Are they looking for another job?

In the recently published research by MISCO and the Malta Chamber of SMEs, the SME Barometer Survey 2025, 59% of participating employers cite employee wage and salary costs as the main cause of price increases in their business.  The highest business issue faced is employee shortage (41%) while 16% indicate skills mismatch as an issue.

No surprises in these results.  Speak to any business owner and one of their greatest concerns is people – finding the right people who are hard working and productive and having an engaged workforce.

Last week MISCO shared another research – The National Employee Engagement Survey.  While the first survey indicates that higher wage costs are impacting business costs severely, the salary increases do not seem to be enough for employees.  The net promoter score for national employee engagement eerily reveals another reality.  Only 30% are promoters and enthusiastic promoters for their employers.  36% are passive and 34% are detractors.

Is salary increase enough for engagement and retention?

How is low employee engagement impacting retention and high turnover? While salary increases could seem the most simple and easy solution to retain staff, or to replace ones who left (usually at a higher cost), does this guarantee retention, employee engagement and productivity?

Clearly not.

Are employers investing in retention and engagement strategies?  Are they asking why their people are leaving and what they are looking for?

The same survey indicates that 77% of candidates are looking for a good salary when choosing a job, followed by good working conditions at 72%. But candidates are also looking for growth opportunities and work-life balance.

As a result, 31% of the participants have looked for another job.  That is staggering considering the typical workforce size for SMEs in Malta.  An employer with 50 employees, has 15 of these who have looked for another job.  Maybe out of curiosity? Boredom? Disengagement?

The question is, do employers know why their people are looking elsewhere?  Needless to say, there are more factors beyond employment and within our current environment in Malta that spurs employees to look beyond.  However, it pays employers to pause and ask the right questions – what are my people looking for and what can I do about it, beyond salary increases?

Retention is important but retention at all costs? The clear answer is no. 

However, one needs to put their mind at rest, that in addition to fair compensation packages, people are engaged and productive at the workplace, by having in place a strong engagement, performance and retention framework.