For workers in Malaysia, a toxic culture trumps tenure.

This means, 59% of employees would rather quit than endure a negative workplace, according to Randstad’s 2025 Workmonitor report. This figure is the highest across the Asia-Pacific region, proving the growing importance of workplace culture in talent retention.

The research also found that nearly half of respondents (48%) would reject job offers from companies known for neglecting a positive work environment.

Gen Z and Gen X employees are particularly sensitive to workplace culture, with 59% of Gen Z and 50% of Gen X unwilling to work for companies with poor reputations.

Poor leadership and disconnected teams

A toxic culture isn’t the only dealbreaker. The report showed strained relationships with managers also drive resignations, with 50% of employees indicating they would leave under such circumstances.

Notably, 66% of Baby Boomers expressed this view, suggesting experienced professionals are less tolerant of poor management.

Equally concerning is the lack of a sense of belonging:

• 61% of employees would consider leaving if they didn’t feel part of their organisation
• 16% would resign due to a lack of friends at work.

Among Gen Z, this figure rises to 28%, reflecting the generation’s desire for workplace camaraderie.

However, it’s not all bleak. The research highlights that employees who feel connected to their colleagues are significantly more engaged and productive.

• 93% said their performance improves when they experience a sense of community
• 91% said workplace friendships contribute to better outcomes.

Willingness to trade salary for social bonds

Interestingly, many employees are even willing to take a financial hit for the sake of workplace connections: 33% would accept lower salaries in exchange for a strong sense of camaraderie.

Baby Boomers (44%) and Gen Z (37%) were particularly open to this trade-off. This trend suggests that both younger and older employees value relationships over purely financial incentives. It speaks volumes about the evolving employee value proposition.

Compensation alone is thus no longer sufficient. Today’s workforce seeks meaningful social bonds and an inclusive work culture.

The return-to-office paradox

Despite the clear desire for in-person connection, mandatory office returns remain contentious. While 91% of respondents acknowledged that face-to-face interactions are essential for relationship-building, 43% said they would quit if forced to spend more time in the office. This number rises to 47% among Gen Z and Millennials, illustrating the need for a balanced approach.

Fahad Naeem, country director of Randstad Malaysia, highlighted the importance of trust and flexibility in this equation.

“When people feel connected, they are more likely to want to do their best,” Naeem said. “While it can be complex for employers to create these friendly communities – as it takes flexibility, time and a personal touch – starting with the basics is key. And that starts with trust.”

Naeem also said rigid return-to-office policies could drive employees away. However, when companies clearly communicate the rationale behind such decisions, employees tend to respond more positively.

“It is crucial for companies and managers to create opportunities for team members to connect and build relationships naturally to improve teamwork and productivity,” he added.

Building a positive workplace culture

The findings from Randstad’s survey offer valuable lessons for business and HR leaders. Companies aiming to attract and retain talent must go beyond the traditional perks and pay packages. Instead, they need to foster a workplace where employees feel valued, connected, and empowered.

Creating a thriving workplace community involves more than organising occasional team-building events. It requires a deliberate focus on inclusive leadership, empathetic management, and opportunities for employees to build genuine relationships.

Employers who prioritise these aspects will not only reduce turnover but also cultivate a more engaged, productive workforce.

Furthermore, the data suggests that providing flexible work options remains a non-negotiable. Employees value autonomy and want to balance remote and in-office work.

A one-size-fits-all approach is unlikely to succeed. Instead, offering personalised flexibility – while encouraging meaningful in-person interactions – will yield the best results.

After all, employees who feel part of a community are far more likely to bring their best selves to work – a win-win for both companies and their people.