Salaries increased by an average of three per cent this year but the entry level salary of some positions decreased, leading to a decrease in the minimum level, a study released on Monday has revealed.
This compares well with the EU’s report of an increase of 2.4% in compensation per head between 2018 and 2019.
MISCO’s annual Salaries and Benefits Report for 2019, compiled from information obtained from employers, also showed that salaries in some areas remained static.
The report compiled acts as a reference report on employee compensation in Malta with detailed information on salaries and related benefits, as well as an analysis of recent developments in Malta’s labour market.
“The positive developments of the Maltese economy have led to an evolution of the labour market, with employee retention becoming the most important objective of organisations in the human resources area. Salary demands is the number one challenge companies are facing. It is therefore of utmost importance that employers align their pay structure and make it ‘right’, meaning it is seen to be fair within your organisation and competitive for the market of the labour market you are targeting,” said Lawrence Zammit, Managing Director of MISCO.
Mr Zammit added that the report seeks to ensure it remains alive and relevant to employers in the constantly changing market dynamics. In fact, this year’s edition includes ten new positions and the alignment of job roles reflects the dynamics and the changes going on in the Maltese labour market, he added.
Another aspect highlighted in the report refers to how certain developments in the Maltese labour market, such as an increasingly inter-cultural workforce due to the influx of foreign employees, are encouraging employers to adopt a more holistic approach to their human resources function.
“This development now requires the next step, which is developing a strategic longer-term human resources strategy that forms an integral part of the company’s business strategy,” Mr Zammit said.
The categories of jobs covered include management, executive, clerical and technical roles in various private, foreign-owned and government controlled, service and manufacturing companies.
A four per cent increase was also observed in the salaries of roles in finance, 3.8 per cent in the salaries for jobs in Sales and Marketing, a significant seven per cent increase in Legal and Compliance and a five per cent increase in IT.
Joanne Bondin, Director at MISCO added: “MISCO is committed to continue developing partnerships with its clients by helping them understand Malta’s labour market environment, maximise the engagement of their employees to their organisation’s goals, and face successfully their HR challenges. This Salaries and Benefits Report is mostly aimed at helping companies’ management ensure that their reward strategy is in line with their positioning in the market and with what the market is offering to attract and retain employees.”