Salaries in Malta see 4.2% average increase over the past year – misco

Many organisations have boosted compensation packages, with average salaries increasing by 4.2 per cent over the past year. Specific sectors experienced varying rates of growth – Finance at 3.7 per cent, Sales and Marketing at 3.8 per cent, Legal and Compliance at six per cent, and IT roles at 5.2 per cent.

Moreover, rising vacancies and increased competition for talent have driven 50 per cent of Maltese companies to step up their employee benefits to retain top talent, according to the 11th HR Developments Survey conducted by misco.

The survey, launched this week by misco in collaboration with the Malta Employers Association, was completed in July and August 2024.

It also revealed how 43 per cent of companies reported more vacancies than last year, with 25 per cent of those in technical roles.

According to the survey, while 65 per cent of companies continue to view HR as essential, this figure reflected a slight drop from the 71 per cent reported in 2023.

At the same time, HR’s focus on staff retention remains a priority for 75 per cent of respondents, a five per cent increase over last year’s figures. But despite this focus, time and budget remain key obstacles to employee training, with 63 per cent of companies lacking a structured management development programme.

Presenting the results at MEA’s offices in Valletta to an audience of HR practitioners, Nadine Cilia explained how according to the survey, the HR role continues to face rising challenges and obstacles.

“HR practitioners continue to face challenges such as difficulties with setting up a performance management system, diminishing HR budgets, lack of resources, lack of appreciation from top management towards the HR role and lack of empowerment of HR teams,” noted Ms Cilia.

In her presentation, Ms Cilia also explained how salary demands remains as the most important challenge faced in the HR area. This is a continuation of the trend emerging in the last two years. On the other hand, better remuneration packages offered by other employers is the main reason attributed to staff turnover. This factor was mentioned by 46 per cent of respondents, at a similar level as last year.

The survey also showed how notwithstanding 61 per cent of companies continue to actively invest in attracting new talent, only 35 per cent measure employee engagement on an annual basis whilst 30 per cent do not measure at all.

The survey identified the top employee benefits namely subsidised meals, life insurance, childcare services, company discounts, training sponsorships, and gym memberships.