Photo - Chook Yuh Yng, Country Manager of JobStreet
Online jobs platform JobStreet's latest survey shows that Malaysian employers remain concerned about talent retention while 75 percent of employees now seek bonus pay-outs to stay in their jobs.
JobStreet country manager Chook Yuh Yng said the survey gauged the correlation between bonuses and employee retention in the current competitive market where employers struggle to find and retain talent.
Chook said a total of 3, 858 employees who participated in the survey were asked, "Do bonuses contribute to your retention?"
"A significant 75 percent of them said that bonuses played a crucial role towards their retention", she said. The respondents also said that their current bonus scheme was one of the primary reasons why they would opt to stay put within their companies, and given the chance they would leave for better paying positions.
However, Chook said that when the employers were asked if bonuses contributed to employee retention, only 37 percent acknowledged this as a major factor in making employees stay with their companies.
This shows that there is a large gap between the perception employees and employers on the subject of bonuses, she said.
Higher bonuses expected
Chook added that 56 percent of employees who took part in the survey expect their year-end bonuses to be higher than they were a year ago, up by 5 percent compared to a similar survey done last year.
When asked why employees expected a bonus increase, 57 percent believed that they have fulfilled their management's expectations in terms of work performance, 35 percent attributed it to their organisation's higher business profits and 8 percent said it was due to a decrease in operation costs and overheads compared to last year.
She said 26 percent of the respondents expect their bonuses to remain the same and 18 percent expect a reduced bonus.
Out of those who are anticipating a lower bonus, the majority of them said it's because their organisations were seeing a decline in business profits in comparison to the previous year, said Chook.
The survey also noted that 55 percent of employees expect a salary increase above 6 percent, she said. However, only 27 percent of employers will be giving an increment that is equivalent, implying that a large number of employees will not be receiving their expected increments this year.
"As the cost of living increases, more employees are in search of opportunities that will help them cope with their current expenses. Employers must be willing to bridge the gap between their current pay-out schemes and employee needs. If employees feel valued and fairly compensated, they will be enthusiastic and committed to their jobs and will find no reason to leave," she said.
Note: This survey covered two different groups comprising 437 companies from various business sectors and 3850 employees from different job levels.
JobStreet and jobsDB are part of SEEK Asia, which is an online employment market place in Asia. SEEK Asia covers 7 countries namely Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.
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