- “Salary and Benefits” recorded the widest talent gap at 8-point difference between talent expectations and assessment of employers
- Work-life balance key to motivating employees in Malaysia for better retention rate
- 33% of respondents now using AI regularly at work, an 11% increase from 2024
“Salary and Benefits” records the widest gap between employee expectations and perceptions of what employers in Malaysia offer. While Malaysian talent consistently rank “Salary and Benefits” as the most important employer value proposition (EVP) when considering an ideal employer, this factor drops to 8th place when assessing their current employers.
Randstad, the world’s largest talent company, today released its full 2025 Employer Brand Research report in Malaysia. Commissioned by Randstad and independently conducted by Kantar, this annual study is the world’s most comprehensive employer brand research, surveying over 170,000 people globally, including 2,588 respondents in Malaysia.
Salary and benefits have consistently been the top priority for Malaysian talent, especially with the growth in job opportunities driven by rapid expansion and rising cost of living. However, annual salary increments often fall short of expectations and this gap is a key driver behind the increasing number of Malaysians seeking new employment opportunities for the salary they want.
malaysia talent are engaged at work, thanks to good work-life balance and camaraderie
In 2025, 2 in 3 respondents reported feeling more engaged at work, attributing their motivation primarily to a strong work-life balance and improved workplace relationships. Conversely, 12% felt less engaged, most often due to concerns about salary and limited promotion opportunities.
The survey also revealed that less engaged employees are 23% more likely to consider changing jobs.
generational insights on motivation.
The study reveals distinct motivational drivers across generations:
Generation Z: Uniquely prioritises positive relationships and camaraderie above work-life balance. They also report lower engagement when seeking higher pay (reflecting salary and benefits concerns).
Millennials & Generation X: Consistently identify work-life balance as their foremost workplace motivator. Millennials, similar to Gen Z, show reduced engagement when seeking higher pay, while Gen X expressed greater concern over job security and missed promotions.
Offering competitive salaries is just one part of attracting and retaining top talent. Employers must also prioritise providing a good work-life balance to their employees by providing flexible work arrangements, fostering a positive culture, and ensuring workloads are both manageable and stimulating for growth. While achieving this balance can sound challenging, today’s talent is looking for an employee experience that empowers and fulfills them.
top 3 reasons driving motivation among workers: generation data
top 3 reasons why workers are less motivated in 2025: generation data
sectoral insights on what motivates talent from different professions.
This section dives deeper into the nuanced drivers of engagement across various industries in Malaysia, revealing that while core motivators exist, specific professional groups have distinct priorities that influence their employee expectations and perceived value of compensation and benefits.
what motivates professionals across malaysian industries
The survey’s sectoral insights highlight notable differences in what drives employee engagement and contributes to a positive employee retention rate.
Respondents in Sales & Marketing, Technology, Administration, Secretarial, and Human Resources consistently identified manageable workloads, robust work-life balance, and flexibility as their primary motivators for feeling engaged at work. These factors, alongside attractive salary and comprehensive employee benefits, form their ideal employee value proposition.
In contrast, engineering professionals reported that job security and meaningful recognition are the key factors enhancing their engagement. While salary and benefits remain foundational, for engineers, the stability of their role and acknowledgement of their contributions often weigh heavily in their overall job satisfaction.
AI adoption rising quickly in malaysia
AI adoption is found to be rising quickly in Malaysia, with 33% of respondents now using AI at work—an increase of 11-point from the previous year. The proportion of those who have never used AI in their roles has dropped by 13% year-on-year.
Attitudes toward AI in the workplace are also becoming more positive. This year, 2% more respondents reported feeling optimistic about AI’s impact on their job satisfaction, while 2% fewer expressed concern that AI would replace their jobs. These shifts indicate that Malaysia’s workforce is increasingly viewing AI as a valuable tool and collaborator, rather than a threat.
Fostering interest in AI among employees is especially important to many companies as it directly supports their digital transformation. Effective AI training programmes not only drive these business goals, but it also equips employees to complement and integrate critical and logical thinking with AI capabilities. It is also important for employers to leverage AI tools while ensuring compliance with data protection regulations and a strong grasp of ethical AI practices.
get your free digital copy: 2025 employer brand research report
Conducted by Kantar TNS in January 2024, the study surveyed 170,000 respondents around the world, including 2,588 individuals in Malaysia, making it the world’s most comprehensive employer branding research based on general talent perceptions.
The 2025 Employer Brand Research explores the following critical talent expectations themes:
- How talent across different generations are ranking EVP importance (from a list of 16)
- Evaluation of factors driving employee motivation and engagement (i.e. workload, promotion opportunities and peer support)
- Year-on-year trend of AI adoption in Malaysia's workforce
- Measurement of employer's equity scores in ensuring equal opportunities for all
Visit our Employer Brand Research page for more information about the year-on-year employer branding trends to strengthen your capabilities in hiring and retaining talent in Malaysia.
connect with us for more in-depth talent insights
At Randstad, we conduct comprehensive market research to uncover talent insights and trends to support employers in developing and executive talent attraction strategies to find top talent in Malaysia.
Connect with our specialist talent consultants for more in-depth insights customised to your organisation or simply let us know your hiring requirements and we’ll get in touch with you.
related content:
- talent in malaysia seeking more financial support from their employers: 2024 employer brand research
- how technology is redefining the future of work: white paper 2023
- 74% of malaysians want to work for employers that offer attractive salaries and benefits: employer brand research 2022
frequently asked questions
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Why is employer branding important in Malaysia?
Companies with a strong employer brand are more likely to attract talent, especially when the competition for in-demand talent is intense. Employers that have the right strategies in place to improve their employer brand through better talent management and employee experience outperform other companies when it comes to attracting a broader pool of talent, which can also lead to better talent retention and recruitment outcomes.
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How can companies build a strong employee value proposition (EVP)?
Employee value proposition is unique to each company as it highlights their strengths that are rooted in their company brand and culture and it also creates the vision of where they strive to be in the future. On a strategy development and implementation level, it requires the inputs from the leadership team to provide strategic directions of where they want the company to be, and from the employees on what the company should provide to align them with the business strategy.
In general, the pillars of employee value proposition typically include culture, career growth, and well-being. However, the strategy for each of these pillars and its subsequent implementation techniques should be unique to the company.
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What is the biggest motivator for talent in 2025?
According to Randstad’s Employer Brand Research, “good work-life balance” and “attractive salary and benefits” have been the top two employee value proposition factors that talent look for in ideal employers. These two factors also face the largest talent expectation gap, which is defined as the top two factors that talent are looking for but employers are not meeting. For more information about the motivators and talent expectations gaps in your country and industry, please reach out to our specialised talent consultants for a meeting.