Rise in Hiring Forecast Next Year as Talent-Retention Woes Persist
Recruitment on the Rise
Employers in Malaysia are gearing up for a hiring surge, with 55% of organisations indicating plans to increase recruitment within the next six to 12 months. This uptick reflects growing confidence in Malaysia’s economic recovery, bolstered by new policies and investments under the Madani Budget 2025, which emphasizes high-value roles, digital transformation, and economic diversification.
Talent Retention Remains a Challenge
Despite the positive hiring outlook, retaining talent has become increasingly complex, with 68% of organisations citing high competition as a key hurdle. Salary remains a significant factor in talent retention, with a majority (61%) of professionals expecting salary increments of 1-5% in 2025, while employers may struggle to meet these expectations. The survey also revealed a growing mismatch between employee demands and organisational capabilities, with 32% of professionals seeking salary increases of 25% or more.
Professional Confidence in Career Prospects
Mid- to senior-level professionals are entering the New Year with optimism, with 64% expressing confidence in job opportunities within their fields. This positive outlook is complemented by proactive career planning, with 44% of professionals already exploring new opportunities while employed.
The Road Ahead
As Malaysia’s job market continues to transform, organisations are leveraging on strategies like skills-based hiring and upskilling to meet industry demands. Employers are also prioritising non-monetary benefits, including flexible working arrangements and a positive workplace culture, to attract and retain top talent.
Conclusion
In conclusion, while employers in Malaysia are gearing up for a hiring surge, talent retention remains a significant challenge. As the job market continues to evolve, organisations must adapt to meet the changing expectations of employees and stay competitive in the war for talent.
FAQs
* What is the hiring forecast for next year?
+ Over 55% of organisations in Malaysia plan to increase recruitment within the next six to 12 months.
* What are the key challenges in talent retention?
+ High competition, salary expectations, and mismatch between employee demands and organisational capabilities.
* What strategies are organisations using to attract and retain top talent?
+ Skills-based hiring, upskilling, flexible working arrangements, and positive workplace culture.