Business in Malta keeps hiring, despite dip in confidence

Maltese businesses are still taking on staff, even though their views on economic growth are not as positive as they were a year ago, as over two thirds (68%) of Maltese companies report that they plan to increase headcount in the next two years.

The Regus Business Confidence Index registered a drop in ten points for Malta from April 2011, to 98 this autumn. As an indicator of the changing structure of employment, hiring intentions show a particular emphasis on freelancers, graduates and remote workers – as firms seek competitive advantage now and growth in the months to come.

The survey found that almost half (48%) of companies have pushed back their expectations for recovery to the second half of 2012; and the proportion of Maltese companies’ revenue growth (40%) has fallen four percent compared with six months ago, while those reporting profit growth (33%) has fallen five percentage points over the period.

However over two-thirds (68%) of companies plan to hire more employees over the next two years. Signaling a clear move toward more flexible working practices, 58% of Maltese companies say they plan to hire more freelance staff and 42% will employ more remote workers in 2011/12.

“The report finds that, six months on from a rosy start to 2011, the global outlook has suffered a clear reverse. The proportion of companies reporting revenues and profit growth has close to stalled and expectations for the full momentum of recovery have slipped yet again and are now set for the second half of 2012. However, national business sentiment and activity does not seem to be unduly affected, with businesses actively investing in their most valuable asset: people power,” said Mauro Mordini of Regus.

“In Malta, freelance and remote working are becoming an increasingly popular solution to increase headcount while remaining flexible and rapidly scalable. In addition to this, by taking advantage of solutions already available on the market it is possible for even very small operations to establish a low-risk presence in their target markets without making lengthy premises or equipment commitments and allowing them to expand or withdraw depending on volatile market conditions.”

The Regus Business Tracker report is accompanied by an updated Business Confidence Index, which is a measurement formed on an aggregate of positive and forward-looking statements combining year-to-date revenue and profit trends with views on the expected economic upturn in the coming months and aims to provide businesses with a single point of reference of the survey’s key findings. Its benchmark average was set at 100 in the first edition of the Regus Business tracker in September 2009.