In 2024, Malaysia saw a significant rise in shared services centres, thanks to its cost-effective labour market, diverse language capabilities and a strategic location within Asia Pacific (APAC) that boasts a time zone amenable to regional business.
As the workforce settles into agile work and hybrid work arrangements, more organisations have also been able to improve work-life balance, talent retention, and employee efficiency and productivity, observes Lindy Ho, Senior Manager at Robert Walters Malaysia.
“Looking ahead, the adoption of artificial intelligence (AI) and other emerging technologies is set to pick up even more steam in the coming year,” states Lindy. “Already, we’re seeing companies integrate these technologies to streamline processes and make more informed decisions.”
Read on to find out more about Lindy’s expectations of the labour market and hiring trends for Human Resources professionals in Malaysia in 2025.
Employers to double down on employer branding and data-driven insights
One of the biggest trends that Lindy expects to see in the labour market in 2025 is a growing emphasis on people analytics. More companies will lean on data to derive insights that help with workforce planning optimisation, making sharper decisions around hiring, and boosting employee performance and talent retention.
Secondly, now that flexible work arrangements are more commonplace, job seekers are expected to prioritise roles that offer hybrid or fully remote arrangements. As such, employers will need to adapt to these preferences to attract and retain top talent.
Those efforts would fall under a larger push that organisations will need to make to stand out as an employer of choice. As Lindy notes, “We can expect to see businesses being intentional about cultivating their employer brand amidst a competitive talent market. They may do so through a variety of ways, including participating in industry events, conferences and thought leadership platforms.”
Demand for more well-rounded, strategic candidates
As companies lean more on data to make key business decisions, this will spur demand for professionals who are proficient in HR data analytics. Specifically, businesses will seek out candidates who are adept at analysing and interpreting data to support workforce planning and talent strategies.
HRBPs will continue to be a critical position as these candidates serve as strategic advisors for businesses, helping them align HR functions with business goals, foster employee engagement and drive organisational change.
Candidates who are familiar with local labour laws, specifically around employee rights and compliance, will also be in high demand. This comes as organisations need HR professionals who can help them manage their talent pool while remaining compliant to local regulations.
In the year ahead, the most sought after roles are HR business partners (HRBP), as well as positions in L&D, talent development and talent acquisition.
“HRBPs will continue to be a critical position as these candidates serve as strategic advisors for businesses, helping them align HR functions with business goals, foster employee engagement and drive organisational change,” discloses Lindy. “Part of that change includes upskilling and reskilling existing talent to keep up with evolving industry changes and emerging technologies, and companies will look to L&D professionals to lead the charge there. To round it all off, they will also need skilled recruiters who can help them find the right talent, especially as the hiring market becomes increasingly competitive.”
Cost of living, flexibility and welfare top of mind for candidates
Candidates are still eager to move jobs where the right position becomes available, though in 2024, job seekers were primarily driven to seek out higher-paying roles to combat the rising cost of living.
Monetary factors aside, the location of work has also become a key consideration for many candidates, with Lindy noting, “Generally, candidates are less inclined to join companies that require a commute of more than 15 kilometres.”
Job seekers are also taking other benefits into account when assessing potential opportunities, particularly those that provide them with more flexibility and enhance their overall wellbeing. These include offerings like hybrid work arrangements, flexible benefits, employee and family welfare programs, initiatives that promote work-life balance and family care support.
Talent attraction and retention in 2025
With salary being a key driver for job seekers, companies will do well to offer competitive remuneration to attract and retain talent in the coming year. Lindy also recommends that businesses invest in upskilling as part of their talent retention policy.
“Candidates are drawn to inclusive and diverse work environments. To stand out on the market and attract the right fit, employers should strengthen their employer branding by showcasing their values and any initiatives on hand that fosters employee engagement and diversity,” advises Lindy.
Stable increments expected for job movers
Going into 2025, salary increments are expected to remain at the usual rates of 20 – 25% for job movers.
“Although job movers have the benefit of a candidate-driven market, companies are still mindful of internal equity. They will still rely on job grades and functions to benchmark salaries,” explains Lindy.
Find out more
Request access to our 2025 Salary Survey to benchmark salaries and to find out more about key hiring trends in the Human Resources industry in Malaysia.
