MOST Malaysian employers are willing to hire returnee staff who studied or worked abroad, but only half actually do so, a study has found, with one of the biggest reasons being the mismatch in salary expectations.

The 2019 Hays Overseas Returnee Report, released today, said 84% of the employers polled expressed interest in hiring Malaysians with overseas education or work experience, but from the returnees’ perspective, most are not optimistic about their pay prospects in the country.

Two in five, or 43%, of overseas returnees said they are willing to take a pay cut, while almost a third, or 27%, said they are expecting a salary similar to what they would earn abroad.

This is despite two-thirds, or 63%, of employers saying they are willing to give better salary packages to overseas returnees compared to local candidates.

“Most (36%) employers are keen to give ‘up to 10% more’, (followed by employers willing) to give ‘11% to 25% more’,” said the report, which also noted that Malaysia is trying to resolve its brain drain issue.

As such, there is a “mismatch in expectation of offer packages”, as experienced by 77% of employers and 45% of returnees.

This led to only about half, or 48%, of employers actually hiring overseas returnees in the past year.

Returnees’ perspective

In terms of job prospects, only 15% of returnees said they view Malaysia as greener pastures.

The biggest motivation for those working abroad to return is “to be closer to family” (63%), followed by “progress and development in career” (36%) and “culture and lifestyle” (29%).

Just 3% said they want to start their own business.

“When it comes to the type of business that first hires them upon their return, returnees are more likely to join a government department or a related association,” said the report.

“Even though only a 5% average across the region managed to do so, 10% of Malaysian returnees were able to be employed by this category of firms.”

Returnees also said they feel “unfamiliar with local job-market conditions” (42%) and cited “unsuitable job opportunities” (42%), saying these are the greatest obstacles in their job search in Malaysia.

Pros and cons of hiring returnees

Despite the challenges of meeting salary expectations, employers said they are willing to hire overseas returnees because of the “certain skills” the group can contribute to the business.

Employers rated returnees highly in cross-cultural awareness (78%), saying this is the most valuable skill they can bring to the organisation.

Language and communication skills are also deemed assets, with 62% of employers saying such skills add value to companies.

However, 43% of employers reported returnees who lacked local work experience, and 27% said the returnees hired eventually “dropped out”.

Overall, the report showed that Malaysian employers have high confidence in overseas returnees.

“Hiring managers in Malaysia are content with the work output of their overseas returnee employees. More than a third (35%) are satisfied, while a quarter (25%) said they feel that returnees are average.”

The survey, involving more than 2,000 working professionals across Asia, was conducted between January and March. – August 21, 2019.