Competitive salaries and benefits remain the strongest factor influencing employer choice among Malaysian workers, while career progression and work-life balance continue to shape employee expectations, according to the Randstad Employer Brand Research 2026 – Malaysia report.
The report found that 71% of Malaysian talent ranked competitive salary and benefits as the most important factor when choosing an employer, placing it ahead of work-life balance (67%), career progression (65%), equal opportunities (61%) and job security (59%).
Salary expectations were found to increase with age, rising from 65% among Gen Z workers to 75% among Gen X, while women placed slightly greater importance on compensation compared with men, at 73% versus 69%.
Despite compensation remaining the biggest attraction factor, the study showed Malaysian employees generally view their current employers positively in areas such as job security and work-life balance.
The research found that current employers performed strongest in providing job security and maintaining work-life balance.
Millennials were the most likely to believe their employers provided job security, with 81% expressing confidence compared with 76% of Gen Z and 69% of Gen X. Younger workers were also more likely to rate their employers positively on work-life balance, with around 77% of Gen Z and Millennials compared with 67% of Gen X reporting positive experiences.
Job security in Malaysia is largely associated with reliable pay and benefits, cited by around two-thirds of employees, with Gen X placing the highest importance on this factor at 69%. Organisational stability, fair employment practices and transparent communication were also highlighted as contributors to employee confidence.
For work-life balance, employees identified a positive working environment as the most important factor, followed by flexible working arrangements and reasonable workloads.
The report highlighted continued mobility among Malaysian workers, with 32% of talent planning to change employers within the next six months, while another 13% intended to move roles within their current organisation.
However, actual job movement has slowed, with 15% of workers having changed employers in the past six months, down three percentage points from the previous year.
Low compensation emerged as the leading reason employees consider leaving, cited by 53% of Malaysian talent. Other major reasons included poor work-life balance (41%), lack of career growth opportunities (around 40%), poor management relationships and negative workplace environments.
The importance of pay as a retention factor increases with age, while younger workers place stronger emphasis on career development and workplace experience. Gen X workers were also more likely to cite poor leadership and management relationships as reasons for leaving.
Randstad said employers need to strengthen compensation structures, leadership quality and career development opportunities to improve retention.
The report noted that while salary remains foundational, work-life balance is increasingly viewed as an expectation rather than a benefit.
“Pay remains foundational, but work-life balance is an expectation, not a perk. The battle will be won by employers who can offer clear career growth and equal opportunity for all,” the report said.
The study found job boards remain the most widely used channel for Malaysians searching for new opportunities, while LinkedIn, social media and professional employment services play supporting roles.
Younger workers were more active across multiple job-search platforms, with Gen Z and Millennials using job boards, LinkedIn and professional networks more frequently than Gen X. Meanwhile, older workers relied more heavily on personal connections and networks.
Despite digitalisation, in-person engagement remains important throughout the hiring process, suggesting that recruitment decisions continue to depend on human interaction alongside online platforms.
Randstad Malaysia said employers that can provide competitive pay, flexible working arrangements, meaningful career pathways and supportive workplace cultures will be better positioned to attract and retain talent in an increasingly competitive labour market.
