The dearth of experienced, mid-level seafarers is a serious problem plaguing the maritime industry. At the heart of this problem is employee commitment. A study by Comaea Consulting offers interesting insights that may help address this challenge.
The Maritime Human Capital Crunch
The Maritime industry is witnessing a significant crunch in retaining mid-level seafarers. Despite improved salary & perks, good working conditions onboard and the advancement of technology, marine companies are struggling to retain experienced mid-level seafarers. These experienced professionals often drop out of seafaring right when they are at the peak of their capabilities. Marine employers struggle to fill the gap created by this exodus of their most talented people. According to statistics, in 1995 there was a shortage of 10% in the critical ranks, which accelerated to 20% in 2020. There is a severe talent deficit that is affecting the maritime industry.
Without sufficient mid-level professionals, commercial ships that play a key role in logistics may struggle to meet the growing demands of global supply chains. There is an urgent need for a framework that can help Marine employers cope with this human capital crunch.
The “Three Commitment” Framework: Road to better employee commitment?
At the heart of employee retention is “Commitment”. Commitment is the degree to which employees feel invested in their employer. The more committed the employee, the lesser the chance for them to move on. The “Three Commitment” framework is a powerful framework to guide employee retention. This framework is the result of an in-depth study conducted by Comaea Consulting covering several marine employers and seafarers.
The three Commitments
The study shows that seafarers’ commitment to their employer is a complex construct involving three key components: Salary & Perks, Emotional Bonding, and a sense of Obligation. Each of these factors has an important role to play in driving employee retention.
Financial (Cost-Based) Commitment:
Remuneration (salary & benefits) is a major driving force for any job and it is applicable to the maritime industry as well. A lucrative salary & benefits package can create “stickiness” by making it financially risky for the seafarer to move. However, this is not a long-lasting solution. When salary is the only driving force, chances are high for seafarers to shift to another company or profession that is offering more. Beyond a point, increasing remuneration loses its power to foster commitment.
Affective (Emotional) Commitment:
Social psychology tells us that peoples’ needs extend beyond food, clothing, and shelter. We want to belong, be valued, and be respected as individuals. Affective or Emotional commitment is the sense of “belonging” felt by an employee towards the employer. It is a powerful driver of retention.
Research shows that effort invested in creating Emotional Commitment among seafarers has an 8-fold impact on retention compared to investment in salary & benefits. Therefore, building emotional commitment is a strategy that can help in employee retention for a longer period. People should feel connected with the company, they should feel valued and appreciated.
Small gestures like arranging team lunch, celebrating birthdays, and organizing meetings and events with the team members can have a deep impact on employees’ minds and an emotional attachment is formed automatically accompanied by a sense of commitment.
Normative (Obligation-based) Commitment:
Normative or Obligation-based commitment refers to the sense of obligation engendered in the mind of an employee due to a favourable action of the employer that benefits the employee without an obvious quid pro quo. An employer sending an employee overseas for training without expecting an immediate productivity jump, or without making the employee sign a penalty bond would be an example of an obligation. The feeling of gratitude and a sense of commitment created in the mind of such an employee is Obligation Based Commitment.
As a factor in driving retention, every dollar invested in obligation-based commitment achieves the same impact as $36 spent on initiatives targeting salary/benefits.[beyond the hygiene salary level].
To employ Normative commitment, the company should be proactive toward employees’ welfare and pay attention to the staff’s individual growth. The company may initiate the process to upskill employees, arrange training programs, and invest in these activities without expecting anything in return. The staff will grow and deep down, they will develop a sense of gratitude for these unconditional initiatives. Employees’ gratitude can increase their loyalty to the company and make them stay longer.
What next?
Maritime organizations may need to evaluate the level of commitment and job satisfaction of the employees to strategize employee retention. Based on that, the “Three Commitments” framework can be implemented in the employee retention structure. The framework could be shared with the HR professionals of the organization to address the resource crisis in the maritime industry.
The author of the blog – Krishan Sharma – is the Managing Director of Comaea Consulting and a recognized authority on Maritime HR. He can be contacted at krishan.sharma@comaeaconsting.com or +65 97514829
