Retaining talent in the Maltese financial services sector through employee engagement

Abstract

This research aims to find out what employee retention strategies are used in the Maltese financial services industry and whether employee engagement is considered a useful retention tool and how this benefits the organisations in this industry. This study is relevant in the financial services industry in Malta because it is still a growing industry and it has been shown that there are various skill gaps in the market. Thus, retaining trained and skilled employees in this sector is of importance to companies. This research is qualitative in nature and in depth interviews were carried out with managers in financial services firms in Malta. Following an analysis of the data gathered, two models were developed. One of the models covers the retention strategies used in Malta and the other one covers the various facets of employee engagement, that is, the drivers of engagement, the effect of engagement on employees and the effect of engagement on organisations. The results from the data gathered were very close to the information obtained from the literature reviewed for the purpose of this study, however certain differences emerged. Of note, in addition to other retention measures, Maltese firms offer career paths and HR guidance as a way to increase employee retention while financial incentives are seldom used to retain employees. Also, the results show that more opportunities for reduced hours jobs need to be created, especially for working mothers. Lastly, the findings indicate that companies are aware of the benefits that retention and engagement provide and that future plans are already in place by these companies for further development of these strategies.