Mercer today announced the results of its annual ‘2019 Malaysia Total Remuneration Survey’, a study which identifies key remuneration trends and makes hiring and pay increase predictions for 2020.
According to the findings, the 2020 salary increase across key industries is forecast to remain stable at 5% while the inflation rate is projected to increase to 2.4% (from 0.9% in 2019). The Shared Services & Outsourcing (SSO) industry is predicted to have the highest salary increase at 5.5% (compared to 5.3% in 2018),
followed by Life Sciences (5.4%) and Chemical (5.4%) industries.
Figures and forecasts are based on the Total Remuneration Surveys – Mercer’s flagship annual compensation and benefits benchmarking study that identifies key remuneration trends and predicts hiring and salary increase, with participation increasing to 551 companies this year in Malaysia across various industries. In addition, Mercer also conducts regular pulse surveys throughout the year to keep up with the impact of the rapidly changing business environment and compensation and workforce trends.
The salary trend forecast for 2020 in Malaysia remains stable across job functions as well. The top three job functions with the highest salary increase are production and skilled trades (5.8%), Data Analytics/Warehousing (5.5%), and IT and project managers (5.3%). Administration and secretarial jobs are predicted to receive the lowest increment at 4%. As for career streams, paraprofessionals can expect salary increase of 5.3%, whereas executives can expect a 4% increase.
“Well-performing companies and industries may be more incentivized to provide employees with increases higher than the market average. It is no surprise we are seeing high salary increase forecast from industries
including Shared Services & Outsourcing as they benefit from the government’s push for industry disruption and digitization. Similarly, high demand for some jobs may lead to larger salary increases to attract and retain talent.”
Prashant Chadha, Chief Executive Officer at Mercer Malaysia
While the top reasons cited for employees leaving their organization in Asia varies by age group and gender, the top three reasons for employees leaving their organization are competitive pay, manager interaction, and a clear career path and job security.