Executive solutions for skill shortages

A survey conducted by Castille Resources regarding information and communication technology and the salaries within the private and public sector reveals that Malta has been affected by the global economic crisis, with several companies implementing cost cuts and recruitment freezes in order to evade financial loss during this time.

As the crisis begins to pass, both local and international organisations are becoming more confident in recruitment within the information technology sector and this has also been reflected in the slow increase in salaries whilst remaining competitive in the local labour market.

However, one client, a leading IT employer on the island, has revealed that although the situation is improving, companies are still having difficulty finding roles within high technical fields. Posts such as systems engineers and consultants with deep business knowledge and IT skills are particularly difficult to fill in. This shows that the roles are available in Malta, but the number of individuals suited for these are not due to a massive skill shortage within the high level sector.

Higher-level positions within the ICT area have shown the biggest salary increases according to results found in the survey, reflecting a shortage of skills among individuals with senior level experience. This could be a result of an increase in those searching for employment overseas. As a result of this, more emphasis is now being placed on training and development in the hopes of attracting more individuals as they enter the local market place.

In response to current market conditions, a large number of employers believe that conditions are improving compared to last year. It has also been shown that employers are also expecting to recruit a larger number of individuals within the IT sector as proof of Malta’s recovery from the global economic crisis. The demand for this increase is largely aimed towards people for positions requiring four to six years of experience closely followed by junior level roles requiring two to four years of experience. This shows a great opportunity for those who are seeking positions which do not require senior level experience.

However, as good as this may be for those individuals who are lacking the necessary requirements for senior positions, the fact of the matter is still that these positions need to be filled. On the other hand, this also reflects the skills shortage within the market with many companies stating that higher level positions were hard to recruit for and are only just starting to see more people training within the IT sector coming through at junior or entry levels. Emphasis, as a result of this, is now increasingly being placed on training and development in order to nurture key sought after skills for higher-level positions.

This is not an issue which has been discovered in the Maltese market alone, with unemployment rising to 10 per cent in Europe as more people are not found to be qualified enough for the positions required in many businesses.

As a result of this skill shortage, most companies are hesitant in raising salaries with more than half believing that local wage inflation may be a serious threat to their business without the necessary skilled workforce to uphold the salary increase. With skill shortages being made more evident, contractors are becoming more of a trend for companies because these roles are often project based rather than being permanent roles within the company allowing more flexibility even if involving extra fees in order to take on these contractors.

As a result, increasing numbers of employees are considering the switch over to contracting in order to receive higher monetary premiums than permanent staff employed. Career progression also seems to be a key element with clients believing in better opportunities and salaries abroad. Travelling abroad for work reasons also appears to be attractive to people with promises of expanding their skill set and gaining more experience within the international circuit.

Optimism is building as employers of ICT professionals are of the opinion that improvement is underway following a tough couple of years in the business industry. However, improvement can only be nurtured with employers taking note of current market conditions, labour trends and other existing issues affecting the sector while simultaneously acknowledging important employee views on topics such as salaries, working conditions and benefits increasing motivational factors to retain a stronger and more faithful workforce.

However the gap in this market is calling out for someone to help advise businesses and possible candidates regarding senior consultancies and posts to be filled.

In order to help improve and implement these changes, Castille Resources have launched Castille Executive. This brand will be offering high level recruitment to more than €50,000-salary senior positions within the ICT sector in the near future in response to clients experiencing difficulty in filling specific roles such as technical positions as a result of a shortage of these individuals within the market. A group of senior consultants will offer confidential advice to both clients and candidates in offering and applying for posts with salaries above the €50,000 threshold in an attempt to fill the gap located in the current market.

www.castilleresources.com

Ms Hughes is brand manager at Castille Resources Ltd.