By Chan Ching Thut

Companies in marketing, communications and creative industries across Asia Pacific are generally upbeat about growth prospects and high expectations of revenue growth, according to the latest salary survey and industry monitor by Aquent. 

As a result, hiring trends are up and salaries are rising. However, talent management remains a challenge facing employers in the countries (Australia, China, Hong Kong, Japan, Malaysia, New Zealand, Singapore and South Korea) surveyed. 

The Aquent Orange Book 2006-2007 reveals that companies in Malaysia are bullish about their growth prospects with 84% predicting an increase in revenue this year.  

Employers from China and Hong Kong are most positive in predicting revenue growth, with 91% and 90% of companies respectively looking forward to higher income in the next 12 months. 

Aquent Kuala Lumpur area manager Sharon Wong says the positive revenue growth in Malaysia is due to positive gross domestic product growth projection, forecast of increased advertising expenditure, growing international reputation for quality work and a buoyant new media sector. 

Of the 84% that predicted increase in revenue, half predicted it to increase between 11% and 20%.  

About half of the employers surveyed also predicted salaries to increase in the next 12 months. In general, most companies predict increases of 8% to 10%. 

“This is particularly prevalent among the creative talent; employers are bidding for a shrinking supply of top quality talent,” she said during the launch of the publication’s Asia Pacific edition in Kuala Lumpur recently. 

The survey showed that demand for permanent staff in Malaysia is strong, with more than 50% predicting headcount to increase in the next 12 months. This is in line with positive predictions of revenue growth. 

With rising demand for the best talent, there are corresponding pressures for salaries to rise as employers compete in a market plagued by high staff turnover and a shortage of quality talent.  

Staff turnover (with rates averaging 23%) is a serious problem in Malaysia. Turnover rates are highest in the fields of PR/communications, media and creative, where 71%, 40% and 50% of employers respectively report turnover rates of over 20%. 

The survey also noted emerging trends in Malaysia. 

There is a consolidation of the communications and creative industry, with agencies diversifying their core services in order to maintain revenue growth.  

Marketers are more reluctant to spend large amounts on traditional advertising campaigns in order to deliver measurable return on investment; therefore integrated campaigns are becoming the norm. New media is growing significantly and campaigns commonly combine elements such as interactive, direct marketing, events/on-ground promotions and PR. 

Temporary staff is becoming common with as high as 70% of the companies hiring temporary staff. This is due to additional projects, unpredictable workload and specialist skills required. 

However, employers see the use of a flexible workforce as a reactive way to cover short-term capacity shortage, rather than planned long-term business strategy. 

The majority surveyed rated the calibre of potential staff in Malaysia as average and the ratings are lower than other countries. Public relations (PR) and interactive agencies rated talent as “poor”. 

Over 30% of employers expect to use more temporary staff in the next 12 months. Aquent predicts a more systematic approach to hiring of temporary staff as agencies strain to maintain headcount costs. 

In securing high quality talent, over 70% of companies in Malaysia are willing to offer relocation packages and to sponsor a foreign candidate.  
Companies are open to foreign talent, especially for candidates with specialised skill sets, as long as language and cultural issues do not pose a barrier to assimilation in Malaysia. 

Boston-based Aquent is a global firm specialising in staffing solutions in the creative, marketing and communications industries.

 The fourth annual survey covers 8,000 respondents in 26 cities from 14 countries. In Malaysia, Aquent received 316 responses. 

The survey is conducted in 10 languages among marketing, communications, creative and business support professionals.