The appraisal cycle is done, but satisfaction is still thin on the ground. In Malaysia, just 54% of respondents received a pay hike this year, and an overwhelming 98% say they’re considering a job switch.
The signal is hard to miss: money helps, but it isn’t solving the underlying trust and transparency gap.
Modest (or no) hikes were the norm
Where raises did land, they mostly sat in the 0–10% range. Nearly 1 in 2 (46%) received no increment at all.
Expectations were misaligned: 70% said their hike was lower than expected, 23% said it met expectations, and only 7% found it higher than expected.
By industry: BFSI and IT trail; oil & gas shows the top-end gains
Disparities sharpen at the sector level:
- BFSI: 62% reported no hike; no one reported 20%+ raises, and the bulk stayed at ≤15%.
- Engineering, Construction & Real Estate: 37% had no hike, but increases were spread across all bands, including 5% at 20%+.
- Production/Manufacturing, Automotive & Ancillary: 32% saw no hike; a broadly balanced spread with 0–10% most common and 6% at 20%+.
- Oil & Gas: More generous at the top end: 33% had no hike, yet a notable 22% reported 20%+ increases.
By function: HR/Admin and Sales hit hardest; Engineering and Finance hold steadier
Function-wise hikes mirror the sector story:
- Sales & BD: 75% got no hike, but a polarised tail—17% still saw 20%+ hikes.
- IT: 41% with no hike; only 3% in the 15–20% band and none 20%+.
- Marketing & Communications: 58% with no hike, yet 25% reported 20%+—another polarised picture.
- Engineering & Production: More balanced: 30% no hike, with distribution across bands, including 7% at 20%+.
Promotions were limited
Career progression lagged: only 28% received a promotion; 72% did not. (We do not have data on promotions without pay for MY.)
Fairness and trust are the real gaps
Only 29% felt the appraisal was fair; 71% did not. The most requested fixes to the process underscore this:
- Transparency on how hikes/promotions are decided — 44%
- Clearer performance metrics and goals — 35%
- More frequent feedback — 24%
- Managers trained to give constructive feedback — 23%
- Stronger link between outcomes and rewards — 5%
The bottom line
For Malaysia, the retention risk is acute: even among those who did get hikes, dissatisfaction is high and intent to switch (98%) is near-universal. Sectors like BFSI and IT skew cautious, while oil & gas and some commercial roles show polarised outcomes (many with no hike, some with very high hikes).
If employers want to hold on to talent, pay alone won’t cut it. Close the expectation gap with transparent criteria, clearer goals, regular feedback, and manager capability-building — and make sure appraisal decisions visibly connect to rewards and progression.
