Unlocking Success: Navigating 2024 Job Market Trends and Compensation Strategies

The post-pandemic job market continues to rebound from the struggles and uncertainties of recent years. Things are back to normal, but not everything is the same. Instead, we’re seeing a “new normal,” shaped by various trends like remote work, digitalisation, and a newfound emphasis on work-life balance.

This shift is boosting hiring. Jobstreet by SEEK’s Hiring, Compensation & Benefits Report 2024 shows that over half of the companies in Malaysia (54%) believe that the job market will be active in the first half of 2024. Even better, 57% plan to grow their teams during this time.

Optimism for the first half of 2024 builds on the momentum of 2023. Last year, 94% of companies hired at least one employee, up from 88% in 2022. So, how can you capitalise on this trend and attract and keep top talent?

To thrive in this changing job market, you must understand the new realities. Use this insight and make smart hiring and compensation decisions. Stay updated on the job market trends in 2024, the latest compensation strategies, and what employees and candidates want.

Seek Asia’s Hiring, Compensation & Benefits Report 2024 provides us with a lot of relevant data and insights into how we can best approach this post-pandemic landscape. Let’s take a look into the 5 key points that every hirer should know about the present and future job market.

What are the latest trends in talent acquisition? What latest job market insights can you take with you in the first half of 2024? Here are some insights and trends to keep in mind for the first half of the year.

Overall, hiring was on the rise in 2023. But what stood out the most was the change in the types of roles companies are filling.

There was noticeable jump in permanent part-time employees from 3% of all companies in 2022 to 32% in 2023. The striking 29% increase points to a growing trend towards roles that suit project-based work or flexible work setups.

Contractual or temporary staffing is gaining popularity among businesses, particularly medium and large enterprises. These businesses are increasingly inclined to retain contractual or temporary staff, especially during the first half of the year.

Over half of SMEs (52%) attribute this trend to continued business expansion. Meanwhile, another significant portion (38%) struggles with recruiting suitable full-time staff and consequently resorts to hiring temporary staff instead.

Given the rise of hybrid work setups, this hiring trend is expected to persist well into the first half of 2024.

Hiring of permanent full-time employees also saw an increase, from 82% in 2022 to 96% in 2023. In terms of specific job functions, Sales and Business Development saw a significant boost (from 22% in 2022 to 31% in 2023).

However, the biggest hiring spike is in Marketing and Branding roles, soaring from 11% in 2022 to 21% in 2023. These numbers paint a picture of an economy in recovery. Companies are ramping up their sales and marketing efforts.

Zooming out to the larger trends, you will see a thriving job market, particularly with the inclusion of more permanent part-time roles. This shift offers greater flexibility for both job seekers and employers.

Flexible work setups give job seekers more options in when and where they could work. For companies, they have more flexibility in their operating times, length of projects, and the kinds of compensation packages they can offer.

According to Jobstreet by SEEK’s Malaysia Future Of Employment Report, financial compensation remains the top deal-breaker for job seekers when accepting job offers. When it comes to attracting and retaining top talent, you need a competitive compensation and benefits package.

So, what are some of the best compensation strategies used by the top companies in 2024?

With the ongoing impact of inflation, many businesses have updated their pay structures. Recognising that competitive compensation must consider inflation, top companies are focusing heavily on salary benchmarking, which is the most common compensation strategy in 2024.

Salary benchmarking involves comparing your organisation’s pay grades to industry norms. For example, to attract the best Marketing Associate candidates, your offer must match or exceed what competitors pay for similar roles.

Keep in mind that 23% of companies using salary benchmarking techniques claim that their salary increases keep pace with or exceed inflation. For context, the average salary increase in 2023 was 6.95%. While this is slightly lower than the 7.2% average increment in 2022, it still surpasses the national annual inflation rate of 3.38%.

To stay competitive, you must look outwards and study the industry standards for compensation packages. On the other hand, looking inward is equally helpful. Gauge your employees’ sentiments. Conducting internal surveys and analysing employee benefits can provide insights into the level of satisfaction within your staff.

Do your existing employees feel adequately compensated? Which areas could be improved? What specific needs can your company address? Based on this feedback, you can recalibrate not only your monetary compensation package but also your entire benefits package and work environment.

In maintaining and solidifying a productive workforce, talent retention strategies go hand-in-hand. Upper management should constantly monitor employee satisfaction and address any concerns that affect the well-being of their workers. Here’s a look at the latest trends and strategies in employee benefits that are making a significant impact.

A key trend in talent retention is the expansion of special leave policies. Companies have increased paternity leaves by 12% while extending additional maternity leaves to 11%. This shift puts extra attention to work-life balance, a priority that has gained prominence since the pandemic.

The trend towards flexible work locations continues to rise. Hybrid work setups are gaining more acceptance among many companies, including options like 4-day work weeks and half-day Fridays. This flexibility allows employees to choose work locations that suit them best – be it at home, remotely, or onsite.

Other trends that give us a glimpse into the future of workplaces include the provision of entertainment and physical fitness facilities, offering employee assistance programmes for remote workers, and a rise in organisational activities, among others.

The pandemic has transformed the priorities of many employees. Health is now a major concern for workers. So, companies have responded by increasing comprehensive health-related benefits in the past year and committing to add more in 2024. There is now a growing trend of providing greater medical insurance, health checks, and mental health coverage as part of a holistic benefits package.

Another great way to motivate employees is to foster career growth and offer paths for career development. Companies have become more willing to give staff promotions, with 60% of them giving career advancements in 2023. This is a noticeable increase from 54% in 2022.

There is also an uptick in upskilling, a trend that began during the pandemic and is now becoming more common. Now, companies offer career development programmes such as training and self-learning to reward employees.

More organisations are acknowledging and addressing the changing needs of their workforce. Work-life balance, health benefits, and career development are becoming top priorities for employees. It is up to companies to keep up with the rest of the job market by providing holistic benefits packages as part of their talent retention strategies.

How well have Malaysian companies adapted to the changing job market landscape? Looking at regional compensation trends, it appears that local industries are at least at par, and in certain areas, faring better.

The entire Southeast Asian region is dealing with rising inflation and companies have adjusted their compensation packages accordingly. But it is notable that, despite having the lowest inflation rate in the region (3.38%), Malaysia still has the 3rd highest pay increment in 2023.

You can see further proof of local companies’ desire to improve their hiring and compensation strategies in geographical salary differences. For instance, while salary benchmarking is a popular compensation strategy among other Southeast Asian countries, Malaysia is the leading implementer of salary benchmarking at 59%.

The practice of offering performance bonuses is another area where Malaysia is near the top in the region, with 61% of companies providing these incentives. This is just slightly behind the Philippines at 64%.

If you want to retain employees, performance bonuses can be a significant factor, as they directly reward productivity and achievements.

Local companies are at the forefront of the newest hiring and compensation trends in the region. To keep up with your industry competitors, you should be in step with the best practices in talent acquisition in the country and Southeast Asia as well.

Innovations spurred during the pandemic are driving the transformations we are seeing in the modern work landscape. From these adaptive measures, we have learned lessons that we carry to this day. Here’s a guide on how organisations can navigate the future of work in Malaysia.

The biggest takeaway that informs many companies’ post-pandemic decisions is that work can be carried out effectively outside the office and outside conventional work schedules.

Employees themselves are reinforcing this realisation among many organisations. According to the Hiring, Compensation & Benefits Report 2024, 61% of Malaysians prefer a hybrid work setup over a fully onsite work setup. This is a high number compared to the global average of 54%, which indicates a strong desire locally for work flexibility.

Local companies are responding accordingly. The desire for hybrid work and greater work-life balance among the workforce has greatly influenced hiring and benefits strategies among many companies. This is the main reason why hybrid work models are becoming more of a norm than a temporary arrangement.

Embracing hybrid models involves more than just allowing employees to work from home. It requires a fundamental shift in operational strategies, including:

Flexible scheduling

Offer flexible hours that accommodate different life commitments, enhancing work-life balance.

Supportive infrastructure

Provide the necessary tools and technologies to ensure productive remote work, such as laptops, secure VPNs, and collaboration software.

19% of companies allowed remote work depending on job function in 2023. This is significantly higher than the overall projection of only 12% the previous year.

Organisational support for remote work is becoming more common as well, with 55% of companies providing laptops for employees and 51% offering virtual meeting support.

With a significant portion of companies adapting to remote work, it's crucial to support employees in this transition.

Remote work policies

Develop clear policies that outline expectations, responsibilities, and support structures for remote workers.

Equipment and software

Ensure employees have access to the necessary equipment and software, including ergonomic furniture and high-speed internet, if possible.

Companies should also realise that the support they can provide isn’t limited to equipment and software requirements. They must also implement initiatives to address their employees’ mental health. Only 37% believe that their organisations are doing enough to help employees cope with stress, suggesting a large room for improvement in this aspect.

45% of companies have started new initiatives to help employees cope with stress last year. Is your company doing its part to protect the mental wellness of its workforce?

Mental health initiatives

Implement programmes and initiatives focused on mental health, such as access to counselling services, mental health days off, and stress management workshops.

Create a supportive culture

Foster an organisational culture that prioritises mental health, encouraging open discussions and reducing stigma around mental health issues.

The shift towards remote and hybrid work models leads to re-evaluating the need for permanent office spaces.

Flexible office use

Consider downsizing or reconfiguring office spaces to accommodate hybrid work models, focusing on collaborative spaces for when physical presence is necessary.

Co-working spaces

Explore the use of co-working spaces for employees who prefer an office environment but do not need to be in the company's primary location.

The work landscape will continue to evolve, and staying informed about emerging trends is vital.

Continuous learning

Encourage a culture of continuous learning and adaptation, both for individual career growth and organisational agility.

Employee feedback

Regularly gather feedback from employees on their work preferences, challenges, and suggestions for improvement.

Are you willing to embrace remote work trends in 2024? Are permanent office spaces still part of your long-term future? These are just among the many questions you need to ask yourselves as you begin to navigate the post-pandemic work landscape.

Jobstreet by SEEK Asia’s Hiring, Compensation, and Benefit Report 2024 is the compensation trends guide and talent insights report that you’ll need as you make your hiring decisions.

Download the free report and get all the relevant data that can inform your compensation and talent acquisition strategies for 2024 and for years to come.

In 2024, the post-pandemic hiring resurgence is showing no signs of slowing down. Every company needs to ride this wave to attract and retain top talent. That means staying up-to-date on the latest hiring trends, talent acquisition strategies, and compensation practices.

To stand out in Malaysian recruitment, you must offer a comprehensive compensation package and stay aligned with remote work trends. This holistic approach not only attracts top talent but also fosters employee satisfaction and retention.

Gain insights into all these aspects and more. Don't miss out on our free Hiring, Compensation, and Benefits Report 2024. It's your guide to navigating the ever-evolving landscape of recruitment and ensuring your company's success in attracting and retaining top talent in 2024 and beyond.

Job market trends in 2024 are shaped by various factors like the ongoing COVID-19 impact, technological advancements, changing consumer behaviour, and government policies.

Hybrid work setups, which allow employees to work both remotely and in the office, have gained significant importance in the current job market. These setups offer flexibility to employees and enable companies to optimise their operations and adapt to changing work environments.

Offer competitive pay, growth opportunities, positive culture, work-life balance, and flexible options.

Emerging trends in talent acquisition and recruitment include the use of artificial intelligence and automation in the hiring process, a focus on diversity and inclusion, prioritising candidate experience, leveraging employer branding strategies, and implementing innovative sourcing techniques.

Stay updated on industry trends and developments and invest in supplemental benefits. Consider investing in employee training and upskilling. Foster adaptability and resilience within the workforce, maintain open communication with employees, and continuously evaluate and adjust your recruitment and retention strategies.

Promote a supportive and inclusive work culture. Besides this, consider offering supplemental benefits related to mental health. Provide access to mental health resources and support services, flexible work arrangements, and wellness programmes and initiatives.

Technology plays a significant role in talent acquisition and recruitment. It streamlines the hiring process, automates repetitive tasks, improves candidate experience, facilitates remote hiring and onboarding, and enables data-driven decision-making.

Stay agile and adaptable. Invest in innovation and technology, prioritise employee engagement and satisfaction, continuously evaluate and improve recruitment and retention strategies, and maintain a strong employer brand.

Compensation and benefits have evolved to align with the shifting priorities and preferences of employees in 2024. Companies are increasingly focusing on offering competitive salaries, comprehensive benefits packages, and flexible perks to attract and retain top talent.

Compensation and benefits have evolved to align with the shifting priorities and preferences of employees in 2024, focusing on competitive salaries, comprehensive benefits packages, and flexible perks to attract and retain top talent.

Benefits enhance the overall compensation package, addressing diverse employee needs. Relevant benefits such as health insurance, retirement plans, flexible work arrangements, wellness programmes, and professional development opportunities are offered to attract and retain talent.

Companies can ensure competitiveness by staying informed, conducting regular reviews, soliciting feedback, and aligning strategies with organisational goals and values.

Emerging trends include an increased focus on employee well-being, flexible work arrangements, personalised benefits packages, and diversity, equity, and inclusion initiatives.

Companies can use compensation and benefits as part of their employer branding strategy by highlighting competitive offerings and unique perks to attract top talent and strengthen the employer's brand.