Malaysia's workforce in 2025: talent on the move, AI on the rise, salary gaps still unmet

Malaysian employers face a competitive talent landscape in 2025, where salary, benefits, and work-life balance remain the top priorities for job seekers across generations. Despite some improvements, significant expectation gaps persist—a 7-point shortfall in salary and benefits and a growing 5-point gap in work-life balance—indicating critical areas for improvement in employer branding and retention strategies.

These insights come from the 2025 edition of the Randstad Employer Brand Research, an independent and globally representative study commissioned by Randstad and conducted by Kantar. This year’s Malaysia survey marks the 11th edition in the country and captures workforce sentiment across generations, genders, and sectors.

Talent mobility is intensifying, with 35.2% of workers planning to switch jobs in the first half of 2025, up from the previous year. The leading motivator? Better work-life balance (47%). Other reasons include lack of career growth (35%), salary not keeping pace with cost of living (33%), and irresistible offers (30%).

Encouragingly, employee engagement is trending upward: 62% of respondents feel more motivated at work. However, those who feel less engaged are nearly twice as likely to consider leaving (53% vs. 30%). Strong work-life balance, healthy relationships with managers, and manageable workloads are top engagement drivers, while dissatisfaction stems from low pay, lack of growth, and poor recognition.

In parallel, AI is being embraced more positively: 81% of talent expect it to shape their roles, daily use has nearly doubled, and fears of job displacement are declining. The workforce increasingly sees AI as a tool rather than a threat.

On diversity, equity, and inclusion (DEI), 41% of respondents identify as minorities—mainly due to ethnicity, religion, or gender identity. While 56% still report facing obstacles, perceptions are improving in key areas like fairness in hiring, equal pay, and access to upskilling.

Digital job search behaviors continue to evolve, with rising use of LinkedIn, company career sites, and social media—especially among Gen Z and Millennials—while job board effectiveness has slightly declined.

Randstad's data reveals the top employee value proposition (EVP) drivers for Malaysian talent:

While EVP preferences are clear, the disconnect between employee expectations and employer delivery remains a pressing challenge—especially on pay and work-life balance.

Sector-specific insights show that Sales & Marketing experienced the highest spike in resignations (up 14%), while Engineering also saw moderate increases in turnover. In contrast, Admin/HR and ICT sectors saw lower churn.

Finally, DEI remains a work in progress. Though 41% identify as minorities, perceptions of fairness in pay, promotions, and inclusion have improved slightly year over year, showing gradual progress toward equity in the workplace.