Monday, 19 January 2026

Clash of expectations: Pay matters, but isn’t the main reason young workers leave

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KUCHING: Reports of younger employees leaving their jobs within 12 to 18 months are beginning to surface among Sarawak employers, according to business groups.

The Secretary-General of the Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) and the Sarawak Business Federation (SBF), Datuk Jonathan Chai, said neither organisation has conducted a formal survey or commissioned a dedicated study on the issue.

“As such, current observations are based largely on qualitative feedback from member companies, rather than comprehensive empirical data.”

He said employers have observed early turnover among younger employees, although the pattern is not consistent across all industries, adding that feedback from members suggests it is a real and emerging trend.

The issue appears more pronounced at entry-level and junior professional positions, particularly in the services sector, retail and hospitality, ICT-related roles, as well as certain administrative and sales functions.

“In contrast, companies operating in sectors with more structured training systems, apprenticeship models or clearer career pathways generally report better retention outcomes,” he told Sarawak Tribune.

Chai said employers most frequently cited a mismatch between job expectations and actual responsibilities, limited clarity on career progression, and management approach or workplace culture issues as key reasons younger employees resign within a relatively short period.

“While remuneration remains a factor, member feedback suggests that pay alone is seldom the primary reason for early resignation.”

He said younger employees tend to place strong emphasis on skills development opportunities, meaningful work, flexibility and supportive supervision.

“From the employers’ perspective, the underlying challenge is therefore not simply one of employee loyalty, but rather one of expectation alignment, engagement and capability development, particularly in a labour market that is changing rapidly.”

Chai noted that small and medium enterprises (SMEs) face structural constraints, including limited resources and a lack of dedicated human resource capacity.

“Many SMEs operate with limited financial and human resources, and due to their smaller workforce size, do not have dedicated Human Resources departments or in-house expertise to systematically manage career progression planning, structured training or long-term upskilling programmes.

“As a result, employers may recognise the importance of talent development and retention, but their capacity to design and implement comprehensive HR strategies is often constrained.”

He said the Sarawak Government has channelled funds on a staggered basis through SBF to support upskilling initiatives, internship programmes and training workshops.

“These initiatives help bridge capability gaps, particularly for SMEs, by improving employees’ skills, knowledge and job readiness across various sectors.”

On retention strategies, Chai said employer feedback shows clearer career progression frameworks and stronger onboarding processes have delivered more tangible improvements over the past 12 months.

“First, the introduction of clearer and more transparent career progression frameworks, even in simplified form, has helped manage employee expectations and improve early-stage retention.

“Second, stronger onboarding processes combined with structured training, mentoring and regular feedback have assisted younger employees in integrating more effectively into their roles.”

However, he said stand-alone financial incentives or generic training programmes, when not linked to clear career pathways or practical application, have yielded limited long-term impact.

“Similarly, policy changes that are not accompanied by improvements in management capability and workplace culture have not resulted in sustainable retention outcomes.”

Chai said addressing early workforce turnover among younger employees requires a balanced and collaborative approach that takes into account SME realities.

“This includes aligning expectations between employers and employees, strengthening skills development through industry and government support, and enhancing management capabilities at the enterprise level.

“Such coordinated efforts will be critical in building a resilient, competitive and future-ready workforce for Sarawak.”

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