Perspectives on employee loyalty at the workplace : worker retention in Malta’s currently tight labour market situation

Abstract

This research is set out to explore recruitment and retention issues that employers in Malta are experiencing due to the current tight situation in the Maltese labour market. The study explains how employee loyalty towards the organization is being affected as a result of a low supply of workers available in the labour market and the continuous demand for workers in Malta. In the past, the majority of workers sought and maintained a job for life, irrespective of the working conditions that were offered. In modern society, the notion of ‘a job for life’ is no longer prevalent. Through time, feelings have changed, workers seek job opportunities that enhance career development, flexible work arrangements and any other working conditions that suit their lifestyle, rather than the other way round, as it once was. Thus, this study illustrates the strategies that employers are implementing to recruit and retain workers, the reasons why workers move from one job to another as well as the factors that enhance or erode loyalty. The perspectives of both employers and employees on retention, loyalty and commitment at the workplace are also explored. The methodology of this research is divided into a dual-method : qualitative and quantitative research and analysis. The qualitative section of this study is based on in-depth one-to-one interviews that were held with 25 informants (workers) which occupy an entry level position, a middle-management position or a technical position. Once all the interviews were concluded, the themes that emerged from the data collected were analysed. The quantitative part of this study is based on a questionnaire containing analytical and close-ended questions. The survey was distributed to 25 employers in Malta operating in five different sectors, mainly Gaming, Finance, Tourism, Manufacturing, and Information and Communication Technology (ICT). The research findings suggest that employers in Malta are experiencing recruitment and retention issues as the demand of labour continues to grow, while the local labour supply decreases at an increasing rate. The current tight labour market situation has provided workers with a wide range of choices and opportunities to advance in their careers as well as to enlarge their pockets. Through time, attitudes have changed as workers have become more ambitious and seek to fulfil personal goals, rather than working to achieve the targets, vision and mission of the company. The demand for workers has pressed employers with heavy financial burdens and hindered companies from reaching their business potentials. In light of these economical and opportunistic labour maket changes, employers are opting to recruit foreign labour to fulfil entry level roles or highly skilled positions (particularly vacancies that are either not favoured by locals due to low wage rates) or because there are no individuals with the required skills. The research is concluded with a set of recommendations based on the findings that emerged. Overall, the study provides an elaborate discussion the issues pertaining to recruitment and retention and the factors that enhance employee loyalty in Malta’s current tight labour market situation.