Malta's information and communication technology sector is starting to recover from the global economic crisis, with a more positive outlook registered this year. ICT skills in Malta compare well to those elsewhere, however there is a shortage of skilled ICT professionals within Malta, confirming last year's trend.

These are the main findings of this year's Castille IT Salary Report 2010, prepared by Castille Resources Limited, specialist in ICT and financial recruitment. i-Tech has exclusive access to the survey results derived from interviews with local companies and employees.

The Castille Resources Salary Index was introduced this year as part of the report and looks at salary trends of key job roles and provides a really useful tool for looking at ICT salaries in Malta. The findings show that although salaries have increased, the increases are less than inflation. They also show a deceleration in salary increases during the economic crisis when compared to that seen in the pre-crisis period. Salaries are inflating at a greater rate in higher level positions.

The overall feeling is that market conditions are definitely improving compared to this time last year, with 43 per cent of respondents thinking that current market conditions are neutral and another 43 per cent of respondents viewing them as positive. This opinion was echoed by another 43 per cent stating that they have a positive outlook for Q4, indicating that there is greater optimism by employers within Malta's IT sector than there was a year ago.

The survey also provides tangible evidence that Malta's IT sector is starting to recover from the global economic crisis. Eighty five per cent of respondents expected to employ four or more people during 2010, of which 43 per cent of these are expecting to recruit over 10. This is a big increase compared to the previous year where only 58 per cent of respondents planned to recruit over four new members of staff.

However employers and employees seem to have different views on employment mobility. Eighty two per cent of respondents said they thought finding alternative employment at the present time was either quite hard or hard. Of those surveyed none felt it would be easy.

Seventy one per cent of companies surveyed found senior level positions (positions that require 7+ years experience) very hard to recruit for, and a further 43 per cent of companies found intermediate level positions (those that require four and six years experience) difficult to recruit for. Only 14 per cent of companies reported finding entry level or junior positions hard to fill. This indicates two things, firstly that there is a shortage of skilled ICT professionals within Malta, a finding that is echoed by last year's survey. Secondly, the increased number of people training within the IT sector is being felt. These people are now coming through into the market place at junior and entry level roles.

The key sought-after skills also reflected the same findings as last year, with the main area required being software developers, Indeed 71 per cent of respondents are looking for some sort of developer, be it .Net, Java or C++. Business development and project managers were also skills that people within the industry deemed to being in demand.

Seventy one per cent of respondents of the Castille IT Salary Report 2010 consider ICT skills in Malta compare well to those elsewhere. This is a big increase from the previous year, indicating that more emphasis has been put on training and development.

Overall most companies believe salaries won't go up over the next two quarters, with just 28 per cent seeing any increase, and those who think it will be less than five per cent. Both employers and employees seem to agree on this.

Training and development and salaries were considered to be the most important factors when it comes to retaining staff. Seventy one per cent of companies surveyed currently offer flexi time, or plan to introduce it in the next 12 months. None of the companies surveyed have ruled out introducing it in the upcoming year.

Seventy one per cent of companies viewed career progression as the key reason for staff turnover, followed by 43 per cent giving increased salary as a reason for people to move jobs.

Sixty six per cent of employees said they didn't feel they were being adequately rewarded for their hard work and loyalty. The most popular types of incentives for staff would be flexible working hours and bonus schemes, which is the same response that Castille had last year. However training also featured highly this year, compared to last year.

The main reason that individuals left their last job was for career progression with (44 per cent). A fifth said they were made redundant from their last role and 16 per cent said it was for monetary reasons. People seem to be more motivated by career progression than monetary rewards.

There is a clear trend towards contracting rather than offering full-time employment. Only 14 per cent of companies surveyed said they weren't expecting to use contractors over the next 12 months, which differs greatly from last year's survey when 43 per cent of companies said they didn't expect to use any contractors.

The majority of companies surveyed said staff was required to travel on average, monthly or quarterly. Slightly more than half of respondents (55 per cent) have worked overseas in the past and 81 per cent said they would consider working abroad in the future, and this echoes last year's results. The main reason people would consider working abroad was monetary, closely followed by lifestyle, cultural change, and career advancement. All the people surveyed said they would be willing to travel abroad for work, the shorter the stay the more willingness there is to do so.

"IT jobs in Malta have maintained similar salary levels to those of 2009," Castille Resources said in its commentary. "But as the global economy starts to recover from significant slowdown we are starting to see a slight increase in salaries, although confidence in the market has yet to exceed that of before the global economic crisis levels. The biggest salary increases were in the higher level positions. This could be a result of a reported skills shortage for individuals with senior level experience.

"There is no doubt that 2009 was a tough year for business, but 2010 is looking more positive. There is much greater optimism amongst employers of ICT professionals than six months ago. Although there is a long way to go before recruitment activity approaches pre-recession levels, the overall opinion is that of improvement."

The full Castille IT Salary Report 2010 is available from Castille Resources Ltd.

www.castilleresources.com

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