Low wages, lack of prospects prod fresh grads in Malaysia to quit jobs

KUALA LUMPUR — Unable to bear the financial burden of living in Kuala Lumpur, Mr Qaziril, 25, gave up a promising career at a well-known firm in Kuala Lumpur after just four months to return to Johor Baru to work as a shop assistant.

Despite earning more in Kuala Lumpur, the high cost of living was unsustainable, said the human resource graduate.

“I had a lot of commitments when I lived in Kuala Lumpur. I spent RM500 (S$160) on rent and RM900 on food and other expenses every month.

“Now that I am back in Johor, I stay with family. I don’t have to pay rent or spend so much on petrol and food. I can save about half of my salary,” he told The Malaysian Insight.

A recent survey by employment website Monster.com found that 36 per cent of fresh graduates quit their jobs in their first year of joining the workforce for a range of reasons, from better prospects and salaries to a lack of job satisfaction.

The study showed that 74 per cent left their jobs because they were unhappy with the lack of progress, while 43 per cent wanted better salaries.

Political science graduate Noreena Fairus, 22, also lasted only nine months at her previous company after finishing school.

Ms Noreena, from Sarawak, faced similar problems as Mr Qaziril in making ends meet in Kuala Lumpur with her RM2,000 salary.

She had to set aside RM1,600 a month for rent, transport, food, and groceries, to repay her higher education loan and send money home to her parents.

“I worked seven days a week, too. For that kind of pay, it just was not worth it,” she said.

Ms Noreena said she also received little guidance from her employers.

“I was working in an event management company. But I quit without another job waiting for me. I just felt that it was not worth staying at a place where I received little guidance and had no future.

“I started as a fresh grad there, but the boss thought I knew everything. I was always blamed (when something went wrong).”

Malaysian Employers’ Federation (MEF) executive director Shamsuddin Bardan said fresh graduates quit their jobs within the year because they struggle to get used to the work environment and are still trying to settle into a career.

“We have to understand that they are still trying to get used to their new environment. These days, many degree holders don’t get work in the same fields they studied,” he told The Malaysian Insight.

Because of this, employers have to spend money and time to train the fresh graduates they hire, he said.

“It involves money and time to train them but in the end, they still quit. The companies incur losses, having to hire new people and train them again.

“Because of this, employers will have to see how they can retain the graduates.”

The Monster.com survey also found 58 per cent of graduates used their first jobs as a stepping stone to future careers, while 24 per cent said they struggled with a lack of guidance and 22 per cent said their employers were the problem.

The study also found 21 per cent felt that they deserved better salaries, while 20 per cent felt they were unprepared for the working world.

Meanwhile, 80 per cent of employers surveyed said they provided sufficient support to fresh graduates to help them succeed.

Ms Hairunnisa Mohd Firdaus, 25, quit her first job because the employer was not making Employees’ Provident Fund(EPF) and Socso (Social Security Organisation) contributions for her.

The property management graduate said when she interviewed for the job late last year, she was not aware of the company’s financial situation until she heard it from the human resource department.

“I was paid RM2,000 a month. The payslip indicated that deductions were made but the other staff members told me money were not going into our EPF accounts. I checked and it was true,” she said.

Ms Hairunnisa quit even though jobs were hard to come by and was unemployed for three months.

“I was still on probation when I resigned. I only worked there less than three months. But the employer rejected my resignation and offered to confirm me instead.

“I still left. My parents paid my car instalments for a while,” said the young woman, who has since moved on to a new company offering the same pay but with better benefits.

Mr Shamsuddin said employers should also inform new recruits about their career prospects and the company’s status and future.

He said one of the reasons for resignations was employees not knowing what prospects they had at their companies.

“If employers told their staff that they will be promoted at a certain stage, it will motivate them to stay,” he said.

However, he added that the problem is not only with employers, as all parties, including staff and institutions of higher learning, must be aware of job market trends.

“Things were not this bad in previous years. Ten years ago, the resignation rate among fresh grads in their first working year was about 2 per cent a month or around 20 per cent annually.

“Today, the rate is 3 per cent a month or 36 per cent a year.” THE MALAYSIAN INSIGHT