Analysing the disparity between the demand and supply of local labour in Malta’s hospitality industry

Abstract

The purpose of this study is to identify whether there is a disparity between the demand and supply of local labour in the Maltese hospitality industry, whether this disparity changes when differentiating between skilled and unskilled labour and to analyse how hotels are reacting to such labour shortages. Moreover, the researcher seeks to understand the causes of a local labour shortage in Malta’s hospitality industry. This study follows a mixed approach combining quantitative and qualitative techniques. Primary data was gathered through a total of 45 questionnaires being sent out to general managers and human resource managers of 4 and 5 star hotels, 25 of which were answered. Results of the study show that Maltese 4 and 5 Star hotels experience a significant local labour shortage which is greater for unskilled than skilled labour. Most respondents stated that the hospitality industry does not only face the quantitative challenge of finding enough local labour but also the qualitative challenge of finding employees with the right skills, knowledge and talent. Participants attributed the roots of the current local labour shortage to the rather unappealing nature and characteristics of hospitality jobs and the poor reputation of the hospitality industry as an employer. Presently, hotels are mitigating staff shortages through strategies such as the recruitment of foreign labour, employee subcontracting, the outsourcing of services as well as the use of overtime. However, in order to narrow the disparity between local labour demand and supply in the future and lessen recruitment challenges faced by hotels, industry, government and training institutions must work towards forging an attractive image of the hotel industry as an employer.