Competition for talent is the number one issue faced by Manalysian employers in 2023, with 82% of companies citing this as a factor influencing their benefits strategy. Yet only 46% of organizations feel their current benefits plan is effective or highly effective in attracting and retaining key talent. That is according to our Benefits Trends Survey 2023 results for Malaysia.
With the current benefits offering, employers seem to struggle the most with maximizing employee engagement and participation with their benefits package throughout the year. Only 5% of employers rated themselves as effective in this area.
While many employers have doubts about their own strategy, they recognize the importance of a benefits offering that is aligned to their workforce needs. In fact, for more than half of the companies , 63%, a key area of focus is to ensure that benefit plans meet financial health of the company. A accelerating concerns around rising costs is now the second most important issue influencing benefit strategies, despite not being even among the top four issues in 2021.
More than half the employers are anticipating ongoing persistence of higher inflation, while 54% expect an impact from the weakening economy and current business environment. Hence, addressing employee needs and budget restrains may prove a challenge for Malaysian employers.
In a bid to conserve costs, 63% of employers look to focus on costs of their benefits while 7%, have taken action to improve terms from vendor contracts and another, 71% are planning to take action.
For some employers, their only option is to cut down on the number of benefits they offer in response to rising costs. 10% have opted to reduce the generosity of their benefit programs overall, while 25% have plans to do so. On the other hand, 65% of the companies in Malaysia are planning to secure additional funding for benefit programs.
To find out more about the 2023 Benefits Trends Survey, Malaysia, please reach out to our consultant who will be happy to walk you through it.
| Title | File Type | File Size |
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| Infographic: Issues affecting employee benefit strategies in Malaysia | .5 MB |
