WORKPLACES have undergone significant transformations in recent years. Rapid technological advancements, economic shifts and changing demographics have reshaped the way people work and what they expect from their employers.
They have also influenced talent management strategies. According to the Chartered Institute of Personnel and Development’s (CIPD) Asia Employee Benefits Report 2025, developed in partnership with AIA, increasing employee satisfaction and retaining current employees were the most important goals when designing benefits in Malaysia. This is against the backdrop of rising costs (54%), economic uncertainty (37%) and digital transformation (34%), which were identified as the top trends influencing benefits strategies.
As a result, organisations find themselves navigating a complex and ever-changing talent landscape, and if they don’t listen to their employees, they risk losing out on attracting and retaining top talent.
Misalignment of talent strategies
Despite the need for employee well-being, many companies are struggling to align their talent strategies with the evolving expectations of the workforce.
According to the report, 65% of respondents said budgets are the main challenge when designing employee benefits, followed by understanding diverse employee expectations (47%). Yet, over half (52%) of Malaysian organisations said that gathering employee feedback was important as part of this process.
While this is promising, more companies need to follow suit as a misalignment between what employees want and what employers offer can have several consequences.
Firstly, many organisations continue to offer traditional, outdated benefits that may no longer resonate with younger workers.
Secondly, while employees are demanding flexibility, many companies in Asia are not fully embracing flexible work arrangements – there continues to be poor work-life balance, with long working hours and high-stress environments remaining common across the region.
Thirdly, while employees increasingly prioritise personal growth and learning, not all employers provide adequate pathways for career development.
And fourthly, while the younger generation of talent is seeking employers whose values align with their own, many companies fail to articulate a compelling mission or demonstrate social responsibility.
This disconnect between what companies are offering and what employees want has led to increased turnover rates, difficulty in attracting talent and reduced employee engagement, and in many cases negatively impacting business performances.
Attracting and retaining top talent
Organisations must adopt a multifaceted approach that addresses the diverse needs and expectations of the modern workforce. Central to this is regularly conducting employee surveys to gather feedback, such as through “pulse” surveys, as well as embracing technology.
New human resources (HR) tools, like digital health solutions and chatbots, are helping organisations tailor employee initiatives and use people data effectively to assess what works. For example, artificial intelligence (AI) can enable better analytical insights so that benefits can be tailored to increase uptake and engagement while reducing administrative costs.
Tools like employee sentiment analysis can help identify what employees value, address concerns and help to guide more targeted, effective benefits strategies. This approach ensures that benefits and policies align with actual employee preferences.
With employees increasingly looking for work-life balance, another key strategy will be to prioritise employee well-being. The good news is that in Malaysia, 52% of employers are planning to enhance their health and well-being benefits and 44% are planning to enhance outpatient insurance, followed by life and accident insurance (38%), hospital and surgical insurance (37%) and mental health support (36%).
While there is an ongoing stigma around mental health in Asian markets, proactively supporting employee mental health and well-being will build a healthier, more motivated and productive workforce.
Additionally, investing in preventive care and boosting employee health can also be cost-effective by reducing insurance claims. Organisations should create safe spaces for health discussions and offer an array of programmes, including counselling, mental health days and resilience training, to provide holistic well-being support, backed by a strong culture that prioritises employee well-being.
Following the pandemic, flexible work arrangements have also become increasingly important to the workforce. More employers are recognising this, with 17% in Malaysia considering more flexible options, compared to 9% in Hong Kong and 8% in Singapore.
Concurrently, investing in learning and development is vital, with 32% of Malaysian employers planning to enhance their training and career development opportunities in the next two years, compared with only 14% of those in Singapore and 10% in Hong Kong.
A possible driver for this could be the calls for more upskilling initiatives to help older employees stay relevant in the labour market as the government considers raising the retirement age. This focus on growth and flexibility will help attract and retain top talent.
Fostering a strong company culture, offering competitive compensation and benefits and promoting work-life integration are key to enhancing employee engagement, retention and overall organisational effectiveness.
Equally important is maintaining open lines of communication. Employers should actively engage their workforce and encourage managers and leaders to communicate regularly with their teams. Consistent dialogue builds trust, ensures alignment and helps employees feel heard and valued, all of which are crucial to sustaining long-term commitment and loyalty.
The future employer
As we look ahead, organisations that successfully adapt to changing employee expectations will be best positioned to thrive in the competitive Asian market.
By embracing flexibility, prioritising employee well-being and fostering a culture of continuous learning and growth, companies can create workplaces that not only attract top talent but also inspire loyalty and high performance.
The future of work in Asia will see a continued blurring of traditional boundaries between work and life, with an increased emphasis on purpose-driven careers and holistic experiences.
HR managers who can anticipate and respond to these evolving needs will build resilient, engaged workforces capable of driving innovation and success in an increasingly dynamic business environment.
By engaging with employees and truly understanding and meeting their changing expectations, companies can position themselves as employers of choice, securing the talent they need to thrive in the years to come.
May Leng Kwok is head of Market Development, Global, for the Chartered Institute of Personnel and Development. Comments: letters@thesundaily.com