Competitiveness Strategies for Small States,Valletta, Malta
Country Paper on
A Human Resource Development Policy
and Strategy for Malta
Anne Marie Thake
B.A. (Hons), M.Sc. (Manchester)
anne.thake@um.edu.mt
May 2011
A Human Resource Development Policy and Strategy for Malta
A Human Resource Development
Policy and Strategy for Malta
Introduction
The objectives of the Human Resource Development Policy and Strategy for Malta
document are threefold. It is to serve as a:

Strategic Plan for the development of human resources in Malta which dovetails
with the National Development Plan for Malta, as well as the programming
period for the European Social Fund;

guide for Government to establish its priorities and to take the corresponding
decisions and actions regarding employment and training in line with the
European Employment Strategy;

common framework document to guide all organisations related to workforce
development through social dialogue in their planning and delivery of services
and to enable co-ordination among the organisations.
Document Layout
The HRD document is divided into 7 chapters. Chapter 1 describes some
preliminary considerations of Human Resource Development (HRD) in Malta. The
next 5 chapters deal with specific areas of HRD and are systematically organised
in the following manner: description of the present situation in Malta, issues to be
addressed, the main policy priorities, and the concrete strategies. Chapter 7
suggests how a HRD policy and strategy can be implemented in collaboration with
the social partners. An outline of the chapters is presented below.
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A Human Resource Development Policy and Strategy for Malta
Chapter 1 – Preliminary Considerations
Employment patterns in Malta are changing as a result of international socioeconomic trends, and Maltese geo-cultural realities. Elements of traditional Maltese
culture such as multiculturalism, flexibility, networking among employers and
employees, cultural and institutional resilience, are potential contributors towards
the enhancement of human resources.
Recent developments in the Maltese
official foreign, economic, environmental, employment, and educational policies
facilitate the development of an effective HRD Policy and Strategy.
Chapter 2 – Employment
Employment is an important contributor to our social identity. People find
employment in a variety of ways including by word of mouth, through personal
contacts, family connections, the media, ETC and private employment agencies.
Public and private organisations provide active and passive services to meet the
demands for employment, to raise employment standards, and to reduce
unemployment. The employment services in Malta can be considerably improved.
Labour market policies are not adequately developed and coordinated. The
existing skill levels do not meet the challenges of organisational restructuring.
Chapter 3 – Training, Development and Lifelong learning
Investing in training and development of Maltese employees is of vital
importance. Current information on HRD practice in Malta is insufficient.
Training quality and certification is not always satisfactory. It has been noted
that in Malta, the level of funding in vocational education and training is one of
the lowest compared to EU candidate countries. Too few students choose
technical courses after secondary education in preference to academic courses.
This creates an imbalance which needs to be addressed. There is scope for
greater involvement of the social partners in on-going education and training.
Individuals‟ training and development should be a continuous process. Among the
main problems blocking the expansion of lifelong learning in Malta are the
inadequate levels of basic skills including IT skills; a low investment in nonvocational adult learning; insufficient innovation in training methods; and
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A Human Resource Development Policy and Strategy for Malta
insufficient recognition of the value and relevance of non-formal and informal
learning.
Chapter 4 – Vocational Guidance
Vocational guidance for youths has existed through the educational system for
over 40 years and is currently offered in most public and private schools and
educational institutions. It is also available to adults mainly through the services
offered by ETC and the registered private employment and training organisations.
A reassessment of the Vocational Guidance services is crucial and imperative. The
need is felt to upgrade the vocational guidance provision and to take into
consideration the new socio-economic and technological advances as well as to
cater for the globalisation of the economy and Malta‟s EU membership. There are
increasing demands upon Vocational Guidance services to widen their outreach
while increasing quality and maintaining affordability.
Chapter 5 – Women in Employment and Training
The past decades have seen a number of social and legal achievements for
women which have contributed to a greater female participation in the labour
market. However, many issues need to be solved to tap the full potential of female
employment. Female labour participation is still low by European standards, and
women‟s jobs are often tied up to specific sectors and levels of occupation. There are
not enough enabling measures such as regulated, affordable childcare provision,
which could considerably enhance women‟s employment rate. Women do not always
enjoy comparable working conditions to men. For example, females tend to earn
wages amounting to around 80% of those earned by men in the same occupations.
There is also a low participation of women in continuing vocational training.
Chapter 6 – Focus on Specific Groups
There is a need to review mechanisms for the inclusion of the following specific
groups in the labour market:

Youths. This group is composed of people between 16 and 24 years old;

The long-term unemployed (LTUs) and very-long term unemployed (VLTUs).
LTUs are those who have been registering for over a year, and VLTUs have
been registering for over 5 years (ETC definition);
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A Human Resource Development Policy and Strategy for Malta

The disadvantaged groups which consist of ex-substance abusers, ex-correctional
facilities inmates, persons with social problems, and persons with disabilities;

Mid-career job seekers. These are registering unemployed aged 40 and over;

Job seekers possessing low literacy skills. Illiterate jobseekers are individuals
who do not know how to adequately speak and/or write in the English and
Maltese language and do not have a basic knowledge of numeracy;

Job seekers coming from specific disadvantaged localities. There are some
localities (including Valletta, Hamrun, Cospicua, Marsa, Senglea, Vittoriosa,
Floriana, Qrendi, Zebbug [Gozo]) that tend to have a high unemployment rate.
Chapter 7 – Implementation
7.1
What are the Challenges of HRD?
The arguments of the previous chapters are based on the premise that the
changing nature of work, the internationalisation of trade, the global context of
technology, and the arrival of the information society based on knowledge-based
economies of scale have critically impacted production processes, work
organisation and are changing the relationship between labour and capital.
Competitiveness in this global market is being determined less by the amount of
acquired wealth – be it fixed assets or technology – but more by the skills and
creativity of the people and the creativity with which they are organised and
applied in society and business.
As the pace of change accelerates even further, it will be the adaptability of people
and the ability of work organisations to move quickly to exploit new opportunities
that will determine our ability to create and sustain competitive advantage.
The Maltese economy is undergoing a transitional stage that involves restructuring
not only in terms of capital equipment and work organisation, but also of its human
resources. As the backbone of Malta‟s economic development, the „restructuring‟
of its human resources presents particular challenges.
New opportunities arise from the fact that the knowledge and skills of the
workforce are increasingly becoming the principal source of competitive advantage
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A Human Resource Development Policy and Strategy for Malta
for organisations. For local enterprises, the skills and knowledge of employees
determine their ability to survive and prosper in an increasingly competitive and
internationalised market place. In short, the quality and productivity of the human
resource base of this country is a key determinant of its wealth, living standards
and employment levels.
Whether the new opportunities for the development of our human resources are
fully realised will depend on the investment made by the social partners in human
resource development. This realisation will also depend on the effectiveness of
the policy framework which the Government puts in place to facilitate the
development of what effectively must become a knowledge-based and knowledgedriven economy.
The interests of the various social actors, including individuals, do not always
coincide.
Employees,
workers,
service/training
providers,
individuals
and
Government are guided or motivated by different principles for action. Sectoral
interests may precede the line of action and intervention. However, in a
democracy, governments operate on a mandate to uphold the national interests as
delivered to them by their citizens. The State‟s interventions in the provision of
education and training, sets the roles of the social actors within the whole context
of the vocational training scenario.
What are the challenges for the Social Partners?
The Challenge for Management
The rapidity of technological and organisational change in business, changes in
the nature of work itself and the increasingly competitive international business
environment, all require the adoption of a continuous and lifelong approach to
skills acquisition and training and the promotion of greater flexibility and
adaptability within the workforce.
The recent NSO survey on vocational guidance has found that Maltese
organisations do not invest sufficiently in upgrading employee and management
skills. This is particularly the case for small businesses. Yet it is known that
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A Human Resource Development Policy and Strategy for Malta
effective investment in HRD will yield a good commercial return provided it is done
in the context of a sound business plan. The tendency for enterprises to underinvest in training may be due to:

A fear that the employees benefiting from human resource investment may
leave or be poached by other employers;

A lack of funding for HRD investment purposes;

An insufficient recognition of potential benefits of investment in HRD, due to a
lack of readily available information.
To overcome these deficiencies, it is not enough to simply allocate additional
resources to HRD.
A strategic approach to the utilisation of the opportunities
available to the organisation, together with new attitudes to training are also required.
The successful enterprise is a learning organisation where people at all levels are
able to acquire and renew the knowledge and skills identified through an analysis of
the training needs of the organisation and of the training potential of its employees.
Closer links between the educational and training services1 are essential to
underpin the capacity of organisations for innovation across the full range of
business activities and to ensure that the education and training sectors are
responsive to the needs of organisations.
In addition to raising the quality of existing skills, new work practices require the
acquisition of new skills. Failure to master these new processes will put organisations
at a competitive disadvantage.
The challenge for management is to make the transition to activities which are
based on the use of higher technology, better quality, better organisations, and
which will yield profitable margins. This transition requires a significant change in
traditional management-employee relationships. It involves new forms of work
organisation which foster greater employee autonomy and discretion in the
performance of jobs within an agreed framework of responsibility. It requires work
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A Human Resource Development Policy and Strategy for Malta
practices suited to developing competitive advantage in individual organisations,
based on the acquisition and mix of skills and on flexibility.
A greater disclosure of information and partnership in the management of change
needs to be disclosed to avoid crises-driven change. This places new demands on
management. The communication skills and negotiation capabilities of management
and employees need to be strengthened to achieve greater effectiveness in this
changed employee-management environment. Training and education in these
skills is growing in importance.
The aim must be to benchmark training performance at both the national level and at
the level of individual organisations against the best known international practices.2
The Challenge for Trade Unions
Human resource management encourages employees in organisations to work as
teams, function quality circles and operate within a total quality management
system. This is enabling managers to change their image of „mere fire-fighters‟,
mainly engaged in handling disputes and collective bargaining; develop a wider
language within management as to how to regulate labour and telling workers that
something new is going on.3 HRM does not necessarily exclude trade union
activity. Cooperation between the two is possible - particularly within a social
partnership framework.4
Traditionally, trade unions act as intermediaries, constantly striving to represent the
interests of their members and improve their conditions of work through bargaining
and negotiation.
2
The EU Education Council agrees on reference levels of European average performance as
outlined in file:///C|/WINDOWS/TEMP/Salle de Presse des Institutions européennes (1).htm
(European Commission, Brussels, 5 May 2003, IP/03/620).
3
P. Edwards (1995). “Assessment, Markets and Managerialism” in P. Edwards (ed.) Industrial
Relations Theory and Practice in Britain, Oxford: Blackwell, p.607.
4
Trades Union Congress (1994). Human Resource Management: A Trade Union Response,
London: Trade Union Congress.
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A Human Resource Development Policy and Strategy for Malta
Flanders argues that trade unions operate the dual role of „sword of justice‟ and
„vested interest‟.5 The unions aim to defend employees and ensure that any
changes occur with a sense of social justice and equity. Hyman (1999) states that
the role of „sword of justice‟ does not feature in the perceptions of trade union
members and officials.6 Likewise, an empirical survey7 concluded that the majority
of Maltese trade union activists view a trade union‟s role as one of looking after the
members‟ interests by obtaining the best possible conditions of work rather than
striving to ensure that social justice is distributed to all employees.
At the work place, management encourages flexibility and adaptability to the
market needs.
This may imply leaner organisations due to restructuring and
downsizing. Any form of flexibility introduced by management puts unions in a
dilemma. A union‟s mission is to promote solidarity rather than divide the workforce
and flexibility measures may be viewed as going against this objective. The
challenge for trade unions and management is to integrate flexibility with security.
In order to face these challenges, unions need to manage change more effectively and
according to a pre-determined strategy. The new initiatives may include the following:

Image building;

Coping with the new economic environment;

Employee involvement;

Relations with the state;

An active role in vocational training and development.
1. Image Building
All unions need to improve their public image through upgrading their public
relations and mobilising their resources.8
5
A. Flanders (1970). Management and Unions: The Theory and Reform of Industrial Relations.
London: Faber.
6
R. Hyman (1999). „An Emerging Agenda for Trade Unions‟, Discussion Paper, Geneva:
International Institute for Labour Studies, as quoted in G. Baldacchino, S. Rizzo, E. Zammit, (2003).
Evolving Industrial Relations in Malta. Malta: Agenda/WPDC, p.137.
7
In 1999, the WPDC of the University of Malta conducted an empirical survey aimed at exploring
and evaluating the perceptions held by trade union members of their own Trade Union. The aim
was to present an overview of expectations and responses.
8
G. Baldacchino, S. Rizzo, E. Zammit, (2003). Ibid., p.148.
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A Human Resource Development Policy and Strategy for Malta
2. Coping with the New Economic Environment
Unions should operate more actively their networks with other international trade unions
– particularly within the European Trades Union Confederation (ETUC) - to devise
common policies, such as the European Employment Strategy (EES) and keep up to
date to with international events.
3. Employee Involvement
Maltese trade unions should negotiate with the other social partners different forms
of employee involvement and workplace participation. These would enable their
members to be more involved in decision-making processes and achieve a
balance between security and flexibility.
4. Relations with the State
The unions are often viewed as offering „stiff resistance‟ to Government. The latter
follows a policy of industrial peace and should involve unions in formulating national
policy. This may be viewed as „union accommodating state policy‟. It should be noted
that in the Malta survey, 67% of respondents believe that their union has achieved a
balanced relationship. 23.7% of the respondents feel that the unions should offer
„stiffer resistance‟ to Government.
5. Active role in Training and Development
The unions should be actively involved, in conjunction with the other social partners, in
employee training and development as well as in vocational training and lifelong
learning. Without this active union role, the success of any such schemes is likely to
be severely impaired. This could also be their most effective contribution towards
securing the employability of their members throughout their work lives.
In view of the above, trade unions are faced with a trend of increasing nonunionised, atypical and marginalised employees.
A number of workers in the
highly unionised public sector are decreasing. This trend poses a challenge to the
Maltese trade unions in the future. For unions to maintain credibility, they need to
show tangible evidence not only of competence but also of fairness and equity. 9
9
Ibid., p.153.
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A Human Resource Development Policy and Strategy for Malta
The Challenge for Government
The European Commission White Paper on Education and Training (1995) stated
that „the state is responsible overall for shaping and developing the structure,
organisation and content of their educational and vocational training systems.
Clearly, the state has a crucial role in bringing about a learning society.10 The
Government‟s HRD functions include the following:
Coordinating and Facilitating Role - The State has a coordinating and facilitating
role with responsibility for the overall infrastructure, the provision of a legislative
framework, the setting of standards and the monitoring of quality assurance, the
provision of qualifications nationally and the licensing of education and training
organisations.
Basic Skills - Government is to ensure that the educational system is producing
high levels of achievement in the field of basic skills, such as languages, sciences,
mathematics and technology, on which work-based learning can be built. Young
people need to be flexible, enterprising and technically proficient to be equipped
for an uncertain and rapidly changing future. They need to begin to learn all this
while they are still at school, since school is only the first stage of their learning
pathway.
Social Dialogue - The labour-capital relationship is being transformed and
Government‟s approach to social dialogue needs to pace the process of
adjustment to new forms of social agreements. The process of managing these
changes needs to realistically consider whether the social partners can fulfil their
roles.
Co-partnership - Government needs to encourage the social partners to work
together in genuine co-partnership with shared responsibility for strategy and
10
The European Commission White Paper on Education and Training (1995), European
Commission, Brussels p. 2.
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A Human Resource Development Policy and Strategy for Malta
operations, decision-making, management and where possible even sharing of
financial commitments to training and development matters.
Consensus - Government is responsible for building a consensus on ideas put
forward by the social partners and reaching agreements and commitment.
Enterprise Support - The state needs to give support to employers, especially
small and medium enterprises, possibly financial support and/or incentives from
the state to successfully invest in the training and development of their employees.
International Certification - The state needs to ensure that there is a system of
qualifications which enjoys national credibility and recognition.
Nationally
recognised qualifications need to be international that is acceptable, transferable
and accreditable to any country.
Quality Assurance - Training providers need to ensure quality education and
training and the State needs to ensure a proper accreditation, inspection and
monitoring mechanisms for quality assurance which may incorporate principles of
intervention. Training providers need to ensure that their deliverables meet the
needs of employers and the community. Government needs to set up a quality
improvement strategy to ensure consistency, coherence and sustain a culture of
continuous improvement.
Co-Funding - The state is not ultimately responsible for the funding of all training
and development initiatives. However, it can influence policy and give support to
education and training institutions in a number of ways. For example, tax reliefs
for individuals or enterprises who invest in training and development, national
funding for new schemes.
Vocational Education and Training - Competence and skill acquired in the
workplace need to be recognised and accredited through systems of vocational
qualifications.
This would encourage closer links between academic and
vocational qualifications.
Qualifications need to recognise what people know,
understand and can do and the standard they have reached.
Both academic
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A Human Resource Development Policy and Strategy for Malta
knowledge and practical applications need to be recognised and assessed.
Vocational qualifications systems should benefit mostly persons already in
employment.
The Challenge for Civil Society
The Civil Society motivates individuals within their own area of activity to equip
themselves
with
relevant
skills.
This
will
enhance
the
individuals‟
employability. 11 The characteristics of the Civil Society organisations are
value-based, orienting individuals towards mutual or social good. Their
espoused values are usually participation, user and community orientation,
and non-profit distributing. They also confirm values like self-help, selfresponsibility, democracy, equality, equity, and solidarity. 12
In a context of deregulation and increasing competition, there is considerable
pressure for conformity with conventional private business practices. The
challenges that social economy organisations face are to maintain their core
values, as well as provide an important counter-force to commercial self
interest. Organisations may also serve to demonstrate an attractive ethical
distinctiveness, and in many cases an important competitive advantage.
In every society there is a growing minority of people who are more
vulnerable, undereducated, under-skilled and unemployed.
In some cases,
these people have multiple difficulties to add to their employability problems.
Private organisations cannot cater for all the needs of these people.
Government has a social responsibility and ensures that provision is made for
these people‟s needs, with the aim of helping them to become employable and
capable of taking active participation in society.
The Challenge for Individuals
The individual will also have to give importance to ensuring that qualifications,
training and personal development are updated, internationally certified and
meet the need to secure and maintain employment. The minimum levels of
R. Spear (1998). Social Audit and the Social Economy. Open University:
http://www.ny.airnet.ne.jp/ccij/conf/spear-2e.htm
12
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A Human Resource Development Policy and Strategy for Malta
initial education and training required to secure and to hold a job are rising.
There is evidence to suggest that those who leave school with no or minimum
qualifications will enter into an on-going cycle of unemployment.
There is also a need to ensure that, in the workplace of today and of tomorrow,
where change is endemic and the need for new skills is constantly apparent, a
commitment to lifelong learning is required to ensure their „employability‟.
Individuals will need to develop a „personal portfolio‟ of skills and attitudes that
are continuously upgraded over a working life-time in which the concept of a
„job for life‟ in any business activity, will no longer hold.
The greater the extent to which organisations and individuals have invested in
the upgrading of qualifications and skills, the lower the possibility of redundancy
and the easier it will be to achieve reintegration into the workforce if
redundancy
occurs.
Where
employees
do
become
redundant,
their
reintegration to the workforce can be facilitated by effective advisory and
counselling services.
Critical Challenges Confronting HRD in Malta Today
The following eight important challenges were identified through research as
relevant to an effective HRD policy and strategy in Malta. The main concrete
strategies discussed in the document are outlined after each challenge. Some of
these strategies are not new. They are reproduced here to emphasise their
importance for an integrated HRD strategy, strengthen them, and develop them
further.
1.
Reintegrating unemployed people into the national workforce
Specific human resource development interventions are required to help bring
those who have been unemployed and particularly long-term unemployed back
into the workforce13. Unemployed persons in the over 40-age group (mid-careers)
are susceptible to long-term unemployment.
These persons are likely to be
severely affected by the restructuring of the economy.
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A Human Resource Development Policy and Strategy for Malta
2.
Helping people become more employable and promoting gainful
employment through the development of their skills
There is a need to prevent the drift of school leavers into long-term unemployment
and improving opportunities for pre-entry vocational education and training
together with its quality and relevance. Employees need to become more
employable through the development of their knowledge and skills.
3.
Underpinning competitiveness by promoting investment in the skills
and knowledge of the workforce
Good educational attainments and qualifications are key requirements in reducing
the numbers of people at risk of becoming unemployed. A lack of information
technology and communication skills needs to be enhanced to support
Government‟s drive for an information-based society and economy.
4.
Strengthening commitment to lifelong learning/CVT
Individuals and their employers need to be committed to lifelong learning and
vocational training. Malta has an imbalance of vocationally qualified personnel –
young persons or individuals who have experience but no qualifications. MCAST
is trying to address this issue.
5.
Providing Comprehensive Guidance and Counselling Services
Vocational Guidance should be seen as a continuum, life-wide and lifelong. Mobility
of employees and continuing advancement in technology make some jobs obsolete
and change others, rendering the provision of vocational guidance necessary before
entry into employment as well as the whole span of employees‟ working lives.
6.
Promoting Equal Opportunities
Female participation in the labour market is significantly low when compared to
other European countries. Gender differences may be due in part to a fair amount
of women who drop out of the workforce when they have their first child. 14
14
G. Baldacchino, F. Camilleri (1992). Female Workers in Industrial Estates, Malta, WPDC for the
Commission for the Advancement of Women.
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A Human Resource Development Policy and Strategy for Malta
Employers may also be reluctant to provide incentives to encourage women to
remain working.15
Moreover, persons who experience some kind of bio-psycho-social problems and
who may be at risk of social exclusion, often suffer from prejudiced employers. The
existing schemes need to be monitored and continually reassessed to ensure their
effectiveness in further integrating these persons into working life.
7.
Assisting SMEs to overcome the skill barriers to development
The majority of the work force is employed in SMEs.
These organisations face
difficulties in identifying what their training needs are relative to best practice, in
developing HRD plans and in releasing staff for training. They also face financial
constraints in investing in training. These difficulties are addressed.
8.
Developing a strong quality assurance system
A recognised quality assurance system needs to be in place in relation to the quality
and relevance of training, if investment in human resource development by
individuals, by business or through the State is to be effectively encouraged. This
system should provide authoritative information on best practice, provide information
on training consultants or institutions and ensures skills and experience acquired are
certified to a standard which has widespread recognition and portability.
Conclusion
The Brussels European Council in March 2003 gave clear guidelines for a
„fundamentally renewed employment policy‟. A strong emphasis was placed upon the
necessity of structural reforms, in particular good governance, social partnership and
efficient employment services. The renewed Employment Guidelines are reduced in
number and simplified. These are based on three over-arching objectives:

Full employment,

Quality and productivity at work, and

A cohesive and inclusive labour market.
15
A. Caruana (2003). Managing Workforce Diversity, in G. Baldacchino, A. Caruana, and M. Grixti
(2003). Managing People in Malta, Malta: Agenda and FHRD.
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A Human Resource Development Policy and Strategy for Malta
Within these broad objectives, Member States are to focus upon ten guidelines.
The following extracts are being reproduced here in view of their close relation to
the issues raised in the present document:

“Access of workers to training is an essential element of the balance
between flexibility and security.

Increasing investment (in HR) requires the provision of adequate incentives
for employers and individuals, and re-directing public finance towards more
efficient investment in human resources across the learning spectrum.

A successful implementation of employment policies depends on partnership at
all levels, the involvement of a number of operational services and an adequate
financial provision to support the implementation of the guidelines.

Improved quality at work is closely inter-linked with the move towards a
competitive and knowledge-based economy and should be pursued …
particularly through social dialogue.

Quality … encompasses intrinsic job quality, skills, lifelong learning and
career development, gender equality, health and safety at work, flexibility
and security, inclusion and access to the labour market,16 work organisation
and work-life balance, social dialogue and worker involvement, diversity and
non-discrimination, and overall work performance.”17
The recommendations made in this document for Malta are closely attuned to the
latest proposals emanating from the EU Commission.
This document has been written in the context of the emergent economic
environment. Today‟s world is characterised by globalisation of trade and commerce,
increasing world-wide competitiveness and one where comparative advantage can
only be sustained through innovation and the exploitation of knowledge.
It is also an environment where the very nature of work and work organisation is
changing, driven both by the pace of technological change and a need to maintain
16
Disadvantaged groups can only benefit from the labour market if the vocational training and work
placement is personalised. ETC would need to work in tandem with social welfare agencies such as
Appogg and Sedqa to combat social exclusion. A fast track system in training and employment
coupled with social work support would ensure that these individuals move out of the poverty zone
as fast as possible.
17
A. Caruana (2003). ibid.
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A Human Resource Development Policy and Strategy for Malta
competitiveness. It is a world of work where flexibility and adaptability, the ability to
change, to accommodate and generate new products and processes are essential
for success, and where the concept of „employability for life‟ is superseding the
traditional concept of „a job for life‟.18
In today‟s world, human resources must increasingly require the highest levels of
knowledge, skills and competencies. An ongoing investment in learning is required
both at the point of entry into the labour market and, just as importantly, throughout
the working life by constantly updating and adapting the employees‟ knowledge,
skills and competencies.
The Maltese people‟s abilities are matched by their high aspirations. In this context,
Malta‟s main development objective should be to restructure its economy by
embarking on the “high road of innovation”. In practice, this means the creation of
“highly skilled jobs producing high quality goods”. The occupants of such jobs must
be capable of constant innovation in order to compete successfully on the global
market. The realisation of this objective requires the establishment of local facilities
for advanced vocational training at institutions like the University, MCAST, ITS and
others. Where this is not feasible, specialised training may be imparted through
exchange agreements with high-ranking foreign institutions. All this, in turn, also
requires the availability of adequate incentives for employees to dedicate their
efforts to ambitious training projects which can best be secured for them through
negotiated agreements among the social partners.19 It is strongly believed that the
realisation of the above objectives will be facilitated if Malta avails itself fully of the
new opportunities available following its EU accession.
The analysis suggests that Maltese enterprise has yet to fully realise the changing
circumstances which it is facing, especially when measured in terms of the levels of
its investment in people. In other words, the Island‟s HRD potential is not being
adequately utilised at present.
18
Department of Enterprise and Employment (1997). ibid. 149.
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A Human Resource Development Policy and Strategy for Malta
The task of HRD is to continuously improve the capabilities and maximise the
utilisation of all available human resources. This implies not only improving the HR
skills to better suit industry requirements but also encouraging the further
participation of certain groups of persons who for various reasons find it more
difficult to become employed.
There can be mutual benefit resulting from greater synergy between the training
infrastructure and the industrial sphere. An institutionalised dialogue is required
between the educational organisations and industry so as to shape the training of
human resources to the industry requirements.
The Governmental institution that is currently responsible to facilitate enterprise
operations is Malta Enterprise, while that for employment and training is the ETC.
Together with the educational institutions, Malta Enterprise and ETC should
analyse the current skill gaps in Malta and predict future skill requirements that
result from current and planned future investment. The social partners should also
be deeply involved in this process. As a result, the educational institutions will be in
a better position to draft new prospectuses as well as to re-launch current courses.
This analysis will also permit the system of training certification and quality
assurance to update its criteria according to new requirements. Guidance and
Counselling facilities represented by the proposed National Vocational Guidance
Unit would be in a better position to provide the right direction to individuals
seeking further skill specialisation.
The proposed synergy between Malta Enterprise, ETC, the social partners and the
educational institutions will also aid students to gain hands-on experience, and
industry to commission its research requirements in these institutions.
The effectiveness of government incentives to companies for employee training
and development (currently being provided under the Business Promotion Act,
through ETC and Malta Enterprise) needs to be constantly monitored and its
impact on HRD assessed.
19
A Human Resource Development Policy and Strategy for Malta
National Commission for Higher Education
Objectives and Structure
The implementation of an HRD policy and strategy for Malta is a complex, multifaceted project stretching over a number of years. It involves a broad based,
coordinated effort involving both the public and private sectors. Such a project
cannot be expected to run unaided, on its own steam. Despite the considerable
amount of good will, there is the danger that this document will not be given the
importance and consideration it deserves. To ensure that this does not happen, the
responsibility for monitoring and supporting the document‟s proposals should be
entrusted to a Commission which is being proposed specifically for this purpose.
It is therefore proposed that a Commission be established within ETC in order to
promote the implementation of the recommendations put forward in this document
and to draw up and execute future HR policy recommendations to Government and
the other parties involved. The proposed Commission will also be entrusted with
the task of monitoring future needs and developments in all areas concerning HRD
in Malta. An outline of the structure of the proposed Commission is shown in Figure
1.
The Commission is envisaged as an independent body comprising representatives
from the Ministries of Education, Social Policy (including the European Social Fund
Strategic Development Group – [ESF SDG]), Finance and Economic Affairs, the
unions, private employers and representatives from the social economy. This
Commission will utilise the Education Department‟s administrative resources but
shall also refer directly to the specific ministries and the other parties involved.
The Commission is envisaged as being composed of a chair and not more than ten
members. It is proposed that appointments be made by Government following
consultations with the other social partners. The Commission may also be
empowered to appoint sub-committees which specialise in HRD. These include
those of manufacturing, ICT, tourism, maritime services, financial services, and
public infrastructure.
20
A Human Resource Development Policy and Strategy for Malta
The Commission‟s functions shall be to:

Identify HRD needs in all employment sectors and monitor existing HR
trends;20

Recommend HR policies and strategies to Government;

Recommend to the social partners the matching of available HR with skill
requirements and the implementation of measures in specific areas;

Monitor and evaluate the effectiveness of training programmes to meet HRD
demands;

Promote existing training provisions offered by the various institutions.
The above functions can be performed through regular reports submitted to the
relevant ministries and to the other social partners on the way the HR plan is
proceeding in specific critical areas.
In fulfilling the Commission‟s functions it is valuable to consider access to social
rights as a key to combating poverty and social exclusion, and promoting social
cohesion.21
Funding
The economic and social cohesion is one of EU's priority objectives. By promoting
cohesion, the European Union is encouraging harmonious, balanced and
sustainable economic development, the development of employment and human
resources, environmental protection and upgrading, the elimination of inequality
and the promotion of equal opportunities.22
In order to implement the drive for economic and social cohesion, the European
Commission has created financial instruments (the Structural Funds and the
Cohesion Fund) to part-finance regional and horizontal operations in the Member
20
The proposed Commission can utilise the indicators provided periodically by the Employment
Barometer.
21
The report - Access to social rights in Europe (2002) by Mary Daly analyses the obstacles
impeding access to different social rights within and across a range of fields. It also gives examples
of how obstacles are being overcome, examines integrated measures implemented in the member
states of the Council of Europe and identifies the principles on which measures to improve access
to social rights should be based. The report also develops cross-sectoral policy guidelines aimed at
facilitating access to social rights.
22
http://europa.eu.int/scadplus/leg/en/lvb/l60014.htm
21
A Human Resource Development Policy and Strategy for Malta
States which fall within the remit of the national governments, on the basis of
programming documents which the Member States themselves have negotiated
with the Commission.
In view of the Structural Funds Programming Period the Government of Malta
has prepared its own Single Programming Document (SPD) highlighting the
national development strategy and priorities of the interventions that Malta will
undertake. These initiatives will be co-financed by the national budget,
European funds (Structural Funds and Cohesion Fund) and the Fifth Italian
Protocol. The proposed SPD still has to be negotiated with and approved by the
European Commission. Its recommendations are based on the following five
priority axes:
1. Strategic Investments and Support to the Productive Sector
2. Developing People
3. Rural Development and Fisheries
4. Regional Distinctiveness (Gozo Special Needs)
5. Technical Assistance
Each priority Axis is divided into a number of measures. The following measures are
directly related to the HRD Development Policy and Strategy for Malta.
Axis 2 – Developing People includes:
2.1 Employability and Adaptability
2.2 Gender Equality
2.3 Lifelong Learning and Social Inclusion
Axis 4 – Regional Distinctiveness (Gozo Special Needs) includes:
4.2 Human Resources
Axis 5 – Technical Assistance includes:
5.2 Technical Assistance for the ESF
22
A Human Resource Development Policy and Strategy for Malta
The European Social Fund will co-finance 26 Human Resource Development
Labour Market Actions.23
In addition, it is planned that Malta will participate in one of the Community
programmes - EQUAL – an initiative to address discrimination and inequality in the
labour market particularly related to sex, ethnic origin, religion, or age.24
The Ministry for Social Policy intends to create an ESF Strategic Development
Group (ESF SDG) and an ESF Project Management Group (ESF PMG) involving
the proposed Commission to ensure the most effective use of these funds.
It is further proposed that the HRD Policy and Strategy for Malta forms part of an
overall process which will serve as a catalyst for change. It is expected that the
challenges, strategies and proposed actions will contribute towards overcoming
some of the barriers that undoubtedly exist and help to bring about the culture or
attitude change that is necessary to generate the new focus on investment in
people. Simultaneously, it should be noted that the recommended actions are not
carved in stone. They may be used dynamically, and must inevitably change and
evolve. New actions will need to be developed regularly to properly reflect that
changing world of work to which they are meant to be applied.
All the social partners are invited to assume the responsibility for training and
development of Malta‟s human resources. It is everyone‟s responsibility to get
their house in order and adjust to the new work environment.
Government is making its commitment with respect to its own employees. It is
already making a substantial contribution in HRD – particularly through the recent,
significant investment in Malta by leading foreign companies operating in the vital
ICT sector. The ETC has also created a range of structures through which its
labour market interventions are implemented. Government has an obligation to
ensure that its investments remain effective and are utilised efficiently.
23
24
European Social Fund Unit, Office of Review, Ministry for Social Policy, Valletta (2003).
Refer to Appendix 1.
23
A Human Resource Development Policy and Strategy for Malta
The challenges confronting Maltese society are best viewed as opportunities to be
grasped. The message conveyed through this HRD Policy and Strategy document
is that all sectors of society should strengthen their resolve to mobilise Malta‟s key
assets – our people – towards the attainment of our common objectives.
Anne Marie Thake
B.A. (Hons), M.Sc. (Manchester)
Human Resource Development
anne.thake@um.edu.mt
2011
24
A Human Resource Development Policy and Strategy for Malta
Figure 1: The National Commission for Higher Education
Service Providers







Educational Institutions: including University of Malta, MCAST, Education Division, LLL Strategic
Committee, ITS, Private Schools and Training Agencies, National Vocational Guidance Unit
Employment & Training Corporation: including IDA Training Grants
Malta Enterprise
Quality Assurance: including MPVQAC
Social Welfare Agencies: including Appogg, Caritas, Sedqa
Foundation for Human Resources Development
Others
National Commission
for Higher Education
 Government (Ministries of Social Policy,
Finance & Economic Affairs,
Education,Gozo)
 Employers & Employers Associations
 Trade Unions
 Civil Society
HR Supply in Critical Areas




Youth Job Seekers
Female Employment
The Unemployed
Other specific groups (including disadvantaged
groups, illiterate job seekers, unemployed in
specific geographical areas, mid-career job seekers)
Demands for Industrial Skills







Public Sector
Manufacturing Sector
Tourism Sector
Financial Services Sector
Construction and Quarrying Sector
Agriculture ad Fisheries Sector
SMEs
25
A Human Resource Development Policy and Strategy for Malta
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30
A Human Resource Development Policy and Strategy for Malta
Appendix 1: European Social Fund (ESF) Financial
Allocation for the Implementation of HRD Strategies
Single Programming
Document Measures
Axis 2
3.1 Employability and
adaptability
Amount
Allocated
(Million
Euros)*
6.21
(HRD Chapters 2, 3 & 4)
The Specific Challenges proposed in the
Human Resource Development Policy &
Strategy for Malta
1. Reintegrating unemployed people into the
national workforce
2. Helping people become more employable
and promoting gainful employment
through the development of their skills
3. Underpinning competitiveness by promoting
investment in the skills and knowledge of
the workforce
5. Providing comprehensive guidance and
counselling services
7. Assisting SMEs to overcome the skill barriers
to development
8. Developing a strong quality assurance
system
The National Commission for Higher Education
3.2 Gender equality
(HRD Chapter 5)
3.3 Lifelong learning
(HRD Chapter 3)
3.4 Social inclusion
(HRD Chapter 6)
1.54
6. Promoting equal opportunities
1.50
4. Strengthening commitment to lifelong
learning/CVT
1.30
6. Promoting equal opportunities
Source: Single Programming Document (SPD), Regional Policy Directorate, Office of the Prime
Minister, Valletta: Unpublished Document.
* These figures are indicative
Note 1: In addition, under Axis 4 of the Single Programming Document, there is a further amount of
0.51 Million Euros for the implementation of a specific HR strategy for Gozo (SPD, 2003).
Note 2: The Equal Initiative is a transnational cooperation to address discrimination and inequality
in the labour market particularly related to sex, ethnic origin or age. 1.1 Million Euros have
been proposed for the implementation of this Initiative (European Social Fund Unit, Office
of Review, Ministry for Social Policy, Valletta (2003).
31