Malta’s private sector is facing a paradox: While employers and employees generally share common goals, they often experience the workplace through very different lenses. A recent study led by a team of psychologists and psychotherapists, surveying hundreds of employers and employees across sectors, reveals crucial insights into the strengths and fractures within Malta’s employer-employee dynamics –⁠ offering a roadmap for better engagement, retention, and satisfaction.

The data was presented at a conference focused on the mental health of business leaders, orgaised by the Malta Chamber in collaboration with Willingness on Wednesday (today).

Positive intentions, but cracks beneath the surface

The good news is that the overall relationship is strong. Employees report generally positive trust in their employers, with many feeling supported in their professional development. However, over 66 per cent of employees also flagged at least one major issue, including uncompetitive pay, poor communication, and lack of recognition.

Employers, on the other hand, are confident in their leadership abilities –⁠ scoring an impressive average of 4.37 out of five in confidence and self-efficacy, with larger organisations ranking themselves even higher. But they, too, face intense pressures: 44 per cent cite competitive salaries as a top challenge, while around 90 per cent report high workloads and 77 per cent acknowledge high stress levels.

One striking finding: burnout is widespread, affecting 50 per cent of mid-managers and 33 per cent of employees who believe their bosses are simply too stressed.

The communication and appreciation divide

The study identifies a critical perception gap between employers and employees. While employees crave clearer communication, more feedback, and greater recognition, employers wish for more initiative and upward feedback from their teams.

This disconnect feeds a sense of underappreciation on both sides: 18 per cent of employees feel their efforts go unnoticed, while 27 per cent of employers feel underappreciated by their staff.

Perhaps most tellingly, both groups agree that compensation is a thorny issue –⁠ employees want better pay, and employers feel squeezed trying to provide it.

Recommendations

The report offers clear recommendations to bridge these divides:

Enhance two-way communication

• Introduce regular dialogue forums like town halls and weekly check-ins.
• Provide anonymous feedback channels and train managers in active listening.

 Build a culture of recognition

• Praise and recognise contributions frequently, both publicly and privately.
• Introduce 360° feedback, allowing employees to acknowledge their leaders too.

Prioritise work-life balance

• Enforce ‘right to disconnect’ policies, discouraging after-hours emails.
• Encourage managers to model healthy behaviours by taking time off and using prioritisation tools.

Invest in soft skills and mental health training

• Equip leaders with training in emotional intelligence, active listening, conflict resolution, and mental health awareness.
• Only 18 per cent of employees believe their leaders are prepared to handle mental health issues –⁠ a gap that urgently needs addressing.

Align expectations and career growth

• Map clear pathways for employee advancement and skill expansion.
• Hold transparent goal alignment meetings to clarify business realities and opportunities.

Foster team cohesion

• Organise tailored team-building activities and cross-level mentorships to break down ‘us vs them’ barriers.

Communication, trust, appreciation, and balanced expectations create a positive feedback loop that boosts engagement and performance. By closing the perception gaps and addressing stressors, Maltese businesses can unlock stronger, more cohesive workplaces –⁠ where both leaders and employees feel heard, valued, and motivated to succeed together.