Author : Zakwan Rahim
Understanding why employees resign in Malaysia is one of the most important things an HR team can do. Employee turnover is a big problem for many companies — when good people leave, it costs time and money to replace them. But here is the thing: most employees do not quit suddenly. They make up their mind weeks or months before they hand in their notice. By the time the resignation letter arrives, it is often too late.
This article covers the 10 most common reasons why employees resign in Malaysia, with real data to back it up, and practical steps HR teams can take to keep staff from leaving. If you want to read more HR guides like this, visit our SunFish Malaysia HR Insight blog.
1. The Pay Is Too Low or Feels Unfair
Low pay is one of the top reasons employees quit in Malaysia. When workers feel their salary does not match what they do — or what others in similar jobs earn — they start looking elsewhere.
The Jobstreet by SEEK Workplace Happiness Index (Malaysia, 2026) found that higher pay is the number one thing unhappy Malaysian workers say would make them happier at work. Aon’s 2025 Salary and Turnover Study also found real turnover numbers by industry: retail and hospitality had the highest rate at 22.2%, followed by manufacturing at 17.7% and technology at 17.1%.
What HR can do: Check your salaries against the market regularly — not just once a year. Be open with employees about how pay is decided.
2. There Is No Clear Path to Grow
People want to know where they are going. If a company cannot show employees what their future looks like, they will find a company that can.
LinkedIn’s Workplace Learning Report (2024) found that 94% of employees would stay longer at a company that invests in their growth. This is especially true for employees aged 25 to 35, who are at the stage of their career where growth matters most.
What HR can do: Create clear career paths. Set up mentorship programmes. Make promotion criteria easy to understand.
3. A Toxic Work Culture Pushes People Out
This is the biggest reason employees resign in Malaysia — and the data is striking. Malaysia has the highest resignation rate due to toxic workplaces in all of Asia Pacific.
Randstad’s 2025 Workmonitor report found that more than half of Malaysian employees have left a job because of a bad work environment. Almost half said they would turn down a job offer from a company with a poor culture. For Gen Z workers, that number goes up to 59%.
Toxic culture includes things like office politics, poor communication, unfair treatment, and managers who do not respect their staff.
What HR can do: Take culture seriously at every level — not just in HR policy. Listen to staff, act on feedback, and hold leaders accountable.
4. A Bad Relationship With Their Manager
People do not leave companies. They leave managers. This saying has been proven by data many times over.
Randstad found that half of Malaysian workers would consider resigning because of a poor relationship with their manager. Gallup’s State of the Global Workplace 2025 shows that 70% of the difference in team engagement comes down to the direct manager. Gallup also found that manager engagement globally fell from 30% to 27% in one year — and when managers are disengaged, their teams feel it.
What HR can do: Train managers regularly. Give them honest feedback. Do not just promote people into management roles without support.
5. Burnout and No Work-Life Balance
More and more Malaysian workers are leaving jobs not just for more money, but for a better quality of life.
The Jobstreet by SEEK Workplace Happiness Index (Malaysia, 2026) found that only 36% of Malaysian workers are happy with their stress levels. 41% say they feel burnt out. Among workers who are unhappy, 71% said better work-life balance would make them happier at work. DHR Global’s 2025 Report also found that 82% of office workers across Asia experience some level of burnout.
On top of that, Randstad found that 43% of Malaysian workers would quit if they were forced to spend more time in the office — rising to 47% among younger workers.
What HR can do: Offer flexible work options where possible. Monitor workloads. Do not treat wellbeing as a bonus — treat it as a basic need.
6. Their Work Goes Unnoticed
When employees work hard and nobody says anything, they feel invisible. Over time, that feeling turns into a decision to leave.
Gallup’s State of the Global Workplace 2025 reports that only 21% of employees globally feel engaged at work. Gallup also found that highly engaged teams have 51% lower turnover. The good news is that recognition does not have to be expensive. A simple, genuine “well done” from a manager at the right time can make a big difference.
What HR can do: Build recognition into your team culture. Train managers to notice and acknowledge good work consistently.
7. The Job Feels Meaningless
A good salary is not enough on its own. Employees also want to feel that what they do matters.
The Jobstreet by SEEK Workplace Happiness Index (Malaysia, 2026) found that 64% of Malaysian workers are satisfied with the sense of purpose in their work — and purpose was one of the strongest links to overall happiness at work. Workers who cannot see how their job connects to something bigger are more likely to look for that connection somewhere else.
What HR can do: Help employees understand how their work fits into the company’s bigger goals. Make the “why” behind their role clear.
8. Other Companies Are Actively Recruiting Them
Even a loyal employee can be tempted when a better offer comes along — and Q2 (April to June) is when companies in Malaysia ramp up their hiring the most.
Robert Walters found that 82% of Malaysian professionals have thought about quitting in the past year — the highest in Southeast Asia. But 62% said they would not quit without a better opportunity lined up first. That means the moment a competitor makes a strong offer, the decision is often already made.
What HR can do: Do not wait for a resignation spike to act. Run retention checks throughout the year, not just when people start leaving.
9. They Do Not Know What Is Expected of Them
If employees are not sure what good performance looks like, they cannot do their best work. And when they get no feedback, they start to wonder if anyone notices them at all.
Gallup found that only 41% of employees globally strongly agree that their work matters to their company’s mission. When goals are unclear and feedback is rare, employees lose confidence — and eventually, they leave.
What HR can do: Set clear goals with each employee. Give feedback regularly, not just during annual reviews. Make sure people know how their work is measured.
10. Poor Onboarding Makes New Hires Leave Early
New employees go through a critical first 90 days. If onboarding is weak — no proper introduction to the team, no clear expectations, no support — they are likely to leave before they even fully settle in.
This is one of the most overlooked causes of staff turnover in Malaysia. Losing someone in their first three to six months means all the time and money spent hiring them was wasted.
What HR can do: Treat onboarding as a real investment. Assign a buddy or mentor. Check in regularly during the first three months.
How to Reduce Employee Turnover in Malaysia: Spot the Signs Early with SunFish HR by DataOn
Knowing why employees resign in Malaysia is a good start. But the real win is catching the warning signs before someone decides to leave.
Before an employee hands in their notice, the signs are usually already there — more sick days, less effort, quieter in meetings, lower output. Without a system to track these changes, HR teams often only find out when it is too late.
Many companies are now turning to a proper HR software system to centralise their people data and make it easier to spot these patterns early — before they turn into resignations.
How SunFish AI & Analytics Helps
SunFish AI & Analytics helps HR teams in Malaysia move from reacting to resignations to preventing them. The platform looks at employee data — like attendance, performance, tenure, and salary history — and uses machine learning to flag staff who may be at risk of leaving, before they actually do.
HR teams get clear dashboards and reports, so they always know the state of their workforce.
Key Features That Help Cut Turnover Rates
- Predictive Analytics : machine learning that detects turnover potential from historical employee data
- AI-Powered Executive Reports : structured insights with automated action plan recommendations
- Smart Alerts : real-time notifications when significant changes occur in critical employee data
- Custom Dashboards : visualizations of absenteeism, performance, and engagement data tailored to your needs
- In-App Analytics : insights directly within each page without the need for additional BI tools
Media Contact Akmal Razman, Marketing Executive at SunFish HR Malaysia by Dataon.com | sunfish.malaysia@dataon.com
FAQs
- What is the most common reason why employees resign in Malaysia?
Toxic workplace culture is the number one reason. Randstad’s 2025 Workmonitor report found that Malaysia has the highest resignation rate due to toxic workplaces in all of Asia Pacific. More than half of Malaysian employees have left a job because of a bad work environment. Things like poor management, office politics, and lack of respect push people out faster than low pay does.
- How can a company reduce employee turnover in Malaysia?
Start by fixing the basics, pay employees fairly, give them a clear career path, and make sure managers treat their teams well. Beyond that, check in with staff regularly, give honest feedback, and act on what employees say. Companies that use HR software with analytics can also spot early warning signs like rising absenteeism or falling performance — before someone decides to leave.
- What is a normal employee turnover rate in Malaysia?
It depends on the industry. According to Aon’s 2025 Salary and Turnover Study, retail and hospitality in Malaysia has the highest voluntary turnover rate at 22.2%, while manufacturing sits at 17.7% and technology at 17.1%. As a general benchmark, anything above 15% is worth looking into, as it usually signals a deeper problem with culture, pay, or management.
- Why do new hires quit within first 90 days Malaysia
New employees go through a critical first 90 days. Weak onboarding with no proper introduction, unclear expectations, or support often leads them to leave before fully settling in. This is one of the most overlooked causes of staff turnover in Malaysia, wasting hiring time and cost.
- Does investing in employee growth reduce turnover Malaysia
Yes. LinkedIn’s Workplace Learning Report found that 94% of employees would stay longer at a company that invests in their growth. This matters most for employees aged 25 to 35, who are at a career stage where clear paths and development opportunities strongly influence their decision to stay.
