Malta: The Importance Of Employee Retention

Last Updated: 18 May 2018
Article by Malcolm Pace Debono
Most Read Contributor in Malta, September 2019

Are Organisations Doing Enough To Retain Their Talent?



Employee turnover directly affects an organisation's bottom line. So, this begs the question:
Are organisations doing enough to retain their talent?

Employee retention has been a 'hot topic' across industries for a number of years. A Willis Towers Watson study in 2015 found that more than half of all organisations globally have difficulty retaining their most valued employees. This also proved true to the iGaming industry in a Survey conducted by KPMG's People and Change Advisory team at the 2017 Malta iGaming Summit – SiGMA, with 45% of respondents claiming that 'Talent Retention' is one of the industry's greatest talent challenges.

Employee retention strategies are viewed as organisational interventions implemented to prevent employees from leaving their jobs. Organisations should want to encourage employees to work as best they can at the organisation, for the longest time possible. Employee loyalty gives organisations an advantage over their competition, not only in the form of diminishing costs of recruitment and retraining, but more importantly, because retaining experienced and seasoned employees ensures that all of their know-how stays on board. Losing valuable employees can also have emotional repercussions on those who stay, directly decreasing productivity through diminishing morale and motivation. In fact, research suggests that a high employee turnover rate can cost an organisation up to 200% of an employee's annual salary, depending on the role and seniority. It is for all of these reasons that retaining key talent is mission-critical for organisational success.

Employee Retention through Employee Engagement.

The list of statistics goes on – but what do all these studies really tell us? They illustrate how evident it has become for employee retention and engagement to go hand in hand – an engaged employee is less likely to leave an organisation than a disengaged one.

Engaged employees are committed to their organisation, exhibit higher levels of performance and are overall more motivated to work and contribute to organisational success. Given that the performance of an employee is so crucial to the success of an organisation, it is ideal to have them functioning at their full potential. Employee engagement is what ensures that this potential is being unlocked and what will move an organisation closer towards reaching its business objectives and vision.

In Gallup's 'Work and Education Survey' in 2013 it was reported that two out of every three engaged employees would continue to work at their current job even if they won the lottery. One can appreciate that, despite the low probability of winning the lottery, these results shed light on the value that engaged employees place on their job and employer. It is for this reason that organisations with high levels of employee engagement, have lower turnover rates and less employee retention issues than those organisations that demonstrate lower levels of employee engagement.

Given the above, the KPMG People & Change Advisory team believes that measuring employee engagement is the first step to improved employee retention. Due to the importance of employee engagement, the People & Change team has developed the KPMG Employee Engagement Plus Index1 – an evidence-based diagnostic tool that enables an organisation to measure their current engagement levels. This tool provides metrics related to scientifically proven drivers of engagement, such as leadership and communication. Such metrics provide insight into the organisation's Talent Management related strengths, areas for improvement, areas of critical concern, and therefore, ultimately, supports the organisation in reaching its final destination of a highly engaged workforce by tackling the root cause of any issues rather than simply the symptoms.

In fact, the KPMG survey at SiGMA (2017) showed that, further to Talent Retention being identified as the largest talent challenge of the iGaming industry, over 51% of industry professionals flagged 'Communicating well throughout the organisation' as an area that their organisation struggles with, and almost 40% identified 'Leadership and Management' as an area that their organisation should focus on in order to encourage employees to go the extra mile at work.

It is for this reason that the KPMG Employee Engagement Plus Index was developed to allow organisations to, not only identify which drivers of engagement (such as leadership and communication) are the lowest scoring, but, further to that, look into what individual determinants of these drivers are influencing these low scores. Having this understanding of what is directly positively or negatively influencing your organisation in terms of employee engagement will then become crucial in guiding your employee retention strategy moving forward.

Therefore, further questions beckon: Should organisations first be taking stock and measuring their employee engagement levels before investing further in employer branding, recruitment drives, employee training and induction programmes? Does your issue of employee retention stem from deeper than you may think?

Footnote

1. – You may find more information about the KPMG Employee Engagement Plus Index at www.kpmg.com/mt/eepi-malta

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions