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Employee Intentions Report

Michael Page International Malaysia, 2012

Michael Page Employee Intentions Report

Contents
Executive Overview: Malaysian locals
Attracting New Talent Retaining Top Performers Job Market Confidence Market Outlook

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4 6 8 9

Executive Overview: Malaysian expatriates


Job Market Confidence Market Outlook

10
11 12

Contact

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www.michaelpage.com.my

Michael Page Employee Intentions Report

Executive Overview: Malaysian locals


Key findings
The 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.

Methodology
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

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Michael Page Employee Intentions Report

Attracting New Talent


Job seeker activity
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.

17% 40%

43% Very likely Quite likely Not likely

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Michael Page Employee Intentions Report

Attracting New Talent


Job seeker expectations
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.

What job seekers are looking for


in their next role

Scope for career progression Increase in salary International opportunities More seniority The company's reputation Training and support 2% 7% 13% 12% 20%

46%

Salary expectations
for job change

1-5% 6-10% 11-15% 16-20% 21-25% 26% or above

1% 6% 15% 20% 30% 28%

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Michael Page Employee Intentions Report

Retaining Top Performers


Preferred retention strategies
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 forwardthinking 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.

What will keep employees


in their current role

15% 35%

11%

39% Financial reward Career development Motivating manager International opportunities

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Michael Page Employee Intentions Report

Retaining Top Performers


Employee salary expectations
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.

Salary pressures
over next six months

30% 39%

31% Will request a pay rise Will not request a pay rise Unsure

What employees will ask for


in their current role

1-5% 6-10% 11-15% 16-20% 21-25% 26% or above

6% 36% 32% 13% 8% 5%

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Michael Page Employee Intentions Report

Job Market Confidence


Current job market
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.

Employee confidence
in job market

1% 32%

9%

58%

Very strong Strong Weak Very weak

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Michael Page Employee Intentions Report

Market Outlook
Employment conditions for 2012
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.

Employee confidence
in job market 2012 vs 2011

1% 7% 24%

68%

Employees Employees looking looking for for work work outside outside Malaysia Malaysia
42%

42% 58% 58%

It will significantly improve It will improve

in the in next the next 12 months 12 months

Yes No

Yes No

It will be worse It will be far worse

Region job seekers


will look for work

6%

5%

22% 67%

Top 5 countries job seekers


will look for work

Countries
Singapore China Hong Kong Indonesia Thailand

Rank
1 2 3 4 5

Asia Australia/New Zealand Europe Middle East/Africa

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Michael Page Employee Intentions Report

Executive Overview: Malaysian expatriates


Key findings
The majority of survey respondents are expatriate Malaysians that are currently living and working in Singapore. Over the last 12 months, Singapores 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 countrys 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.

Methodology
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.

Top 5 countries Malaysian expatriates

Countries
Singapore China Hong Kong Australia Japan

Rank
1 2 3 4 5

are currently employed

of Majority expatriates confident about Malaysian job market

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Michael Page Employee Intentions Report

Job Market Confidence


Current job market
The white collar employment market in Malaysia is strengthened by positive business conditions across the broader Asia region, as well as the governments focus on providing professionals with opportunities for training and development through Talent Corporation Malaysia. Overall, expatriates have a positive opinion of the countrys job market with almost half of survey respondents (48%) reporting current employment conditions to be strong. However, while many employees have confidence in Malaysias current job market, there are a significant number of expatriate survey respondents (37%) that consider employment conditions to be weak.

Expatriate confidence
in the Malaysian job market
37%

7%

8%

48%

Very strong Strong Weak Very weak

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Michael Page Employee Intentions Report

Market Outlook
Employment conditions for 2012
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 governments 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 Malaysias 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.

Expatriate confidence
in Malaysian job market 2012 vs 2011
40%

1% 4%

55%

It will significantly improve It will improve It will be worse It will be far worse

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Michael Page Employee Intentions Report

Market Outlook
Expatriate movement to Malaysia
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 years 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.

Reasons expariates will return


to Malaysia for employment

Salary International opportunity Culture Career progression Company's reputation Family 2% 3%

11% 12% 13% 59%

Expatriates returning
to Malaysia for employment
38%

7%

7%

48%

29 or below

When expatriates plan to return


to Malaysia

Between 30 and 39
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 29% 7% 5% 12% 47%

Between 40 and 49 Between 50 and 59

Top 5 areas expatriates will look for work


in Malaysia

Discipline
Accounting and finance Banking and financial services Engineering and manufacturing Procurement and supply chain Marketing

Rank
1 2 3 4 5

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Michael Page Employee Intentions Report

Contact
Kuala Lumpur Office
Level 5 Tower 2 Etiqa Twins, 11 Jalan Pinang Kuala Lumpur, Malaysia 50450 Tel +603 2302 4000 Fax +603 2302 4001 enquiries@michaelpage.com.my

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

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