Employee benefits are crucial for companies as they help to attract and retain employees. In Malaysia, there are a number of common employee benefits which range from medical and dental coverage to retirement savings plans. While all of these benefits are important, some are more popular than others.
Continue reading to find out what are the types of benefits that Malaysian employees prioritise more than others.
Employee benefits are compensations or rewards that reimburse your employees on top of their base salary. Some benefits are made mandatory by the Employment Act 1955, such as annual leave, sick days, working hours, etc.
Any other benefits are considered optional such as insurance, retirement plan options, training, and many more. This area is where companies utilise their creativity to develop attractive benefits to win the talent war.
But why would companies in Malaysia use nearly one-third (30.67%) of their total yearly expenses on benefits?
Because Malaysian employees are unhappy in general.
A survey by Hays Malaysia found that 46% of employees in Malaysia were dissatisfied with their current compensation packages.
As a result, 52% of Malaysian employees are actively seeking a new job.
Conversely, it's not 'salary' that retains the employees.
What actually keeps them in your company are:
Most companies in Malaysia are becoming more aware of the employees' needs. They start to understand that thoughtful benefits can drive employee retention and engagement. This is why more companies are revamping their benefits packages.
Besides the mandatory benefits, they are also offering a lot more optional benefits, such as:
Read our 2022 Employee Benefits Trend Report to find out how much employers spend on benefits.
It's worth finding out what employee benefits the top 3 winners of the Most Attractive Employer of 2021 offer.
Randstad reported that the top 5 reasons why Shell, Nestle, and Intel won the award are:
This shows that attractive benefits are one of the top priorities of employees. The question is, what those benefits are.
Health and Wellness:
Financial and Retirement:
Family & Parenting:
Vacation & Time off:
Perks and Discounts:
Shell, Nestle, and Intel are huge companies with big budgets. However, that doesn't mean other companies can't have attractive benefits.
You don't have to strain your budget to get a long list of benefits.
It is more about listening to your employees' needs and finding out what benefits they need most.