages, most employees are optimistic about the number

of job opportunities likely to become available over the year. Of the

locally based Malaysian professionals surveyed, confidence in both the

current job market and employment conditions over the coming year is

also high, as a result of the positive business environment.

With economic and business conditions expected to improve, many

expatriates are looking to move back to Malaysia. Most of these survey

respondents are mid-level employees that have most likely met their

career goals while working overseas and will return home for family

reasons. According to the survey findings, these professionals will

be looking for work across the growing sectors of finance, banking,

engineering, supply chain and marketing.

The Michael Page Employee Intentions Report (Malaysian expatriates)

is based on the responses of an online survey that was distributed

to 5,600 Malaysian nationals living and working overseas. Participants

represent a variety of professional occupation groups holding positions

that range from entry level through to senior management. The scope

of the report includes expatriate confidence in the current Malaysian

job market, their insights into the predicted employment outlook for

the country and the possibility of returning to live and work in Malaysia.

The commentary includes some insights from the findings of the

Employee Intentions Report (Malaysian locals), which is based on the

responses of an online survey distributed to professionals living and

working in Malaysia.

Majority of expatriates confident about Malaysian job market

“

”

Top 5countries Malaysianexpatriatesare currently employed

Countries RankSingapore 1

China 2

Hong Kong 3

Australia 4

Japan 5





The white collar employment market in

Malaysia is strengthened by positive business

conditions across the broader Asia region, as

well as the government’s focus on providing

professionals with opportunities for training

and development through Talent Corporation

Malaysia. Overall, expatriates have a positive

opinion of the country’s job market with

almost half of survey respondents (48%)

reporting current employment conditions to

be strong.

However, while many employees have

confidence in Malaysia’s current job market,

there are a significant number of expatriate

survey respondents (37%) that consider

employment conditions to be weak.

Current job market

8%

37%

48%

7%

Very strong

Strong

Weak

Very weak

Expatriate confidencein the Malaysianjob market



Market Outlook

Positive economic conditions across

the Asia region are likely to continue to

strengthen the Malaysian economy and have

a positive impact on business activity during

2012. In addition, the government’s national

Economic Transformation Program is also

expected to boost the Malaysian economy

in areas including financial services, business

services, consumer, healthcare, education

and resources.

With improving business conditions across

Malaysia, employment opportunities are

expected to increase over the next year.

This will be supported by Talent Corporation

Malaysia’s focus on up-skilling locally based

Malaysian professionals. As a result, more

than half of the expatriates surveyed (55%)

anticipate that the job market will improve

over the next 12 months, in comparison

to 2011.

While many expect job opportunities to

increase this year, there are also a number

of expatriate survey respondents (40%) that

predict the 2012 Malaysian job market will

not be as buoyant as it was during 2011.

This uncertainty about the strength of future

employment conditions correlates with the

37% of expatriate respondents who believe

the current Malaysian job market is weak.

Employment conditions for 2012

4%

40%

55%

1%

It will significantly improve

It will improve

It will be worse

It will be far worse

Expatriate confidencein Malaysianjob market2012 vs 2011



Market Outlook

With most respondents having a positive

opinion of both the current job market and

employment outlook for Malaysia, many

expatriates are considering the prospect of

returning home to seek work. Professionals

are becoming confident that employers in

Malaysia can offer them the opportunity to

progress their career and be awarded with

increased salary rates after having gained

experience working overseas.

Of the survey respondents planning to return

to Malaysia for work, some 48% are aged

between 30 and 39, followed by those aged

between 40 and 49 (38%). As mid-level

professionals, it is likely that they have met

their career goals while working overseas.

Over half of these employees (59%) expect

to return home in more than a year’s time for

family reasons.

As the national government focuses on

boosting business activity in finance,

resources and marketing, job opportunities

are anticipated to rise over 2012. While the

government also has initiatives in place to

up-skill local professionals to fill positions in

these areas, Malaysians currently working

outside the country will also look for

employment opportunities in these sectors

on their return home. According to the survey

responses, the majority are planning to seek

work in accounting and finance, followed by

banking and financial services.

Expatriate movement to Malaysia

7%

38% 48%

7%

29 or below

Between 30 and 39

Between 40 and 49

Between 50 and 59

Expatriatesreturning to Malaysiafor employment

When expatriatesplan toreturn to Malaysia

Less than 3 months

Between 3 and 6 months

Between 6 months and 1 year

More than 1 year

Do not have plans to return

7%

5%

12%

47%

29%

Top 5 areas expatriateswill lookfor workin Malaysia

Discipline RankAccounting and finance 1

Banking and financial services 2

Engineering and manufacturing 3

Procurement and supply chain 4

Marketing 5

Reasonsexpariateswill returnto Malaysia foremployment

Salary

International opportunity

Culture

Career progression

Company's reputation

Family

11%

12%

3%

13%

2%

59%


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Contact

About Michael Page International

Michael Page International is a leading professional recruitment consultancy specialising in the recruitment of permanent, contract and temporary positions on behalf of the world’s top employers.

The Group operates through 161 offices in 33 countries worldwide. First established in London in 1976, we’ve been bringing job seekers and employers together for more than 30 years.

www.michaelpage.com.my

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Tower 2 Etiqa Twins, 11 Jalan Pinang

Kuala Lumpur, Malaysia 50450

Tel +603 2302 4000

Fax +603 2302 4001

[email protected]

For more information or media enquiries contact

+61 2 8292 2000 or [email protected]

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