Business Manual Initiative

Extensive primary and secondary research, was conducted as part of this project by means of literature reviews, focus groups, surveys with employers and workers, and sectorial round-table discussions.

We embarked on vast and comprehensive research involving surveys with almost 400 respondents divided between entrepreneurs and workers – the latter driven by GWU as a project partner.  Both the literature review and survey evaluations were conducted by the research expert engaged by the project.

As intended, the research and surveys were to lead to the next stages of peer discussion and articulation of the manual. The surveys, essential for capturing diverse perspectives, reflected MEA’s and the partner’s commitment towards inclusivity and comprehensive data collection.

The results of the primary research are discussed elsewhere in this document.

Planning & Coordination with Project Partners

This project was conducted in partnership between the Malta Employers Association (as lead partner), SGI Europe and the General Workers Union (GWU).  From early days – October 2022 – the three partners coordinated their roles and responsibilities to ensure an effective implementation and successful achievement of the set objectives.

The project necessitated extensive research which included surveys with nearly 400 respondents, divided between entrepreneurs and workers, with the latter group facilitated by GWU as a project partner. The findings from these surveys were further validated through three national round-table events, involving over 40 companies to which both SGI and GWU contributed significantly.

To ensure the applicability of the research on a European scale, the MEA coordinated with  SGI Europe and organized a Brussels Workshop. SGI gathered expertise from EU-based social partners and entities like BusinessEurope, ETUC and other national employer organizations affiliated to SGI.  In fact, the role of SGI Europe in this project included:

• The support of local research and participation in the focus groups and national round tables organised in Malta
• The validation of research and findings from the local level to an EU scenario
• The organisation of a workshop in Brussels including the coordination of input and participation of other pan-European stakeholders national employer organisations from across other member states
• The coordination of translation tasks of the Business Manual, videos, brochures, website content
• Support in the distribution of the Business Manual across the EU territory

Malta Employers’ Association

The role of the employer carries with it the burden of many responsibilities emanating from the employer-worker relationships within the company. These responsibilities entail critically sensitive elements such as employee relations, relations with government bodies and interpretation of legislation. Regardless of whether the employer is a large corporation or a small office business, unless these elements are handled competently and professionally, they can pose a serious threat of employee unrest, with its negative impact on the Company’s performance and reputation. In the volatile arenas of industrial relations and social policy, an employer requires immediate expert advice and effective action. It is clear that there is much advantage in fostering an organised unity between all employees. Through this unity comes individual strength.

SGI Europe

Along with BusinessEurope and ETUC, SGI Europe is one of the three European general cross industry social partners. SGI Europe is an actor in the European social dialogue, having a voice in the European bipartite – in negotiating with trade unions – and tripartite – with social partners and representatives of the EU institutions – social dialogue at the highest level. SGI Europe support on a regular basis the European Commission, as well as the European Council and the European Parliament, on any legislative proposal having an impact on Services of General Interest and their place in the Internal Market. SGI Europe also carries out projects promoting the importance of modern public services in Europe. Whether supported by the European Commission or carried out independently, SGI Europe intends to bring a new light on services of general interest, their modernisation and their central role in citizens’ lives.

GWU

The GWU is the largest existing union in Malta, with more than 46,000 members from different fields of work. It was in October 1943 that the union was formed. Despite all the challenges the country has faced the GWU’s aim has always been to protect workers’ which has always been one of the unions greatest strengths. Nowadays in the socio-economic environment in which we live, where the way workers are employed has changed the GWU remains up to date, because it has always remained relevant and contemporary.

Focus Group Meetings

A number of Focus Group meetings were held in March 2023 with a 2-fold purpose of maximising stakeholder engagement through an extra layer of validation as well as to support the design of the survey questionnaires as well as act as a testing ground for the eventual National Round Tables to be held on 23 July.

Around 25 companies from the Hospitality & Tourism; Wholesale & Retail; and Professional Services sectors which proved to be the most adversely affected by the COVID pandemic and where business transformation efforts are most required.

The project necessitated extensive research which included surveys with nearly 400 respondents, divided between entrepreneurs and workers, with the latter group facilitated by GWU as a project partner. The findings from these surveys were further validated through three national round-table events, involving over 40 companies to which both SGI and GWU contributed significantly.

The collection and evaluation of data from an extensive survey covering 175 companies and over 200 employees.  The survey exercise was a less straight-forward process than initially expected in order for the collection of the required quota.   In the case of employers, the questionnaires were collected both online and physically.  Physical questionnaires were prepared and distributed during a large-scale (unrelated to the project) MEA event.  In the case of the employees survey, the process was conducted entirely online and respondents were given an option of questionnaires in both English and Maltese versions to ensure full understanding and participation.

The questionnaires enquired about management approaches, strategies and employee behaviour.

All three National Round Table events commenced with an overview of the project and rationale behind the research undertaken.  On all occasions, the research expert appointed by the project gave an extensive overview of the findings of the surveys undertaken amongst employers and employees.

Employee Feedback Evaluation

The main findings of the Survey concluded that:

i) the sectors identified as priority for the project were those with the highest number of respondents – Hospitality & Tourism 26.2%; Wholesale & Retail (including import/export) 13.2%; Professional Services 11.7%;

ii) the most prevalent changes to the workplace following COVID-19 and ensuing disruption were: Online meetings (25%); Remote working policies and similar initiatives (22%); Introduction of wellbeing and employee support initiatives (12%); Orders over internet/mobile platforms (10%); Redesign of office, workplaces and shopfloors (10%); New training initiatives (9%); New digital promotion channels (9%) and Changes to logistic channels for sourcing and deliveries (8%).

iii) 59% of employees declared that their companies’ mainly catered for was the domestic market. One in every three employees said that their companies were export-oriented and the remainder (8%) said that their company sold both locally and abroad.

iv) 46.2% of employee respondents said that their job changed as a result of transformations necessitated during or after the pandemic. 11.2% of this figure said that their job changed most extensively.

v) Almost 46% of employees surveyed responded that the transformation rendered their place of work more efficient, resilient and sustainable. 10.2% of this figure said that the extent of the improvement was 100%.

vi) 28% of employees surveyed said that the communication process preceding the transformation was weak. A further 20% said it was neutral. The rest (52%) said that it was satisfactory, strong or even excellent (the latter in 15% of the cases)

vii) 43% of employees surveyed said that the changes were communicated well to them and that they felt in control throughout the process. Almost half that amount said that despite changes being well communicated, they felt uneasy. One in 5 respondents said that changes were not communicated well but they still felt in control whilst 16% said they felt uneasy as a result of poor communication.

viii) Almost half of respondents (47%) said that they were not involved (consulted) in the process preceding transformation. 15% gave a neutral answer whilst 38% said that they were involved (of which 12% said totally involved).

ix) 32% of employees surveyed responded that the transformation rendered their work easier and another 30% replied that the outcome of the process had a neutral effect. This may indicate a flawed process of transformation lacking in the re-engineering element. 38% of respondents said that the transformation rendered their job more complicated – 10% of which said that it was now much more complex.

x) 55% of employees reported that they felt that they experienced minor change in the manner in which they interacted with colleagues post-transformation. Almost one in four (24%) reported major change. 21% reported no change.
xi) 70% of employees said that their organisation introduced new or improved products or services. The remainder said that it did not.

xii) In terms of structured performance management models, over half of respondents (53%) said that their company follows one. 42% said that their company did not have one. Concerningly, a further 4% said that the company had a framework in place but it was not effective.

xiii) The above was substantiated by the fact that a further 42% of employees responding to the effect that their employers measure performance objectives and targets. A further 34% said that they did not and the remainder 26% replied neutrally.

As the lead project partner, the MEA organised 3 National Round Table meetings at its premises in Valletta on 26^th July 2023.  In line with the partners’ responsibilities for the project, the National Round Tables were designed with a sectoral dimension.  In fact, three separate ones were organised, each dedicated to a priority sector as identified in the original project application and subsequently in the Grant Agreement.  The three sectors for which a National Round-Table were:

1. Wholesale & Retail;
2. Hospitality & Tourism; and
3. Professional Services.

The Agenda for the three separate events are Annexed to this report.  The events were attended by all project partners, including the General Workers Union (of Malta) which participated actively in the Round Tables through its Secretary General and Section Secretary.  The General Workers Union also supported the project research through assisting in the circulation and promotion of the Employee questionnaires.

It is pertinent to note that these National Round Tables were preceded by focus group meetings organised with the same business sectors on the initiative of the lead project partner and the research expert.  These preliminary focus group meetings were held on 15^th March 2023 for the purposes of:

• collecting sector-specific details pertaining to the research;
• confirming certain research assumptions and
• finalising the design and validation process of the questionnaire.

The purpose of the National Round Tables held in July, on the other hand, was to give participants a preview of the research undertaken regarding the bottlenecks identified in business transformation processes and possible solutions through the strengthening of planning and/or communication processes between management and employees.  The Round Table meetings were designed to take place amongst a limited number of participants to ensure healthy interactive debates whilst facilitating the sharing and improvement of knowledge and best practice exchanges.

The project’s online presence took shape with the design and launch of the project website on April 27, 2023. The website serves as the anchor of information about the project. In fact, it contains a repository of information including digital brochures, videos, survey results, presentations, the Change Management Business Manual and a photo gallery. The website carries full details of the project partners.

English

French

German

Video 01  French  German

Video 02  French  German

Video 01

English Video Production – voice-over

The recent pandemic has accelerated the need for meaningful transformation in workplaces, be it the creation of new forms of work, new processes, new communication tools, and diverse modes of training delivery, amongst others.

We have all seen necessity drive innovation and creativity when we witnessed workers talking to customers through perpex, taxis delivering groceries instead of people, children “attending” school in their bedrooms whilst their parents were meeting colleagues and customers on separate screens in the next room.

The silver lining of COVID was, perhaps, the realisation of how crucial change is to ensure resilience, competitiveness and sustainability.  Adapting to the new normal has created opportunities for employers and employees alike to embrace this much needed change because ultimately, we should all benefit from environmental and digital transitions.

Transformation of workplaces caused by the restrictions imposed by COVID led the MEA to strengthen tripartite discussions on the modernisation of work organisation, the development of new business strategies. At the same time, the MEA felt the need to connect with European partners for exchanging practices, experiences and relevant data regarding the challenges of business transformations.

Through the “Regeneration Plan for Workplaces” project – co-financed by the European Union – the Malta Employers Association, as lead partner, together with SGI Europe and the General Workers Union joined forces to conduct ground-breaking research on the identification of bottlenecks in business transformation that can often be caused by weak planning and communication.  Serious bottlenecks can sometimes impede transformation projects from taking-off the ground, whilst others deprive the employer, the employee or both from reaping the full benefit of change.

This project, in fact:

• Uncovered some of those business strategies and sustainable workplace transformations that were undertaken during and after COVID;
• Identified challenges posed by capacity and adaptation gaps in the management of change;
• Created a framework of promoting and sharing practices across national and European levels through SGI Europe;
• Designed solutions for enterprises for strengthening adaptation and management of change suggesting new business strategies and tips for sustainable workplace transformations;
• Disseminated information and raised awareness about the adaptation process challenges, especially for digital and environmental transition.

The project achieved its objectives through the fulfilment of a number of milestones.  These included:

• Three interactive Round Table discussions with a sectoral dimension and the participation of 40 companies;
• The collection and evaluation of data from an extensive survey covering 175 companies and over 200 employees;
• A dialogue session in Brussels amongst European Social Partners where expertise and experiences were collected through the active participation of the MEA’s European counterparts. This activity and the invaluable effort of SGI Europe contributed in no small measure towards better coordination amongst social partners to improve business performance and change management procedures to ensure more resilient workplaces.
• The production of a Manual called ‘Regeneration Plan to Build Stronger Workplaces’. Leveraging the primary and secondary research conducted by an appointed expert, this is the culmination of the project.  It will serve as a reference for all businesses across Europe which embark on transformation initiatives.

The European Commission’s support in the realisation of the “Regeneration Plan for Workplaces” project has enabled the Malta Employers’ Association and SGI Europe to serve on the front line in the challenges faced by business in implementing transformation and change.   By means of this project, Employer Organisations all over Europe are now better armed and better placed to provide tangible value to their members and communities by means of anticipation, preparation and adaptation strategies for change.

The Project Partners are more than confident that with the outcome of this project we will have more Resilient Workplaces across Europe!

Video 02

English Video Production – voice-over

Transformation projects are necessary in every business and their benefits are visible and tangible for both the employer and the employee because they bring about new efficiencies, resilience and sustainability.

However, both the progress and success of transformation projects are often hindered by internal inertia or resistance that sometimes results from a lack of understanding about the motivation behind changes that are being planned and requested.

The “Regeneration Plan for Workplaces” project – co-financed by the European Union – facilitated pioneering research on the identification of bottlenecks in business transformation.

The Project was conducted by the Malta Employers Association as the lead partner with the collaboration of SGI Europe and the General Workers Union.

This theme of the project was rendered increasingly topical during and after the COVID-19 pandemic due to the accelerated pace of transformation that was dictated by challenging circumstances characterized by restrictions and heightened uncertainty.

Extensive primary and secondary research was conducted as part of this project by means of literature reviews, focus groups, surveys with employers and workers, and sectorial round-table discussions.

The project findings showed that business transformation is sometimes hampered by weak planning or communication between management and employees.  The project also found that employees welcome change especially when they are thoroughly involved and trained.  Workers tend to appreciate the need for change because this renders their workplaces more resilient and efficient.  In other words, workers like to work smarter not harder.

The vast majority of employers reported that the level of competition in the market was ever increasing and that it was vital for their companies to constantly innovate to remain resilient and competitive.

Research was also conducted into changes in employee behavioural as a result of newly introduced transformation measures.  Encouragingly, it emerged that the attitude towards work was generally improved and only a minority of employers reported a drop in productivity.  All the same, those who reported that change brought about no change in productivity were not an insignificant number.

Workplaces and processes are often perceived to become more complex after change especially when change is not properly engineered and consists solely of an additional layer of digitalisation.

The knowledge gained from this project as well as the exchange of best practice has been carefully analysed, validated and documented by the project research team.  This has enabled the articulation of a Manual entitled “Regeneration Plan to Build Stronger Workplaces”.  This toolkit is the tangible product of this project and which will be circulated across the EU.  From the findings of the research conducted, the Manual presents a step-by-step guide for companies to utilize during their business transformation and/or upgrading processes.  It will enable all users to learn from the pitfalls of others and to benefit from the success stories that have been shared with us all.

Successful transformations are those which bring about win-win-win situations to Employers, Employees and Customers.  Successful transformations are those which support our businesses to become more resilient, sustainable and competitive.

By means of the research and the Manual derived from this project therefore, we have

• raised awareness about the adaptation process challenges, especially for the digital and environmental transition
• Identified the bottlenecks
• Designed and documented solutions for enterprises for strengthening adaptation to the post-COVID management changes, new business strategies and sustainable workplace transformation;
• Created a framework of promoting and sharing practices from national and European level, with the cross-industry EU social partner;

The partners, MEA, SGI Europe and GWU have raised their profile and increased their capacity to fulfil their roles and responsibilities towards their members and enhance their abilities to act as responsible social partners to the benefit of the economic and social development of their respective territories.

On December 5^th 2023, The Malta Employers’ Association took the initiative to continue promoting the Manual through a MEA TV Programme which was transmitted on Malta’s National TV Station TVMnews+. During this particular TV Programme, which was followed by nothing less than 20,000 televiewers, Mr Kevin J Borg and Ms Joanne Bondin, contributed to a discussion addressing:

• Why MEA had decided to embark on such an initiative?
• How the project was perceived by MEA members and SMEs in general?
• How this project had strengthened MEA’s role in assisting SMEs in their business management strategies?
• What were the main conclusions from the research carried out so far?
• And what are the next steps being taken by MEA as a follow-up to these project findings?

MEA TV Programme with English Language sub-titles.

The project’s online presence was complemented by the go-live of the social media effort, predominantly through dedicated LinkedIn and Facebook pages in April 2023. These digital platforms not only amplified our project’s visibility but also provided accessible avenues for engagement and interaction.  The social media presence served to create synergies within the project in that they not only promoted the aims and achievements of the project and the final manual but drove participation to the various milestones including the surveys, focus groups, National Round Tables, Final Conference and the official launch of the Manual

The launch and management of the project website on April 27, 2023, highlighted MEA’s dedication to keeping our audiences well-informed.

Mr Kevin J. Borg intervention on behalf of the Malta Employers’ Association,

Promoting the Manual – “Regeneration Plan for Workplaces”

Question: How does your Association advocate for and support member companies in implementing effective strategies to prioritise employee wellbeing in the workplace?

In 2022, in particular we embarked on a specific project aimed at reducing stress at the place of work which would be caused by change and transformation in business.  The EU funded project was called “Regeneration Plan for Workplaces” and enabled the MEA to conduct in-depth research of both companies and employees.  The research looked into

(a) what sort of transformation was required for companies to withstand the challenges of COVID (during and after the pandemic), and

(b) how employees dealt with such changes

Of course, the findings of this research was varied and insightful.  The MEA used this information to compile and publish a “Change Management Business Manual” as a tangible product of our project.

The Manual incorporates a set of guidelines and procedures for organisations to follow during their restructuring processes or whilst implementing change.  It covers various managerial aspects including communication, training, risk management, and stakeholder engagement. The aspects covered in this manual reflect the gaps and consequent areas of intervention needing support which emerged during research conducted by the MEA to fulfil another deliverable in this project.

The Business Manual shall continue to offer practical guidance on managing change to employees and other stakeholders from the development of a strategic plan that outlines the key messages that need to be communicated, the channels to be used, and the timing of these communications. By making use of this manual, organisations may build the necessary safeguards to ensure that employees and other stakeholders are informed about changes as these occur.  This, in turn, serves to reduce uncertainty and anxiety.

This project and resultant publication was aimed at facilitating the transformation of local enterprises by increasing the resilience of their employees and their businesses.  The Manual provides a practical tool-kit that supports Employers to anticipate and manage change.

Kevin J. Borg’s intervention was done as part of an event which tackled from a wider spectrum which MISCO chose to address during this particular event:

How effective leaders can lead employee wellness

One area of employment that has been accentuated by the pandemic is the concept of employee wellbeing and mental health.

The World Health Organisation defines mental health as follows: “Mental health is a state of well-being in which an individual realises his or her own abilities, can cope with the normal stresses of life, can work productively and is able to make a contribution to his or her community”. Therefore, if a person feels that she or he can cope with the stresses that are being presented, then s/he can function well in society. As we spend most of our waking time at work, it is essential that mental wellbeing at work is kept in check.

Supporting mental health in the workplace is no longer a nice-to-have but a necessity. Studies have consistently shown that employee well-being predicts job attitudes and performance, and it also has its implications on productivity and work relationships. Employees who have a positive perception of the status of their well-being are more likely to trust their superiors and follow company rules. Such behaviour will lead to high-performing organisations that are productive and innovative.

According to recent research conducted by misco, 79 per cent of respondents experienced mental health issues such as stress and anxiety related to work. This has increased from 63 per cent mentioned in 2021. So, what can leaders do to support their team members?

Even in the most uncertain of times, the role of a leader is the same, that is to facilitate and guide a team. This also involves supporting their mental health. The positive thing is that most of the tools you can implement are the same ones that make you an effective leader.

Normalising mental health challenges

One of the positive outcomes of the pandemic is that it helped in normalising mental health challenges, as almost everyone has felt some level of discomfort. As a leader, being honest about your mental health struggles allows employees to feel more comfortable to talk with you about the mental health challenges that they are experiencing.

In fact, 72% of respondents from the same study say they have never disclosed unmanageable stress or mental health problems to their current employer or manager – this has increased from 68 per cent reported in 2021. Therefore, it is essential that employees are provided with the right channels to disclose their struggles in order to ensure employee wellbeing. Moreover, when leaders share their challenges, whether mental-health-related or not, it makes them more relatable, and seem more empathic and brave, as authentic leadership can nurture trust and improve employee engagement and performance.

Practice healthy behaviours

It is important that you do not just say that you support positive mental health but that you also practice it, so that your team feels encouraged to prioritise self-care and set boundaries. By setting boundaries it does not mean less accountability, but that you provide your team with the empowerment to know when to self-care. Unfortunately, many a time, leaders are so focused on getting the work done and on leading the team that they forget to take care of themselves. Having the confidence to share how you are taking care of yourself helps you be a mental health role model for your team and also prevents you from burning out.

Be flexible

You should expect that the situation, your team’s requirements and also yours will continue to evolve and change. That is why you should leave room for flexibility, so that you can adjust your team dynamics and address any problems as they crop up. Flexibility requires constant check ins, as discussions will allow you to adjust your approach to support mental health. A flexible approach is about having proactive communication that allows your team members to design and maintain the boundaries they need to preserve their mental health and work to their maximum potential. What this means in practical terms is that you should set standards and KPIs to ensure that company objectives are met, but be flexible on how these are reached. The level of flexibility will depend on the sector and the type of role being carried out, however what I am saying is that proactively offering flexibility is key whenever possible, by both the employer and the employee.

And again… communicate, communicate, communicate

Make sure that employees know where they stand and be an advocate of positive, honest communication which will reflect on the relationships you have. Avoid stress where possible by setting expectations about workloads and prioritising what needs to be accomplished and make sure that you keep your team updated about any changes in your organisation.

In misco’s survey about mental wellbeing at work, 2/3 of respondents stated that their employer invests in mental well-being initiatives. Respondents were asked what initiatives they are offered at work, and the majority of them (47%) mentioned that their organisation offers work life balance initiatives such as flexible hours, followed by an employee assistance programme/therapy (23%) and 22% mentioned that they have an open communication culture at their workplace. It is essential that you make your team aware of available mental health resources and encourage them to use them.

The study also revealed that slightly more than half (53%) of the respondents do not feel confident to disclose unmanageable stress or mental health problems to their current employer or manager. Moreover, although disclosing unmanageable stress or mental health problems can be helpful as it would avoid burnout, less concentration and lower productivity, 72% stated that they never disclosed such problems to their current employer or manager. This could be due to stigma attached to such situations were the person going though a difficult time would feel too vulnerable to disclose their current state of mind.

So, communication of such benefits is essential. If you’ve shared the initiatives, do communicate them yet again. Also be mindful that stigma may stop employees from making use of their mental health benefits, so normalise the use of these services.

Click here to download the Report.

Social partners supporting anticipation and management of change after COVID-19

29 September 2023, 9:30-14:00, Brussels

Concept

The COVID-19 pandemic has significantly impacted labour markets, from job losses to workplace transformation. Employers have been faced with the challenges of ensuring business continuity by re-organising work entirely remotely where possible, preserving employees’ health and safety, and ensuring well-being, while facing financial constraints, uncertainty in planning.

Ran by the Malta Employers’ Association with the support of SGI Europe, the project “Social partners supporting anticipation and management of change after COVID-19” addresses the consequences of the COVID-19 pandemic on the labour market and workplaces. It addresses more specifically the anticipation, preparation and adaptation of business strategies and workplaces caused by the COVID-19 pandemic and the instruments of social partners to accompany this transformation. The project focuses on the sectors of hospitality, tourism and travel, wholesale, retail and other commercial services and other professional services.

Hospitality, tourism, and retail have been some of the most affected sectors as their operations were reduced by lockdowns and social distancing measures such as forced closures or reduced activities. However, other sectors, such as professional services, also went through changes, with many companies implementing remote-work policies.

The management of the COVID-19 pandemic accelerated the adoption of digital tools, technologies and new processes including  remote work, transforming how people work and collaborate. Remote work became the new normal and was accepted across various sectors, leading to changes in work-life balance and the need for new skills.

The pandemic also accelerated the demand for specific skills, such as digital literacy, remote collaboration, and adaptability. Furthermore, the pandemic brought significant attention to workplace safety and health. Companies implemented new protocols and measures to protect employees, such as social distancing, personal protective equipment, and increased sanitation.

A workshop organised in Brussels by SGI Europe allowed for the collection of expertise and experiences from the EU cross-sectoral and national social partners, and the drawing up of the lessons learnt during the pandemic and further improving procedures for the consultation of social partners to manage change.

Agenda

Moderated by Valeria Ronzitti, General Secretary, SGI Europe

9:45-10:00 – Introduction and welcome addresses

• Welcome address by Valeria RONZITTI, General Secretary, SGI Europe
• Introduction by Joseph FARRUGIA, Director General, Malta Employers Association

10:00-10:30 – Presentation of the findings of the primary research, by Robert Debono, Project Expert

10:30-11:00 – The transformative role of the pandemic on employment and labour markets

Introduction by:

• Agnès PARENT-THIRION, Senior Research Manager, Eurofound

Followed by an open discussion with participants.

11:00-11:15 – Coffee break

11:15-12:00 – The role of social partners: EU, national and cross-sectoral perspectives

Discussion with:

• Michael DE GOLS, vice-chair of Social Affairs Board, SGI Europe; Directeur, UNISOC (Belgium)
• Ignacio DORESTE, Senior Advisor, ETUC
• Isaline OSSIEUR, Adviser, BusinessEurope

Followed by an open discussion with participants.

12:00-12:15 – Conclusions

Key messages

9:45-10:00 – Introduction and welcome addresses

Valeria Ronzitti:

• Crucial meeting in the context of the project run by Malta Employers’ Association, with the support SGI Europe, as it paves the way to the final conference to be held on 31^st October 2023 in Malta.
• Acknowledging the importance of the support given by the European Commission, which – through its support – allowed the collection of practical insights on the long-term impacts of the COVID-19 pandemic, beyond the emergency response.
• The pandemic impacted the way in which certain services are provided, and how it impacted the management of the workforce, accelerating which in many instances innovation and new processes which were already planned, but were not fully managed or were thought that we would have more time to integrate into management.
• The final outcomes of the project will be something very practical and useful for many employers across the EU and assess how, in consultation with trade unions, they can manage these new trends.
• Also a very topical moment to discuss, as we anticipate future discussions at European level on many of the topics touched upon by the project, such as the revision of European Works Council (and the right to information and consultation), the regulation on Artificial Intelligence and the need to ensure the “human-in-control” principle or the ongoing negotiations of the social partners on “telework and the right to disconnect”.
• What started as a reaction to the pandemic will have implication on a much broader perspective, and it will be important to manage and add tools to manage those trends in the long run.
• This project, triggered by the COVID management, evolved into a project about anticipation and management of change.

Joseph Farrugia:

• The repercussions of COVID are still being felt, in particular on labour organisations and with implications now on the various actions that are being taken at the EU level.
• The pandemic accelerated the need for meaningful transformation of workplaces, the creation of new forms of work, new processes, communication tools, and diverse modes of training, delivery, and service.
• During the pandemic, necessity has driven innovation and creativity, with employers and employees showing resilience and ingenuity to continue operating.
• COVID helped us realise that change is central to ensuring resilience, competitiveness and sustainability, with the need to adapt to the new normal creating opportunities for employers and employees to embrace change and for all to benefit from the twin transitions.
• With respect to the transformational workplaces caused by the restrictions imposed, MEA tried to strengthen tripartite discussion on the modernisation of work organisation and the development of new business strategies.
• Through the project “Regeneration plan for workplaces” which is co-financed by the European Union, the MEA and its partners – SGI Europe and General Workers’ Union, the largest union in Malta – have joined forces to conduct groundbreaking research on the identification of bottlenecks and business transformation that can be caused by replanning and communication. Serious bottlenecks can sometimes impede transformation projects from taking off the ground, while others deprive the employer from reaping the full benefit of change.
• It included interactive roundtable discussions with sectoral dimensions and the participation of 40 companies, as well as the collection of data through an extensive survey covering 175 companies in Malta and more than 200 employees (which, given the size of Malta, is quite significant).
• The last meetings should become stepping stones for future activities to further exchange practices, both with other employers and employee representatives.
• The research conducted and the outcomes of the roundtables will be collated, analysed and processed by the project to help enterprises in shaping and designing solutions for enterprises for strengthening adaptation and management of change. We want to suggest new strategies and steps for sustainable workplace transformations, and gaude the demand for them.
• The project will also support the preparation and dissemination of a dedicated toolkit, addressing both challenges and opportunities. It will provide a step-by-step guide for companies to utilise during their business transformation and upgrading processes. It will enable users to learn from the pitfalls of others and to benefit from success stories that have been shared. The European Commission support for the realisation of this project and enabled us to serve on the frontline in the challenges faced by businesses in implementing transformation and change.
• By means of this project, we hope that employer organisations all over Europe will be better armed and better placed to provide tangible value to their members and communities by means of anticipation, preparation and adaptation strategies.

10:00-10:30 – Presentation of the findings of the primary research

Robert Debono

• Mr Debono presented the main findings of the primary research conducted, on the basis of the slides, tables and charts from PowerPoint presentation annexed to this report. These results were submitted separately in the reporting of the project.
• As the presentation expanded beyond the allocated timeslot, it was agreed to gather all the questions and comments at the end of the second presentation by Ms Agnes Parent-Thirion, Senior Research Manager at Eurofound.

10:30-11:00 – The transformative role of the pandemic on employment and labour markets

Agnes Parent-Thirion

• This presentation provided an opportunity to grasp the “fuller picture” at EU level, through the expertise of Eurofound, the European Foundation for the Improvement of Living and Working Conditions (the EU agency whose mission is “to provide knowledge to support the development of better informed social, employment and work-related policies. Its vision is to be Europe’s leading knowledge source for a better life and work.”)
• The intervention of Ms Parent-Thirion was based on the presentation of the last European Working Conditions Telephone Survey, carried in 2021 (for the first time over the phone, due to the social distancing restrictions in place in 2020 and 2021). The EWCTS being a “probability-based survey”, highlighting that the findings from this survey can be extended to the overall population.
• The EWCTS consisted of over 70.000 workers interviewed from 36 different countries, and also fed into the Eurofound reports “Working conditions in the time of COVID-19: Implications for the future” (November 2022) and “Living and working in Europe 2022”, published in May 2023.
• Through the responses to the different questions of the survey, Eurofound researchers have identified the core factors which characterised working life in 2020-2021:
  • Different non-pharmaceutical interventions in the Member States
  • Sectors and occupations restricted in their activities
  • Furlough
  • Temporary contracts not renewed
  • Places of work change
  • Occupational gender segregation remains a long-standing feature

• Based on those criteria, they have divided the workforce in four “COVID-19 groups”:
  • Frontline workers (20% of the workforce)
  • On-location production (24%)
  • On-location service workers (20%)
  • Home office workers (34%)

• Challenges faced by those groups were dramatically different, with:
  • “Frontline workers” reporting the highest proportion of strenuous job quality, the longest duration of paid and unpaid work but also the highest level of engagement at work;
  • Home workers adapting to new ways of working, faring overall better despite issues regarding long working hours;
  • Online production workers and onsite production workers confirm lingering challenges, with online service workers expressing employment insecurity, a willingness to work more in a less intense environment and with less frequent access to employee representation, and online production workers working the longest hours with the highest physical demands.

• On the basis of the findings, Eurofound also determined factors influencing “job quality” during the pandemic, by identifying “job demands” (such as physical demands, intimidation, high work intensity and/or unsocial/long hours) and job resources” (autonomy and influence, freedom in time management, support system, recognition).

• They also assessed how the current twin transition is affecting job quality through this “Job Quality Index”, with a core finding being that “new and emerging” jobs are of better quality than those with facing small or no transformation.

• The pandemic – both the immediate management and the long-term effects – had very different consequences on “job quality”, depending on the sectors of activity, types of jobs and the possibility to adapt to the new reality. It also emphasized that the importance of “job quality” in the new labour market dynamics, with:
  • Link between job quality, quality working lives and productivity;
  • Need to decreasing exposure to job demands and increasing increasing access to job resources, while still addressing exposure to “traditional” risks;
  • High involvement in the work organisation and employee representation can be crucial in that end;
  • Correlation between occupations experiencing persistent labour shortages and poorer job quality, as highlighted in the latest Employment and Social Developments in Europe (ESDE) of the European Commission.

Q&A with participants

• Bjarte Romark, KS (Norway) on the high level of strain faced by workers in the health sector, and how to redress the situation to prevent long-term effects from the pandemic on these sectors. Response focused on the fact that this trend is not totally new, but was more the continuation of something which was already there and was made worse by the pandemic. Eurofound will publish a specific survey on the care sectors on the 10^th
• Delfina Bucci, Rubes Triva (Italy) on the need to adopt agile, adaptable and inclusive strategies to manage transformation of the workplace, and that COVID-19 (especially in the the sector of activity of Rubes Triva, which is the utilities and environmental sector).
  

11:15-12:00 – The role of social partners: EU, national and cross-sectoral perspectives

Michael De Gols

• When the pandemic started, the social services and care sector had to be very flexible and implement changes quickly, both for the enterprises, the workers and the patients.
• Healthcare already facing issues prior to COVID, including staff shortages, fundings difficulties and psychosocial risks (including burnouts). The pandemic simply further depreciated an already existing trend.
• In Belgium, supported by a long-lasting tradition of social dialogue, social partners – including the employers of the social non-profit sector which is active in the cross-industry social dialogue – have been extremely involved in shaping the response to pandemic through the National Labour Council (NLC)[1].
• A new dynamic emerged during the pandemic at the NLC, with a more “informal” approach to the mission of the social partners and “speedier” processes.
• The regulatory response by the government – on the consequences on labour relations – was greatly shaped by social partners, including the definition of essential and non-essential sectors (which faced different regimes for, a.o., the application of social distancing on the workplace), the extra-flexibilisation of work arrangements, the mobilization of people out of the workforce to support essential sectors (including retired people or students), specific and temporary unemployment schemes or “COVID medical certificate”.
• Belgian social partners also agreed a dedicated collective agreement on telework during the COVID-19 pandemic (Collective Labour Agreement no. 149), complementing the regular framework and the collective agreement on occasional (Art. 22-28 of the Act of 5 March 2017 on workable and agile work) and on structural (Collective Labour Agreement no. 85) telework.
• In the sector of social services, staff shortages were numerous during the pandemic, while a greater flexibility regarding working hours was a core request by the society.
• Amongst other initiatives, Belgian social partners have prepared and issued a “guidance document” on COVID-19 on the workplace, featuring advices and recommendations to adapt the workplace/workspaces to the new reality of the pandemic. The guide was also adapted and translated in other countries.
• Belgium also passed a “pandemic law”, and directed campaigns and mobilized fundings in support of the healthcare sector, backbone of the response to the pandemic.
• At SGI Europe, an exercise of collection of best practices and examples of adaptation to the reality of the pandemic was initiated. EU social partners also joined their voices, calling for unity in the face of adversity. A platform of EU partner associations was set up, the “SGI Facing COVID-19 Platform”, with examples of practices being collected from across Europe. SGI Europe also had several meetings with key EU leaders, including Charles Michel, President of the European Council, Ursula von der Leyen, President of the European Commission, Valdis Dombrovskis, Executive VP of the European Commission, or Nicolas Schmit, Commissioner for Social Affairs.
• SGI Europe’s Social Affairs Board was the primary body within SGI Europe for this exchange, with a dedicated focus on the new reality of the world of work and the emerging prevalence of telework.
• SGI Europe is also currently involved in the negotiations of the EU cross-industry social partners on “telework and the right to disconnect”, expected to conclude in October 2023.
• The consequences of the COVID-19 pandemic are still being felt in Belgium, and especially in the care and social services sector:
  • A strong focus is now being put on the psycho-social risks and the management of workers’ mental health;
  • Labour shortages are very prevalent, with people deciding to change professional pathways while the workload continued to be very high in the sector (including to recover from the delays and backlogs accumulated while the sector was focused solely on the pandemic).

Ignacio Doreste

• An important takeaway from the pandemic is that, despite the challenge, employment remained high across the EU, thanks to the retention and short time schemes prepared by the social partners across the EU and the SURE financing mechanism put forward by the European Commission.
• Targeted policies were also needed for some segments of the labour market, with a specific focus on vulnerable workers (like young people, women or migrant workers) who were overrepresented in many sectors most exposed to the pandemic and are often left outside of collective bargaining (such as domestic work).
• There is also a need to prepare for future similar crisis, and to anticipate through targeted policies for some sectors. A mechanism like SURE was very relevant and, moving forward, should come accompanied by guidelines to improve its implementation and uptake across the EU (and reflect on eventually expanding its scope to, for instance, include economic shocks).
• ETUC also calls for expansionary fiscal and monetary policies, and avoid repeating the mistakes from the management of the 2007-08 crisis.
• During the pandemic, many sectors continued to be present in the workplace, especially for the so-called essential workers, while social dialogue proved to be effective instrument to identify different measures at the national and at workplace level to preserve health, including through social distancing to the provision of hygienic measures and of and personal protective equipment.
• Social partners were also well involved in designing the return-to-work strategies after, both at national and at company levels.
  • In the Spanish company Telefonica, social partners jointly designed the strategy to ensure the safe return to work for more than 120,000 employees nationwide.
  • In Austria, social partners signed the first cross-sectoral agreement (with a focus on masking and testing policy), which was the first since the 1970s-80s. While Austria is a country with a strong tradition of social dialogue, most agreements are concluded either that the sectoral or the company level, and not at the cross-industry level.
  • In Italy, social partners of the private sector agreed a common protocol, including the obligation for employers and workers to ensure the daily cleaning operations and sanitation of the workplaces and tools, including the provision of personal protective equipment.
• Health – including the psychosocial risks – is a long-standing demand of the trade union movement, and the issue has been further exacerbated as a result of COVID-19. We now call for enacting legislation on the prevention of psychosocial risk and limiting the prevalence of diseases stemming from it (as it already the case in some MS), and also including the management and return to work of workers with long COVID.
• Finally, there is a need to work on preparedness for future pandemics, including through a solid framework on occupational health and safety (OSH) putting the lessons from the pandemic at the centre of the table.

Isaline Ossieur

• The COVID-19 pandemic has clearly provided a renewed focus on OSH as a pillar of the EU labour markets. A key element we have achieved, as social partners, was the introcution of COVID-19 under the umbrella of the 2003 recommendation on the European schedule of Occupational Diseases (with the caveat of course, that there needs to be a clear link with the performance of work, and a clear focus on the social and the care sectors).
• A lot has already been said about the essential and frontline workers, which in many cases are active in services of general interest, but not only. I think the biggest one that we were all faced with on a day-to-day basis was the retail sector, but also the agriculture, the energy sector, of course, and the logistics sector,
• The EU OSHA guidelines developed by the tripartite agency during the COVID-19 pandemic really helped those sectors move forward in a productive, constructive, and most importantly, safe way.
• When we look at the impact of COVID-19 on our labour markets, the biggest long-lasting impact is the development of telework, which was only marginally used in certain sectors for certain types of occupations
• The nature of teleworking in COVID-19 was vastly different from the nature of previous or current telework. Therefore, it’s important to underline that the COVID-19 situation cannot be used as a blueprint for any type of discussion on the organisation and regulation of telework.
• The current negotiations of the EU social partners on telework and the right to disconnect have the potential to give a much-needed impetus to social dialogue at EU level and really showcase that EU social partners can take up initiatives and deliver.
• Another important issue for BusinessEurope in the post-COVID is the need for better skills matching, as the nature of many jobs has changed, especially in lights of the “Great Resignation” witnessed in the US (and to a lesser extent in Europe), with people switching jobs or looking for new opportunities after the pandemic.
• BusinessEurope has been calling for a proactive approach on the topic, and actively asking for an EU action plan on labour and skills shortages. It is essential to have better skills-matching between potential workers and potential occupations and to find ways to make certain sectors more attractive to retain the workforce.
• On social dialogue, COVID-19 re-emphasised the need for personal, interaction needs personal interaction for social dialogue to deliver. Social partners in MS and/or sectors with limited social dialogue traditions and history of collective bargaining have really struggled to deliver through electronic means, recalling that face-to-face interaction is crucial to work out details and agree on sensitive matters.
• BusinessEurope has been running COVID-19 technical assistance project, which aims at providing coordination and support to their national members in improving their capacity-building in the light of the COVID-19 pandemic
• Some BusinessEurope members have also been running their own projects on specific topics linked with the management of the post-COVID-19 pandemic, such as:
  • Greece, with a focus on telework and the right to disconnect and the implementation of the 2021 legislation on the issue.
  • Hungary and Lithuania, with a focus on capacity-building and reinforcing industrial relations systems and collective bargaining
  • Romania Belgium, with a focus on skills needs, skills matching, the barriers to lifelong learning and adult learning, and how best to attract and retain talents.
  • BusinessEurope also organsied two workshops for their members, with a focus on “collective bargaining and COVID-19” and on social partners’ involvement in the European Semester in turbulent times.

12:00-12:15 – Conclusions

Robert Debono

• In Malta SMEs have been particularly hit on various levels imposing risks on the availability of resources and on business continuity. Management needed to introduce changes in a timely and reactive manner.  This is another key finding from the project. Many small organisations have been struggling, particularly when we discuss implementing telework policies and ways to operate remotely.
• The response to the COVID-19 pandemic was driven by a sense of emergency, and things being done to address gaps. These organisations now need to build consistency and business continuity/stability in this new flexible reality and assess risks about eventual future pandemics. Going forward, transformation and change needs to be more proactively driven as opposed to reactive.  This is why the MEA and SGI Europe believe strongly that this EU-funded project to support companies’ anticipation and management of change is very topical and much required.   Both entities strongly believe that companies’ capacity in the anticipation and management of change needs to be enhanced in the years to come not least through this project.
• It is also crucial to broaden our understanding of the context about which skills will be needed and critical in the future, which were also identified in the research.
• Smaller organisations, which represent 98% of the Maltese businesses, need help and assistance needed to face the ongoing transformation and stay alive.

Joseph Farrugia

• It has been a very fruitful event, especially the last part involving the sharing of experience and best practice amongst European social partners, it highlights the power and importance of social dialogue.
• A key takeaway is that we have seen throughout the crisis that countries with established social dialogue structures evolved in an environment conducive to finding solutions to mitigate the impact of the crisis.
• In Malta, for example, social partners were involved in shaping the “Relief Fund”, which enabled the government to subsidise wages of the sectors and companies which were the most affected by the crisis and helped stabilise the economy.
• The Maltese economy relies on tourism, which was severely affected. Health and the retail sectors are also significant, and face shortages of employees. Those arise from demographic challenges, but also because the sector is increasingly being perceived as being a very stressful sector to work. Efforts are needed to make those sectors more attractive to prospective employees.
• Ageing is an overarching trend across Europe. The pressure on the health sector is set to increase with time, with expectations from that sector changing in the context of an older population with shortage of employees.
• Our project addresses change and tries to anticipate and manage change is all the more important because we are living in an increasingly dynamic environment, with new ways of working and managing the labour force to address a shrinking labour force and the “Great Resignation”.
• Improving work organisation without sacrificing productivity and competitiveness can be reconciled. Well implemented, digital tools can, for example, help improving process without impacting productivity.
• There are many questions arising from today’s discussions. And while one cannot expect to have all the solutions from such an event, we see consensus on what the main issues are as well as clear indications on the priorities for a way forward.

Participants which we were able to confirm

In-person at SGI Europe:

• Valeria Ronzitti, General Secretary, SGI Europe
• Joseph Farrugia, Director General, MEA
• Robert Debono, expert
• Maxime Staelens, Senior Advisor for Communications and Policy Coordination, SGI Europe

Speakers (online):

• Agnes Parent-Thirion, Senior Research Manager, Eurofound
• Michael De Gols, vice-chair, SAB, SGI Europe, Director, Unisoc (Belgium)
• Ignacio Doreste, Senior Advisor, ETUC
• Isaline Ossieur, Adviser, BusinessEurope

Participants:

• Dorianne Azzopardi Cilia, MEA
• Kevin J Borg, MEA
• Camille Boulat, France
• Delfina Bucci, Rubes Triva (Italy)
• Benoît Cassorla, Policy Officer, SGI Europe
• Cecilie Dalhoj, Denmark
• Sébastien Darrigrand, France
• Bjarte Romark, Norway

^[1] The Belgian National Labour Council is a social dialogue body, gathering 13 representatives of employers’ organisations and 13 trade union representatives, whose mission is to give opinions or formulate proposals concerning employment and social matters to the attention of the Belgian Government and/or Parliament. It also issues opinions on the conflicts of attribution that may arise between the joint committees at the sectoral level. It was established by the law of 29 May 1952, and its role was expanded since, notably by the Act of 5 December 1968, empowering it to conclude collective labour agreements either for all sectors of economic activity or for one of these sectors.

MEA Announces Tangible Support for Members in the Area of Business Transformation.

2^nd November 2023

Media Release

The Malta Employers Association’s EU-Funded project branded “Regeneration Plan for Workplaces” culminated in a Final Conference which was organised to great success recently with the participation of entrepreneurs, management professionals, research experts, senior social partner representatives and the Head of the European Commission Representation in Malta.

The event was intended to present the research and tangible outcome emerging from the initiative.  The MEA explained how the project stemmed from its resolve to support employers in a tangible manner following the experience during COVID which exposed deficiencies in the overall capacity in the adaptation and management of business transformation.

To this end, the MEA as lead partner, joined forces with SGI Europe and the General Workers Union to conduct ground-breaking research on the identification of bottlenecks in business transformation that can often be caused by weak planning and communication.  Poor alignment between management and employees may sometimes impede transformation projects from taking-off the ground, whilst others deprive the employer, the employee or both from reaping the full benefit of change.

The MEA explained how it took the initiative to seek the necessary resources from European Commission sources to

• Identify challenges posed by capacity and adaptation gaps in the management of change;
• Design and document solutions for enterprises for strengthening their change management capacity post-COVID, as well as new business strategies for sustainable workplace transformation; and
• Create a framework of knowledge sharing across local and European levels, through the mobilization of trans-national EU social partners and employer-representative bodies.

The project achieved its objectives through the fulfilment of several milestones which included:

• Three interactive Round Table discussions with a sectoral dimension and the participation of 40 companies;
• The collection and evaluation of data from an extensive survey covering 175 companies and over 200 employees;
• A Workshop in Brussels amongst European Social Partners aimed at validating the applicability of the research on a European scale, given it was based on a Maltese sample.

But the highlight of the project is the articulation of a Change Management Manual called ‘Regeneration Plan to Build Stronger Workplaces’.  In fact, the knowledge gained from this project as well as the exchange of best practice, having been carefully analysed and validated will form an integral part of this practical toolkit for business.  The Manual will shortly be available in several European languages to serve as a step-by-step guide for companies to utilize during their business transformation and/or upgrading processes.

In opening the Conference entitled “Resilience to Change: Building Strong Models for a Sustainable Business”, the MEA President, Ms Joanne Bondin acknowledged the valuable input of all stakeholders in the project which is nearing its successful completion. She said that the project fulfilled its promise of creating a network and framework for promoting and sharing best practices at the national and European levels.  She said that Employer organisations across Europe are now ready to guide their members towards treating change proactively and with a positive mindset.  “Thanks to our initiative, Employer organizations throughout Europe are better equipped to provide tangible value to their members and communities through anticipation, preparation, and adaptation strategies for change. The MEA is confident that the outcomes of this project will lead to more resilient workplaces across Europe.” she concluded.

The Project Final Conference was addressed by :

• Joanne Bondin; President, MEA
• Joseph Farrugia; Director General, MEA
• Kevin J Borg; Consultant, MEA
• Michaela Vassallo; Projects Coordinator, MEA
• Robert Debono; Project Expert
• Michael Mifsud; Chief Executive Officer, Multigas
• Claudine Attard; Director, Management Consulting, PwC
• Robyn Pratt; General Manager, The Phoenicia Malta
• Dolores Sammut Bonnici; EESC Member Group I — Employers
• Josef Bugeja; Secretary General, GWU
• Valeria Ronzitti; Secretary General, SGI Europe
• Lorenzo Vella; Head, EU Commission Representation in Malta

This change management business manual is designed to be of assistance to businesses seeking to restructure and develop further. The main reason for developing this manual is that to provide a structured approach to managing change, aimed to help businesses in various sectors of the economy to navigate the complex process of change more effectively.

This manual includes a set of guidelines and procedures that business organisations can follow when implementing change. The sections to follow cover various aspects of business such as communication, training, risk management, and stakeholder engagement. The aspects covered in this manual reflect the gaps and consequent areas of intervention needing support identified in the research phase of this project. Reference to the information contained in this manual promotes a systematic approach to change management, which can assist organisations to minimise the risks associated with change.

So, why this manual? For instance, this management manual includes methods for communicating change to employees and other stakeholders from the development of a communications plan that outlines the key messages that need to be communicated, the channels that will be used to communicate these messages, to the timing of these communications. By making use of this manual, businesses could build the right safeguards ensuring that employees and other stakeholders are informed about changes as these occur, which in turn helps to reduce uncertainty and anxiety.

The change management manual aims to serve as a valuable tool for businesses seeking to restructure and develop further. By providing a structured approach to managing change, this manual can help business organisations to navigate the complex process of change more effectively, while minimising risks and disruptions.

English version Manual Translated into 2 other Languages: FRE / GER

The Change Management Business Manual was treated with great importance by the European Commission as the grant authority for this project to the extent that it demanded for the contents to be translated into German and French languages with a view to maximise the reach and benefits across as many EU citizens as possible.  The work on the translation exercises was coordinated by the project partner SGI Europe.

Manual in English Language

Manual in French Language

Manual in German Language

Press Conference to Officially Launch the Manual

MEA Leads Project which Culminates in a Practical Toolkit for the Anticipation and Management of Change in Organisations

25^th March 2024

Media Release

The Malta Employers’ Association issued a new publication entitled “Change Management Business Manual” which it recently presented to the media.

The Manual is being published as part of a project entitled “Regeneration Plan for Workplaces” which was led by the Association in 2023 and in which it partnered with SGI Europe and the General Workers’ Union.  This project and resultant publication were aimed at facilitating the transformation of local enterprises by increasing the resilience and sustainability of their business models.  The Manual provides a practical tool-kit that supports Employers to anticipate and manage change.

The Manual, in fact, incorporates a set of guidelines and procedures for organisations to follow during their restructuring processes or whilst implementing change.  It covers various managerial aspects including communication, training, risk management, and stakeholder engagement. The aspects covered in this manual reflect the gaps and consequent areas of intervention needing support which emerged during research conducted by the MEA to fulfil another deliverable in this project.  The research was demanded to ensure relevance of the Manual to the questions and weaknesses manifested by Employers during research phase.  The MEA is indebted to the input of over 250 organisations, 200 employees and the direct input of SGI Europe and another four National Employer Associations across Europe that contributed towards the contents and validation of this research.

Through this Business Manual, the Project shall continue to offer practical guidance on managing change to employees and other stakeholders from the development of a strategic plan that outlines the key messages that need to be communicated, the channels to be used, and the timing of these communications. By making use of this manual, organisations may build the necessary safeguards to ensure that employees and other stakeholders are informed about changes as these occur.  This, in turn, serves to reduce uncertainty and anxiety.

In today’s complex and highly competitive business scenario where change is the only constant, the MEA is confident that the practical organisational insights provided in this Manual shall serve as a valuable tool for businesses seeking to tackle transformation and continuous improvement in a planned and structured manner to minimize risk and disruption.

In conclusion, through this Manual, the MEA is inviting users to participate actively in its own drive towards continuous improvement.  In fact, in an effort to keep this reference document alive and render it even more comprehensive, it is encouraging users to contribute further to its contents by submitting further knowledge and ideas through a dedicated feedback form that can be accessed directly from the manual by entering the link or scanning the QR Code provided on the back cover.

Whilst welcoming feedback and contribution towards future iterations of the Business Manual, MEA encourages businesses particularly it’s members to make best use of such tools being made available.

To ensure far-reaching and long-lasting results from the initiative,  the MEA included the contents of its Change Management Business Manual in its online HR Handbook as a separate Chapter.

The benefits of this approach is two-fold.  On one hand, it supports the maximisation of reach-out and visibility of the project and the Manual.  On the other hand, it ensures full complementarity with the day-to-day operations and services offered by the Association with the enhancement of its existing HR Handbook with a new Chapter that focuses on the anticipation and management of change that aims to provide new skills to entrepreneurs that are relevant in the context of business transformation and innovation.

Besides the fact that the Manual was translated in three languages and placed online to be able to be accessed digitally, MEA also took the initiative to go for printing, and hundreds were distributed to SMEs all over the island.

Manual follow-up Discussions

Date: 5^th April 2024

Time: 09:30 to 11:30

Venue: Malta Employers’ Association Boardroom

The Malta Employers’ Association researched innovation and disruptive change as a follow-up to the work undertaken on the EU project ‘The Regeneration Plan for Workplaces—Resilience in a Changing World: Adapting for Success’, launched at the end of last year.

As you may recall, the Regeneration Plan for Workplaces is an innovative and concrete set of activities conceived to provide a practical response to the COVID crisis that has put pressure on employers and national social partners. The constantly changing circumstances, the onset of new disruptive technologies, the ever-intensifying competitive environment, and the social and economic crisis caused by COVID make the Regeneration Plan for Workplaces ever more relevant. Some of the overall challenges enterprises are faced with include:

1. To improve their social dialogue capacity.
2. To improve the competitiveness of enterprises.
3. To respond to new customer’s needs, including digitalisation.
4. To ensure the sustainability of the jobs they generate.
5. To be adequately capitalised to enable investments in digital and green technologies.
6. To improve the scope and the quality of service.
7. To offer the best value for citizens’ money.
8. To cope with the lower availability of public finance.

Comprehensive Report

Being innovative for disruptive change

Research Desk

April 2024

1. Overview

During the month of April, a focus group was held with industry leaders to discuss the topic of innovation and disruptive change.

Continuing its commitment to understanding and addressing the challenges of innovation and disruptive change, the Malta Employers’ Association is conducting research as a follow-up to the EU project ‘The Regeneration Plan for Workplaces—Resilience in a Changing World: Adapting for Success’ initiated at the end of last year.

This manual is an innovative and concrete set of activities conceived to provide a practical response to the COVID-19 crisis that has put pressure on employers and national social partners. The constantly changing circumstances, the onset of new disruptive technologies, the ever-intensifying competitive environment, and the social and economic crisis caused by COVID-19 make the Regeneration Plan for Workplaces ever more relevant. Some of the overall challenges enterprises are faced with include:

1. To improve their social dialogue capacity.
2. To improve the competitiveness of enterprises.
3. To respond to new customer’s needs, including digitalisation.
4. To ensure the sustainability of the jobs they generate.
5. To be adequately capitalised to enable investments in digital and green technologies.
6. To improve the scope and the quality of service.
7. To offer the best value for citizens’ money.
8. To cope with the lower availability of public finance.

Research questions

In this regard, during the focus group, the following research questions were asked:

–              What does innovation mean for smaller businesses?

–              How can smaller businesses become innovative?

–              How can smaller businesses anticipate and manage the impact of change?

–              Are businesses well prepared for disruptions and risks emerging from such?

–              What can the public sector do in this regard?

2. Introduction to the research topic 

Innovation for small businesses is a complex process that involves more than just adopting new technologies. It’s about introducing new ideas, products, or processes that create value and enhance competitiveness. Small businesses, despite their size, can become innovative powerhouses by adopting emerging technological innovations. However, the success rate of adopting such innovations in small businesses is low compared to larger counterparts, especially with regard to radical innovations (Temel & Durst, 2020). This is where understanding economic cycles comes into play. Investment in innovation and technology transfer in the small business sector is not a matter of chance, but a strategic move that depends on market conjuncture and stages of the economic cycle (Lykholat et al., 2021). This knowledge is key to unlocking the innovative potential of small entrepreneurship.

Small businesses must also anticipate and manage the impact of change, especially disruptions and risks emerging from events such as the COVID-19 pandemic (Fairlie, 2020). The pandemic has had severe implications for small businesses globally, emphasising the need for preparedness and resilience in the face of unexpected challenges (Fairlie, 2020).

The Harvard Business Review seeks further definitions of innovations. Of course, there are innovations that spring from a flash of genius. Most innovations, however, especially successful ones, result from a conscious, purposeful search for innovation opportunities found only in a few situations.

Four areas of opportunity exist within a company or industry:

1. unexpected occurrences,
2. incongruities,
3. process needs, and
4. industry and market changes.

HBR concludes that an innovation must be simple and focused to be effective. It should do only one thing; otherwise, it will confuse people.

International consultants and researchers at MC Kinsey posit that innovation is the ability to conceive, develop, deliver, and scale new products, services, processes, and business models for customers in a business context.

Successful innovation has historically occurred at the intersection of several elements, which can guide prioritisation efforts. The three most important elements are the who, the what, and the how:

1. An unmet customer need (the ‘who’): Who is the customer, and what problem do they need to solve? Are macro trends such as automation driving changes in customer needs?

2. A solution (the ‘what’): Is the solution compelling, and can it be executed?
3. A business model allowing the solution to be monetised (the ‘how’): How will the solution   create value? What is the business model?

Successful innovation requires answers to each of these questions.

2.1.        Quality management

Quality management (QM) has been identified as a means for small businesses to improve their competitive position and attain high goods or service quality, contributing to their ability to manage disruptions and risks (Murphy & Leonard, 2016).

Quality management is a comprehensive approach that focuses on continuous improvement, customer satisfaction, and the involvement of all employees in the organisation. It encompasses various management practices intended to improve business performance, mainly through achieving productivity and revenue gains (Elshaer & Augustyn, 2016). Small businesses can benefit from quality management by improving their competitive position and attaining high goods or service quality, contributing to their ability to manage disruptions and risks (Murphy & Leonard, 2016). For example, implementing a quality management system is directly linked to performance and business activity relative to competition (Miletić et al., 2020). Additionally, research has shown that the informal nature of human resource management in small businesses contributes to difficulties in recruiting and retaining employees, highlighting the importance of formal human resource management practices in small, growing firms (Kotey & Slade, 2005).

In conclusion, quality management is crucial for small businesses to improve their competitive position and attain high goods or service quality. By implementing QM practices, small businesses can enhance performance, manage disruptions and risks, and achieve sustainable growth and success.

2.1.        Key issues faced by small business

Small enterprises and businesses often encounter unique challenges when trying to become actors in innovative changes. These challenges can stem from resource constraints, limited capabilities, and the dynamic nature of innovation ecosystems.

2.1.1.    Resource Constraints

Small enterprises often face limitations in financial resources, human capital, and R&D budgets, hindering their ability to invest in research and development. This constraint may restrict their capacity to explore and implement innovative solutions.

2.1.2.    Limited Access to Capital

Small businesses may struggle to access external funding, such as venture capital, which is crucial for supporting innovative projects. This lack of capital can impede

2.1.3.    Risk Aversion

Small enterprises may be more risk-averse compared to larger counterparts, as they often cannot afford the potential financial losses associated with failed innovation attempts. This risk aversion can stifle experimentation and the pursuit of disruptive ideas.

2.1.4.    Lack of Innovation Culture

The absence of a culture that promotes and rewards innovation can hinder small businesses. This includes a lack of awareness, training, and incentives for employees to contribute to and embrace innovative practices.

2.1.5.    Market Access and Networking

Small enterprises may struggle to establish valuable networks and collaborations with other firms, research institutions, and industry players. This limited connectivity can impede access to knowledge, partnerships, and market opportunities.

2.1.6.    Regulatory Barriers

Regulatory complexities and bureaucratic hurdles can disproportionately affect small enterprises, hindering their ability to navigate and comply with regulations related to intellectual property, product development, and market entry.

2.1.7.    Technology and Knowledge Gaps

Small enterprises may lack the necessary technological infrastructure and knowledge to adopt and integrate cutting-edge technologies. This gap can limit their ability to keep pace with industry advancements.

2.2.        Business suited towards innovation

Due to their inherent characteristics and industry dynamics, certain types of small businesses are often more conducive to embracing innovative and disruptive changes.

2.2.1.    Technology Startups – Startups in the technology sector are inherently focused on innovation. Whether developing new software, hardware, or technological solutions, these businesses thrive on staying at the cutting edge of advancements.

2.2.2.    Biotech and Healthcare Innovation – Small businesses in the biotechnology and healthcare sectors are often at the forefront of disruptive changes. Innovations in medical devices, pharmaceuticals, and healthcare technologies can significantly impact the industry.

2.2.3.    Green and Sustainable Businesses—Businesses that focus on sustainability, renewable energy, and environmentally friendly practices often have a natural inclination toward innovation. This includes companies involved in clean energy, eco-friendly products, and sustainable practices.

2.2.4.    Fintech and Financial Innovation – Small businesses in the financial technology (fintech) sector are well-positioned for disruption. These companies often leverage technology to create innovative solutions in digital payments, blockchain, and financial analytics.

2.2.5.    FoodTech and AgTech Ventures – Businesses in the food and agriculture technology sectors are increasingly incorporating innovation. This includes companies involved in precision farming, alternative proteins, food delivery technologies, and sustainable agriculture.

2.2.6.    Educational Technology (EdTech) – EdTech startups focusing on online learning platforms, educational software, and innovative teaching methods are well-suited for disruptive changes in the education sector.

2.2.7.    Artificial Intelligence (AI) and Machine Learning—Businesses that leverage AI and machine learning technologies can bring about significant innovations in various industries, from healthcare and finance to marketing and manufacturing.

2.2.8.    Renewable Energy and Cleantech – Companies involved in renewable energy, energy storage, and cleantech solutions are crucial in disrupting traditional energy models and fostering sustainable practices.

It is important to note that the potential for innovation and disruption is not limited to these sectors, and innovative ideas can emerge in almost any industry. The key is often a combination of an entrepreneurial mindset, a willingness to embrace change, and a strategic approach to leveraging emerging technologies and business models. Additionally, the regulatory environment, market dynamics, and customer needs all play roles in determining the suitability of a small business for innovative and disruptive changes.

2.3.        Management and Innovation

Research has explored the relationship between the characteristics and background of small business management and their likelihood of driving innovation and disruptive change. Here are some key findings from relevant studies:

2.3.1.    Entrepreneurial Orientation – Research has consistently shown that firms with management teams displaying a higher entrepreneurial orientation are more likely to engage in innovative activities. Entrepreneurial orientation encompasses risk-taking, proactiveness, and a willingness to experiment.

2.3.2.    Managerial Characteristics—Individual managers’ characteristics, such as their education, experience, and prior exposure to innovation, have been found to influence a firm’s innovation performance. Managers with diverse backgrounds and experiences are often better positioned to drive innovation.

2.3.3.    Top Management Support – Studies emphasise the importance of strong support for innovation from top management. When leaders actively champion and support innovative initiatives, small businesses are more likely to overcome challenges and successfully implement disruptive changes.

2.3.4.    Educational Background – Managerial education, especially in science, technology, engineering, and mathematics (STEM) fields, is often associated with a higher likelihood of innovation. Managers with technical backgrounds may better understand emerging technologies and their applications.

2.3.5.    Networking and Collaboration – Small business managers who actively network and collaborate with external partners, such as other businesses, research institutions, and industry associations, are more likely to access valuable resources and knowledge that can drive innovation.

2.3.6.    Leadership Style – Transformational leadership, characterised by vision, charisma, and the ability to inspire and motivate employees, has been linked to higher levels of innovation within organisations. Leaders who encourage creativity and experimentation contribute to a culture of innovation.

2.3.7.    Adaptability and Learning Orientation – Management teams that exhibit adaptability and learning orientation are better equipped to respond to changing market conditions and adopt new ideas. This adaptability is crucial for small businesses operating in dynamic environments.

2.4.        Public Sector Involvement

In the context of public sector involvement, the public sector can play a crucial role in fostering innovation ecosystems. Higher education institutes, for example, can contribute to public sector innovation ecosystems by bringing new and fresh ideas to the market, challenging old services, products, and businesses, thus opening the way for development (Luojus & Kauppinen, 2021). Additionally, state support for small and medium-sized businesses is relevant for innovative economic development, as a healthy small business sector leads to innovation, jobs, and a healthy overall economy (Kookueva & Tsertseil, 2020; Glukhov et al., 2015). Furthermore, there is a need to investigate business model innovation in the public sector, as the literature on business models can explain the outcomes of innovation attempts in the public sector (Lewandowski & Kożuch, 2017; Axelson et al., 2017).

3. Focus Group

The focus group targeted the following interviewees:

–              Executives or managers with decision-making authority who have played a significant role

in shaping the direction of the business.

–              Leaders with experience in implementing innovative initiatives or managing projects

related to disruptive change.

–              Leaders with a strong understanding of the industry in which the business operates,

as industry context can significantly impact innovation strategies.

–              Leaders who have demonstrated adaptability, a willingness to learn, and openness to

change within their organisations.

–              Leaders who have actively collaborated, networking, or partnerships with other

businesses, research institutions, or industry associations.

3.1.        Attendees

The following attendees made it to the session:

Contact Person Name of Company:

1             Mr Joseph Farrugia          MEA

2             Mr Anton Vella  MEA

3             Ms Kirsten Cutajar Miller               MEA

4             Ing Anton Cutajar             Enser Ltd

5             Mr David Baldacchino     Seifert Systems Ltd

6             Mr Robert Debono          Consultant

7             Ms Tania Kasap Green Skip Services Ltd

8             Mr Martin Vella Panta Contracting Ltd

9             Mr Nicholas Schembri    Tevapharm

10           Mr Ian Pisani      J&C Pisani Limied

11           Mr Ivan Sciriha   J&C Pisani Limied

These attendees represented the wholesale and manufacturing of food, manufacturing, pharmaceuticals, waste management, consultancy and financial services, building services, mechanical and electrical design and implementation sectors.

The attendees represented a mix of small, medium and large companies and included freelance consultants, family businesses and large set-ups.

3.2.        Questions

The following questions were discussed during the session.

1. Can you provide an overview of your organisation’s innovation and

disruptive change approach?

2. What factors or motivations drive your organisation to pursue innovative initiatives or

disruptive changes?

3. What challenges has your organisation faced in fostering innovation, especially

disruptive changes?

4. How does leadership play a role in fostering a culture of innovation within your organisation?
5. Can you share an example of an innovative initiative or disruptive change that did not go

as planned? What did your organisation learn from that experience?

6. How does your organisation approach decision-making regarding the adoption of

new technologies or business models

7. How has your organisation collaborated with external entities like other businesses,

research institutions, or industry associations to drive innovation?

8. How do you involve and engage employees in the innovation process? What strategies

are in place to encourage creativity and idea generation?

9. How does your organisation assess and adopt emerging technologies that have the

potential    to disrupt your industry?

10. How does your organisation stay informed about market trends and ensure

its   competitiveness through innovation?

11. What is your organisation’s long-term vision regarding innovation and its role in the future

of    your industry?

12. How does your organisation measure the success of its innovative initiatives or

disruptive changes?

13. Based on your experience, what advice would you give to other business leaders looking

to drive innovation and embrace disruptive changes?

3.3.        Analysis

Different reasons for engaging in innovation

During the session, the scope and rationale for innovation were discussed. It emerged that for the participants attending the focus group, innovation is important for a plethora of reasons, including:

–              Better utilisation of talent and resources;

–              Growth through efficiency gains or diversification;

–              Retaining one’s position in the market;

–              Remaining relevant and agile in the competitive market; and

–              Surviving the fast-paced environmental changes, especially brought about by technology. In this regard, the innovative process is iterative as technology changes drive innovation, and innovation drives change. Aside from technology developments, ESG-related developments will also drive change.

An innovative company changes from being reactive in the market to becoming proactive.

An internal catalyst

Resistance to change goes beyond family businesses and the staff themselves. At times, the paternalistic aspect of management can hinder change. A major issue here could be the owner/leader’s fear of failure. In this regard, senior management should allow itself to receive new and innovative ideas. Hence, the business needs to have a culture of welcoming ideas, and senior management needs to lead by example.

The participants also stressed that successful innovation requires constant awareness of new developments and occurrences around you. In this regard, the business must invest in people eager to stay abreast.

An innovative company needs to have a person or more who takes on the role of idea generator.

Despite the challenges, innovation is a way of doing business

Although budgets and financial constraints may significantly restrict change and innovation adoption, the participants insisted that innovation is a process that needs to be planned to be implemented effectively. Other important factors for successful innovation are:

–              Developing and maintaining a strong network of collaborators, and

–              Robust data management

Malta has limited scalability potential; however, being small is sometimes an advantage as it allows businesses to become experts in more areas. Similarly, national and European funding opportunities are often too bureaucratic for small enterprises. The business representatives also notice how government entities suffer from an innovation and digital gap, sometimes hindering businesses from pursuing further innovation.

Education is key

Having the right skills in the company and communicating change is paramount. The right skills are also required to implement innovation and have your team adopt and accept change. In this regard, the education system was thought to be failing us and not giving our future workforce the right skills at the right time. In addition to our education institutions, for innovation to occur in business, there needs to be continuous personnel development.

Further, the focus group participants ascertained the need for problem-solving, critical thinking, and learning skills for a resilient workforce.

The participants stressed the importance of balancing academic skills with vocational skills and coaching in leadership skills.

Future

The focus group attendees stated that they look at innovation as a means to address future legal and reporting requirements and remain competitive in the face of unfair competition. The focus group agreed that innovation is a tool to evolve promptly in the face of rapid technological changes, such as robotics and AI, but also to mitigate against skills shortages.

4. References

–              (2020). Smes and adoption of innovative technologies. Strategic Direction, 36(10), 25-28. https://doi.org/10.1108/sd-07-2020-0138

–              Axelson, M., Netz, J., & Sandström, C. (2017). Collective action problems in public sector innovation: a business model perspective. Creativity and Innovation Management, 26(4), 370-378. https://doi.org/10.1111/caim.12250

–              Fairlie, R. (2020). The impact of covid‐19 on small business owners: evidence from the first three months after widespread social‐distancing restrictions. Journal of Economics & Management Strategy, 29(4), 727-740. https://doi.org/10.1111/jems.12400

–              Glukhov, V., Glukhov, E., Lialina, Z., Ostanin, V., & Rozhkov, Y. (2015). Social function of small business taxes in russia. Asian Social Science, 11(19). https://doi.org/10.5539/ass.v11n19p247

–              Kookueva, V. and Tsertseil, J. (2020). The role of state support for small and medium-sized businesses in the context of innovative economic development. E3s Web of Conferences, 220, 01031. https://doi.org/10.1051/e3sconf/202022001031

–              Lewandowski, M. and Kożuch, B. (2017). Public sector entrepreneurship and the integration of innovative business models. https://doi.org/10.4018/978-1-5225-2215-7

–              Luojus, S. and Kauppinen, S. (2021). The role of higher education institutes in public sector innovation ecosystems. https://doi.org/10.21125/inted.2021.0402

–              Murphy, W. and Leonard, D. (2016). Quality management (qm) leads to healthier small businesses. Journal of Small Business and Enterprise Development, 23(4), 1104-1119. https://doi.org/10.1108/jsbed-12-2015-0169

–              Temel, S. and Durst, S. (2020). Knowledge risk prevention strategies for handling new technological innovations in small businesses. Vine Journal of Information and Knowledge Management Systems, 51(4), 655-673. https://doi.org/10.1108/vjikms-10-2019-0155

–              Lykholat, S., Krykavskyy, Y., Lozynskiy, V., & Shynkarenko, N. (2021). Determination of the influence of the economic cycle stages on the innovative potential of small entrepreneurship. Economics Entrepreneurship Management, 8(1), 20-34. https://doi.org/10.23939/eem2021.01.020

–              Elshaer, I. and Augustyn, M. (2016). Direct effects of quality management on competitive advantage. International Journal of Quality & Reliability Management, 33(9), 1286-1310. https://doi.org/10.1108/ijqrm-07-2014-0086

–              Kotey, B. and Slade, P. (2005). Formal human resource management practices in small growing firms*. Journal of Small Business Management, 43(1), 16-40. https://doi.org/10.1111/j.1540-627x.2004.00123.x

–              Miletić, S., Kostov, A., & Milanović, D. (2020). Illustration an advantage assessment of the quality management system implementation into metallurgical organizations. Mining and Metallurgy Engineering Bor, (3-4), 47-56. https://doi.org/10.5937/mmeb2002047m

–              Murphy, W. and Leonard, D. (2016). Quality management (qm) leads to healthier small businesses. Journal of Small Business and Enterprise Development, 23(4), 1104-1119. https://doi.org/10.1108/jsbed-12-2015-0169

–              Shane, S., & Venkataraman, S. (2000). “The promise of entrepreneurship as a field of research.” Academy of Management Review, 25(1), 217-226.

–              Damanpour, F. (2010). “An integration of research findings of effects of firm size and market competition on product and process innovations.” British Journal of Management, 21(4), 996-1010.

–              Zenger, T. R., & Lazzarini, S. G. (2004). “Compensating, cooperating, and competing: An integrative framework.” Academy of Management Journal, 47(2), 296-308.

–              Gulati, R., & Gargiulo, M. (1999). “Where do interorganizational networks come from?” American Journal of Sociology, 104(5), 1439-1493.

–              Avolio, B. J., & Bass, B. M. (1991). “The Full Range of Leadership Development: Basic and Advanced Manuals.” Binghamton, NY: Bass, Avolio & Associates.

As a continuation of this project and to ensure its ongoing success, the MEA intends to persist in addressing and supporting its initiatives in the area of entrepreneurs’ skills enhancement in the area of  anticipation and management of change. By remaining proactive, the MEA aims to foresee and tackle issues that are of topical importance for SMEs and which could become even more demanding in the near future if employers do not have the necessary updated skills to tackle them.

In discussing the Regeneration Plan for Workplaces and how social partners have supported the anticipation and management of change post-COVID-19, it became evident that the Association needs to remain engaged with entrepreneurs and maintain a proactive approach. This is essential to strengthen SMEs’ resolve in facing future business challenges.

The MEA has already initiated discussions on innovation and disruptive changes in the workplace. The next focus is on the critical challenge of how SMEs can remain competitive by achieving “Quality and Value Added through R&D and Innovation.”

A networking round-table event with various stakeholders is scheduled for July 12th. Additionally, this year’s SMEs National Forum will take place on November 8th. The forum will build on MEA’s previous initiatives, all of which have led to noteworthy publications.

Green Skip Services Ltd.

Panta Group – Malta

Chemimart

Arkadia Marketing Ltd