Aon plc’s latest research indicates that a significant share of Malaysia’s workforce is considering job changes in the near term, with potential implications for insurers and employers in the region.
The 2025 Malaysia Employee Benefits and Wellbeing Report, which draws on responses from over 130 organisations and more than 500 employees, revealed that 53% of employees aged 30 to 34 and 40% of those under 29 are contemplating a job switch within the next 12 months.
Additionally, 51% of staff with three to five years of tenure are also considering new opportunities.
These findings suggest that mid-level professionals and employees with several years of institutional experience are among those most likely to leave, a trend that could impact business continuity and operational knowledge for employers.
The report highlighted a shift in employee preferences, with 57% of respondents identifying flexible work arrangements as a top priority when selecting an employer.
Half of those surveyed also cited work-life balance and opportunities for professional development as key factors in their decision-making process.
Aon’s global research supports these trends. The firm’s 2025 Human Capital Employee Sentiment Study, which surveyed over 9,000 workers across 23 countries, found that 60% of employees worldwide are considering leaving their current positions within a year.
The study noted that wellbeing and work-life balance are increasingly prioritised, particularly among younger generations. For Generation Z, work-life balance is second only to medical benefits in importance, ranking above paid leave and retirement savings.
Employers in Malaysia are contending with annual increases in benefits costs, estimated between 5% and 10%, largely due to higher medical expenses and greater utilisation of benefits.
Surendran Ramanathan, head of Wealth Solutions in Malaysia at Aon, said Emotional, physical, social, work-life, and financial wellbeing are all interconnected and collectively influence workforce resilience
“Improving one area can impact others. Prioritising benefits and wellbeing are not merely a strategic choice; it is necessary for organisations to thrive in a competitive landscape,” he said.
He added that focusing on one aspect often affects the others.
“By investing in comprehensive benefits packages and robust wellbeing initiatives, companies can significantly enhance employee health, engagement, and productivity, leading to a more motivated workforce which is crucial for driving the organisation's success,” Ramanathan said.
Aon’s research also pointed to a disconnect between the importance employees place on financial wellbeing and their actual preparedness for retirement.
While 96% of respondents rated financial wellbeing as a priority, only 30% have assessed their retirement income and feel confident in their savings progress.
Connie Chung, principal consultant for Wealth Solutions in Malaysia at Aon, noted that concerns about retirement savings are increasing.
“Despite the Employees Provident Fund being key to retirement savings, many retirees lack sufficient funds to cover post-retirement expenses, highlighting the importance of financial literacy and better saving strategies,” she said.
She added that providing financial education is vital, as it helps employees make informed decisions at every stage of their careers and prepares them for long-term financial security.
