Staff retention rates are an important metric for all managers. Here’s some advice contained in our brand new shipmanagement magazine on how to ensure employees stay put.
Attracting and retaining qualified employees is undoubtedly challenging during times of skills shortage.
Officer supply shortage has hit an all-time high and is unlikely to improve, resulting in manning cost inflation, according to a recent study published by shipping consultants Drewry.
Drewry said the 2023 officer availability gap had widened to a deficit equating to about 9% of the global pool, up from 2022’s 5% shortfall and the highest level since it first started analysing the seafarer market 18 years ago.
The consultancy forecasts similar deficit levels through to 2028 based on the limits of new seafarer supply becoming available.
“While these deficit levels are based on vessel numbers together with assumptions on crewing levels and so largely theoretical, they clearly indicate that the seafarer labour market has become particularly tight, with important implications for recruitment and retention as well as manning costs,” Drewry noted.
Three Ms
Market-based pay and good working conditions for seafarers are a prerequisite, says Ioannis Stefanou, the managing director of shipmanagement at Wallem.
“Traditionally, the three Ms – money; mail, ensuring open communication access, such as internet onboard; and meals – were considered crucial for recruitment and seafarer satisfaction. However, in today’s landscape, these alone are no longer sufficient,” explains Ian Beveridge, the CEO of Bernhard Schulte Shipmanagement (BSM).
Factors such as working conditions, health and welfare, and career opportunities have become equally vital, he says.
At BSM, top management acknowledges the importance of involving employees in decision-making processes.
“They seek trust, reliability, collaboration, and a sense of belonging. Our ongoing efforts address all these aspects to provide our sea staff with an attractive overall package,” Beveridge says.
BSM carries out regular satisfaction surveys, makes sure its staff are offered attractive compensation and benefit packages, career development through advanced training programmes, and flexible work arrangements.
“Additionally,” says Beveridge, “a company’s ability to innovate, sustainable initiatives, an open corporate culture, and strong company values play pivotal roles in employee satisfaction.”
Beyond minimum standards
“The process of having a satisfied customer starts with a satisfied employee,” says Vinay Gupta, the managing director of Union Marine Management Services, who believes firmly in the manta that you must treat people with fairness.
“Mutual trust and mutual respect has been a cornerstone and that has resulted in our staff becoming our brand ambassadors,” Gupta says.
Peter Schellenberger, founder of maritime consultancy Novamaxis, has some advice to keep crew happy.
The two big challenges for quality managers going forward as he sees it seem to be the availability of competent and well-trained crew across all matrixes and how to escape the compromises in delivering quality following years of intense price pressure.
As a consequence of this and following what he describes as “merciless” budget negotiations a lot of concessions have been made, even pertaining to training expenses and essential needs like proper nutrition and catering budgets.
“Even more surprisingly,” Schellenberger says, “it still hasn’t fully filtered through to all that connectivity and giving such proper allocations to crew is the top retention factor, just ahead of shore leave and adherence to contract considerations.”
Solutions to hand for shipmanagers, according to Schellenberger, range from good training, seafarer – and family – engagement programs, proper care in terms of medical, nutritional and psychological support with more than minimum standards required as by owners, but also clearly agreed service levels between manager and crew that are not negotiable by “greedy” clients, something that will also draw quality clients in the end.
“Everyone broadly agrees that ship operators need to view their people as an investment rather than a cost, but that is easier said than done. Human capital management is about giving leaders the tools to be able to justify those investments through a data-driven approach to recruitment, onboarding, training, performance, and retention,” suggests Nick Chubb, the founder of tech consultancy Thetius. “If ship operators employ a human capital management approach as a core part of their strategy, they will retain talent, improve operational efficiencies and future-proof their business.”
Training benefits
Staff retention starts with training and the entry point into the industry, argues Bjorn Hojgaard, the CEO of shipmanagement giant Anglo-Eastern. Anglo-Eastern remains the only large shipmanager with its own pre-sea academy. Across the group it has more than 500 yearly cadet seats, and for that it receives more than 22,000 annual applicants. The company also has more than 50 specialised courses for upskilling senior officers and key ranks.
Use of current technology and applications that appeal to younger generations such as Beekeeper that can recreate the essence of fraternity for crewmembers and connect them with the shore staff is something deemed important by Rajiv Singhal, the boss of MTM.
“Similarly,” he says, “the provision of internet onboard the ships has undoubtedly become the industry norm that has significantly changed life onboard and ship-shore connectivity.”
Recent surveys have shown that internet availability for crew onboard is the number one priority for seafarers, he points out.
“Access to email, messaging, calling and internet is vitally important for seafarer morale, wellbeing and links to family. Poor connectivity contributes to isolation from family and life at home,” states a recent report from Idwal, a British surveying firm.
“We can do better, and many good companies do,” concludes Steven Jones, the founder of the Seafarers Happiness Index “However, while the number of vessels which do not allow seafarers the right to be connected outweigh the percentage which have unlimited access, then we clearly still have work to do. It is time for a change, and it should be hoped that the capability to apply a social sense check to the ways in which ships go about their business, then we can build a better, brighter reality for life at sea. We can see the impact of doing good reflected in the market value of the vessel, and that has to be progress.”
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