Jobstreet by SEEK Hiring, Compensation and Benefits 2024 Report shows hiring growth trend in Indonesia
97% of companies recruited at least one employee in 2023, up From 92% in 2022
For 2024, many companies remain optimistic, planning more active recruitment compared to the previous year.
Job seekers in Indonesia prioritise benefits. Indonesian job seekers are increasingly prioritising benefits such as leave, insurance, pensions, career challenges and leadership roles, in addition to salary when considering job offers.
Jakarta, January 25, 2024 — Jobstreet by SEEK's exclusive report titled "Hiring, Compensation and Benefits 2024" reveals positive momentum in Indonesia’s job market as companies anticipate increased recruitment activity, better workforce stability and evolving workplace practices.
The report, released in response to shifting labor market dynamics shaped by digital advancements, socio-economic changes and global influences, emphasises the need to understand specific patterns driving current recruitment practices. Conducted in September 2023, the survey included responses from 1,180 talent acquisition professionals across key sectors such as manufacturing, IT & telecommunications and retail & trade, providing a comprehensive overview of Indonesia’s recruitment landscape and its 2024 outlook.
Sawitri, Country Marketing Manager for Indonesia at Jobstreet by SEEK, stated, “This exclusive report reaffirms our commitment to helping companies succeed in the ever-changing Indonesian labor market. It serves as a guide for companies to adopt the right recruitment strategies and develop competitive compensation and benefit packages. By understanding the latest trends, benchmarks and best practices, companies can attract top talent and retain their best employees.”
The report highlights a growing recruitment momentum, with 97% of companies recruiting in 2023, a 5% increase compared to 2022. Notably, part-time permanent hires surged from 7% in 2022 to 52%, with substantial growth also seen in full-time hires, both permanent and contract.
Wisnu Dharmawan, Sales Director for Indonesia at Jobstreet by SEEK, noted, “Many companies view 2024 as an ideal period for recruitment, offering opportunities for those seeking skilled professionals. Demand for permanent and contract employees varies based on business functions, whether full-time or part-time, depending on the company’s needs and business strategy. As such, companies must offer appropriate compensation and benefits to attract new candidates and retain top talent.”
He added, “Employee compensation remains a critical factor in recruitment decisions. The average salary increase reached 7.57% in 2023, surpassing the 7% figure from 2022 and exceeding national inflation, which stood at 5.51%. Additionally, 67% of companies promoted employees in 2023, a significant rise from 52% in 2022. Health insurance, mental health support, and medical check-ups remain key employee benefits, both currently offered and planned by companies.”
Leave options, such as marriage and bereavement leave, increased by 5% in 2023. Companies are actively considering new leave policies, including family care leave and study/exam leave. With early holiday leave, office snacks/beverages, and flexible work locations, work-life balance benefits are becoming increasingly important.
Companies are also expected to be more flexible in addressing work-life balance trends. Although 61% of companies required employees to work in the office daily in 2023, a shift toward more flexible arrangements is anticipated, particularly as more companies adopt hybrid work models.
Remote work will continue to play a significant role in company culture. Providing laptops and virtual meeting facilities has become a popular form of support for remote work. Additionally, other support measures like internet allowances and dedicated HR staff to manage remote employees are expected to become trends in the future.
In 2023, administrative and HR functions were the most recruited, with 40% of companies hiring in these areas, followed by accounting at 34%. Engineering moved up to fifth place, with 20% of companies recruiting, overtaking information technology at 15%, compared to 2022. This shift underscores changing recruitment priorities, highlighting the importance of diverse skills in today’s business landscape.
“Upskilling has become more crucial. More companies are prioritising employee development through apprenticeship/mentoring programs and self-directed learning/training, both of which saw a 7% increase in 2023. Career development remains a top priority to help employees keep pace with evolving industry demands. Human resource development will be key for companies to maintain their competitive edge,” Wisnu concluded.
This exclusive report is available for free download at jobstreet.co.id here.