The Human Resource Development - University of Malta · PDF fileeconomic trends, and Maltese geo ... 7.1 What are the Challenges of HRD? ... A Human Resource Development Policy and

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)

[email protected]

May 2011

A Human Resource Development Policy and Strategy for Malta

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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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Chapter 1 – Preliminary Considerations

Employment patterns in Malta are changing as a result of international socio-

economic 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 non-

vocational adult learning; insufficient innovation in training methods; and


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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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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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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 knowledge-

driven 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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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 under-

invest 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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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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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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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 non-

unionised, 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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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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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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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, self-

responsibility, 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

12 R. Spear (1998). Social Audit and the Social Economy. Open University: http://www.ny.airnet.ne.jp/ccij/conf/spear-2e.htm


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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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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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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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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

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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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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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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.


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National Commission for Higher Education

Objectives and Structure

The implementation of an HRD policy and strategy for Malta is a complex, multi-

faceted 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.


21

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


22

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


23

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

European Social Fund Unit, Office of Review, Ministry for Social Policy, Valletta (2003). 24

Refer to Appendix 1.


24

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 [email protected]

2011


25

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


26

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31

Appendix 1: European Social Fund (ESF) Financial Allocation for the Implementation of HRD Strategies

Single Programming Document Measures

Axis 2

Amount Allocated

(Million Euros)*

The Specific Challenges proposed in the Human Resource Development Policy &

Strategy for Malta

3.1 Employability and adaptability

(HRD Chapters 2, 3 & 4)

6.21 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) 1.54 6. Promoting equal opportunities

3.3 Lifelong learning

(HRD Chapter 3) 1.50

4. Strengthening commitment to lifelong learning/CVT

3.4 Social inclusion

(HRD Chapter 6) 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).

Documents

The Human Resource Development - University of Malta · PDF fileeconomic trends, and Maltese geo ... 7.1 What are the Challenges of HRD? ... A Human Resource Development Policy and