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PERSEKUTUAN MAJIKAN-MAJIKAN MALAYSIA MALAYSIAN EMPLOYERS FEDERATION (Reg. No: 1357-SELANGOR)

HEAD OFFICE: 3A06 3A07, Block A, Pusat Dagangan Phileo Damansara II, No. 15, Jalan 16/11, Off Jalan Damansara, 46350 Petaling Jaya Selangor, Malaysia. P.O. Box 11026, 50732 Kuala Lumpur, Malaysia. Tel: 603-7955 7778 Fax: 603-7955 6808/7955 9008 E-mail: mef-hq@mef.org.my

Press Release
MEF SURVEYS: SALARY INCREASE TO CONTINUE UPWARD TREND

THE PRIVATE sector employees received higher salary increments this year but bonuses are expected to continue its downward trend, revealed the latest MEF Salary Surveys for Executives and NonExecutives 2011. Based on data collected from 214 respondent companies, the average salary increment of 6.45 per cent for executives was higher than the 5.37 per cent provided to nonexecutives. However, the forecasted rate ofsalaryincreasefornonexecutivesis expectedtobe at 5.73percentin2012whilethe executives areexpectedtoreceivealowerincrementof6.08percentfornextyear. For unionised employees, the average rate of across the board salary adjustment was six per cent comparedto5.8percentin2009. MalaysianEmployersFederation(MEF)President Y.Bhg.DatoAzmanShahDatoSeriHaron,inlaunching theMEFSalarySurveysforExecutivesandNonExecutives2011attheMEFHeadquartersinPetalingJaya today,saidbonusesareexpectedtocontinuetodeclinebasedonthesurveyfindings. For 2012, the average forecasted bonus for executives is 2.13 months, which is lower than the 2.48 months in 2011, and for the non executives it is 1.93 months compared to 2.03 months in 2011, said DatoAzman. We found that only 82.4 per cent of the number respondent companies granted bonus to either all or certain executives in 2011, which was lower than 86.1 per cent in 2010, whilst 81.9 per cent of non executivesweregivenbonusin2011comparedto83.7percentin2010. Present at the launching ceremony were MEF Vice Presidents En. Abdul Wahab Abu Bakar and Dr Michael Chiam Tow Hui, Honorary Treasurer En. Mohammed Amin Aziz, Council Member En. PalaniappanJosephandExecutiveDirectorHj.ShamsuddinBardan. The MEF Salary Surveys for Executives and NonExecutives 2011, which have included new sections covering employability skills, also identified competency gaps in executives and nonexecutive employees. Based on the survey findings, the most critical skills lacking in executives were leadership skills in professionals (48.8 per cent), managers (60.9 per cent), engineers (40.2 per cent), while technical employees and sales / marketing executives lacked problem solving skills (39.7 per cent) and customer handling/organisingskills(37percent)respectively. Forthenonexecutives,themostcriticalskillsfoundlackingwereEnglishlanguageproficiencyforclerical / administrative position (63.6 per cent) and machine operators (47.6 per cent), communication skills in skilled employees (44.5 per cent) and general unskilled employees (52.4 per cent), whilst the production supervisorsmainlylackedleadershipskills(47.3percent). Dato Azman said that in overcoming the issues on recruitment, some of the companies have adopted measures which include hiring staff on contract (55.6 per cent), retraining existing staff (52.6 per cent), diversify recruitment channels (48.9 per cent), and to provide training to less qualified recruits (40.7 per cent). In addition to the Salary Surveys for Executives and NonExecutives, the MEF also launched the MEF AnalysisofCollectiveAgreements&AwardsonTermsandConditionsofEmployment2010,andtheMEF SurveyonHumanResourcesPracticesandBenchmarkingonHRIndicators. Forfurtherinformation,contacttheMEFSecretariatat0379557778orfax0379556808. 15NOVEMBER2011

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