A recent survey by JobStreet.com found 75% of employees in Malaysia would stay put in their job with bonus payout.
In today’s competitive job market, companies have been struggling with employee retention to keep the best talent in their employment. As such, JobStreet.com conducted a survey recently to investigate the correlation between bonuses and employee retention.
The survey was participated by a total of 3,858 employees, and seven out of 10 respondents agreed that bonuses play a crucial role towards their retention.
One of the primary reasons these respondents are not leaving their current employment is due to the current bonus scheme offered by their employers, but given the chance they would leave for better paying positions.
The survey also found a wide chasm between employees and employers on the subject of bonuses. Only 37% of the employers who took part in the survey think that bonus payout contributes to the employee retention in their companies.
Meanwhile, 56% of employees expect their year-end bonuses to be higher than they were a year ago, up by 5% compared to a similar survey done last year.
The reasons for the increase are, 57% believe that they have fulfilled their management’s expectations in terms of work performance, 35% attributed it to their organisation’s higher business profits and 8% said it was due to a decrease in operation costs and overheads compared to last year.
Twenty-six percent of the respondents expect their bonuses to remain the same and 18% expect a lesser bonus. The majority of those who are anticipating a lower bonus said it’s because their organisations are seeing a decline in business profits compared to the previous year.
Other than bonuses, 55% of employees are expecting an increase in salary by at least 6%, but only 27% of the employers will be giving an increment that is equivalent. This means that many employees will not be receiving their expected increments this year.
“As the cost of living increases, more employees are in search of opportunities that will help them cope with their current expenses. Employers must be willing to bridge the gap between their current payout schemes and employee needs.
“If employees feel valued and fairly compensated, they will be enthusiastic and committed to their jobs and will find no reason to leave,” said Chook Yuh Yng, Country Manager of JobStreet.com.