Tower Watson survey reveals attrition rate to double in 2011, 16 pct increase from last year
Posted on November 18, 2011, Friday
KUALA LUMPUR: A survey by Tower Watson has revealed that the attrition rate would double in 2011 with a 16 per cent increase from last year, indicating, Malaysia’s war for talent continues unabated.
“The staff turnover trend was especially so, in the shared services outsourcing industry and asset management sector,” said Global Data Services Leader, Malaysia Towers Watson Worldwide, Sambhav Rakyan at his presentation here yesterday.
The Tower Watson annual General Industry Rewards Survey reported on compensation, benefits and reward trends, based on the views of over 203 organisations from several sectors.
He said top management and senior management levels contributed to higher staff turnover rates.
He said the top management and non-executives listed better pay opportunities elsewhere, as the main reason for leaving, whilst management and professional employees, cited better growth and career opportunities.
He added the study also revealed that sales and marketing staff were the hardest to recruit and retain, a challenge cited by several industries. Meanwhile, the survey also noted that the distribution of salaries had shifted from guaranteed to performance based.
Sam said following the same average salary increment rate, ranging between five per cent and 5.5 per cent over the last decade, it largely mirrored the inflation rate plus two to three per cent.
“Moving forward, we are optimistic about the local employment market, forecasting a 5.5 per cent salary increase for next year,” he added.
In addition to salary increases, Sam said employees are expected to receive a projected bonus of approximately three months for next year. — Bernama
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