It said more employees were seeking an increment in 2022, based on its 2022 Hays Asia Salary Guide.

“About 19% expect a salary increase of 6% to 9% while 24% hope for an increase of 10% and above.

“After suppressing their demands for pay raises and bonuses last year, it is unsurprising that Malaysians are expecting higher compensation in 2022,” Hays Malaysia managing director Tom Osborne said in a statement today.

However, there may be a mismatch between such expectations and what companies are prepared to offer, he said.

“Many organisations are still operating on tight budgets as they focus on navigating their way out of the (Covid-19) crisis and returning to growth.

“It is vital that organisations manage this expectation gap with care,” he said.

This is especially important as 50% of employers in Malaysia expect to increase their permanent headcount this year, compared to just 27% in 2021. Yet, 38% reported a lack of confidence in hiring the skilled talent they need.

“Compensation in the form of revised bonus structures, better benefits, promotional opportunities or even greater flexibility at work could go a long way in bridging the salary expectation gap and boost talent retention,” said Osborne.

The firm outlined the top three functions where hiring is prioritised – technology, accounting and finance. There is also a need for skill sets in engineering/manufacturing.