There has been a 4.1 per cent increase in annual average total remuneration packages in the past 12 months, according to Misco’s latest ‘Salaries and Benefits Report’.
The research indicates that there was a 3.4 per cent increase in the salaries of administrative roles, a 4.9 per cent increase in the salaries of roles in finance, a 3.9 per cent rise in the salaries for jobs in sales and marketing, a significant five per cent increase in IT jobs, a 2.5 per cent increase in customer service and a 3.9 per cent increase in maintenance and engineering jobs.
Ritienne Xerri, director of Misco Consulting, said that the study shows that there is a greater reliance on performance-related pay in the remuneration of employees.
“Employers are seeking to increase salaries not through increases in basic pay that are guaranteed, but are introducing a variable element which is tied to the performance of the individual. This provides employers with flexibility,” she added.
Employers view this report as the reference point on compensation research in Malta. Apart from providing information on salaries and related benefits, it also includes an analysis of recent development in Malta’s labour market as well as the results of the fourth annual Misco survey on HR developments in Malta.
Ms Xerri said: “Through this report, Misco aims to share its expertise gained over the past 34 years by providing actionable data, knowledge and insight to employers that enable them to attract, retain and engage talented employees while achieving their business objectives.”
Employers are seeking to increase salaries not through increases in basic pay that are guaranteed, but are introducing a variable element which is tied to the performance of the individual
Misco publishes a number of sector-specific salary and benefits reports throughout the year and provides compensation benchmarking reports to individual organisations facing challenges in keeping their best talent and concerned with matching their packages to those offered in the market.
“We support this report through a range of consultancy services related to organisation structuring, performance management and compensation policy. These include organisational design, development of position descriptions, job evaluation, development of a performance management system and reward management,” added Ms Xerri.
As an integral part of the ‘Salaries and Benefits Report 2017-2018’, Misco is also presenting the fourth annual survey on HR developments in Malta. It analyses the development of the HR function locally and provides an understanding of the key HR issues that companies are facing.
Respondents were asked what they consider to be the strategic objectives of the HR function in their organisation. Three elements emerge as the key objectives, namely staff development, staff motivation and staff retention. Each of these elements received around 75 per cent of mentions.
The challenges faced in the recruitment of employees were best felt in the answer to the question as to whether respondents had more vacancies, less vacancies or just about the same number of vacancies in the past 12 months when compared to the previous 12 months.
Joanne Bondin, director responsible for selection consultancy activities at Misco Consulting said: “Seventy-one per cent of respondents stated that they had more vacancies, while only five per cent said they had no vacancies, and another five per cent said they had less vacancies. The balance of 19 per cent stated that they had about the same number of vacancies as in the previous 12 months.”
She added: “On the other hand, the results seem to indicate a higher element of staff turnover as 80 per cent of respondents stated that 75 per cent or more of the vacancies were to replace staff leaving the company.”
Commenting on the report and its findings, Ms Bondin and Ms Xerri said: “The report is the result of extensive research and analysis that groups together our four main pillars of activity of Misco – HR consultancy, selection consultancy, marketing research and training and development. Our experience in the field of selection consultancy activities show that salaries today are just one component of the HR strategy of a company and this needs to be supported by appropriate training and development activities, motivational activities and creating a work environment that is caring of the employees’ well-being.”