Malta’s local businesses are struggling to find workers due to an aging population and fewer young Maltese entering the job market. At the same time, Malta’s growing economy needs more workers than ever before. This has forced companies to look for foreign workers to fill jobs, but hiring them comes with its own set of challenges, making it hard for businesses to find and keep the right people. This has become such a national concern that the Government is working on a Malta Labour Migration Policy to try to address some of these aspects.
As a small business owner in Malta, it’s crucial to adapt and implement strategies that ensure your company’s stability, efficiency, and longevity. This post outlines key areas to focus on and provides actionable recommendations to strengthen your business in the face of these challenges.
1. Establish a Control Centre
Many smaller businesses have grown organically either as a family business or from a one-man band. This growth method frequently results in the fact that the owner is engrossed in the day-to-day running of the business and the functions of planning and decision-making are not separated from the day-to-day. This causes decision-making to be more based on gut-feeling, reaction or impulse rather than planned and based on data and facts. These businesses would greatly benefit from changing their approach to create a ‘Control-Centre’ where the roles of looking ahead, planning, basing the way forward on data and facts and monitoring performance are done separately from the emotional day-to-day operations of the business. In situations where the business’ management layer is not yet available, this ‘Control-Centre’ concept can be achieved by supplementing the current management of the business with external advisors. This strategic unit should focus on:
- Long-term planning and decision-making.
- Data-driven analysis and performance monitoring.
- Proactive problem-solving and strategy development.
By establishing this Control Centre, you can shift from reactive, gut-based decisions to a more structured, forward-thinking approach that will benefit your business in the long run.
2. Adapt to the Changing Labour Market
Prioritise Retention of Employees
As the labour market evolves, retaining skilled employees will become increasingly important. When one considers retention it is important to clarify that retention should not be done at all costs however retention should be done for skilled and valuable employees. For this reason, performance-based bonuses that reward employees who drive value to the business should be put in place. Consider:
- Offering competitive salaries and benefits packages.
- Defining what is important to the business in terms of value-adding activities.
- Creating clear structures of performance-based bonuses to create a win-win between business and employee.
- Providing clear career progression opportunities.
- Creating a positive work environment that values employee contributions.
Maintain stability and a competitive advantage on the market by focusing on retention. This way you can also maintain a stable core of experienced staff and reduce the costs and instability associated with high turnover.
Explore Alternative Business Models
To remain competitive, or possibly even for sheer survival in this changing landscape, consider:
- Forming partnerships or mergers with complementary businesses.
- Investigating alternative business structures that focus more on cooperation between businesses rather than having each business working alone.
- Exploring outsourcing options for certain roles or functions.
These strategies can help you maintain competitiveness and access a wider pool of talent and resources.
3. Invest in Workforce Development
Implement Continuous Training Programs
Develop a comprehensive plan for ongoing employee training that aligns with your current and future business needs. This approach offers several benefits:
- Enhances employee skills and productivity.
- Improves job satisfaction and retention rates.
- Creates a more stable and capable workforce.
By investing in your employees’ growth, you demonstrate your commitment to their success and create a more resilient organisation.
Focus on Automation and Digitisation
Embrace technology to streamline your operations and reduce reliance on manual, repetitive tasks. This strategy can:
- Increase overall efficiency and productivity.
- Allow employees to focus on higher-value activities.
- Improve job satisfaction by eliminating mundane tasks.
Automation not only enhances your business processes but also creates more engaging roles for your employees, potentially reducing turnover.
Looking ahead…
As Malta’s business environment continues to evolve, business owners, especially those of smaller businesses, must be proactive in adapting their strategies. By establishing a dedicated Control Centre, investing in workforce development, embracing automation, and exploring new business models, you can position your company for long-term success in this dynamic market. Remember, the key to thriving in this changing landscape is to remain flexible, forward-thinking, and committed to continuous improvement.