RECRUITMENT MARKET REPORT

Malaysia 2015

Chile - Indonesia - Malaysia - Philippines - Singapore - Thailand

COMPANY OVERVIEW

Monroe Consulting Group is an international award-winning executive search company that delivers the
highest standards of professionalism to multinational and national companies in emerging economies
around the world. Originally conceived in Australia, the Group opened its first office in Thailand in 2002
and expanded rapidly. It now operates a network of branches throughout Asia and Latin America,
employing more than 100 professional consultants who are expert at recruiting in developing markets.

Monroe’s brand is based on the principles of honesty, integrity and customer satisfaction through its
commitment to excellence in executive search. The Company prides itself on its ability to recruit, develop
and retain the best and brightest talent in the recruitment industry. Each and every Monroe employee is
trained to specialise in providing end-to-end recruitment services for middle- to senior-level executives
within defined sectors.

Monroe Consulting Group provides a selection of recruitment services that can be tailored to the specific
requirements of its customers in a range of contexts. Clients can opt for either a database search or an
executive search (headhunting) recruitment service, both of which are offered on success-based fee
structures. It is Monroe’s ability to talent map, locate and recruit the finest candidates for its clients that
sets the Company apart from its competitors.

Indonesia Thailand Philippines

Gedung Sovereign Plaza, 16th Floor 209 K Tower, 23rd Floor, Tower B 2108 Trade and Financial Center
Jalan TB. Simatupang Kav. 36 Sukhumvit 21 (Asoke) Cnr. of 7th & 32nd Street
Cilandak Klongtoey Nua, Wattana BGC, Manila, 1634
Jakarta, 12430 Bangkok, 10110

E: indonesia@monroeconsulting.com E: info@monroeconsulting.co.th E: philippines@monroeconsulting.com

Malaysia China Chile

The Gardens North Tower 26F, Lippo Plaza Alcantara 200, piso 6
Mid Valley City No.222 Middle Huaihai Road Las Condes
Lingkaran Syed Putra Huangpu, Shanghai, 〒200021 Santiago
Kuala Lumpur, 59200

E: malaysia@monroeconsulting.com E: chile@monroeconsulting.com
E: china@monroeconsulting.com

Mexico
Insurgentes Sur 1796 4to Piso
Col. Floridar
Mexico D.F, 01050

E: mexico@monroeconsulting.com

Chile - China - Indonesia - Mexico - Malaysia - Philippines - Thailand

REPORT BACKGROUND

Despite modest global economic growth estimated at 2.5 percent, including the slowdown in China, and
lower commodity prices, Malaysia is expected to record growth of between 4.5 and 5.5 percent in 2015.
Though this has negatively impacted on employment in some sectors, the demand for skilled, managerial-
level professionals remains high, with the jobs market considered to be strong. This shortage of talent has
been exacerbated by a number of factors, including a “brain drain” and ethnic preferences when
companies consider which candidates to hire.

The scarcity of talent, particularly in the services and manufacturing sectors, has given rise to increased
competition among leading companies for professionals, resulting in expectations of higher salaries and
a greater turnover of employees as executives seek to cash in on the demand. Combined with low job
satisfaction and increasing living costs, this has resulted in an increase in the prevalence of “job hoppers.”

These trends have been borne out in the results of a Candidate Survey of 100 executives used to compile
Recruitment Market Report, Malaysia 2015, which was written to help employers and employees
understand some of the key influencing factors of the executive recruitment market.

The survey revealed that 40 percent of the executive-level respondents had changed employers in the
past year, which compares to an average of 23 percent in the emerging economies of Indonesia, Malaysia
and the Philippines. Generally, mid- to senior-level employees remain upbeat about the availability of
jobs, with 44 percent of respondents rating the current job market as strong or very strong.

The survey came up with some surprises. It showed that 70 percent of respondents who had remained
with their employers did not receive pay increases in the past year. Of the 30 percent that did, 52 percent
received increases of below 10 percent. This differed for executives expecting to move to new companies,
with 75 percent of those surveyed expecting increases of up to 40 percent. Money was the primary
consideration followed by future career opportunities and performance pay.

Companies looking to retain staff have reacted by offering a number of benefits. In Malaysia, 41 percent
of respondents received flexible working hours and options to work at home, a higher figure than in
comparable countries in the region. On the negative side of the equation, companies were increasingly
making use of extended resignation periods to dissuade job hoppers, and were making counteroffers of
increased pay to retain executives. The survey found that 24 percent of respondents had resigned only to
accept counteroffers, the majority of which were in the form of increased salaries and benefits. These
counteroffers made little difference, however, as 23 of respondents resigned within 6 months anyway,
increasing to 41 percent within a year and almost 60 percent within 18 months.

Though executive jobseekers are using a variety of methods to seek new employment opportunities, the
majority of respondents (35 percent) said they had secured their current jobs through a recruitment
company.

Chile - China - Indonesia - Mexico - Malaysia - Philippines - Thailand

CANDIDATE SURVEY
Malaysia 2015

Chile - Indonesia - Malaysia - Philippines - Singapore - Thailand

SURVEY DEMOGRAPHICS

Gender Industry Sector

Female Technology Health

23% 29% 5%
Consumer
Goods
16%

Professional
Male Industrial
Services
77% 32%
18%

Age Group Education Level

40 – 44 45 – 54 Diploma
18% 10% 18%
18 – 24
1%
PHD
3%
35 – 39 25 – 29
20% 14%
Degree
59%
Masters
20%
30 – 34
37%

Number of Years Work Experience Current Employer

16-20 20+
15% 14% Local
37%
0-5
9%

11-15
32% 6-10 Multinational
30% 63%

Chile - Indonesia - Malaysia - Philippines - Singapore - Thailand

Current Job Function
30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

Current Career Level

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%
CEO Director Snr. Manager Manager

Chile - China - Indonesia - Mexico - Malaysia - Philippines - Thailand

COMPENSATION & BENEFITS

Nearly 50 percent of the professional executives who responded to the survey earned between US$2,001
and $4,000. Though this compares to the responses from throughout the other emerging Southeast Asian
economies, Malaysia was differentiated from its neighbours in that just 18 percent of those surveyed
earned below $2,000. This compared to an average of 23 percent in Indonesia, Thailand and the
Philippines. This highlights higher minimum levels of earnings for Malaysian professionals.

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

Almost a quarter of respondents (24 percent) who remained with their existing employers recieived zero
increases in salary in the past year, while a further 36 percent received increases of between 1 percent
and 5 percent. And these statistics held when all the respondents were asked about future pay increases
at the same company, with 61 percent believing increases would be below 10 percent.

2014 Increase with Current Employer Anticipated increase in 2015 with Current Employer

11-15% 11-15% 16-20%

10% 14%
6-10% 16-20% 9% 21-25%
22% 7% 4%

26-30%
26-30% 4%
1%
0%
8%
0% 6-10%
1-5% 36%
24% 1-5%
36%
25%

Chile - China - Indonesia - Mexico - Malaysia - Philippines - Thailand

Companies in Malaysia are offering a wide range of benefits with private medical insurance, travel
allowances, communication allowances and external training the most common. Forty-one percent of
respondents had access to flexible working hours and options to work from home, which is higher than
other comparable countries in the region where only 32% had access to flexible working conditions.

100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%

More than 50 percent of those polled received annual holidays totalling between 13 and 18 days off per
year. What is interesting is that 27 percent of respondents were entitled to holidays of more than 3 weeks
a year, which is substantially higher than other emerging Southeast Asian countries where only 11%
received this number.

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%
<10 days 10-12 days 13-15 days 16-18 days 19 - 20 days 21 - 25 days >25 days

Chile - China - Indonesia - Mexico - Malaysia - Philippines - Thailand

CAREER ADVANCEMENT

More than 70 percent of candidates reported that they did not receive promotions from their current
employers in the past 12 months. Of the 29 percent of respondents that did, the majority (52 percent)
received pay increases of below 10 percent. Just 24 percent of those polled received increases above 16
percent.

Promoted by Employer in Past 12 Months Salary Increase When Promoted

16-20%
11-15%
Yes 17%
24% 21-25%
29%
4%

Above 40%
3%
No
6-10% 1-5%
71%
42% 10%

CONSIDERATIONS WHEN CHANGING EMPLOYERS

Fixed income was the primary consideration for changing with a score of 8.98 out of 11. This was closely
followed by future career opportunities (7.36), performance pay (6.98) and challenge of the job (6.96).

10.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00

Chile - China - Indonesia - Mexico - Malaysia - Philippines - Thailand

 Salary Expectations when Changing Jobs Respondents changing employers expected a salary
increase of some kind, with 75 percent of those
surveyed expecting increases of up to 40 percent.
31-40% 41-50%
18% 3% The largest group was 43 percent of respondents
51-60%
who expected increases of between 21 percent and
3%
30 percent, followed by 18 percent of respondents
91-100% who expected increases of between 31 percent and
21-30% 1% 40 percent. Only 4 percent of Malaysians were
43% expecting salary increases of up to 10 percent.
0 - 10%
4%
These expectations are vastly different from the
actual increases Malaysian professionals are
11-20% receiving from their current employers for taking on
28%
a new position, where 52 percent of people
promoted received increases of under 10 percent.

When questioned about what would create positive and negative impressions of a potential employer the
results of the survey indicate that companies desiring the best talent in the market should actively
consider their respective approaches toward interviewing job candidates. The transparency of the process
scores highest, with 49 percent of a respondents stating that an open environment creates a strongly
positive impression during the interviewing and hiring process. In addition, communication is also another
major consideration for candidates, with 27 percent of those polled rating clear communication channels
as contributing to the formation of a positive impression during the recruitment process. Similarly, a lack
of transparency caused a negative impression among 25 percent of respondents, as did a lack of
communication with 23 percent of those polled. Other major causes of negative sentiment were a lack of
chemistry with company representatives and the speed of the process.

Creates a Positive impression Creates a Negative Impression

Communication Transparency
27% Chemistry Chemistry 25%
9% 28%

Environment
2%
Speed
13%
Speed
13% Transparency
Communication Environment

Chile - China - Indonesia - Mexico - Malaysia - Philippines - Thailand

 Acceptance of Counteroffers Employers should note that even when an offer has
been accepted there remains a high risk of
candidates accepting a counteroffer from their
Yes current employers, with 24 percent of respondents
24% saying they had resigned from their employer, only
to end up accepting a counteroffer. The vast
majority (59 percent) of successful counteroffers
came in the form of a promotion and more money.
Some 27 percent said this was because they were
offered more money to stay.

No Nine percent of respondents accepted a

76% counteroffer because of feelings of guilt and 5
percent changed their minds about moving
employers after their current employers provided
negative information about the new company.

Employers and employees considering the benefits of counteroffers should proceed with caution as 23 of
respondents resigned within 6 months, increasing to 41 percent within a year and almost 60 percent
within 18 months.

Reason for Accepting Length of Employment after Accepting

I felt
guilty
Promotion & > 2 years
9%
money Negative 36%
59% information 0-6
5% months
23%
19-24
months
5%

More 13-18 7-12

money months months
27% 18% 18%

Chile - China - Indonesia - Mexico - Malaysia - Philippines - Thailand

JOB MARKET INDICATORS
The job market for professionals remains strong in Malaysia, as evidenced by the fact that 40 percent of
respondents had only been with their current employer for less than a year – a figure that is almost double
the regional average of 23 percent. This is indicative of a talent shortage in Malaysia and a pool of
professionals that is willing to switch employers when better opportunities arise.

45.0%

40.0%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%
< 1 year 1-2 years 3-4 years 5-10 years > 10 years

Another sign that the job market remains positive for candidates in Malaysia is the fact that 92 percent of
the professional respondents had been approached and offered the chance to interview for a new job in
the past 6 months. This includes 30 percent who had been approached between five and 10 times in the
past six months, and 50 percent who had been approached between one and five times.

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%
None 1 – 5 times 5 – 10 times 10 – 15 times 15 – 20 times Over 20 times

Chile - China - Indonesia - Mexico - Malaysia - Philippines - Thailand

When professionals look to change jobs they are using a wide variety of channels, with Jobstreet, LinkedIn
and professional executive search firms being the top 3 methods used.

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%
Executive JobsDB JobStreet Monster LinkedIn CareerJet Newspaper Personal
Search Firm Contacts

When it came to which of these channels bought the most success, Executive Search firms led the results,
with 35 percent of respondents saying they had secured their current job through a recruitment company.
In total 70 percent of the professionals surveyed had been directly approached about their current job,
while only 30 percent had responded to advertising.

40.0%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%
Newspaper Internet Friend or colleague Executive search firm Contacted by
employer

Chile - China - Indonesia - Mexico - Malaysia - Philippines - Thailand

A further indication of how strong the job market is for Malaysian professionals is that employers are
extending notice periods to make changing jobs more difficult. Almost 40 percent of respondents said
they had signed employment contracts with 3-month notice periods and another 33 percent said that
period was 2 months. This is longer than the comparable regional figures which are 11 and 16 percent
respectively.

Current Notice Period Job Market Feeling

Weak
19%
3 months 1 month
Very
38% 29%
Strong
3%

Moderate
37%

Strong
2 months
41%
33%

Malaysian mid- to senior-level employees remain upbeat about the availability of jobs, with 44 percent of
respondents rating the current job market as strong or very strong and 37 percent rating the market as
moderate.

Chile - China - Indonesia - Mexico - Malaysia - Philippines - Thailand