According to a survey conducted by BrioHR, Kuala Lumpur’s fastest growing all-in-one HR platform, 3 in 4 respondents expect a salary increase of more than 10%, while 1 in 4 respondents expect a salary increase of 2% to 10% in 2022.
The survey, which polled hundreds of professionals in June, provides insight into employee expectations for the upcoming compensation cycle.
Benjamin Croc, Co-founder and CEO of BrioHR, said:
“At BrioHR, we understand the importance of compensation in making employees feel valued for their efforts. We are also aware of the complexities and challenges that come with developing compensation policies, particularly in uncertain economic times. In a year of economic volatility and skyrocketing living costs, employees understandably expect pay adjustments and specific percentage increases from their employers in order to feel that their hard work is being adequately valued.”
“While the majority of respondents in our survey expect a salary increase of more than 10%, 25% are more conservative in their expectations because they recognise that companies today are also in dire straits as a result of the overall macroeconomic environment.”
The Rise in the Cost of Living
“Perhaps one of the most noticeable changes is how much more everything costs, from the coffee you grabbed on your way to work to the gas you filled up on for your commute. As such, it’s not surprising that the majority of respondents are hoping for increases of more than 10% this year,” said Croc.
According to the Department of Statistics Consumer Price Index (CPI) report, it was revealed that food inflation was 4.1% higher in April compared to the same month last year, with 89.1% of the goods in the food and beverages group experiencing price increases.
The Great Resignation to the Great Reshuffle
Croc explained, “The pandemic sparked the Great Resignation, and Malaysia and the rest of the world were said to have had a record-breaking year for employee resignations in 2021. This was due to a number of factors, including the economic and psychological effects of the COVID-19 pandemic, as well as a shift in mindset among employees.
“As a result, the Great Reshuffle occurred. Many of these workers left their jobs in search of better opportunities, while others entered the burgeoning gig economy or started their own businesses. According to a JobStreet survey in December, 80% of employees were considering changing jobs because they could make more money by doing so than by staying put.
“The average 3% to 5% annual pay increases simply cannot compete with the double-digit increases that workers can obtain by changing jobs.”
Cautious Outlook
Croc further said, “Market conditions have dramatically changed and in today’s evolving labour market, remaining competitive as an employer will require companies to demonstrate their adaptability. Astute employers are taking steps to close salary gaps and ensure that all employees are paid fairly. They recognise that a cautious ‘wait and see’ approach to compensation is risky and can lead to the loss of top talent.
“This also presents the HR industry with a great opportunity to adjust their hiring and onboarding processes to address all the upheaval. It is extremely crucial that hiring and onboarding be reworked to reflect the changing needs of today’s companies and employees. Businesses that reimagine the workplace, keep their employees engaged, and treat them with fairness will be in a better position to attract and retain star performers.”
