Issue link: https://maltatoday.uberflip.com/i/1482697
5.12.19 12 INTERVIEW 27.10.2022 PAUL COCKS MISCO's Salaries & Benefits Report has become a milestone publication for the local business sector. Why? e fact that our report is published annually, gives it an important element of consistency so it is viewed by em- ployers as the reference report on em- ployee compensation research in Malta. is survey, the result of a four-month long research exercise, provides a reli- able, realistic, and up-to-date picture of the remuneration packages paid in the local market so it is the ideal tool for companies to ensure that their reward strategy is in line with their positioning in the market and with what the market is offering to attract, retain and moti- vate employees. What does it make this survey sought after? Apart from providing information on salaries and related benefits, this report also includes an analysis of recent de- velopments in Malta's economy. How- ever, the survey is also sought after be- cause it also includes the results of an annual survey on HR developments in Malta. is survey, now in its nineth edition, analyses the development of the HR function in Malta and provides an understanding of the key HR issues that companies are facing. is survey was also undertaken in collaboration with the Malta Employers Association which allowed us to expand the survey further to deliver enhanced and more comprehensive results related to the employment of individuals and the de- velopments and challenges faced by in- dividuals who manage the HR function in various organisations in Malta. How extensive is the report? e Salaries and Benefits Report cov- ers a total of 131 positions covering job categories which include management, executive, clerical and technical roles. is year's edition includes four new positions and the alignment of certain job roles to reflect the dynamics and the changes going on in the Maltese labour market. What struck you most in this survey? One of the aspects that struck me most was that while one would expect com- panies to cut down on expenses and re- cruiting, as a result of the volatility of the market, every sector is still experiencing the lack of available talent. is shortage has made organisations increase salary packages, offer more benefits, and go to extraordinary lengths to offer flexibility, which in turn is bolstering inflation. An- other interesting aspect that we noticed was the increase in job mobility which has given companies the opportunity to restructure their organizations, giving new or promoted employees a rede- signed role at a lower package than the one given to previous role holders. You refer to the trend of 'job hoarding' which seems to have picked up. Although we are experiencing a surg- ing inflation and there is a looming cloud of an oncoming, feared recession, unemployment has stayed low in Mal- ta and organisations have continued to engage workers, often paying high- er wages. In fact, in our meetings with employers, we increasingly started no- ticing an element of job hoarding taking place which means that employers are keeping in employment persons who may not be needed or may not have the required skills for the position they occupy. is shows the extent to which talent has become hard to find. What were the main findings of this year's Salaries & Benefits report? In the past 12 months, the average in- crease in total remuneration packages was of 4.2%. Notwithstanding an in- crease in salaries across all areas, par- ticular increases have been observed in sectors that have become more regulat- ed or for roles where talent has increas- ingly become more difficult to source. In fact, compared to the increase of 3.9% observed for roles in Finance, 4.9% in the salaries for jobs in Sales and Marketing and a 5.5% increase in IT, positions for Legal and Compliance saw the highest increase of 6.3%. is highlights the val- ue attached to such positions in the light of sustained demand for highly compe- tent and professional individuals. We also found a decrease in the starting sal- ary points for a number of roles, possibly due to the engagement of third country nationals joining the Maltese work force. Now that the pandemic is over, have you noticed a difference in the mobility of employees? e mobility of employees that had decreased throughout the pandemic, seems to have picked up once again, particularly in companies that were less affected by the pandemic or posi- tions which were and still are more in demand. is may have led to more competition for talent which will have impacted salaries for various positions. What were the main outcomes of this year's HR Developments Annual Survey? One of the main findings of this year's survey revealed how for 72% of re- spondents, their main HR challenge is salary demands, a figure that turned out significantly higher than the 56% men- tioned last year. In fact, while the main challenge for most HR practitioners is going to be rising salary demands over the next months, retaining staff will be the most important strategic objective of the HR function. e pressure to re- tain staff appears to be a multifaceted issue of available talent, salary and also an issue of finding staff with the re- quired skills and qualifications. So, you will certainly agree that the HR function in companies has become even more challenging? Indeed, employers and HR practi- tioners are facing four main challenges namely expectations for higher sala- ries, a demand for such higher salaries from employees and job applicants who do not necessarily have the appropri- ate skills that meet their requirements, a difficulty in attracting talent, and a difficulty in retaining staff. is may eventually lead to employers having to assess the sustainability of their salary structures. e lack of experienced and qualified staff and the lack of job appli- cations also seem to be issues that are being faced on a regular basis. Copies of the MISCO Salaries and Benefits Report 2022/2023 may be ordered by sending an email on businessreports@miscomalta.com Interesting dynamics at play in local job market is year's Salaries & Benefits Report comes at a very interesting time and notwithstanding the surging inflation and a looming cloud of an oncoming, feared recession, not only unemployment has stayed low, but organisations have continued to engage workers, oen paying higher wages. "From an employment and HR perspective, the job market has never looked so volatile," says JOANNE BONDIN, director at MISCO who oversaw the compilation of this survey