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PUBLISHED BY IN CO L L AB O RAT IO N WIT H
ICT JOB MARKET OUTLOOKIN MALAYSIAJUNE 2013
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ICT Job MarketOutlook in MalaysiaJune 2013
Published by:
In collaboration with
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COPYRIGHT
Copyright 2013. All rights reserved. No part of this publication may be produced or transmitted in any form or anymeans, electronic, mechanical, photocopying or otherwise, including recording or the use of any information storage
and retrieval system without prior written permission from PIKOM .
Published by:
1106 & 1107, B lock B , P hileo Damansara II
No.15, Jalan 16/11, 46350 Petaling Jaya
Selangor Darul Ehsan
T: +(603) 7955 2922; F: +(603) 7955 2933;
E: pikom@ pikom.org.my
W: www.pikom.org.my
Wisma JobStreet.com,
27, Lorong M edan Tuanku 1, ( off Jalan Sultan Ismail) ,
50300 Kuala Lumpur, M alaysia
T: + (603) 2176 0493 (DL) ; F: + (603) 2698 7200W: www.jobstreet.com
E: marketing-kl@ jobstreet.com
KPM G M alaysia, Level 10, K PM G Tower,
8, First Avenue, Bandar Utama, 47800 Petaling Jaya
T: +(603) 7721 3656; F: +(603) 7721 3399
W: www.kpmg.com.my
ISSN No: 2180-267X
R elease date: June, 2013
Editor-in-Chief: R amachandran Ramasamy, H ead of Policy, C apability and Research, P IKOM
Contributor: D ominic Wong, Senior M arketing M anager M alaysia, JobStreet.com
R eviewed by: Woon Tai H ai, Executive Director, KPM G M alaysia
DISCLAIM ER
This publication contains findings based on data provided by JobStreet.com Sdn B hd (449122-K ) . KPM G Business
Advisory Sdn Bhd (150059-H ) and P IKOM Services Sdn B hd (801999-W) collaboratively carried out the data analysis.
Although professional effort has been made to ensure the accuracy of data analysis and presentation, all information
furnished in this publication are provided strictly on an as is and as available basis and is so provided for your
information and reference only. With this caution, k indly be informed that this release is not presented to address the
circumstances of any particular individual or entity. As such, JobStreet.com, KPM G and P IKOM including their sponsors,
partners and associates, whether named or unnamed, do not warrant the accuracy or adequacy of the data and findings.
M oreover, all parties concerned explicitly disclaim any liabili ty for errors or omissions or inaccuracies pertaining to the
contents of this publication. Therefore, the use of data and fi ndings presented in this publication is solely at the users risk.
P IKOM , JobStreet.com and KPM G shall in no event be liable for damages, loss or expense including without limitation,
direct, incidental, special, or consequential damage or economic loss arising from or in connection with the data and / or
findings published in this series. H owever, professional advice can be sought from the producers of this publication.
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ICT JOB M ARK ET OUT LOOK IN M ALAYSIA | JUN E 2013
Contents
Message by PIKOM Chairman iv
Message by PIKOM President/CEO v
Preamble 6
Malaysian Economic and ICT Industry Outlook 9
ICT Job Market Salary Trends 14
Regional Benchmarking 25
Employment Outlook and Perceptions 28
Rethinking HR in a Changing World: A Practitioners Discourse 33
The Right Talent Development Strategy for Top Talents? 39
Closing The Demand-Supply Gap in ICT Talents 44
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ICT JOB M ARK ET OUT LOOK IN M ALAYSIA | JUN E 2013
Message by PIKOM President/CEOSHAIFUBAHRIM SALEH
P IK OM is once again pleased to publish the annual IC T Job M arket Outlook in M alaysia report. As in the
past, this series continues to provide information on average monthly salaries earned by information and
communications technology (ICT ) professionals in M alaysia in 2012.
The report revealed that the ICT job market in M alaysia is expanding and evolving in tandem with the growing
demand for information age services such as system integration, cloud computing, data warehousing,
software development as a service (SaaS) , platform as a service (P aaS) , web and portal development, multi-
media content provision, big data analytics and networking.
In meeting the changing demands of the industry and human capital requirements, P IK OM has reviewed and
realigned its fi ve-year strategy plan during its 2013 planning session. Specifi cally, human capital development
is positioned as one of the six key strategies. T he others include enhancing value to members, accelerating
growth demand, leading the digital trend and increasing competitiveness and globalisation of the M alaysian
ICT industry. I n human capital development, P IKOM has embarked on programmes to publicise ICT courses
through social media networks, re-skill the current talent pool, conduct cross-disciplinary training, promote
industrial guided projects for students and to attract M alaysian talents from overseas as well as the Board of
Computing Professionals M alaysia (BCP M ) .
Once again, I would like to take this opportunity to record my sincere appreciation to Jobstreet.com andK PM G for their effort in making this publication into another milestone for P IK OM .
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ICT JOB M ARK ET OUTLOO K IN M ALAYSIA | JUN E 2013
Preamble
P IK OM , the N ational ICT Association of M alaysia, has once again taken the lead to compile the ICT Job M arket
Outlook in M alaysia, 2013 in collaboration with JobStreet.com and K PM G. P IK OM was mainly responsible
for data collation and coordination over and above its provision of ICT industry-specifi c information and
outlook. On its part, Jobstreet.com provided the latest salary report of ICT professionals by industry, job
market outlook in the respective ICT segments, and survey-based economic perception of job seekers and
industry players. M eanwhile, KPM G took on the task to present M alaysias economic outlook.
For regional comparisons, due references were made to web published salary information by PayScale Salary
R eport. T he average salary of IC T professionals in M alaysia is compared against selected Asian and English
speaking countries that have become attractive destinations for M alaysian talent migration or talent soliciting.
The Asian countries considered in the report include Singapore, I ndonesia, Thailand, Philippines, M alaysia,
China, K orea and India. T he English speaking nations covered include U nited States of America, U nited
K ingdom, Canada, Australia and N ew Zealand.
PIKOM is the national representative of the information and communications technology (ICT)
industry with more than 1,500 members as at end of 2012. Its members contribute about 80% of
the total ICT revenue in the country.
JobStreet.com is the largest online recruitment service provider for all categories of jobseekers,
from fresh jobseekers after graduation to senior level positions. Job Street operates the JobStreet.
com (www.JobStreet.com) websites presently covering the employment markets in Malaysia,Singapore, Philippines, Indonesia, India, Japan and Thailand. The group currently services over
50,000 corporate customers and over 6 million jobseekers. Job Street is listed on the Main Board of
Bursa Malaysia Securities (JOBST).
KPMG is an international network specialising in audit, tax and advisory service. KPMGfirst
established a presence in Malaysia in 1928 and the Malaysian firm now has 65 partners and over
1,700 staff located across 10 offices. Globally, KPMG operates in 144 countries with a staff size of
137,000 people.
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ICT JOB M ARK ET OUTLOO K IN M ALAYSIA | JUN E 2013
The main objective of this report is to provide data and information on the following:-
i. Average ICT Salaries by Industry
Agriculture / P lantations / Aquaculture
Automotive / H eavy Industry / M achinery
Banking Institutions
Chemical Industries
Construction / Building, including Civil Engineering
Consulting, both Business and Technical
Private Education
Electrical & Electronics Sector
Financial Services / Securities / Insurance/
H otel / Restaurant / Food Services
M anufacturing
O il / Gas / Petroleum Industries
Printing / Publishing
Property / Real Estate
Technology / Aerospace / Bio-technology
Semiconductor / Wafer Fabrication
Services
Telecommunication
Textiles / Garment
Transport / Storage / Freight / Shipping
U tilities
Wholesale / R etail / Trading
Call Centre / ICT-Enabled Services
Computer / IC T (H ardware)
Computer / IC T (Software)ii. Average Monthly Salaries of ICT Professionals by Job Category
Overall ICT Professional
Junior ICT Executive fewer than 4 years of experience including fresh entrants
Senior ICT Executive 5 years and above of working experience
M iddle ICT M anager as declared by the job seekers
Senior ICT M anager as declared by the job seekers
iii. Average Monthly Salaries of ICT Professionals by Key ICT Industry Segments
ICT Hardware
ICT Software
Call Centre
iv. Top 10 Specialisations Sought
v. Regional Benchm arking with Selected Asian Economies
vi. Perception by Job Seekers and Employers
Jobstreet.com Employee Confi dence Index (JECI )
Anticipated H iring Activities
Top 10 Specialisations Sought
Position Level Sought
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I t is pertinent to note that the average monthly salary of ICT professionals for 2012 was RM 6,784, registering
an increase of 8.7% from R M 6,240 the previous year. T he record also showed that the ICT professionals
in the Senior M anager, M iddle M anager and Senior Executive categories experienced significant pay rise
of 14.1% , 9.9% and 9.6% respectively in 2012. I t is also observed that the salary gap between the Senior
M anagers and the fresh graduates has widened from 5.44 times in 2011 to 5.71 times in 2012. Such trends
are considered unhealthy for the ICT industry where the employment market has been tight over a number of
years and, as such, the industry will continue to face problems in retaining its younger staff from job hopping
in search of higher remuneration.
Like in the previous years, the oil and gas sector continued to be one of the attractive sectors for ICT professionals,
especially those in the junior categories. I n terms of geographical locations, the study discovered that the
typical salaries of ICT professionals in major cities lik e Kuala Lumpur and Cyberjaya is 1.75 times higher than
of those who work in smaller cities lik e Ipoh or Kuching. Such disparity is likely to continue in accentuating
youth migration to cities that are already overcrowded. The data also showed that big companies tend to pay
as high as 1.88 times more than those in the small and micro categories which have less than 10 employees.
The study also interestingly revealed that male ICT professionals earn, on average, 34% higher salary than
their female counterparts.
Among the various types of job functions investigated, those in ICT Project M anagement tend to earn
significantly higher salary than those in the technical or engineering fields. For instance, in 2012 a typical
ICT Project M anager earned an average monthly salary of RM 9,700, which is almost twice of that earned by
a Junior Software Engineer or 50% more than that of a Senior Software Engineer.
Besides publishing average annual salaries earned by ICT professionals in seven Asian countries, namely
H ong Kong, Singapore, China, Thailand, I ndia, the Philippines and Indonesia, the report also provides
data for five English speaking nations namely U nited States, U nited K ingdom, Canada, N ew Zealand and
Australia that typically attract M alaysians for employment. For mak ing meaningful comparisons, the regionalsalary data took into consideration the Purchasing Power Parity (PPP) factor. I nstead of just publishing the
average annual salaries, once again the reporting is done in terms of scaling numbers, which essentially
highlighted how many times higher or lower the salaries are compared with other regional markets. Among
Asian countries, H ong Kong once again topped the salary scale, where the salary was 1.90 times (with
PPP adjusted) higher or 2.53 times (without PPP adjustments) higher than their counterparts in M alaysia
in 2012. Similarly, Australia and U SA topped the list among the English speaking destinations. Specifically,
ICT professionals in Australia netted 3.76 times (without PPP adjustments) higher or 1.90 times (with PPP
adjusted) higher than the data reported for M alaysians in this report.
H ot ICT jobs varied across technical, business applications and soft skills categories. In the technical domain,
ICT professionals equipped with Java, C#, C+ +, dotNet, SharePoint and Web Application Developers are
highly sought after. U nder business applications, the notable fast growing jobs are IT Security Analyst and
Big Data Analytics for fending off cyber threats and culling out customer insights from petabytes systems
respectively. The demand for both the technical and business applications jobs are attributed to prolifi c
growth experienced in cloud computing and mobile applications.
The report also carries information on the perception of job seekers and potential employers, in particular
pertaining to economic performance and ICT job market outlook as gauged by Jobstreet.com on a regular
basis. Generally the job seekers and providers indicated a positive outlook for M alaysia in 2013.
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Malaysian Economic andICT Industry Outlook
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The M alaysian economy grew at an average rate of 5.2% in 2012. The Government of M alaysia has projected
an economic growth of between 4.5% and 5.5% in 2013 ( Figure 1). H owever, M alaysias economic growth
predictions for 2013 vary widely among private fi nancial institutions, international agencies and research
institutions. Specifi cally, the M alaysian Institute of Economic Research (M IER ) has predicted continuity of
resilience in the M alaysian economy in 2013 with a growth rate of 5.6% . T he economic growth predictions
made by R oyal Bank of Scotland and the Overseas Chinese Bank ing Corporations (OCB C) were 5.5% and
5.2% respectively, which were much higher compared to other private institutions. T he predictions made by
International M onetary Fund (IM F) , Asian Development Bank (AD B) and World Bank ( WB) were 4.7% , 4.8%
and 5.0% respectively, which is signifi cantly lower than M IER , citing the effect on the export mark et by the
continuing global economic slowdown as the key reason for the lower forecast. Although M alaysias growth
rate was lower than expected at 4.1% in Q1, 2013, the economy is expected to rebound with economic
improvement in the US and positive growth in China.
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
9 .0 8 .9 9 .2 7 .36 .1
8 .9
0 .5
5 .4
5 .8 5 .3
5 .8 6 .54 .7
6 .86 .8
5 .1 5 .2
5 .5
-1.7
-7.4
9 .5 9 .9 9 .8 1 0 .0
Pre Asian Financial Crisis 1997: 9.2% p.a.
Pre Global Financial Crisis 2009: 5.6% p.a.
Projected to grow by 5.5 % p.a. in 2 0 1 3 by Economic Report
Figure 1: Malaysias GDP Growth (%): 1990-2013
H owever, P IK OM is optimistic and concurs with M IER s prediction of 5.6% . The resilience in the M alaysian
economy is poised to continue in 2013 and can be attributed to the following factors:-
i. strong domestic demand arising from economic transformation programmes and on-going mega projects;
ii . increased export earnings owing to strengthening of R inggit M alaysia against U S dollars;
ii i. stable overnight lending rates stimulating business investments;
iv. sustained private and public consumption and expenditure;
v. low inflation rate;
vi. low unemployment rate;
vii . steady and positive growth in the various economic sectors, especially in the Information Communications
Technology Services ( ICT S) ; and
viii. higher economic growth forecasts for China, India and ASEAN countries, where at least 60% of M alaysias
total trade is concentrated at and is highly lik ely to bring a positive impact on the M alaysian economy
in 2013.
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N onetheless, the M alaysian economy is not totally free from economic encumbrances and faces a number
of investment related risk factors such as:-
i. External environm ent:R isk aversion strategy among potential investors due to globalisation and market
liberalization phenomena;
ii . M acro policy environm ent: Any slacking in the delivery of economic transformation initiatives, mega
projects and geographically defi ned corridor projects;
iii. Reducing fi scal defi cit: Poor management on the part of the Government in its ambitious task in
reducing the fi scal defi cit from 5.4% of GDP in 2011 to 3% in 2015 may dampen public expenditure
and investments, unless the Government achieves the target through revenue-increasing measures or
operational cost reduction strategies;
iv. M acro indicators:Fluctuation in oil and commodity prices in global markets could result in higher prices
for consumers through increasing inflation and base lending rates;
v. Capital fl ight:M assive capital outflow arising from volatile foreign exchange rates is also bound to hurt
export and import earnings;
vi. Quality of M alaysian workforce: Over dependence on low skilled foreign workers may not be healthy
for the M alaysian economy in the long term unless a concerted effort is made to increase the quality
of the local workforce, ingrained with technological capabilities, innovation culture, R & D capabilities,
productivity, quality and competitive edge best practices;
vii. 13th General Election:Typically, during the post-election period the Government takes cognizance and
reminds the public of i ts pledges and promises, and therefore tends to implement developmental projects.From a business perspective, it is imperative and crucial to ensure a familiarity of policies and regulations
now that GE13 is done and dusted. The Government should also review policies that may have run their
course as this will garner wider public support and boost investor confi dence.
ICT Industry OutlookAs it was in the past, the ICTS segment in M alaysia is projected to register signifi cant growth in 2013. The
ICT S segment grew at a Compound Annual Growth Rate (CA GR ) of 13.3% by increasing its value added
services from R M 12.3 billion in 2001 to R M 55.1 billion in 2012 (Figure 2). The ICTS segment is poised to
reach the mark of RM 61.7 bi llion in 2013 by registering another annual growth rate of 12% . In tandem, the
share of ICT S in the national Gross Domestic Product (GDP ) increased from 3.4% to 6.3% , almost doubling
during the period of 2001-2012.
Traditionally, telecommunications and computer services constitute the ICTS segments as per M alaysian
Standard Industry Classifi cation 2000 ( M SIC2000) . The introduction of M SIC2008 saw the inclusion of
publishing services, motion picture, video and television programme, programming and broadcasting and
information services as additional items. The new additional segments constitute about 11% of the total ICTS
sector contribution in terms of value added services.
P IKOM is confi dent of achieving double digit growth rate in the years ahead through on-going capital intensive
economic transformation programmes and mega-projects that have been stimulating domestic demand forICT Services. To name a few, the ICT intensive big projects include M y Rapid Transit (M RT ) linking Kajang
and Sg. B uluh, P etronas Refi nery and Petrochemical Integrated Development (R APID) project in P engerang,
Tun R azak Exchange, R iver of Life, B andar M alaysia at Sungei Besi as well as the various economic corridors
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Iskandar M alaysia, N orthern Corridor Economic Region (N CER ) , East Coast Economic Region (ECER ) ,
Sabah Development Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCOR E) .
10
20
30
40
50
60
70
80
20132012201120102009200820072006200520042003200220012000
1 2 . 3 1 3 .7 1 4 .8 1 5 .518 .1
2 224 .4
2 7 . 6 3 1
3 7
4 3 . 14 8 . 2
5 5 . 1
6 1 . 7(R M Billion)
ValueinRinggitMalaysia
Figure 2: ICTS Value Added Services : 2001-2013
Source: Department of Statistics and PIKOM Estimates
The ICT sector, in its contemporary form, has evolved to be more than a mere collection of technological
tools. A s a socio-economic enabler and key driver of businesses, ICT is poised to increases the process
effi ciency and product and services delivery effectiveness.
ICT s ubiqui ty and pervasive features and characteristics are continually impacting the way one works, plays
and learns. In the early stages of information age, such changes were succinctly harnessed through the M SC
M alaysia initiative that saw its introduction in the mid-nineties. H aving gone through two decades of new age
experiences and exposures, viewing from a public policy perspective, the country is migrating into i ts nextphase of inflection point by creating a digital innovation economy through the Digital M alaysia P rogramme
(DMP) .
From a private sector lens, the DM P is expected to increase business activities while at the same time
addressing key national concerns such as creating opportunities for the B40 income group ( the lowest 40%
in household income) , youth, women and digital entrepreneurs.
In 2013, industry pundits are projecting at least four key trends changing the way in which fi rms work, which
in turn, impacts on economic growth. The four key trends are:
i. Big data analytics, which are deployed in a variety of industries to serve customers better by culling out
insights and predictions that the data can generate. The process can help to improve the profi tabili ty
of the company by assessing credit worthiness, risk analysis and/or data supported decision making
processes;
ii . Cloud computing, which is one of the fastest growing technological advances, helps companies to
structure, organise and store large amounts of data without investing heavily on hardware and software
tools. M ore importantly, company employees always remain connected with the help of smartphones and
tablets. With such a work culture, people need not be in the offi ce to complete their tasks; they can do
their work from the train or bus on their daily commute, besides teleworking from home;
ii i. M obile device usage, particularly smart phones and tablets, mak e customers and clients more mobile
and also provides access to companies websites, applications and records wherever they happen to be;
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iv. Social media, an offspring of the Internet age. This new age media, though seen as a disruptive and
unproductive activity when staff unnecessarily waste time, can be a powerful tool for customer
engagement, relationship building, networking, information sharing, and soliciting feedback, as well as
branding products and services.
Despite growing dynamism, the nations ICT sector continues to face several persistent challenges:
i. Supply of ICT Graduates:As it was in the recent past, ICT enrolment in both public and private institutions
has stagnated. The ICT enrolment in the public universities has not improved much, as the fi gure has
been lingering around 25,000 per year over the past three years. U nderstandably, with budget constraints,
it will be diffi cult for public universities to increase their capacity to produce more ICT graduates. ICT
enrolment in private universities also has not improved very much and averages around 50, 000 per year,
which, notably, is half than what it was a decade ago.
ii . Quality of ICT Graduates:Quality, competency and employability of ICT graduates in meeting the industrys
demands continue to remain a critical issue. Low remuneration, especially in comparison to regional
countries, rampant job-hopping for better terms of employment, and a declining interest among young
people in ICT jobs that demand long working hours continue to plague the growth of the ICT industry.
H owever, initiatives by TalentCorp, which was established in January 2011, helped to redress some of the
talent gaps in the ICT sector. The ini tiatives are carried out via three strategic thrusts: optimise M alaysian
talent, attract and facilitate global talent and build networks of top talent. Being new, these endeavours
are yet to be realised.
iii. Quality and Com petency Standards of H um an Capital in ICT Firm s:The ICT industry, including its workforce,
generally lacks the interest in attaining global standards in process and quality improvement activities.
P IKOM s internal investigation revealed that only 6% of M alaysian Information Communications Technology
Service (ICTS) providers have attained Capability M aturity M odel Integration (CM M I) certifi cations and lessthan 1.5% are equipped with the People Capability M aturity M odel (PCM M ) certifi cation. The numbers
were further disheartening upon realising that less than 2% of PIK OM members in the ICT S segment have
employees certifi ed with Six Sigma or Lean Six Sigma accreditations. G reen ICT Certifi cations have yet to
gain a foothold in the M alaysian ICTS landscape. Pursuant of these certifi cations is critical for globalising
M alaysian ICT products and services, or to solicit ICT contracts from developed economies lik e USA;
and
iv. Research, developm ent and com m ercialisation culture:Public and private universities and industries are
still behind in creating globally-recognised ICT products and services due to the lack of a strong R& D
and patenting culture. Despite the long established presence of some multi-nationals, the country still
has weak links in the global R& D and innovation network. This is due to diffi culties in getting the right
candidates to embark on high value adding ICT activities that the Government has been passionate about
over the past two decades.
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ICT JOB M ARK ET OUTLOO K IN M ALAYSIA | JUN E 2013
ICT Job MarketSalary Trends
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ICT JOB M ARK ET OUTLOO K IN M ALAYSIA | JUN E 2013
Job CategoryOverallThe average monthly salary of an ICT professional in M alaysia in 2012 was RM 6,784 (Figure 3) . This represents
an increase of 8.7% from RM 6,240 in 2011. T his increase was well above the average inflation rate of 3.2%
in 2011 and 1.6% in 2012, resulting in a comfortable living for ICT professionals in M alaysia. G iven the
optimistic outlook of the economy and other positive factors within the ICT industry, P IKOM anticipates an
8.9% rise in the average salary of ICT professionals in 2013, to a fi gure no less than RM 7,387 per month.
4000
4500
5000
5500
6000
6500
7000
7500
8000
20132012201120102009200820072006
4,184 4,446 4,699 5,276 5,626 6,240 6,784 7,387
Average
MonthlySalary(RinggitMalaysia)
AverageM onthlySalary
4 , 1 8 4 4 , 4 4 6
4 , 6 9 9
5 , 2 7 6
5 , 6 2 6
6 , 2 4 0
6 , 7 8 4
8 . 7 %
8 . 9 %
7 , 3 8 7
Figure 3: Average Salary of ICT Professionals: 2006-2013
Source: Jobstret.com and PIKOM, 2013
By Job Category and Years of Working ExperienceI t can be seen from Table 1 that all ICT job categories, except Junior Executive, registered signifi cant increase
in the average salary in 2012. ICT professionals in the middle management level received the highest averagerate of pay rise of 14.1% , followed by senior management (9.9% ) and senior executive category (9.6% ) .
Junior executives received only a raise of 1.7% where their average monthly salary increased from R M 3,151
in 2011 to RM 3,206 in 2012. The fresh graduates are, on average, netting a monthly salary of RM 2,343,
which is considered as a signifi cant rise from R M 2,238 in the preceding year .
By Job Category
YearFresh
Graduates:
(Entry Level)
JuniorExecutive:(1-4 Years
WorkingExperience)
SeniorExecutive:(> 5 Years
WorkingExperience)
MiddleManagement:
(Manager)
SeniorManagement:
(Senior
Manager)
Overall
2 0 1 0 - 2,936 4,514 7,005 10,795 5,626
2 0 1 1 2,238 3,151 5,039 7,837 12,166 6,240
2 0 1 2 2,343 3,206 5,521 8,946 13,374 6,784
PercentageChange (%)
4.7 1.7 9.6 14.1 9.9 8.7
Benchmarking Against Average Monthly Salary of Fresh Graduates
2 0 1 1 1.00 1.41 2.25 3.50 5.44
2 0 1 2 1.00 1.37 2.36 3.82 5.71
Table 1 : Average Salary of ICT Professionals by Job Category: 2010-2012
Source: Jobstret.com and PIKOM, 2013
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ICT JOB M ARK ET OUTLOO K IN M ALAYSIA | JUN E 2013
From Table 1, it can also be observed that Senior M anagers earned 5.44 times higher than fresh graduates
in 2011 and 5.71 times higher in 2012. Similarly, the fi gures for M iddle M anager level were 3.50 and 3.82
while for Senior Executives it were 2.25 and 2.36, indicating a widening disparity in the salary structure.
Industry CategoryTable 2 and Table 3 show the average monthly salary of ICT professionals by industry.
Industry(Central M alaysia)
Fresh Graduates / Entry Level(Less than 1 year working experience) %
ChangePercen ti les (Ringgi t M alaysia) We ighted M ean
2 5 th 5 0 th 7 5 th 2 0 1 2 2 0 1 1
Automotive/Heavy Industry/M achinery 1,800 2,300 2,300 2,175 2,175 0.0
Bank 2,000 2,500 2,700 2,425 2,225 9.0
Call Centre/IT-Enabled Services 1,800 2,300 2,700 2,275 2,275 0.0
Computer/IT (Hardware) 2,000 2,400 2,670 2,368 2,213 7.0
Computer/IT (Software) 2,000 2,500 2,800 2,450 2,400 2.1
Construction/Building 1,715 1,800 2,775 2,023 1,800 12.4
Consulting (Business/Technical) 2,000 2,350 2,600 2,325 2,275 2.2
Education 1,600 2,000 2,331 1,983 1,975 0.4
Electrical & Electronics 1,950 2,310 2,800 2,343 2,063 13.5
Financial Services/Securities/Insurance 2,000 2,230 2,800 2,350 2,225 2.6
Hotel/R estaurant/Food Service 1,800 1,800 3,750 2,288 2,225 2.8
M anufacturing 2,150 2,540 2,800 2,508 2,508 0.0
Oil/Gas/Petroleum 2,300 2,800 3,200 2,775 2,418 14.8
Printing/Publishing 2,000 2,000 3,200 2300 2,225 3.4
Science & Technology/Aerospace/BioTechnology 2,500 2,500 2,500 2500 2,350 6.4
Semiconductor/Wafer Fabrication 3,280 3,280 3,280 3280 3,280 0.0
Services 1,900 2,030 2,500 2115 2,000 5.8
Telecommunication 1,700 2,200 2,500 2150 2,120 1.4
Transport/Storage/Freight/Shipping 1,600 2,300 2,800 2250 2,284 -1.5
Wholesale/Retail/Trading 1,500 1,950 2,300 1925 1,800 6.9
Geometric Mean (GM ) : (Ringgit Malaysia ) 2 3 4 3 2 ,2 3 8 4 .7
M inimum ( R inggit M alaysia ) 1 9 2 5
M aximum (R inggit M alaysia ) 3 2 8 0
Table 2: Average Monthly Salary of ICT Graduates by Industry in 2012
Source: Jobstret.com and PIKOM, 2013
Fresh graduates by IndustryTable 2 shows that the Semiconductor and Wafer Fabrication industries paid the highest monthly salary of
R M 3,280 for fresh graduates in 2012 but had not changed since 2011. H owever, the Oil and G as industry
registered a signifi cant rise in the monthly salary for fresh graduates from R M 2,418 in 2011 to RM 2,775 in
2012, recording the highest percentage increase of 14.8% . This is followed by the Electrical and Electronics
industry where the average salary for fresh graduates increased by 13.5% , which is an increase from R M 2,063
in 2011 to RM 2,343 in 2012. ICT graduates in the Construction and Building industry also experienced
a signifi cant increase of 12.4% in their salary. Besides Semiconductor and Wafer Fabrication, industrieslike Automotive and H eavy Industry, M anufacturing, Transport, Storage, Freight and Shipping as well as
Call Centre and IT enabled Services did not show any improvement in the average salary for fresh graduates
in 2012.
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Experienced ICT Professionals by IndustryThe highest salary earned by ICT professionals differed among industries as well as by the number of years
of working experience held. Table 3 shows that the Automobile, H eavy Industry and M achinery as well as
the Computer Hardware industries were the top-paying ones in the senior management category, where the
maximum monthly salary recorded was RM 17,438 in 2012. No data was reported for Semiconductor and
Wafer Fabrication, Construction and Building and Chemical industries where the pay could also be equally
high. In the middle management level, the maximum monthly salary of RM 14,091 was reported in the
Electrical and Electronics industry. In the senior executive level, the O il and G as industry reported the highest
monthly salary of RM 7,500. For the junior executive level, the Semiconductor and Wafer fabrication industry
offered the highest salary of RM 3,753 per month.
Comparison Between 2011 and 2012 by industryTable 4 shows that, on overall, the Automotive, Heavy Industry and M achinery, Science & Technology, Aerospace
and Bio-technology as well as the Financial Services industries registered a significant rise in the salary for the
ICT professionals of not less than 10% between 2011 and 2012. D iscounting the sectors lacking data, Table 4
also shows that ICT professionals in the Senior M anagement category working in the Financial Services industry
received the highest salary increment of 36.2% , which is an increase from RM 10,250 to RM 13,961 . Further
scrutiny revealed that in the M iddle M anagement category, the Science & Technology, Aerospace and Bio-
technology industry reported the highest percentage of change (38.6% ) in the monthly salary from RM 7,339
in 2011 to RM 10,175 in 2012. In the Senior Executive category, the Services and Science & Technology,
Aerospace and Bio-technology industries recorded the highest pay rise of 32.8% and 29.8% respectively. T he
Automobile, H eavy Industry and M achinery industry registered the highest pay rise of 14.9% in the Junior
Executive category, which is an increase from RM 3,100 in 2011 to RM 3,563 in 2012.
Top Five Paying Industries
Industry(Central M alaysia)
ALL JOBCATEGORIES
Industry(Central M alaysia)
Senior Executive(5 or more years
working experience)
Oil/Gas/Petroleum 8,316 Oil/Gas/Petroleum 7,280
Automotive/Heavy Industry/M achinery 7,289 Chemical 7,107
Science & Technology/Aerospace/BioTechnology 7,259 Telecommunication 6,675
Telecommunication 7,099 Science & Technology/Aerospace/BioTechnology 6,500
Services 7,034 Consulting (Business/Technical) 5,879
Industry(Central M alaysia)
SeniorManagement
(Senior Manager)
Industry(Central M alaysia)
Junior Executive(1-4 workingexperience)
Automotive/Heavy Industry/M achinery 17,438 Chemical 5,215
Computer/IT (Hardware) 17,400 Oil/Gas/Petroleum 3,675
Oil/Gas/Petroleum 16,521 Semiconductor/Wafer Fabrication 3,653
M anufacturing 14,150 Automotive/Heavy Industry/M achinery 3,563
Bank 13,961 Bank 3,475
Industry(Central M alaysia)
MiddleManagement
(Manager)
Industry(Central M alaysia)
Fresh Graduates
Electrical & Electronics 14,091 Semiconductor/Wafer Fabrication 3,280
Semiconductor/Wafer Fabrication 11,183 O il/Gas/Petroleum 2,775
Oil/Gas/Petroleum 10,504 Science & Technology/Aerospace/BioTechnology 2,500
Science & Technology/Aerospace/BioTechnology 10,175 Computer/IT (Software) 2,450
Wholesale/Retail/Trading 9,409 Bank 2,425
Table 5 : Top Five Paying Industries by Job Category, 2012
Source: Jobstret.com and PIKOM, 2013
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Table 5 shows the top fi ve paying industries for each ICT job category. O f the 25 industries covered in
the investigation, the results showed that the Oi l, Gas and P etroleum industry dominated the list in all the
categories. It is followed by Science & Technology, Aerospace and B io-technology industry which constituted
as one of the top fi ve paying industries for all the job categories, except in the Senior M anagement level for
which the salary remained stagnant between 2011 and 2012.
ICT Industry SegmentsFor the purpose of compiling salary records, Jobstreet.com had categorised the ICT industry segments into
ICT hardware, ICT software and ICT-enabled services including call centres.
By Job CategoryFigure 4 shows the average salaries of ICT professionals by job category within the ICT industry. The salary
increment experienced by all ICT job categories except the Senior M anager category was not very encouraging.
The worst hit were ICT Junior Executives who received only a 1.5% pay rise on an average between 2011 and
2012 (see also Table 6) . On the contrary, in 2012 Senior M anagers in the ICT sector experienced an average
pay rise of 11.6% , which is an increase from R M 12,588 in 2011 to RM 14,044.
0
3000
6000
9000
12000
15000
ICT Senior M anagerICT M iddle M anagerIC T Senior ExecutiveICT Junior Executive
3 ,082
3 ,129
4 ,778
4 ,912
7 ,322
7 ,533
12 ,588
14 ,044
AverageSalary
inRinggitMalaysia
2008 2,440 3,681 5,837 8,975
2009 2,689 4,061 4,938 9,867
2010 2,797 4,417 5,957 10,876
2011 3,082 4,778 7,322 12,588
2012 3,129 4,912 7,533 14,044
Figure 4: Average Monthly Salary of ICT Professionals by ICT Industry Segments
Source: Jobstret.com and PIKOM, 2013
Within the Senior M anager category, ICT hardware professionals netted the highest pay increase of 20.2% , a
jump from RM 14,475 in 2011 to RM 17,400 in 2012 (Table 6). I CT Senior M anagers in the ICT Call Centres/
IT Enabled services and ICT Software categories also registered signifi cant rise in their salary, 9.0% and 6.0%
respectively.
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ICT JOB M ARK ET OUTLOO K IN M ALAYSIA | JUN E 2013
Year
ICT Executive ICT Senior Executive
ICTHardware
ICTSoftware
CallCentre/ICT
EnabledServices
ICTIndustry
ICTHardware
ICTSoftware
CallCentre/ICT
EnabledServices
ICTIndustry
2008 2,325 2,500 2,500 2,440 3,400 3,924 3,749 3,681
2009 2,767 2,557 2,748 2,689 4,130 3,869 4,190 4,061
2010 2,720 2,750 2,925 2,797 4,320 4,505 4,428 4,417
2011 3,002 3,025 3,225 3,082 4,769 5,019 4,556 4,778
2012 3,100 3,063 3,225 3,129 4,835 5,160 4,750 4,912
% change2011-2012
3.3 1.3 0.0 1.5 1.4 2.8 4.3 2.8
Year
ICT Middle Manager ICT Senior M anager
ICTHardware
ICTSoftware
CallCentre/ICT
EnabledServices
ICTIndustry
ICTHardware
ICTSoftware
CallCentre/ICT
EnabledServices
ICTIndustry
2008 5,075 5,995 6,538 5,837 7,971 8,475 10,700 8,975
2009 5,052 5,930 4,018 4,939 9,405 8,998 11,350 9,567
2010 6,625 6,646 7,548 6,957 10,900 9,250 12,758 10,876
2011 6,718 7,263 8,051 7,322 14,475 10,000 13,779 12,588
2012 6,800 7,575 8,300 7,533 17,400 10,600 15,019 14,044
% change2011-2012
1.3 4.3 3.1 2.9 20.2 6.0 9.0 11.6
Table 6: Average Monthly Salary by Job Category and ICT Industry Segment
Source: Jobstret.com and PIKOM, 2013
By ICT User IndustriesFigure 5 shows the distinction in the average monthly salary earned by ICT professionals working in the ICT
Producer and ICT U ser industries. As in the previous year, there is no distinct difference in salaries earned
by ICT professionals in these two segments. The 2012 data revealed that ICT professionals in the Producer
industry on the overall earned an average monthly salary of RM 6,355, which is marginally higher than their
counterparts in the U ser industry where the average was only RM 5,903.
0
2000
4000
6000
8000
10000
12000
14000
16000
Junior Executive:
(1-4 Years Working
Experiance)
Senior Executive:
(> 5 Year Working
Experience)
M iddle M anagement:
(M anager)
Senior M anagement:
(Senior M anager)
Ringgit
Malaysia
IC T User Industries 13,364 8,519 5,408 3,216
ICT Producer Industries 13,735 9,354 5,437 3,236
Figure 5: Average Monthly Salary of ICT Professionals by Job Category, ICT User Industries and
ICT Producer Industries
Source: Jobstret.com and PIKOM, 2013
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Selected Key ICT Job FunctionsThe average monthly salary earned by key ICT professionals is shown in Table 7. It can be seen from this
table that ICT professionals in the managerial category, whether they are Java, H TM L, SQL or M CP certifi ed,
netted the highest earnings compared to other ICT job functions. I T Project M anagers can net an average
monthly salary as high as RM 17,500, which is almost two times higher than software engineers, who tend to
net as high as RM 7,917 per month only. As expected, the Senior Software Engineer, on an average, netted
R M 6,638 per month, which is 50% higher than the earnings of Software Engineers. On an average AutoCAD
engineers were paid R M 4,783 monthly and the experienced ones can net as high as RM 10,000 per month.
Being a highly specialized job, the average monthly salary earned by SAP Consultants in 2012 was RM 8,542
and the experienced ones netted as high as RM 16,667. Web designers earned the lowest monthly salary,
an average of just RM 3,692 monthly, among the listed jobs.
Job FunctionsMean
MonthlySalary
MedianMonthlySalary
MinimumMonthlySalary
MaximumMonthlySalary
Information Technology, Project M anager (Java, HTM L,SQL, M icrosoftCertified Professional)
9,700 7,100 4,667 17,500
SAP Consultants 8,542 7,647 3,833 16,667
Information Technology Consultants (Java, HTM L and M CP) 7,242 6,967 3,667 13,333
Senior D atabase/ System A dministrators ( M icrosoft and Cisco Certifi ed) 7, 021 6, 867 4, 250 11, 667
Senior Executive Engineer (Java, H TM L,SQL, M icrosoft CertifiedProfessional (M CP ) and Cisco)
6,638 5,973 3,500 11,667
Database/System Administrators (M icrosoft and Cisco Certified) 4,783 4,327 2,042 10,000
AutoCAD: Civil Engineering 4,783 3,419 2,167 10,000
Software Engineer (Java, H TM L,SQ L, M icrosoft Certified Professional(M CP) and Cisco)
4,567 2,997 2,417 7,917
Software Developer/Programmer (Java, HTM L,SQL) 4,317 3,778 2,417 7,167
Programmer/Analyst (Java, HTM L,SQL) 4,288 3,432 2,417 7,000
HTM L, Web Designer 3,692 2,773 1,583 6,917
Table 7: Average Monthly Salary of ICT Professionals by Job Function 2012
Source: (http://www.PayScale.com/research/ ) and PIKOM
Years of Working ExperienceTypically one expects the salary of an employee to go up in tandem with the number of years of working
experience. A s shown in Figure 6, the median salary of those have more than 20 years of working experience
earned 5.22 more than those who have less than one year of working experience.
0
2000
4000
6000
8000
10000
12000
20 year or more10-195-91-4Less than 1 Year
1 .001 .31
2 .24
3 .39
5 .22
MedianSalary(RinggitMalaysia)
/
BenchmarkingScale
M edianSalary (R M )
2,244 2,935 5,019 7,616 11,717
Figure 6: Median Monthly Salary of ICT Professionals and Benchmarking Scale by Years of
Experience, 2012
Source: (http://www.PayScale.com/research/ ) and PIKOM
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Employment SizeEmployment size matters in determining the average monthly salary of employees. As shown in Figure 7,
large corporations or multinationals (M N Cs) tend to pay higher than smaller ones. Comparing against the
smallest sized companies in the 1-9 employees category, which is taken as the baseline, the median salary
paid by companies with more than 2,000 employees was 1.88 times more.
0
1000
2000
3000
4000
5000
6000
7000
8000
M ore than
2000
600-1999200-59950-19910-491-9
1 .00 1 .031 .27
1 .4 2 1 .6 0
1 .88
MedianSalary(RinggitMalaysia)/
BenchmarkingScale
M edian Salary (R M ) 3,390 3,493 4,321 4,805 5,426 6,363
Figure 7: Median Monthly Salary of ICT Professionals and Benchmarking Scale by Employment
Size, 2012
Source: (http://www.PayScale.com/research/ ) and PIKOM
Geographical LocationAs shown in Figure 8, ICT professionals working in Kuala Lumpur and Cyberjaya tend to earn 1.75 times
higher than their counter parts working in smaller locations lik e Ipoh. Even within the Klang Valley, the
disparity in the salary is quite distinct, where the average median salary of ICT professionals in Petaling Jaya
or Shah Alam tends to be lower than their counterparts in the capital city.
0
1000
2000
3000
4000
5000
6000
IpohKuchingShah AlamJohorePetaling JayaCyberjayaKuala Lumpur
1 .75 1 .73
1 .381 .20 1 .19
1 .0 3 1 .0 0
MedianSalary(RinggitMalaysia)/
BenchmarkingScale
M edian Salary (R M ) 5,092 5,024 4,022 3,499 3,472 2,982 2,906
Figure 8: Average Monthly Salary of ICT Professionals by Geographic Locations, 2011
Source: (http://www.PayScale.com/research/ ) and PIKOM
GenderDespite gender equality, the salary data interestingly revealed that male ICT professionals tend to earn a
median salary of RM 5,201 while females earned a median salary of only RM 3,855, which work out to a 35%
difference.
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Gender M edian Salary (RM)
M ale 5,201
Female 3,855
(M ale salary / Female Salary) 134.9
Table 8: Gender Disparity in ICT Salary in Malaysia, 2012
Source: (http://www.PayScale.com/research/ ) and PIKOM
Hot ICT JobsH ot ICT jobs depend on the area of applications, as depicted in Figure 9. Specifi cally, in the technical
domain, software developers, programmers and engineers equipped with knowledge of Java C#, C++ , .N et,
SharePoint and Web Application Development are highly sought after. B eing an open platform and the ability
to speak to any back end system, large organisations in particular need Java programmers to transfer data
from legacy systems. D emand for network engineers and system administrators is on the rise in tandem with
the expanding scope of cloud computing and Windows 7 related migration activities.
Within the Business Applications domain, the demand for ICT professionals also vary greatly. Though
demand for certifi ed professionals in SAP or ERP are at an all time high, professionals specializing in I T audit
and IT security are proliferating, especially in fending off malware makers and cyber thieves. In addition,
organisations shifting towards cloud computing are spurring the need for infrastructure professionals. Big
Data Analytics is also a fast growing job area, especially in big companies desiring to extract insights from
their petabytes of stored data. The best candidates for Big Data Analytics jobs are those equipped with inter-
disciplinary knowledge and experience pertaining to not only technical know-hows but also with a strong
statistical/mathematical background. Simi larly, demand for mobile application developers and user interface
designers who can develop user friendly and versatile applications are also on the rise.
Irrespective of technological evolutions, the demand for soft-skilled professionals especially in project
management, consulting, process and quality improvements is ever present.
TECHNICAL C# Java C++ .NetCertified Network/
System Engineers
Certified Database
Administrators
APPLICATIONS SAP ERP IT Audit IT Security Help Desk Analysts Big Data Analytics
SOFT SKILLSProject
M anagementIT Consulting
Business Process
Improvement
Quality
Improvement
Figure 9: Hot ICT Jobs by Area of Applications
Source: JobStreet.com
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RegionalBenchmarking
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Table 9 shows a comparative analysis of the remuneration earned by ICT professionals in selected A sian
and English speaking countries. Here, average remuneration earned by each country is compared against
M alaysia, giving rise to a scaling factor that is free from bias caused by foreign exchange fluctuation. For
the purpose of this benchmarking exercise, M alaysia assumes a scaling factor of one. The median data
published by PayScale for the year 2012 was used. All measurements are tallied in U S dollars. T he average
value for each country is compiled after taking into consideration three variables, namely IT skills, company
size and years of working experience. Two types of benchmarking scales were published, specifi cally one
with purchasing power parity (PPP ) that takes into account inflation rates and fluctuations in the foreign
exchange rates and the other without PPP adjustment. Indeed, technically speaking, ambitious job seekers
should use PPP adjusted fi gures when searching for overseas jobs.
Comparison Against Asian CountriesWithout any PPP adjustment, the results showed that more advanced Asian economies, in particular Hong
K ong and Singapore, recorded average remunerations that were 2.25 to 2.54 times more than the average
remuneration earned by M alaysian ICT professionals in 2012 (Table 9) . B esides these two countries, China,
Thailand and Vietnam offer higher remunerations for ICT professionals, offering 1.87, 1.36 and 1.20 times
more than in M alaysia respectively. Comparatively, I ndonesia, India and Philippines offer lower remunerations
to their ICT professionals. With P PP adjustment, which takes into account for inflation and foreign exchange
rates as well as standard of living, the result showed that H ong Kong still ranked the highest paying nation in
Asia for ICT professionals. H owever, the scaling factor is only 1.90, which is signifi cantly lower than the non-
PPP adjusted scaling depicted earlier. Simi larly, the scaling factors for Singapore and China lowered to 1.84
and 1.63 respectively. Surprisingly, Vietnam recorded a higher scaling value of 1.87, indicating a much more
attractive nation in Asia for talent migration.
Country IT Skil/Speciality CompanySize Year ofExperience
Average
BenchmarkScale
IT Skil/Speciality CompanySize Year ofExperience
Average
BenchmarkScale
Benchmarking Scale: Malaysia=1.00(Atlias Method)
Benchmarking Scale: Malaysia= 1.00(Purchasing Power Parity (PPP) Adjusted)
M alaysia 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Singapore 2.25 2.23 2.31 2.26 1.74 1.72 2.06 1.84
Thailand 1.35 1.49 1.22 1.36 1.45 1.59 1.05 1.36
India 0.50 0.42 0.56 0.49 0.71 0.60 0.68 0.66
China 1.66 2.06 1.89 1.87 1.54 1.91 1.44 1.63
Phillipines 0.15 0.39 0.47 0.44 0.45 0.40 0.46 0.44
Vietnam 1.10 1.10 1.41 1.20 1.61 1.62 2.39 1.87
Hong Kong 254 2.59 2.35 2.53 1.95 2.06 1.69 1.90
Indonesia 0.66 0.73 0.79 0.73 0.57 0.63 0.47 0.56
UnitedK ingdom
2.67 2.41 2.45 2.51 1.38 1.24 1.79 1.47
Canada 3.25 2.96 2.95 3.05 1.57 1.48 2.16 1.72
New Zealand 3.08 2.74 2.75 2.86 1.74 1.55 2.25 1.84
Australia 4.08 3.52 3.59 3.76 1.80 1.60 2.31 1.90
USA 3.43 3.11 3.17 3.24 1.85 1.68 2.70 2.08
Table 9: Benchmarking Salaries Earned by ICT Professionals of Selected Countries and Malaysia,
2012
Source: (http://www.PayScale.com/research/ ) and PIKOM
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M alaysians are typically known to search for better opportuni ties beyond the shores of Asia. The distant
lands that become attractive destinations for M alaysians are mostly English speaking countries, in particular
U nited States of America, U nited K ingdom, Canada, Australia and N ew Zealand. Despite the distance, these
countries have long diplomatic and trade ties with M alaysia. M oreover, English is a popular lingua franca
among M alaysian businesses especially among the private sector and there has been always a natural
attraction for M alaysians to do more businesses with such English speaking countries. These destinations
are no exceptions for ICT Professionals as well, especially software developers and networking engineers who
are in demand at all times globally.
Figure 10 shows that the Australian and U SA job markets offer the highest remuneration, 3.76 and 3.24
times more respectively without PPP adjustments than what a typical ICT professional in M alaysia can earn.
But, taking into considerations of PPP adjustments, the USA becomes a higher paying destination than
Australia, that is, 2.08 and 1.90 times respectively. Without PP P adjustments, Canada with its 3.05 scaling
factor also appeared as an attractive destination for ICT jobseekers but the PPP adjusted value reducing to
1.72 suggested otherwise. Simi larly, U K s scaling factor reducing from 2.51 without PPP adjustment to 1.47
PPP adjusted does not suggest it to be a very attractive destination as an ICT job market. Indeed, it can be
seen that the cost of living and foreign exchange fluctuations have signifi cant impact on the salaries earned
and thus, becomes a crucial consideration factor for potential job seekers before making any decision on job
related migrations.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
USA
Australia
HongKong
Vietnam
New
Zealand
Singapore
Canada
China
United
Kingdom
Thailand
Malaysia
India
Indonesia
Phillipines
0.44
0.44 0
.73
0.56
0.490
.66
1.00 1
.36
2.51
1.87
3.05
2.26
2.86
1.20
2.53
3.76
3.24
1.00
1.36 1
.47
1.63
1.72 1.8
4
1.8
4
1.8
7
1.90
1.90 2
.08
Atlas
M ethod0.44 0.73 0.49 1.00 1.36 2.51 1.87 3.05 2.26 2.86 1.20 2.53 3.76 3.24
PPP
Adjusted0.44 0.56 0.66 1.00 1.36 1.47 1.63 1.72 1.84 1.84 1.87 1.90 1.90 2.08
Figure 10: Benchmarking Salaries Earned by ICT Professionals in Malaysia and Selected Countries,
2012
Source: (http://www.PayScale.com/research/ ) and PIKOM
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Employment OutlookAnd Perception
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This report also attempts to present the overall IC T job market outlook from an industrys perspective and
from the perception of potential jobseekers. A total of 227 JobStreet.com clients, managers and senior
managers across various industries in M alaysia participated in this survey conducted in February 2013.
JobStreet.com Confidence Index (JECI)The JobStreet.com Employment Confi dence Index (JECI ) , which is compiled on a monthly basis, is shown
in Table 10. JECI ranges from zero (very poor) to 100 (very good) . A low index shows a tough job market
situation where employment seekers fi nd it diffi cult to get a job. A high index indicates a comfortable job
market, where people are able to secure a good job easily.
As shown in Figure 11, the JECI has signifi cantly dropped from 51.6 in 2011 to 48.8 in 2012, before it shot
up slightly in January 2013, indicating increasing confi dence in the local job market.
Month 2 0 1 3 2 0 1 2 2 0 1 1 2 0 1 0 2 0 0 9 2 0 0 8 2 0 0 7 2 0 0 6 2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 2 0 0 1
JAN 49.1 50.5 52.2 47.0 44.9 50.7 52.6 49.6 47.6 41.7 36.2 31.2 42.0
FEB 50.9 52.5 48.7 43.1 49.0 52.7 50.1 47.4 42.3 31.7 31.8 41.5
MAR 50.4 51.2 48.8 43.8 51.8 52.4 49.7 43.3 41.6 34.6 35.7 39.4
APR 48.8 53.2 51.4 46.9 49.7 51.2 50.4 42.8 39.0 31.0 35.2 40.1
MAY 49.7 51.9 51.9 47.8 49.2 50.0 49.9 44.0 39.6 28.7 36.9 37.5
JUN 49.8 53.5 48.1 48.5 48.9 50.1 50.2 41.1 46.4 34.1 35.0 37.5
JUL 41.3 54.1 50.2 49.7 47.9 50.4 47.8 42.0 43.5 32.5 34.7 34.9
AUG 50.9 52.3 51.9 50.2 50.1 48.7 50.1 49.6 45.1 32.7 36.2 32.9
SEPT 48.7 48.8 61.0 48.7 49.6 49.5 50.7 48.6 51.9 34.7 34.0 30.5
OCT 48.8 51.0 53.7 48.3 49.6 48.6 49.6 46.8 49.6 32.9 32.7 32.4
NOV 48.7 49.2 51.6 50.0 47.6 49.3 51.7 47.1 51.3 37.0 34.5 31.2
DEC 48.1 49.4 49.7 50.2 47.3 49.6 51.9 49.0 49.9 36.8 31.6 31.5
Table 10: Job Employment Confidence Index: January 2001- January 2013
Source: Jobstreet.com
30
40
50
60
2013201220112010200920082007200620052004200320022001
36 .134 .1
33 .6
45 .2
45 .8
5 0 .1 5 0 .449 .3
47 .7
5 1 .2 5 1 .6
48 .8
49 .1
JECIIndex
Figure 11: Job Employment Confidence Index: 2001-Jan 2013
Source: Jobstreet.com and PIKOM
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2.50
2.55
2.60
2.65
2.70
2.75
2.80
2.85
2.90
Q1:2013Q1:2012Q1:2011Q1:2010
2 .62
JHIS
2 .69
2 .62
2 .86
JHIS 2.62 2.69 2.62 2.86
Figure 13: Job Hiring Index Score 2010-2013Source: PIKOM
Top Specializations SoughtAs reflected in Table 11, for most industries jobseekers in sales and marketing are still the most sought after,
followed by those with expertise in manufacturing, accounting and engineering. In comparison with the last
quarter, three new specializations have entered the top 10 list. They are manufacturing, engineering, and
mechanical engineering. R espondents from major industries such as hotel & restaurants, fi nance computer
and IT, mining (oil & gas) reported that they would most likely experience a better job growth in the next 12
month.
Top 10 specializations employers seek
1 Q 2 0 1 3 4 Q 2 0 1 2
1 1 Sales
2 2 M arketing
3 (new) M anufacturing
4 8 Accounting
5(new) Engineering (Others)
6 6 Engineering (Electrical)
7(new) Engineering (M echanical)
8 7 Human R esources
9 9 General Administration
10 4 Customer Service
Table 11: Top 10 Specializations Employers Seek, 2012 -2013
As mapped out in Table 12, the top specializations employers seek has changed over the past fi ve years.
Sales, marketing and business development jobs are consistently ranked among the top most sought after
jobs. Interestingly Computer & IT (Software) , which ranked either third or fourth positions from 2009 to 2012,did not get into the top ten specializations employers seek for the year 2013. On the contrary, manufacturing,
mechanical engineering and other engineering jobs drew attention of potential employers. Customer service
category is also seen sliding down the top ten.
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2 0 1 3 2 0 1 2 2 0 1 1 2 0 1 0 2 0 0 9
Sales M arketing and businessdevelopment
M arketing and businessdevelopment
M arketing and businessdevelopment
M arketing and businessdevelopment
M arketing and businessdevelopment
Sales / M arketing(merchandising)
Sales / M arketing(merchandising)
Sales / M arketing(merchandising)
Sales / M arketing(merchandising)
M anufacturing Customer Service Computer & IT
(Software)
Customer Service Computer & I T
(Software)
Accounting Computer & IT(Software)
Customer Service Computer & I T(Software)
Engineering M echanical
Engineering (Others) Engineering M echanical Human Resources Engineering M echanical Sales / M arketing(technical)
Engineering (Electrical) Human Resources Top Management Human Resources Customer Service
Engineering(M echanical)
General / CostAccounting
Sales / M arketing(technical)
Sales / M arketing(technical)
Human R esources
Human Resources Sales / Marketing(technical)
General / CostAccounting
General / CostAccounting
General / CostAccounting
G eneral A dm inistration M ai ntenance C omputer & I T(Hardware)
Top M anagement
Customer Service Engineering Electrical Education, Training &
Development
Clerical / G eneral
Administration
Top M anagement
Table 12:Top Specializations Sought Trend: 2009-2013
Position Level SoughtAccording to respondents, 52% are looking for junior level positions which require less than 4 years of
experience followed by 24% who are looking at people with specialised skills, such as accountants and
engineers (Figure 14) . O nly 13% of the respondents are looking for fresh graduates. H uman resource
managers in many industries expressed diffi culties in hiring fresh graduates as many candidates without
working experiences are demanding a high salary. M anagerial levels and above might be experiencing a
more diffi cult period as only 11% of the respondents are looking to fi ll such positions.
0% 10% 20% 30% 40% 50% 60%
Top M anagement (P resident, CEO, GM )
Director / Vice President
M anager / Assistant M anager
Supervisor / Specialist
Junior level (less than 4 years
experiance)
Fresh graduate 1 3 %
5 2 %
2 4 %
1 1 %
0.9%
Figure 14: Job Positions Sought After in 2013
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Rethinking HR in a Changing World:A Practitioners DiscourseBY WOO N TAI HAI, EXECUT IVE DIR ECTOR, K PM G M ALAYSIA
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IntroductionIn the last 5 years, there has been a preoccupation with cost optimisation, cost reduction, sustainable cost
management.. . all things cost. This has required H R to play its part, largely through making the HR function
more effi cient, but not necessarily more effective.
N o one expects this focus on costs to change in the short to medium term.
But there is a clear case for HR functions to also generate value in the wider business and that there are some
signs that this drive for value creation from H R will become increasingly important.
The big three challenges to HRs new growth agendaThe people agenda in most organisations contains some truly business-critical issues and the need for H R to
rise to the big three challenges has never been more acute. T he big three challenges to HR s new growth
agenda are:
balancing the global and the local1. managing, hiring and identifying talent globally while retaining
important local insights
managing a flexible and virtual workforce2. but not at the cost of loyalty and career development
retaining the best talent3. maintaining employee engagement in the face of a less committed, more
flexible workforce.
These big three challenges and other key
fi ndings were derived from a global study
by the Economist Intelligence Unit between
M ay & June 2012, commissioned by KPM G
International. The Global study of 418
executives comprised with more than one-third(37 percent) of respondents who identifi ed
themselves as C-level executives; with the
remainder being at the management level up
to senior vice-president. M ore than one-half
of respondents (58 percent) primarily serve
an HR function; the remainder (42 percent)
represents a wide range of other functions.
The respondents are based in Asia-Pacifi c (32 percent), Europe (30 percent), N orth America (28 percent)
and Latin America (10 percent). A wide range of industries is represented, including manufacturing and
energy & natural resources (both at 12 percent) , IT, fi nancial services, and healthcare & pharmaceuticals
(all at 11 percent). M ore than one-half of the companies surveyed (53 percent) boast more than 10,000
employees 22 percent have over 50,000; the remaining 47 percent have between 1,000 and 10,000
employees.
The global study, aptly entitled, R ethink ing H uman R esources in a Changing World examines the nature
of the challenges facing the HR function and its future direction. The reports main fi ndings include the
following:
HR is struggling with the challenges of managing a global, flexible workforce. The global workforce has
become increasingly integrated across borders while simultaneously growing more virtual and flexible.These developments have made the retention of key talent and bui lding workforces in new markets the
top priorities of HR departments over the last 3 years. Survey respondents expect little change in the next
3 years. Yet only about one in four respondents say that H R at their company excels at core issues such
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Doing the basics better and more efficiently M oving
toward a more self-service model has improved basic HR
service effi ciency while freeing up H R to focus on delivering
more strategic services that add value to the core priorities
of the business.
Better training M oving away from classroom training
toward a more interactive, demonstrative approach. This
has been a very positive development and had a very
powerful impact. It enables employees to learn in more
bite-sized chunks and in a much more visual manner.
Creating a positive culture and brand for current employees
and potential hires N ew technologies are playing an
important role in how we connect people in the organisation
and how we create a culture that is a medium for people.
Organisations are exploring how to use technology to create
a company brand that is attractive to people joining it.
The next step: data-driven HRData analytics is the most commonly cited area (selected by 31 percent of respondents) for planned H R
technology investment in the next 3 years. Analytics will allow HR to not only be involved in managing
talent, but to also collect clearer information on its supply chain of talent and where the most demand for
particular skills lies. R ather than acting on instinct alone, the HR function will be able to provide a far more
granular roadmap of how the organisations people resources need to be reshaped to deliver on the corporate
strategy.
Data analytics gives HR departments the long-overdue chance to become more empirical, to provide hard
evidence for their opinions, thereby gaining much-needed credibili ty at the highest levels of the business.
K ate Terrell, vice president, H uman R esources, Global Products Organisation, at Whirlpool Corporation, a
household appliance manufacturer, explains: When you arm a business partner of the future with analytics,
and they can share the facts with their teams to help drive better decision-mak ing, it allows you to be much
more strategic, much more insightful, and potentially, much more laser-focused on where you should be
spending your time.
The future of HR: Eradicating the stigmaIt is practically a business truism that the H R function is not well respected at many organisations. Whether
deserved or not, this stigma is clearly evident in the global survey results.
Only 15 percent of our survey respondents see HR as able to provide insightful and predictive workforce
analytics.
Only 17 percent view it as able to demonstrate measurably its value to the business.
Strik ingly though, 81 percent of respondents see talent management as a key competitive advantage over
the coming 3 years. There clearly remains a vast gulf between the perceived importance and the perceived
effectiveness of H R today. At the very least, H R has a perception problem. In many cases it may haveactually failed to deliver real value. As the shifting challenges of globalisation and virtualization combine
with the new technological tools available to enable a reshaping of the HR function, executives should take
ROBERT BURTON
K P M G
H R Transformation
Center of Excellence
I believe... that HR functions have tried for
the past 15 years to tranform themselves
into strategic players and earn a place
at the leadership table. But theyve done
so with limited success because they have
focused on rolling out generic HR models
and universal best pratice, rather than
customized solutions that support the value
drivers of the business. Now theyve caught
in what I call the doom loop.
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a number of steps to improve the functions contribution
and its image.
Make the value of HR more prominentand understoodPerceptions about H R in the wider company may arise
from the very nature of its role. As the HR function works
behind the scenes, many in the organisation may not
be aware of the good things that it is doing. This is an
inevitable part of being a staff support role where HR is
the architect and the line managers are owners of the
work, says Professor Ulrich.
H R practitioners need to make sure the company knows and understands the value they can deliver, in part
by insisting on being included in strategic conversations. It also involves understanding the needs of the
whole business better in order to mak e that contribution. Learning to listen deeply is one of the skills that HR
functions need to develop, not only in terms of the context of their role but in terms of continually improving
the organisation.
Think, understand and communicate in the language of businessH R needs to eliminate the jargon of its specialization (the same challenge IT continues to face) and begin
to link its work more explicitly to business value. The right business language helps to open the door, but it
is also important to provide a robust business case for projects. It entails thinking more carefully about the
specifi c business outcomes of the actions that H R recommends. What is the impact on customer service, or
the reduction in costs, or the increase in staff loyalty, or other metrics that are more specifi cally relevant to
the line managers and departments being supported? Importantly, it is also about taking a fuller perspectiveof the whole business, including both internal factors as well as external business conditions, and creating
H R strategies to fi t. In turn, this requires a far deeper grasp of the organisations core business model and
strategy and the implications this holds for the rest of the business to date, something that far too few H R
practitioners have mastered. To put this in context, a business that fundamentally focuses on providing low-
cost goods will require a fundamentally different HR strategy than one that is focused on delivering leading-
edge innovation.
Move from administration to higher-value-added activitiesA technology-enabled HR function will allow professionals to avoid being immersed in the minutiae of record-
keeping, transactions and life-cycle processes. But it will also likely reduce the number of H R staff that
companies require. These slimmed-down departments will then be able to focus on providing more strategic,
higher-order services.
Some of HR s traditional administrative work will almost inevitably fi nd another functional home, a shift that
45 percent of respondents expect to occur in the next 3 years. There is no compelling reason for H R to
manage the transactional administration of payroll, benefi ts, pensions or mobility (transfer administration) ,
particularly where managed on a contractual outsourcing basis. O f course, H R would remain the architect
of these systems. But once the desired model is established, there is no reason why H R needs to pedal the
wheels.
PAULETTE WELSING
K P M G
H R Transformation
Center of Excellence
I believe... well thought-out predictive workforce
analytics could become as important to the
CEO as the blalance sheet and P&L statement.
Technology and workforce analytics could
really shake up HR as we currently know it.
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ConclusionR ethink ing Human R esources in a Changing World has provided us with a fresh view of the path ahead for
leaders of the HR function. We believe that a number of areas such as workforce analytics, talent management
and technology will reinforce the need for H R to mak e the people agenda as important to business leaders
as the balance sheet and P& L statement.
M any of the challenges identifi ed in the global study are long standing. But they are no less urgent for that.
Indeed, there is no escaping the prospect of a shrinking and weakened HR function in the coming years.
Quite simply, H R has to break out of the trap it has been stuck in for far too long.
U nfortunately, there are no simple solutions, no generic approaches or best practices that will suddenly
enable the H R function to become more effective and respected. H R needs to focus on delivering unique
talent solutions tailored to each companys circumstances and requirements.
To do this, H R must develop a deep understanding of the business in the same way, and using the same
language , as other managers. The measures it proposes must be tied to business outcomes: the impact
on customer service, the reduction in costs, the support of a specifi c new growth area, the increase in staff
loyalty and so on.
While communication has a role to play, particularly when it comes to managing expectations after all, HR
needs time to do its work the required antidote is a relentless focus on identifying ways of adding value to
the rest of the business, and proactively meeting the needs of HR s customers.
For many H R functions, data analytics is an ingredient that has long been missing, for example, it is a way
of providing hard evidence about employee-related needs and opportunities and the impact of H R . T he
insights that can be gleaned from rigorously collecting and analyzing data, and creating insightful forecasts
on the back of i t, is a key tool in enabling HR to shape the organisations people resources to deliver on itsunderlying corporate strategy.
But this is not just about employing the latest technologies or tools. It is about the HR function using an
empirical approach to deliver a unique and differentiated people management strategy that is closely aligned
with the companys goals and in the process of doing so, restoring H R s much-needed credibi lity at the
highest levels of the business.
This study suggests that H R perceives its biggest current challenge to be seizing the opportunity to transform
itself into a strategic player.
AcknowledgementsThe above article was a reproduction from a global study by the Economist Intelligence Unit between M ay &
June 2012, commissioned by KPM G International.
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The Right Talent DevelopmentStrategy for Top Talents?BY KEN LEE, DIRECTOR , KP M G M ALAYSIA
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IntroductionYour organisation is unique, and so is the mix of talent you need to deliver your business strategy. Why, then,
do so many organisations continue to take a generic best practice approach to one of their most important
strategic levers: how best to develop their top talents?
Do you develop your top talents the same way as you develop the broader employee population? Or should
you take a unique and out-of-the-box approach?
After all, how well an organisation develops its talent can make or break i ts business. Developed well, and the
organisation will be singing in harmony. B ut developing talents poorly and things soon start going off key.
Your talent strategy for your organisation depends largely on how well youre able to develop your top
talents differently so that you will continue to win in your markets. What follows are several ideas to help guide
you through this process and fi nd a compelling approach on H ow best to develop your top talents with the
right talent development strategy .
Who are your Top talents and why are they different from everybodyelse?Since the publication of M cKinseys seminal study on War for Talent in 1998, many organisations to take
the stand that managing talents is similar to managing their human capital. This view has evolved over time.
Talents have been studied , assessed and measured countless times and approaches and defi nitions
for talent spotting are many. What remains clear is that views onpotential is somewhat a generally acceptable
word associated to talent.
One approach to identify top talent is based on their performance and potential.
On assessing performance, a typical approach is to look at performance ratings and the track record ofconsistently delivering high performance. When it comes to assessing potential, it is It is universally recognized
that potential is a diffi cult thing to objectively assess. N evertheless historical performance alone is not enough
to predict future success. Some of the valuable prompts used to assess potential include key questions
related to ambition, abili ty, and engagement.
Two sets of illustrative components used to assess talents are:
VALUE
Performance
PerformanceManagement Process
Potential
Talent ManagementProcess
TRACK RECORD ABILITY AM BITION ENGAGEM ENT+ + + +
For each of these criteria above, organisations (traditionally HR practitioners) will need to support the business
by asking further questions and by pushing them to provide specifi c examples.
Your top talents are those quality people who are your next generation of leaders, critically important to the
future success of your business. They are also known as the Emerging Leaders a term used to explain
the strategic importance of leaders who are committed to role modeling, coaching and inspiring others to be
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the best they can be. They are your top 5% and differ clearly from the rest of the 95% . M any organisations
continue to place strong emphasis on high-potential employees, a critical talent pool. They are provided with
different career paths and development strategies.
Benefits of having a different developmental strategy for your top talentsOne of the direct benefi ts of developing your talents differently is that it will enhance your ability to retain
top talents. This has been a proven strategy for organisations that are committed to invest on developing
their next generation of leaders. As top talents are the top 5% , A performers, many of organisations
maximize the contribution of talent people by providing them with stretch experiences to allow them to make
a difference. What we have also found in recent years, is that increasingly, many organisations have begun
this process of developing their top talents in their early stage of their careers. This will not only build greater
breadth in the required leadership skill sets but inspire the key talents to extend their bandwidth as industry
recognized leaders in their market place.
For the top talents, studies have indicated that it provides them with the ability to make an impact and
maximize contribution to the fi rm. A differentiated developmental track makes them feel valued as an
Emerging leader and this goes a long way in terms of retaining them.
What is the best development model?A preferred developmental strategy for nurturing top talents is to provide them with adequate stretch
experiences. These stretching experiences have been identifi ed by many successful Leaders and professionals
- have indicated through their feedback that stretch experiences have given them the transformational skills
and experience to add the most value to their development and progress in their careers. The stretch should
help top talents develop ski lls that help set them apart from the broader employee population, prepare them
to meet client challenges and the career hurdles ahead. Below are some examples of stretch experiencesthat are aimed at ensuring top talents get a wide variety of experience as they work towards becoming the
next generation of leaders.
The following example is a combination of experiences which have been structured around what top talents
typically perform in their role. While many organisations may adopt a different approach to develop people
along with their unique competencies, this example is only intended to be a generic one which will help
provide some ideas which you can take away:.
Business Development & SalesYour ability to spot and convert business opportunities for your organisation is key to your future success
grow ing accounts, leading successful pitches, bids and converting new relationships into clients for your
organisation and leading and contributing to a variety of sales.
Some stretch ideas:
Negotiation. Provide real opportunity to experience fi rst hand negotiation with a substantial stake with
key target clients.
Evidence of winning work. Experience winning new work based on personal relationships developed,
marketing initiatives lead and long term relationship development. Establish their own profi le/brand in the
market to generate a pipeline of future sales
On a Key Account for a key client , Play an active role on a strategic Key Client Account, taking responsibili ty
for driving forward account management activity.Involvement in a significant pitch/bid/proposal . P lay a key role because of your specialist technical or
sector knowledge.
Cross selling. Draw on a wide internal network to facilitate introductions to clients that lead to cross
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function sales or invitations to tender, beyond the initial scope of the work. M aintained and invested in
developing relationships with clients
Evidence of leading a major pitch. Lead a complex, high value and/or highly competitive major pitch with
minimal support from Leadership, resulting in a win or positive client feedback and strong sustainable
relationships.
Develop a new business area, value proposit