4 Most Demanded Employee Benefits in Malaysia

Competitive salaries, bonuses, paid leaves, and promotions. These are just some of the basic employee benefits that most employers in Malaysia offer to attract and retain their talents. While they motivate employees to some point, a 2021 survey found that 66% of employees tend to wait for their company's new benefits offerings before deciding whether to stay or go. Another survey by Hays Malaysia discovered that 46% of employees were extremely dissatisfied with their current compensation packages, the highest record in Asia. As a result, 52% of Malaysian workers actively seek new jobs. 

In short, the benefits you offer and promise to offer can indirectly influence the successful recruitment and retention of current employees.

But before reworking your employee benefits package, it is crucial to understand why your employees are resigning and your current employees’ demands. Conduct exit surveys with employees leaving and gather data on why they resign. You may also engage with your current employees by having them share what they like about your company’s benefits and other areas they wish the company could offer. This will roughly give you an insight into the benefits your employees want, which helps increase satisfaction and reduce turnover.

Nevertheless, dozens of other ways can inspire your employee benefits program to win the talent war. Here are some amazing (and most demanded) employee benefits as shared by fellow Malaysians:

#1 Work-life balance

A flexible work environment is today's most sought-after employee benefit (41%, according to Hays Malaysia). Much research has shown that many employees are seeking fully remote jobs that enable them to work from anywhere. In workplaces where these options are not applicable, hybrid arrangements that let employees work from home on some days are also growing in popularity. For roles that can't be performed remotely in their entirety, flexible work hours, also known as the “no punchcard mentality”, allow employees to work during non-traditional hours, which is found to be the next big thing. Younger generations particularly value flexibility in the workplace. 

Moreover, flexible work arrangements offer benefits not just for employees but employers. Companies can experience cost savings, improved attendance and efficiency, and increased job satisfaction and employee engagement. 

#2 Allowances and bonuses

As much as intrinsic rewards are great motivators for employees, monetary rewards are also as effective and practical in improving employees’ work performance. Whether it’s for hiring or retaining employees, offering a generous allowance (e.g. transport, parking, or meal allowances) and a bonus at regular intervals (e.g. bi-yearly or annually) could all be considered extra motivation when added to your employee benefits package. 

Particularly for jobs that are highly focused on sales, bonuses are especially rewarding, which drives greater work performance. 

#3 Education and professional development opportunities 

Among many popular employee benefits in Malaysia, professional training and workshops ranked highly on the list. This is because employees feel more engaged when they see that their company is invested in their growth and professional goals. 

You may consider offering workshops that focus on particular technical skill sets or characteristics (e.g. leadership or management coaching) to encourage continuous development within the company. As for employees who prioritize personal growth, sponsoring them with certification courses or educational assistance is also perceived to be one of the most valuable employee benefits in the workplace and will pay off in terms of employee loyalty, retention, and satisfaction. 

#4 Health and wellness perks

Employees are now looking for companies that care about their mental well-being more than ever. A 2021 report found that 42% of employees said they’re more likely to stay in their current company that provides access to various mental health benefits. Younger employees have also named ‘well-being’ as their top workplace need. This comes as no surprise, considering the mental stress and burnout that most Malaysian employees faced during and post-pandemic. 

Already got all the 4 points aforementioned down? Here is a list of other interesting benefits and perks that may attract and retain your employees: 

Onsite benefits

• Child care centres

• Massages

• Games and entertainment

• Lounge and social area

• Services such as dry cleaning or car wash

• Quiet rooms for meditation or prayer

Health and wellness support

• Gym memberships

• Healthy food options

• Ergonomic workstations/ standing desks

• Health and wellness coaching

• Therapy or meditation classes

Home office support

• Equipment allowances

• Ergonomic evaluations and equipment

Inclusive workplaces

• Floating holidays

• Employee resource groups

• Diverse health insurance provider networks

• Employee skills training such as sign language or foreign language programs

Others

• Company-paid food subscriptions

• Transportation discounts or allowances  

• Tertiary education subsidy for employee’s children

• Student loan educational assistance

• Employee discounts for company products or services

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