Contribution of the i-gaming sector in the turnover rate of knowledge workers in local ICT companies in Malta

Abstract

This study examines the impact of the local iGaming sector on the turnover of employees in the ICT sector in Malta. A qualitative design is used to better understand turnover intentions and retention strategies from the point of view of eight employees as well as a group of six industry experts who work closely with both sectors under scrutiny. The findings of this study can provide a base for future researchers who wish to undertake broader studies with respect to turnover and retention in Malta. These findings can also serve to inform the management of ICT firms about best practice in the field turnover and retention from the perspective of employees and industry experts in both sectors in Malta. The study focuses on the perception of salary as competitive compensation: whether iGaming companies are using it as 'bait' to lure in local ICT workers, and whether participants are willing to forego salary in the quest for something higher. The results that money only motivates up to a certain level, after which other motivators take priority, substantiates the classical Theory of Human Motivation (Maslow, 1943) and Two-factor Motivator-Hygiene Theory (Herzberg et al., 1959). The study also investigates other 'push' and 'pull' factors besides salary, that could impact turnover intention in ICT workers in Malta with special reference to the iGaming sector. Findings show that employees consider the need to use cutting-edge technologies, the need for challenging job roles, and the need to be valued and appreciated in the workplace as key motivators or ''pull' factors. On the other hand, micromanagement, differential leadership, broken promises and work-related stress feature as important 'push' factors. The study shows that many of these factors are in fact common to both sectors. Results from the face-to-face interviews also reveal the attitude of the participants towards turnover and the availability of foreign labour in Malta. It is interesting to note that whilst industry experts warn about the costs and the downside of taking employee turnover lightly, particularly with respect to the reputation of the firm, employees, on the other hand, are welcoming of turnover and its implications for the organisation and positive impact on their personal careers. Employees believe the presence of these foreign experts keeps wages high and provides them with an opportunity to learn from them. In addition, employees value the chance to climb the corporate ladder and fill the vacant roles left behind when these foreign experts leave the island. This paper ends with the following recommendations for management of ICT firms in Malta: 1) to constantly upgrade their product/service offering to include new, innovative technologies which would appeal to the self-esteem of their employees; 2) to provide outsourced services to the iGaming and other new tech sectors in Malta to enhance revenue streams and provide a challenge and constant learning to their own employees; 3) to adopt creative modes of compensation such as profit sharing, preferential or 'star' treatment of key employees as well as perks such as the provision of cleaning services for their homes to reduce the work-family-conflict of their employees.