<h1>PSA for Malaysian Employers: &nbsp;Talent Retention Strategies in 2025 (Hint: It’s Not Just Salary)</h1><h2>Introduction</h2>Salary has long been seen as the make-or-break factor for job candidates. In Malaysia, competitive pay&nbsp;does matter – especially at first glance when candidates size up a job opportunity. But recent findings from the<a href="https://hub.hiredly.com/workculture?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=psa_for_malaysian_employers:_talent_retention_strategies_in_2025_(hint:_it’s_not_just_salary)">&nbsp;Hiredly 2025 Work Culture Report </a>reveal a surprising twist: when push comes to shove, a&nbsp;positive work culture actually wins out over a higher paycheck for the majority of jobseekers across&nbsp;Gen Z, Millennials, and Gen X.In fact,&nbsp;69% of Gen Z, 73% of Millennials, and a striking 83% of Gen X in the survey said they would choose a positive work environment over a high salary if forced to pick.In this article, we’ll explore why&nbsp;salary is still important (especially as a driver for application interest and meeting rising living costs), and why&nbsp;work culture ultimately wins when it comes to sustained job satisfaction, mental health, and retention. We’ll also look at how&nbsp;different generations in Malaysia perceive the pay vs. culture trade-off, and suggest&nbsp;employee retention strategies to strike the right balance.&nbsp;<h2>Why Salary Still Matters</h2><figure class="image"><img src="https://assets.hiredly.com/cms/ed091b75_2f45_422d_94b4_e128c2e184f2_jpeg_45dd8e93a5.webp"></figure>Let’s be clear: salary is important. Especially in cities like KL, where the <a href="https://open.dosm.gov.my/dashboard/consumer-prices" target="_blank" rel="noopener noreferrer">cost of living continues to rise</a>, competitive pay is a basic requirement — not a perk. For many jobseekers, it’s the first filter they apply when evaluating roles. Gen Z and Millennials in particular cite salary among their top three job priorities.And employers can’t ignore this. Offering under-market pay can severely limit your talent pool — regardless of how great your culture is.&nbsp;<h2>But When Push Comes to Shove… Culture Wins</h2><figure class="image"><img src="https://assets.hiredly.com/cms/degree_1_1d9c203506ce4c92ba281a6acee4aa19_87e04f93f9.jpg"></figure>When given just two options — a high salary or a positive work culture — most Malaysians would choose culture.Why?Because:<ul><li>Mental health matters. Malaysia ranks among the <a href="https://www.getkisi.com/work-life-balance-2022" target="_blank" rel="noopener noreferrer">worst globally for work-life balance</a>. Toxic work environments burn people out, fast. &nbsp;</li><li>People crave respect. A good salary doesn’t make up for poor management or a lack of recognition. &nbsp;</li><li>Retention relies on belonging. Employees stay where they feel safe, seen, and supported — not just well-paid. &nbsp;</li></ul>This is especially true for&nbsp;Gen X, the generation most likely to trade money for meaning. But Gen Z and Millennials aren’t far behind — they’re simply trying to balance career ambitions with mental well-being.&nbsp;<h2>How Each Generation Weighs the Trade-Off</h2><figure class="image"><img src="https://assets.hiredly.com/cms/Generation_Gap_scaled_d71976b702.jpeg"></figure><h3>Gen Z (20s)</h3><ul><li>Care about growth and mentorship &nbsp;</li><li>Still early in their careers, so salary is key — but they’re increasingly <a href="https://medium.com/@cheeloh/why-gen-z-doesnt-care-about-your-brand-and-what-to-do-about-it-a06dcce7eb1d" target="_blank" rel="noopener noreferrer">vocal about toxic cultures</a> &nbsp;</li><li>Will leave quickly if they don’t feel supported &nbsp;</li></ul><h3>Millennials (30s)</h3><ul><li>Juggling bills, kids, and burnout &nbsp;</li><li>Salary matters, but flexibility and respect matter more &nbsp;</li><li>Will switch jobs for culture and work-life balance &nbsp;</li></ul><h3>Gen X (40s–50s)</h3><ul><li>Seen it all &nbsp;</li><li>Prioritise stability, trust, and positive leadership &nbsp;</li><li>Most likely to leave if culture is toxic, even if pay is high &nbsp;</li></ul><h2>What Employers Can Do</h2><h3>1. Get Pay Right</h3><ul><li>Benchmark salaries against the market &nbsp;</li><li>Be transparent with pay bands &nbsp;</li><li>Offer structured raises or performance bonuses &nbsp;</li></ul><h3>2. Build a Culture People Want to Be Part Of</h3><ul><li>Train empathetic managers &nbsp;</li><li>Create psychological safety &nbsp;</li><li>Recognise and reward contributions &nbsp;</li></ul><h3>3. Support Work-Life Balance</h3><ul><li>Offer flexible hours or hybrid work &nbsp;</li><li>Respect boundaries (no late-night texts!) &nbsp;</li><li>Provide <a href="https://www.thestar.com.my/news/nation/2024/10/12/workplace-mental-health-issues-cost-m039sia-rm1446bil-in-2018-alone-says-psychiatrist" target="_blank" rel="noopener noreferrer">mental health days </a>or access to counselling &nbsp;</li></ul><h3>4. Tailor Your EVP to Different Generations</h3><ul><li>Gen Z: Growth, purpose, peer connection &nbsp;</li><li>Millennials: Flexibility, fairness, recognition &nbsp;</li><li>Gen X: Autonomy, trust, stability &nbsp;</li></ul><h2>Change the Way You See the 3 Generations at Work</h2><figure class="image"><img src="https://assets.hiredly.com/cms/164037981_m_normal_none_4956573c60.jpg"></figure>What you’ve read here is just a glimpse into how Malaysian talent today balances&nbsp;paycheque vs. culture in their career decisions. From Gen Z’s focus on growth to Gen X’s insistence on flexibility and respect, understanding these differences is the key to hiring&nbsp;and retaining the right people in 2025.The full&nbsp;Hiredly 2025 Work Culture Report uncovers even more surprising insights to&nbsp;change the way you see the 3 generations at work, including:<ul><li>What workplace red flags each generation refuses to tolerate &nbsp;</li><li>How work-life boundaries are being redefined &nbsp;</li><li>Why fewer young professionals are willing to hustle for promotions &nbsp;</li></ul>📥&nbsp;Download the 50-page report for free at<a href="https://hub.hiredly.com/workculture?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=psa_for_malaysian_employers:_talent_retention_strategies_in_2025_(hint:_it’s_not_just_salary)" target="_blank" rel="noopener noreferrer">&nbsp;hiredly.com/workculture</a> to get deep insights and actionable advice on how to stay competitive as Gen Z, Millennials, and Gen X reshape the modern workplace.<hr><h2>About Hiredly</h2>Hiredly is a leading recruitment platform in Malaysia, specialising in professional and executive talent. Our modern, rich-media platform levels the playing field for all employers, big or small, by helping them build their employer brand and attract top-tier talent. At the same time, our AI-powered Job Discovery features, combined with deeper insights into company culture and values, help candidates find the right fit. The platform also includes an integrated recruitment agency, Hiredly X, creating a true hybrid model. Unlike traditional agencies, Hiredly X has native, exclusive access to a live, self-updating talent database. This gives them a clear edge, as most agencies depend on limited, third-party access to external job platforms. For employers, this seamless integration means access to unique candidates and a faster, more efficient hiring process. For more information or to start hiring smarter, visit&nbsp;<a href="https://my.hiredly.com/employer?utm_medium=article&amp;utm_source=career_advice&amp;utm_campaign=psa_for_malaysian_employers:_talent_retention_strategies_in_2025_(hint:_it’s_not_just_salary)">hiredly.com/employer</a>

Discover why a positive work culture is more important than salary for Malaysian employees in 2025. Learn how to retain top talent by balancing growth opportunities, flexibility, and mental well-being.