Lam unpacks how wage expectations are shifting across industries, the growing demand for pay transparency, and how companies—especially SMEs—can create sustainable, meaningful compensation strategies that resonate with modern talent. From benchmarking fair pay to building flexible, values-led employer value propositions, his perspective offered a timely pulse on what it takes to attract and retain talent in today’s competitive hiring climate.
More than pay— meaningful, future-ready employment
Wage expectations in Malaysia have become more targeted and informed, particularly in high-demand sectors like tech, engineering, and healthcare where talent shortages are pushing salaries upward. We’re also seeing premium pay emerge in green job sectors as sustainability gains traction.
Beyond pay, there’s a clear shift in candidate priorities.
Gen Z professionals are evaluating roles based on job stability, flexibility, career mobility, and alignment with their personal values. Flexible work arrangements and meaningful, purpose-driven roles are now front and centre.
We’ve seen this reflected in our SEEK People & Purpose Awards, where top employers were fair compensation and embedding inclusivity, purpose, and progression into their talent strategies.
Compensation & Benefits Trends
Our 2025 report shows that salary and benefits remain the top priority for six in ten Malaysian jobseekers.
But “compensation” now includes much more than base pay—candidates want visibility into bonuses, allowances, wellness perks, and the full package from day one.
Tech and data roles continue to lead wage growth at 5.8% YoY, outpacing the national average of around 5%. Meanwhile, traditional sectors are seeing more modest adjustments due to tighter margins and talent supply.
One standout trend is the rise of pay transparency. Younger jobseekers especially expect salary ranges to be disclosed up front.
Roles with listed pay ranges consistently perform better in terms of views and applications. Employers that embrace transparency are building stronger trust and positioning themselves as fair and forward-thinking—an important competitive advantage.
Balancing rising wage expectations with economic and business constraints
It’s a common challenge, especially for SMEs. The solution isn’t always higher salaries, but creating perceived value through data-driven compensation and a strong Employer Value Proposition (EVP).
Tools like our Talent Attraction Lab enable employers to benchmark salaries accurately using regional market data. This helps avoid both underpaying and overpaying, while ensuring consistency and fairness.
Internally, aligning compensation based on role value and maintaining equitable pay across similar roles can prevent pay gaps and build trust.
By coupling market intelligence with a compelling EVP, companies can offer a competitive and sustainable package without straining budgets.
Transparency, reshaping hiring practices in Malaysia
Pay transparency is fast becoming the norm. Job ads without salary ranges are being skipped by increasingly informed candidates. At Jobstreet by SEEK, we’ve observed higher engagement for listings with disclosed pay.
Transparency now plays a major role in employer branding. Being open about compensation reflects professionalism and fairness and candidates equate this with integrity and employee-centric culture.
This trend was clear in the SEEK People & Purpose Awards. Leading companies weren’t just paying well—they communicated openly and made transparency part of their hiring culture.
Paying competitively
Fair compensation today means three things:-
- Market Alignment
- Internal Equity
- Role Relevance
It’s about paying competitively for in-demand skills, ensuring fairness across similar roles internally, and reflecting the actual value a role brings to the business.
To benchmark effectively, employers should adopt a continuous process—tap into real-time salary surveys, use benchmarking tools like those on Jobstreet, and cross-check externally and internally.
Internal pay audits and clear pay bands also help eliminate disparities and reinforce equity.
Compensation packages for total value proposition
Today’s jobseekers assess opportunities based on the total value proposition—not just the base salary. Companies should adopt a total rewards mindset, layering financial and non-financial benefits.
This can include performance bonuses, comprehensive health plans, wellness programmes, and flexible work arrangements. Career development—via training budgets, mentorship, and advancement paths—is increasingly valued as part of compensation.
Customisation is another differentiator. Some employers offer modular benefits or “benefits wallets,” where employees choose what matters most to them—be it more leave, medical coverage, or lifestyle perks like travel and gadgets. This flexibility enhances satisfaction and retention.
Communicating full value of compensation and benefits
Plenty of Malaysian employers offer excellent benefits, but employees often aren’t aware of them—largely due to weak internal communication.
A strong Employer Value Proposition must be clearly and consistently communicated at every stage of the employee journey—from recruitment to onboarding to regular performance reviews.
Managers should be equipped to articulate the full picture of rewards and how they reflect company culture and values.
At Jobstreet by SEEK, we support employers through platforms like our Talent Attraction Lab, helping them tell a cohesive story around their EVP.
It’s not just about listing perks—it’s about connecting them to a bigger purpose employees can relate to.
Download:
https://my.employer.seek.com/page/hiring-compensation-benefits-report-2025
