Misco’s annual survey on human resources developments in Malta

For 78% of HR managers, staff retention remains main objective

Retaining staff, keeping employees motivated and ensuring their constant development were the top three responsibilities of HR professionals throughout this past year according to misco’s latest HR Developments Survey.

The very comprehensive study on HR practice in Malta is now in its eighth edition and for the first time, it has been published in collaboration with the Malta Employers Association.

While giving a very broad and insightful picture on varying aspects within the HR profession and how those working in a human resources function are choosing to approach this very dynamic field of operations, this study tackles the challenges, recruitment methods and difficulties in recruiting, staff turnover, training and development, compensation, performance management and employer branding.

“This year’s survey has been conducted within a scenario rendered complex by the coronavirus which caused a slowdown in economic activity, disrupted working patterns and supply chains and brought severe skills shortages, a problem exacerbated by the departure of several non-Maltese persons,” explains misco’s founding managing director Lawrence Zammit.

“However, the survey also confirms how the role of the HR function is increasing as its importance is recognised to a greater extent even though there is still a long way to go for it to become an integral part of business strategy,” he added.

The study showed how according to 78% of respondents, the main objective of HR remains staff retention and 73% also mentioned staff motivation and constant development of employees as also being within their remit.

Sixty-eight per cent of respondents also mentioned that their function includes providing support to management, 48% said that HR should help their company become an employer of choice, 44% feel that HR contributes to corporate decision-making while 38% of respondents felt that their function involves maintaining staff discipline.

Addressing the current main challenges for HR practitioners, the survey shows how 56% of respondents, continue to find that their main challenge is salary demands whereas the lack of experienced employees continues to be a key issue. In fact, 46% of respondents mentioned this as a challenge compared to the 42% registered in 2020. Other challenges include the lack of job applications (40%), lack of qualified staff (33%), lack of necessary skills (26%) and lack of interpersonal skills (22%).

Retaining employees is going to remain another top HR priority for the coming 12 months, alongside the management of employee engagement and keeping them motivated through staff development and strengthening the organisation culture.

When asked what the main reasons for recruitment difficulties were, 64% of respondents quoted lack of experienced applicants and 50% mentioned salary demands.

Asked to state which methods they use to attract and source candidates and what methods they found most effective, respondents listed social media, followed by recruitment consultants and agencies.

The study also tackled staff turnover where 40% of respondents claimed that their level of staff turnover in 2021 was higher than that normally experienced in previous years. The main reason for staff turnover was that staff left voluntarily according to 78% of respondents. The main reason attributed to staff turnover included better remuneration packages offered by other employers or better career prospects. Interestingly, 12% mentioned that employees left to join the public sector.

When it comes to the reliance on third country nationals, 62% stated they recruited third country nationals in the last 12 months, compared to 61% in 2020. Moreover, 74% of respondents stated that they recruited Maltese nationals, while 66% stated that they recruited EU citizens.