THE

BOTTOM
LINE

Why Human Capital Management

is the future of HR and crewing

Fiona Macdonald
CONTE NTS
FOREWORD 4
INTRODUCTION 6

WHAT IS HUMAN CAPITAL MANAGEMENT (HCM)? 8

The components of HCM 9

The missing link 10

THE CHALLENGES: WHY DO WE NEED

HUMAN CAPITAL MANAGEMENT IN MARITIME? 12
Recruitment: the challenge
of finding the right talent 13

Onboarding: the challenge of bringing

people into the organisation effectively 16

Learning and development: the challenge

of developing and supporting people 17

Performance management: the challenge

of assessing and improving day to day
performance. 19

Retention: the challenges of keeping

the best ashore and at sea 21

OVERCOMING THE CHALLENGES; EFFECTIVELY

EXECUTING HUMAN CAPITAL MANAGEMENT 25
Starting with human-first view 25

Defining culture 26

Recruitment and onboarding 27

Training and performance management 27

Retention 31

Systems: the value of a connected data layer 33

THE BOTTOM LINE: GETTING A RETURN

FROM HUMAN CAPITAL MANAGEMENT 35

CONCLUSION AND RECOMMENDATIONS 38

01. Start with a vision and communicate
this to your employees 39

02. Conduct regular temperature

checking of your people 40

03. Focus on change management 40

04. Ensure you have good dialogue

with your vendors 41

05. Acknowledge the constrains of the industry 41

06. Ensure that your HCM tools drive collaboration

between people, processes, and systems 42

References 44
Like all capital, human capital
requires an investment. But
done right, human capital has
the potential to create the
greatest returns of nearly any
other asset you may choose to
invest in.
FOREWORD
The operational landscape
is being reshaped by
rapid advancements in
T he maritime industry has
been long regarded as an
indispensable engine of global
technology, evolving
regulatory frameworks,
trade. It has the responsibility and geopolitical shifts.
to supply the world with
what it needs to transition
to a sustainable future.

The operational landscape is being

reshaped by rapid advancements
in technology, evolving regulatory
frameworks, and geopolitical shifts.
These changes bring both challenges
and opportunities, and the decisions
we make today will have long-lasting
impacts on how we successfully HCM is a holistic
shape the future of our businesses.
approach to unlocking the
One thing that is certain is that our
maritime professionals will be key
potential of our people,
to delivering the future we all need. our human capital.
As our industry evolves, so must
our approach to managing people.
A fresh and necessary perspective
on how companies navigate the HCM is a holistic approach to unlocking
complexities of workforce management. the potential of our people, our human
Enter Human Capital Management capital. It places paramount importance
(HCM). In this transformative era, on recognising the inherent value of our
HCM emerges as more than a mere workforce. This approach is designed
checkbox or a software solution. to ensure that both seafarers and
shore-based personnel are given the
tools they need to sustain business
success in a time of unprecedented
progress and change in the industry.

A good HCM strategy creates
valuable data points for
other purposes too, helping
you to reach performance
beyond compliance, meeting
the exacting standards
of blue-chip charterers
and building a powerful
ESG story that unlocks
finance and inspires your
customers and employees.
Firstly, companies that embrace HCM
will be best positioned to attract
and retain top talent. The crewing
landscape is changing. As demand
for skilled professionals outpaces
supply, competition for talent is fierce.
HCM fosters a safe, inclusive, and
rewarding work environment, where
seafarers feel valued and empowered
to excel. This, in turn, cultivates loyalty
and reduces costly turnover, saving
resources and fostering stability.
Why Human Capital Management is the future of HR and crewing 5
Secondly, HCM goes beyond tactical
and siloed solutions. Throwing money
at the problem, through pay rises
alone, isn’t sustainable. A strong HCM
strategy fosters a culture of continuous
learning and personal development.
By investing in your people, you
unlock their full potential, ensuring a
future-proof workforce with the skills
and expertise to navigate complex
situations and maintain the highest
standards of safety and compliance.
Thirdly, HCM is about building a data-
driven culture. The days of reactive
management are over. By harnessing
the power of data and analytics,
companies can optimise operations,
make informed decisions about talent
allocation, and ensure the right people
are in the right place at the right time.
A good HCM strategy creates valuable
data points for other purposes too,
helping you to reach performance
beyond compliance, meeting the
exacting standards of blue-chip
charterers and building a powerful ESG
story that unlocks finance and inspires
your customers and employees.
The coming years will demand agility and
adaptability. The maritime industry needs
passionate, skilled individuals who feel
valued and empowered. By prioritising a
people-centred approach to workforce
management, companies can not only
build a resilient crew but also create
a positive impact on the lives of their
employees. This report dives deep into
the various facets of HCM, providing
valuable insights and practical strategies
to guide you on this essential journey.
THOM AS ZA NZIN GER
CEO, Ocean Technologies Group
INTRODUCTION
E very business has a balance sheet. On
it sits all of the assets that the business
owns, such as cash, ships, equipment,
and computer systems. It also includes all
of the business liabilities, such as loans,
tax obligations, and supplier bills.

People are more than just a cost,

they’re an investment. HCM is a
strategic approach to management
that encourages leaders to treat
people as a critical asset.

From the stage of nearly every maritime
conference, CEOs solemnly say, “Our
people are our greatest asset.” But,
theoretically, at least, where do people
actually sit on the balance sheet for
most shipowners and managers?
Maritime professionals, at sea and
ashore, who are poorly trained,
unmotivated and likely to leave can be
an enormous liability. Whether through
action or inaction, they are less likely
to run a safe, well maintained ship or
to have the same goals as the business.
The same is true ashore, where the
shortage of technical talent is most
acutely felt. Organisations with high
staff turnover struggle to replace
suitably experienced personnel. In
time, a revolving door of people coming
and going creates risks that are both
hard to define and hard to control.
Conversely, a well trained, highly
motivated and loyal crew will be a
genuine asset. They will buy into
the long-term vision of the company
and want it to succeed. Despite the
increasing focus on technology onboard
a ship, people are ultimately the ones
that are relied on to ensure the safe,
efficient, and compliant running of a ship.
People are more than just a cost, they’re
an investment. Many of the challenges
the industry faces today have a human
dimension. We rely on people to get
things done properly. But when we don’t
invest in them, the risk of them making
mistakes, feeling dissatisfied in their role,
leaving their employer or even leaving
the industry altogether, increases.
Human Capital Management (HCM) is
a strategic approach to management
that encourages leaders to treat people
as a critical asset for the organisation.
 Why Human Capital Management is the future of HR and crewing 7

We aim to equip leaders

responsible for crewing
and staff management
across the industry with
the information they
need to ensure their
people genuinely become
the greatest asset that
exists for their business.

Like all capital, human capital requires

an investment. But done right, human
capital has the potential to create the
greatest returns of nearly any other
asset you may choose to invest in.

This report seeks to explore how HCM

can be deployed in maritime for the
greatest possible return. In it, we explore
In the short term, the the best practices for recruitment and
collective quality and onboarding, training, and, most critically,

experience of your people the retention of the best people.

determines whether they By discussing the application of the

best HCM practices in a maritime
are an asset or a liability. context, we aim to equip leaders
responsible for crewing and staff
management across the industry with the
information they need to ensure their
In the short term, the collective people genuinely become the greatest
quality and experience of your people asset that exists for their business.
determines whether they are an
asset or a liability. In the long term,
your ability to retain those who are
assets determines the depth of your
organisation’s human capital.
WHAT IS HUMAN CAPITAL
MANAGEMENT (HCM)?

H uman resource management (HRM) has been

around since the early to mid-20th century
and is a traditional concept that focuses on
the administrative aspect of management.

HRM is often seen as a transactional

and operational approach to people. It
Human Capital uses metrics, including time to hire and

Management (HCM) is turnover rates, as well as addressing

a new concept that has
evolved from HRM. It is
a strategic approach to
basic needs, such as payroll and pension.
Human Capital Management (HCM) is
a new concept that has evolved from
HRM. It is a strategic approach to

attracting, developing, attracting, developing, managing and

retaining maritime professionals at sea
managing and retaining and ashore. The overall purpose of HCM

maritime professionals is to elevate the value of the individual

at sea and ashore.
and their collective contribution to the
overall vision, mission and goals for
the business and take a long term view
towards the development of people that
marries a data-driven approach with the
culture and values of an organisation.
 Why Human Capital Management is the future of HR and crewing 9

THE COMPONENTS OF HCM

Deve l opi ng an HCM st rate gy requires organisations to consider severa l
co m p o ne nt s, i ncl udi ng but not limited to the following:

RECRUITMENT LE ARNING &

Is often viewed as ‘one of the most DE VELOPMENT
important aspects of human capital
Talent needs to be nurtured and managed
management’. Recruiting people with the
to ensure workers develop the skills and
right skills and talent is important but so
behaviours needed to take on increasingly
too is recruiting people that fit within the
important roles and responsibilities
culture and values of the organisation.
and progress in their careers.

ONBOARDING PERFORM ANCE

The right onboarding is vital
Performance management aligns goals,
in ensuring the correct culture
provides feedback, identifies areas
is maintained and that employees
for improvement, rewards excellence,
are supported during their first few
supports succession planning, decision-
months with the organisation. An
making, and ensures legal compliance.
effective onboarding process ensures
you get your employees to where
you want them to be, literally and
metaphorically, as efficiently as possible.
RETENTION
Is critical to building up long-term
human capital. Investing in people
and ensuring they feel supported, enjoy
a good employee experience, and are
able to progress their skills, abilities, and
career will create a happy and engaged
workforce that is easier to retain.

The goals for each of those components at retaining longstanding staff and what
need to be driven by the overall goals does that do to your recruitment costs?
of the business. But each of those
All of these components impact each
components is interdependent. Have
other. But it’s incredibly common
you ever considered how your ability to
for organisations to lack measures
onboard new staff impacts their length of
on how training impacts retention,
service? What about how the quality of
or how the performance of existing
your training impacts the performance of
staff impacts recruitment.
an individual seafarer? How good are you
 THE MISSING LINK
Creating measurable improvements
anywhere requires a financial investment.
But you can’t invest in everything
all at once. It’s therefore critical to
understand where you need to make
improvements and what impact they are
likely to have on the overall goals of the
business. The only way to achieve that
is through a common data layer. This
is the key component that underpins
HCM as a framework and allows you to
genuinely measure the overall impact
of improvements to each component.

HCM FR A ME WORK

O R GANISATION VISION AND MISSION

O R GAN ISATION GOALS

Re c r u i tme nt Onboardi n g Learning & Perfo rm ance Retentio n

Go a l s Goal s Develo pm ent Go als Go als
Go als

C OMMON DATA

F INANC IAL INVESTMENT DECISIONS

O R GANISATION CULTURE A ND VALUES

 Why Human Capital Management is the future of HR and crewing 11

Financial decisions cannot be made

using data alone. After all, HCM is
Understanding the training, about getting the most from people,
performance or retention and there will always be intangibles that
need to be considered. The data alone
needs of an individual may make it easy to justify switching
member of the team allows to a country that offers cheaper crew.
But that doesn’t mean it’s the right
you to make investment decision for your organisation. That’s
decisions that can have a why the primary layer of HCM is an

long term impact on the organisation’s culture and values.

organisation’s goals. An organisation can go a long way by

defining its culture and values. Culture
is not only important for hiring and
promoting the right people, but a culture
that fosters learning and development
Without a common data layer that allows
will drive engaged and motivated
you to draw a clear line between these
employees. People do not always align
components, you are shooting in the
their performance with a strategy to
dark when making financial investment
improve it. A culture that proactively
decisions. Is it better financially to use an
targets specific problems with tailored
external recruiter to hire five technical
learning can help to drive a more robust
superintendents or to send five of your
workforce and support organisational
existing chief mates on training courses
growth. A culture that encourages people
and transition them ashore? Can you
development beyond traditional training
afford to lose five chief mates from the
topics can also foster an inclusive
fleet? What impact will that have on
and trusting environment, which is
your recruitment in six months’ time?
essential for a safe and efficient working
The reason this approach is so effective environment. HCM plays a key role
is it can be applied at the individual in shaping and sustaining the desired
level as well as the organisational culture and values within an organisation.
level. Understanding the training,
performance or retention needs of
an individual member of the team
allows you to make investment
decisions that can have a long term
impact on the organisation’s goals.
A culture that proactively
Pulling a group of masters ashore for
targets specific problems
three months to improve the working with tailored learning can
relationship between ship and shore help to drive a more robust
may appear expensive, but it could also
drastically improve the performance workforce and support
of the vessel. For most ship managers, organisational growth.
the answer to these questions is
either unclear or seen as a “warm
and fuzzy” nice to have. HCM aims
to give decision makers the tools to
draw a straight line between financial
investments and their overall impact.
THE CHALLENGES: WHY DO
WE NEED HUMAN CAPITAL
MANAGEMENT IN MARITIME?
A n HCM strategy is important in any organisation, irrespective
of the industry. However, it is especially necessary in
the maritime industry, owing to the safety critical nature
of the jobs to be done, a challenging working environment
and often complex crew contracts and rotations.

Working at sea can be a

hugely rewarding career, both
financially and professionally.
But it is typically a remote,
and at times dangerous,
career path that presents
many challenges.

Working at sea can be a hugely

rewarding career, both financially and
professionally. But it is typically a
remote, and at times dangerous, career
path that presents many challenges.
Isolation from family, contracts that
often span months at a time, and a high-
pressure working environment all have
the potential to limit seagoing careers.

Across the key components of HCM,

this section outlines the challenges the
industry faces today and makes the case
for why an HCM strategy is necessary.
 Why Human Capital Management is the future of HR and crewing 13

RECRUITMENT:
THE CH ALLENGE
OF FINDING THE
RIGHT TALENT
The current picture of the seafarer
landscape presents a myriad of
challenges. While there are around
1.89 million seafarers serving the
world merchant fleet, operating
on more than 74,000 vessels 1, the
demand for experienced, well trained
personnel outweighs the supply.

According to Drewy’s 2023/24 forecast,

seafarer labour shortages are at a
17-year high. 2 A shortage of around
26,240 STCW certified officers exists
Part of the shortage is
and there’s an expectation that by driven by the growth of
2026 an additional 89,510 officers
the world fleet. Technology
will be needed to operate the world
merchant fleet. 3 4 Part of the shortage may help seafarers
is driven by the growth of the world to do their jobs more
fleet. Technology may help seafarers
to do their jobs more efficiently, but
efficiently, but it certainly
it certainly will not replace them. will not replace them.
On top of the growth of demand and
increasingly short supply, the perception
of the industry to the general public and AN IN SUFFICIENT N UMBER OF
young people makes recruiting skilled YOUNG PEOPLE GOIN G TO SE A
seafarers and shoreside staff a challenge.
One of the simple reasons why it’s hard
to recruit talent is the reduction in
the number of young people choosing
maritime cadetships and embarking on
officer careers in the merchant navy.
In the UK alone, the number of officer
cadets in training has slumped with
new entrants 23% lower in 2023 than
before the COVID-19 pandemic. 5

1 BIMCO, ICS (2021) Seafarer workforce report

2 Drewry (Jun, 2023) Manning annual review and forecast 2023/24
3 International Convention on Standards of Training, Certification and Watchkeeping for Seafarers
4 BIMCO, ICS (2021) Seafarer workforce report
5 Nautilus International (Mar, 2024) Worrying drop in UK cadets revealed by latest DfT data
 One of the factors driving this is the
insufficient number of cadet berths.
According to the Nautical Institute’s
(NI) Capt André LeGoubin, the inability
for cadets to find a berth on a vessel
is one of the greatest challenges the
industry is facing. 6 During COVID-19,
many cadets experienced difficulties in
getting the required sea time following
qualification and it’s a problem that
continues to prevail. 7 Ships may be
unable to accommodate cadets on
board as accommodation is reduced
to make space for cargo instead, or
the officers onboard lack the capacity
for supervision and mentoring. 8 This
makes it difficult for cadets to get the
experience they need to complete their
sea time, develop their skills, qualify
with a Certificate of Competency (CoC)
and ultimately enter the workforce
as competent junior officers.
It has also become clear recently that
an emerging middle class in traditional
seafarer supply countries is making
seafaring a less attractive option
for job seekers today. Our research
found that maritime employers are
increasingly going to tier two and
Young people living in
countries with well-developed
maritime education and
training infrastructure are
choosing to instead work in
shoreside industries, such
as software development.
6 Seatrade Maritime News (Sep, 2022) Need for cadet berths one of the ‘greatest challenges’ facing shipping
7 Nautilus (Jul, 2023) Cadets: please get in touch regarding sea time difficulties
8 International Labour Organization (Apr, 2019) Recruitment and retention of
seafarers and the promotion of opportunities for women seafarers
It has also become clear
recently that an emerging
middle class in traditional
seafarer supply countries
is making seafaring a
less attractive option
for job seekers today.
three cities as part of their recruitment
strategy, where sometimes the level of
science, technology engineering and
mathematics (STEM) education does
not provide the base required on which
to easily build a mariner’s skillset.
This issue goes beyond STEM. There is
also the issue of lower levels of English
language ability, compromising safety
critical onboard communication. Young
people living in countries with well-
developed maritime education and
training infrastructure are choosing to
instead work in shoreside industries,
such as software development. This is
leading to a rapid weakening of the talent
pool. But it takes years for a country to
develop maritime education and training
infrastructure. Crewing managers cannot
switch to a new country overnight
and when they do, it requires a multi-
year investment and support from
government at the highest level.
 Why Human Capital Management is the future of HR and crewing 15

Of those, 70% reported having been

asked or made to pay fees to manning
New research has also agents to secure a job or finding job
found that of nearly offers were fake after making payment. 10

5,000 seafarers, almost Quality ship operators always vet their

agencies and ensure they are compliant
40% experienced at least with MLC, 200611 and registered with
one form of unethical or national maritime authorities. While

illegal action in violation third party recruitment can sometimes

make it difficult for shipping companies
of international standards to build rapport with their seafarers, in
relating to worker rights. many cases it also brings opportunities to
access a wider pool of qualified maritime
professionals seeking jobs. The onboarding
process is absolutely critical to improving
UN SC R UP U LO U S C R E WING crew motivation and retention long term.
AG ENC IES
Seafarers are recruited directly or MEDICA L EX A MINATIONS
indirectly by shipping companies, but
Another challenge in the recruitment of
both methods have their challenges.
seafarers is the medical examinations
Unfortunately, there are many
they must pass before onboarding. These
unregistered and unscrupulous crewing
checks are designed to ensure they
agencies operating in the market, which
are healthy and able to perform their
pose a risk to seafarers. Abandonment
duties safely. If they fail, they may be
on vessels, unpaid wages, and risk of
unable to continue to the onboarding
criminalisation are just some of the
stage. Nautilus International reported in
issues seafarers face. A recent report
2020 that there was a sharp rise in the
by the Mission to Seafarers found that
number of seafarers failing their medical
some agencies are asking seafarers
checks or being deemed temporarily
for placement fees, which many are
unfit due to mental health conditions. 12
unable to fund. 9 In need of work, they
are forced to turn to lenders. This
malpractice is illegal, puts entire families ASSESSING COMPETEN CY
into debt and can create a negative BEYOND COCS
perception of seafaring life and deter Employers often opt to assess aspects
new talent from this career path. of seafarer competency over and
above regulatory COC (Certificate of
New research has also found that of
Competence). This is to ensure new
nearly 5,000 seafarers, almost 40%
hires are a good fit for their company.
experienced at least one form of
Competence is a combination of practical
unethical or illegal action in violation
theoretical knowledge, personality, attitude,
of international standards relating
and experience. Potential employees must
to worker rights. This has happened
show they possess the right skills and
either during the recruitment
attitude to do the job and continue learning.
process or while working at sea.

9 The Mission to Seafarers (May, 2023) Survey on fees and charges for seafarer recruitment or placement
10 IHRB and SSI (Apr, 2023) Seafarers and recruitment fees research briefing
11 ICS (Sep, 2021) Manning agency guidelines
12 Nautilus International (Jun, 2020) Sharp rise in seafarers failing UK medicals due to mental health conditions
ONBOARDING:
THE CH ALLENGE
OF BRINGING
PEOPLE INTO THE
ORGANISATION
EFFECTIVELY
Once a contract is signed, whether
it be for a shoreside employee or a
seafarer, the battle to retain them
commences. Whether someone stays
with an organisation for their entire
career or stays for just a few months
can often be decided in the opening
weeks of their employment.
For shoreside employees,
turning up on day one
to a well organised
induction process makes
an enormous difference
to long term retention.
ONBOA RDIN G TO
THE ORGANISATION
For shoreside employees, turning
up on day one to a well organised
induction process makes an enormous
difference to long term retention. In
those first few days, meetings with
key stakeholders, information on who
to speak to about issues, and the right
information on how to access and
use systems is critical to a new team
member hitting the ground running.
Similarly, training on systems, processes,
and/or required skills is a must.
When employees turn up to disengaged
line managers, disorganised processes,
lack of access to IT or equipment,
and a lack of access to training it
can immediately disengage them.
For those working at sea, the onboarding
process is even more important. It is a
logistics exercise involving planes, trains,
visas, hotels, port agents and eventually
a ship that will be home for months.
Though joining a ship is sometimes
unpredictable, if the process is
disorganised and poorly supported
it can leave crew members feeling
disengaged before they have
even reached the vessel.
 Why Human Capital Management is the future of HR and crewing 17

O NB OA RD I N G TO THE VESSEL
A ferry with 4 crew onboard left In many cases, advanced
port in good visibility. Autopilot was
engaged and the master was left alone technology is installed
on the bridge. He became distracted onboard ships and seafarers
writing up a manifest for the agent.
When he looked up, he saw a cluster
are expected to rapidly
of rocks dead ahead. Despite putting acquire new skills and
the engines full astern, preventing
vessel grounding was impossible.
competences to use it.
Several factors contributed to this
incident. But one factor underlines the
importance of good onboarding. The
master was not fully familiarised with LE ARNING &
the navigation systems onboard. He DE VELOPMENT:
subsequently wasn’t using the electronic
navigation system appropriately. THE CH ALLENGE
Coupled with a range of other factors, OF DE VELOPING
this is what led to the vessel suffering
substantial damage to her port bow. 13 AND SUPPORTING
This incident brings to light the need
PEOPLE
for mariners of all ranks to have the We’re asking more from people now
right familiarisation on all equipment than ever before. Today’s workforce is
when on a new vessel, or to refamiliarise expected to operate sophisticated ships
every time they join a vessel. As well with advanced levels of technology. In
as being a legal requirement of the many cases, advanced technology is
company, it is just good practice. installed onboard ships and seafarers
are expected to rapidly acquire new
The consequences of a poor or non-
skills and competences to use it.
existent onboarding process can range
from poor retention and all that comes
with it, right up to the most severe of E VOLVING AND UNCERTA IN
incidents. Avoiding incidents doesn’t REGUL ATION
just require good onboarding, it requires Maritime regulation also plays a
a strong overall approach to training. critical role in driving innovation and
in turn, the development and adoption
of new technologies. While IMO
requirements are well established and
any changes to conventions such as
STCW move slowly, the goals that
the IMO has set for areas such as
decarbonisation and cyber security
do not move slowly. Consequently,
prescriptive regulation on training can
often struggle to keep up with the pace
of change and we see more and more
reliance on best practice guidelines.

13 Marine Accident Investigation Branch (MAIB) - Safety digest 3/2002

 IN SUFFICIEN T FIN ANCIAL
RESOURCES TO TR AIN AND
As regulations change, PROGRESS CRE W
training must be updated A challenge with training crew today
and there is a risk this could is a lack of financial resources for
training. Economic pressures often
place an increasing burden lead to the reallocation of the budget,
on the seafarer. This must be and training can be the first to go. A

prepared for and managed. study on seafarer retention 14 found that

Organisations such as OCIMF,
Intertanko and RightShip have all
developed standards which many
charterers adopt. Such standards are
developed and published much more
quickly and are far harder to predict.
In addition, increasingly there are
also national and regionally agreed
regulations such as the European
Union MRV, ETS and GDPR that need
to be considered. These additional
regulations, best practice guidelines
and charterer requirements need to
be considered to thoroughly prepare
crews to meet and stay compliant with
requirements. As regulations change,
training must be updated and there
is a risk this could place an increasing
burden on the seafarer. This must
be prepared for and managed.
insufficient funding and commitment to
training from shipping companies is one
of the biggest barriers to recruitment
and retention rates in the industry.
Career development is hugely important
for seafarers. However, without support
and funding to achieve promotion in
rank, seafarers’ career progression
might be limited. If there is no clear
progression either at sea or on shore,
leaving the industry is inevitable.
According to the latest Seafarers’
Happiness Index, produced by the
Mission to Seafarers (Q4 2023),
seafarers downgraded their satisfaction
levels about training from 7.1 to 6.5/10.
The research found that seafarers are
excited about the opportunities to train,
particularly in new technologies and
methodologies which will enable the
industry to meet future environmental
standards. There is also a strong desire
from seafarers for more realistic, online
and efficient training methods, and that
time is properly set aside whilst on board
to complete these courses. Finally, the
respondent told them that training which
is presented as a “tick box” exercise
not only devalues the experience, but it
affects the attitude of seafarers who are
committed to progressing their careers. 15

14 Cahoon, S et al. (2014) Human resource practices in seafaring: Opportunities for improving retention
15 Seafarers Happiness Index, Mission to Seafarers, 2023
 Why Human Capital Management is the future of HR and crewing 19

43%
self-funded their training
in 2019 and 17% spent
anywhere from one-
tenth to one-fifth of their
income on training.

SE A FA RER S PAYING FO R THEIR

OWN T R A I N I N G
Seafarers are increasingly relying on
self-funding their training. A survey by
the World Maritime University (WMU)
found that around 43% self-funded
their training in 2019 and 17% spent
anywhere from one-tenth to one-
fifth of their income on training. 16

Perhaps worst of all is the fact that

78% of seafarers who took part in this
study claimed their organisation doesn’t
assess the impact of their training on
their work performance, making them
question the point of it in the first place.
PERFORM ANCE
M ANAGEMENT:
THE CH ALLENGE
OF ASSESSING
AND IMPROVING
DAY TO DAY
PERFORM ANCE
Poor engineering management,
delayed or incorrect information
being communicated by the ship,
poor safety management, poor bridge
communication, and poor record
book management are all reasons a
vessel could be detained or delayed,
subject to high demurrage payments.
They are of course all precursors to
a major incident too, but you don’t
need a major incident to result in
sub–optimal vessel performance.

16 WMU (2020) MarTID 2020 Training practises report

 With the average OPEX of a ship running ME ASURIN G PEOPLE
at $5,000 per day, poor performance PERFORM ANCE
leading to offhire days can be financially
Just as it can be challenging to measure
disastrous. One incident that was shared
the overall performance of a vessel,
anonymously with Ocean Technologies
it is challenging too to measure the
Group (OTG) 17 was linked directly to
overall performance of individuals and
poor training onboard. It led to a 271
teams. A remote work force operating
day offhire period, resulting in US $1.4m
within the micro culture of the vessel
in costs. Where a vessel goes offhire,
is difficult to evaluate consistently.
the knock on impact can be huge too. If
Individual appraisals are often carried
losing a vessel means an offshore energy
out in an ad hoc and inconsistent
construction project needs to be shut
manner, usually by officers in the same
down temporarily, the wider costs can
crew. In some instances it can be merely
run into the tens of millions of dollars.
a box ticking exercise, in others it can
The subsequent contractual penalties
be biased by individual relationships.
and reputational damage can be huge.
Often, the appraisals of individual
team members are used in isolation
to make decisions on advancement or

Cultivating an energy training without taking into account

wider factors such as the overall
efficient mindset can help, performance of a team or crew.
but this first requires
workers to feel supported LIN KING HUM AN AND VESSEL
PERFORM ANCE
and driven in their work.
A container shipping company 18
noticed that fuel consumption
onboard its ships was higher than it
should have been according to the
manufacturer’s specifications and
industry benchmarks. An internal
audit found no mechanical faults in
the systems, but instead, it appeared
that the crew severely lacked training
in planning and executing efficient
voyages, which led to more costly
routes, inappropriate speed adjustments,
and inefficient manoeuvring.

There was also found to be a lack of

understanding of engine and machinery
equipment, which meant it was not
operated in the most fuel-efficient way.

17 Confidential Case Study, Ocean Tecnologies Group, 2024

18 The identity of the company has been anonymised for privacy
 Why Human Capital Management is the future of HR and crewing 21

In ship performance, the human element

is not to be underestimated. In 2022,
Bernhard Schulte Shipmanagement
(BSM) investigated the influence of
seafarer behaviour on carbon emissions.
Using an app by clean-tech start-up
Signol that ‘nudges’ seafarers to make When employees leave
more fuel efficient decisions, BSM
reported bunker fuel savings of 4,000
they take with them
metric tonnes and 13,900 metric valuable knowledge and
tonnes of CO2 savings over a 4-month
skills they have learned.
trial period. This is equivalent to US
$3.16 million. 19 What’s more, is that Neglecting to secure these
BSM reported an increase in seafarer intellectual assets can have
morale and wellbeing due to ongoing
communication and personal interaction. costly repercussions.
This suggests that crew behaviour has a
strong influence on the fuel performance
of a vessel. However, seafarers that are
overworked or fatigued are less likely to
RETENTION: THE
be responsive to these ‘nudges’ given CH ALLENGES OF
by the app, highlighting the need to
match crew resources and workload.
KEEPING THE BEST
ASHORE AND AT
Another study completed in 2023 found
that the human element has a significant SE A
impact on ship performance. Living There are many reasons why a seafarer
conditions on board and health and might decide a life onboard is not
wellbeing were identified as the most for them. The same rings true for a
critical contributors to the overall energy shoreside employee. For the employer,
performance of a vessel. Cultivating this means replacing the talent they
an energy efficient mindset can help, have lost. When employees leave they
but this first requires workers to feel take with them valuable knowledge
supported and driven in their work. and skills they have learned. Neglecting
to secure these intellectual assets can
These are just a few examples of many
have costly repercussions. 20 According
that highlight the range of factors that
to analytics firm Gallup, the cost of
can impact individual, team and therefore
replacing an individual can range from
vessel performance. But measuring it
one-half to two times the employee’s
effectively alongside all of the other
annual salary. 21 The challenges that
factors that may contribute is incredibly
might cause someone to move ashore,
difficult. Without understanding how
or switch to a new employer remain
they are performing, it’s very difficult for
some of the most difficult to overcome.
anyone to see how they can have a long
term contribution to the organisation,
which brings us onto retention.

20 Gartner (Apr, 2022) How to safeguard institutional

knowledge in the face of the great resignation
21 Gallup (Mar, 2019) This fixable problem
19 Signol (Nov, 2022) Landmark maritime trial saves 13,900 metric tonnes of CO2 costs US businesses $1 trillion
I S OL ATIO N
Spending extended periods of time
away from home is stressful and lonely
for anyone, but in the maritime world,
this can be exacerbated. Moreover,
the global pandemic sparked new
concerns among seafarers that being
stuck onboard for months, if not
years, is a possible scenario they
could find themselves facing.

In addition, seafarers often feel

overwhelmed by the stress of events
back home and being unable to do
anything about it. An unwell family
member or relationship troubles are
hard to manage thousands of miles
away. A recent survey by ISWAN
revealed that in the second quarter of
2023, 18% of seafarers reaching out The 2006 Maritime
to ISWAN’s helplines regarding mental Labour Convention legally
health were struggling with family or
relationship problems. These challenges
requires shipowners to
encompassed issues with partners and provide crew with onboard
concerns over sick family members. 22
communications, yet 18
The 2006 Maritime Labour Convention years later many seafarers
legally requires shipowners to provide
crew with onboard communications, are still without access.
yet 18 years later many seafarers are
still without connectivity. Although
internet access does not replace
Crew are also spending less time in port
normal social interaction, it can help to
than they were several years ago. Due
provide the stimulation that seafarers
to decreasing vessel turnaround times
require, reducing the likelihood of
in port and visa restrictions, the crew
boredom and sense of monotony. 23
have little time to go ashore and enjoy
Today’s generation of workers want and free time. Crucially, this also means they
expect to be able to continue their digital have limited time to access onshore crew
life even once onboard. A 2018 survey 24 welfare centres, which during challenging
found that for the 92% of seafarers that times can provide some respite and
took part, internet connectivity strongly much-needed emotional support.
affected their choice of company. This
means that access to connectivity that
ensures seafarers can connect with
home, stream videos or browse the
internet is essential in their retention.

22 Safety4Sea (Sep, 2023) ISWAN: Mental health contacts in seafarer helplines increased by 37%
23 Intertanko (2021) Crew welfare management and mental wellness
24 Futurenautics (2018) Crew connectivity 2018 survey report
 Why Human Capital Management is the future of HR and crewing 23

There aren’t many jobs in the world

today where you might face a pirate
attack, a boiler explosion, or be at
risk of dying in an enclosed space.
But this is the reality for seafarers.

Hult, Co-Founder and CEO of maritime

WO R K ING C O ND ITIO NS
There aren’t many jobs in the world
today where you might face a pirate
attack, a boiler explosion, or be at
risk of dying in an enclosed space.
But this is the reality for seafarers.
Coupled with the lengthy periods of
time away from home and difficulties
in communicating with loved ones, it’s
clear to see why many are deterred from
joining or remaining in this industry.
Ships operate under constantly
changing regulatory requirements.
Companies need to ensure that
seafarers are well prepared to
work to required standards. Vessel
inspections will indicate if companies
are undertaking this responsibility
effectively and crew are on the front
line in dealing with the inspector.
Occupational health is another issue.
Many years of working in difficult
conditions can lead to chronic health
issues that ultimately force them to
leave the industry. According to Peter
healthcare solutions provider Vikand,
tens of thousands of seafarers leave
the industry every year as a result of
preventable ill health. He believes
that the average loss to the industry
is 20 years of experience per seafarer,
collectively totalling a 200,000-year
loss of experience every year. 25 He also
noted that in 95% of these cases, the
seafarer’s career could be extended.
Just as fundamental is the subject
of pay. Many seafarers are also not
paid on time or in the right currency,
making it difficult for them to spend
ashore or transfer money back home.
In 2022, the International Transport
Workers Federation (ITF) said it had
recovered $118.5 million in wages
owed to seafarers that had not been
paid between 2020 and 2022. 26
In a worst case scenario, a ship operator
may find themselves in financial
difficulties and be unable to pay
salaries full stop. This leads to seafarer
abandonment and in some cases they
become stranded onboard vessels that
have been detained by a port authority.
David Heindel, ITF Seafarers’ Section
Chair and President of the Seafarers
International Union said, “For some
seafarers, a shipowner might miss a pay
date here or there, but others can go
months without receiving their salaries.”

25 Seatrade Maritime News (Feb, 2024) Shipping cannot afford current levels of seafarer ill health
26 ITF (Sep, 2023) ITF recovers almost US$120 million in unpaid wages for seafarers over last three years
 Diversity is important to
help shipping companies
access a wider talent
pool, not just the talent
belonging to a particular
worldview or ethnicity.

While many maritime institutions deliver

their own cultural awareness training, it
is not prescribed as a training subject in
its own right. STCW requires seafarers
to be able communicate effectively
with multinational crews for safety
purposes. Many maritime institutions
therefore teach Maritime English.

However, cultural awareness training

is not currently prescribed as a
C U LTU R AL ISSUES training subject in its own right and
There is an extreme lack of diversity therefore is not always covered.
in the seafaring industry today. For a
If crew lack understanding of other
start, the number of female seafarers
cultures, miscommunication can
accounts for just 2% of approximately
occur and it can exacerbate feelings
two million seafarers worldwide. 27
of isolation and homesickness.
Seafarers are increasingly reporting
high levels of social and gender Another emerging area is that of cross
discrimination as well as racism onboard. generational culture issues. Changing
attitudes to the workplace, how
“Life at sea is often a rough and semi-
information is relayed and appropriate
hostile environment where it may be
leadership and management styles
difficult to create guaranteed safe spaces
can differ, creating tension and acting
for females,” Peter Schellenberger,
as a barrier to team cohesion.
Founder of maritime consultancy
Novamaxis told us. “At the same time,
there is an urgent need to train officers
for dealing with such situations in
various circumstances and prepare
owners and managers to create the
right environment for all, regardless
of race or gender,” he added.

27 WISTA (2021) Women in maritime survey 2021

 Why Human Capital Management is the future of HR and crewing 25

OVERCOMING THE
CHALLENGES: EFFECTIVELY
EXECUTING HUMAN CAPITAL
MANAGEMENT
Abraham Maslow developed
the hierarchy of human
needs. Unlike his peers at
the time, he believed that
A s this report has explored,
it is a time-consuming
and costly affair to recruit,
every human being is born
with specific needs and
each of those needs must
onboard, train, and retain
be met to enable survival.
seafarers. Your people will make
or break the success of your
operations; ensuring your crew
and shoreside staff are able to STARTING WITH
perform is critical. HCM aims
HUMAN-FIRST VIEW
to recognise the true value that
In 1943, an American psychologist
comes from caring for your named Abraham Maslow developed
people, and the implications the hierarchy of human needs. Maslow
believed that people are born with a
of the wrong approach. desire to reach their personal potential.
To achieve this, a number of more
basic needs must be met, which play
a key role in motivating behaviour.

The hierarchy moves from the most basic

needs such as water, food and shelter
through to social needs like friendships
and community. At the higher levels
are self-esteem and self-actualisation,
which include respect, achievement,
recognition and acceptance.
 Unlike other industries, in the maritime
industry many of these factors within the
hierarchy are placed under the control
of a seafarer’s employer. This is simply
because seafarers spend significant
amounts of time in remote and isolated
environments. Feeling safe and secure
or close to friends and family is very
much determined by the facilities
and protocols onboard the vessel a
seafarer works. It is therefore the
responsibility of a seafarer’s employer
to put in place strategies that support
crew and encourage them to progress
along their chosen career path.
It is therefore the
responsibility of a seafarer’s
employer to put in place
strategies that support
crew and encourage them
to progress along their
chosen career path.
A well-defined culture
is key to aligning
people’s views and
approaches to issues the
organisation might face.
DEFINING CULTURE
HCM depends on the culture of an
organisation. It is often defined as
a set of values that the organisation
attempts to live by. In reality, culture
is the sum total of the behaviours
an organisation tolerates.
As well as directly influencing decision
making through the HCM approach, a
well-defined culture is key to aligning
people’s views and approaches to
issues the organisation might face.
In doing so, a more collaborative and
cohesive strategy can be implemented,
encouraging employees to work in
harmony towards common objectives.
As well as enabling effective HCM,
a strong culture can also overcome
the challenges that come with many
different nationalities and generations
working together. “There’s a need
to focus on culture and engagement
and build a common understanding
of a company’s values,” Katie Lea,
Director of Culture and Engagement
at V.Group told us. “We are a global
organisation and we’re dealing with a
lot of different nationalities, cultures,
and generations. It’s key for us to make
sure everybody understands what
to focus on, and there’s consistency
in how they carry out activities.”

RECRUITMENT
AND ONBOARDI NG
One of the keys to getting the most out
of people in the long term, is setting
them up for success in the beginning.
With a shortage of good available
crew and the need to find candidates
that will support your culture, taking
a consistent data-driven approach
to recruitment and onboarding of
new staff or crew is so important.
There are solutions that screen
candidates consistently, no matter
their gender or background, which
removes the biases inherent in all hiring
processes. Pre-recruitment tests such
as the Seagull CES and Marlins English
Language provide a test of knowledge.
Similarly, there are ability and personality
profiling tools available on the market
that can help hiring managers to
understand the fundamental aptitude,
behaviours and ways candidates
think before they are selected.
This data-driven approach makes it
easier to match candidates’ technical
and soft skills with the appropriate roles.
This need will only become greater in
the future. It also acknowledges areas
where individuals may require additional
training. This ensures the right people
are employed and promoted, avoiding
the consequences of making a bad hire
that can be hard to come back from,
both financially and reputationally.
28 Internal Research, Ocean Technologies Group, Conducted 2023
29 DNV (Jan, 2023) New study explores seafarer training and skills needed to support decarbonisation
Why Human Capital Management is the future of HR and crewing 27
TR AINING AND
PERFORM ANCE
M ANAGEMENT
The assessment of individuals shouldn’t
stop at the point they are recruited.
It is a continuous process, and regular
assessments should be made for soft
and hard skills as well as for day to
day performance within the role.
An effective approach to HCM
facilitates skills development alongside
performance management. This
enables seafarers to understand not
just where they need to improve
but how to get there. This doesn’t
just work at the individual level, but
at the vessel and fleet level too.
Recent analysis by Ocean Technologies
Group combined port state control
performance data with training data
and found a correlation. In the research,
ship managers were grouped by their
approach to training management.
The operators with a data-driven
approach to learning management
were 49.5% less likely to receive
port state control deficiencies, and
33% less likely to be detained. 28
Seafarers are expected to operate a
wider range of advanced technologies
as the industry strives to become
safer and more efficient. A 2023 study
commissioned by the Maritime Just
Transition Task Force 29 found that
under one particular scenario focussed
on decarbonisation, around 750,000
seafarers will require additional
training to handle alternative fuels
and technologies by 2050. This need
will only become greater in the future
as the Just Transition data is very
much about 2030 and beyond.
There is no doubt the
training requirements
will increase. Making
this possible at scale will
require a personalised Training seafarers that are constantly
moving between ships and ensuring
approach to learning. their engagement with new and critical
information during periods of high
stress can be challenging. Remote
Preparing the global workforce for training enables learning to happen
these new technologies is a challenge at any time, in any location and can
in itself, but the uncertainty around be done in one of three ways:
the future fuel mix makes it even
more complex. The majority of the
current workforce is used to handling
conventional heavy fuel oil (HFO) so
fuel-specific training will be required to
1. Onboard learning - crew can
complete learning while onboard
the vessel and, when connectivity
ensure seafarers can safely handle future
allows, communicate with trainers
fuels such as ammonia and hydrogen.
on different vessels or onshore.
This won’t just require new investment,
it will require a continuous approach
to skill development, ensuring those
2. Online learning -
allows seafarers to
train when at home or away
operating the technologies have the
from their place of work.
right technical knowledge and practical

3.
experience to do so. Using HCM to
develop your training strategy allows
you to think much further ahead,
making it easier to justify longer
term investments into areas such as
manufacturer specific training for
different engine or equipment types.
There is no doubt the training
requirements will increase. Making
this possible at scale will require a
personalised approach to learning.
Mobile device learning -
enables seafarers to consume
online content via portable devices
such as smartphones and tablets.
Applications that enable content
to be downloaded and then used
while offline are particularly useful
for seafarers who wish to learn
on the go and while transiting
areas with no connectivity.

A ubiquitous approach means that
training can be available at any point
of need. More important than where
the training takes place, is the content
that is delivered. HCM allows training
managers to take a more personalised,
learner-centric approach. By bringing
management data on personal or
vessel performance into the picture,
it is possible to create a customised
syllabus for the individual that covers
their greatest weaknesses. Similarly,
by using data to analyse what gaps
may exist in the shoreside team in
the coming years, it is possible to
deliver a personalised syllabus that will
allow a seafarer to progress ashore,
retaining them for the long term.
Personalised content recognises
individual needs, maximises engagement,
and leads to better, stickier learning
outcomes. This approach promotes
self-directed learning, encouraging
individuals to take ownership of
their educational journey.
Personalised content
recognises individual needs,
maximises engagement,
and leads to better, stickier
learning outcomes.
Why Human Capital Management is the future of HR and crewing 29
By acknowledging that learners are
all starting from a different base with
diverse backgrounds, skill sets, and
learning paces, we can tailor experiences
for them and ensure a more effective
and satisfying educational experience.
This approach also enables a more
dynamic and adaptive learning
environment focussing on the knowledge
and skills that are needed in the flow
of work and empowers individuals to
thrive in an ever-evolving landscape.
There is much that emerging
technologies can do to support the
delivery of this. The cost of simulation
has plummeted in recent years. The
availability of cloud simulation further
reduces the dependency on hardware
and physical location allowing seafarers
to repeatedly run training scenarios
that would otherwise be too expensive
or dangerous. In addition, the use of
augmented and virtual reality further
expands the training toolkit. Lowering
lifeboats, fighting fires, negotiating
traffic in a narrow channel, and entry into
enclosed spaces can now all be simulated
safely, cheaply, and repeatedly until the
learner achieves the right outcome.
Looking further ahead, generative
artificial intelligence is making it possible
for dedicated algorithms to ingest vast
volumes of global and individual data
to generate both requirements and
auto generate content. This enables
the user to achieve their learning goals.
This could be through AI generated
text, a conversation with a tutor, an
explainer video, or an interactive quiz.

One final area of training
that is increasingly being
adopted, is crew wellbeing.
One final area of training that is
increasingly being adopted, with
one ship manager telling us that it
has become a mandatory part of
their library, is crew wellbeing. This
demonstrates how the facets of HCM
can come together. Good crew welfare
is important in its own right if it is a key
part of your organisation’s culture.
Fostering wellbeing also depends upon
a range of measures that together
facilitate a culture of care, translating
to a significant growth in the adoption
of training for soft skills. This growing
trend is backed up by data supplied
by Ocean Technologies Group.
T HE I MP O RTANC E O F TR AINING IN SOFT SKILLS TO BUILD A CULTURE OF CARE
These skills include leadership management, communication, cultural awareness, teamwork,
stress management, decision making, conflict resolution, and problem solving. The graph
illustrates an increase in training activities per person from 2017 to 2023.
Identified as supporting a culture of care
100K
Training activities
50K
0K
Year: 2017 2018 2019
The data represents training activities
relating to eLearning materials tagged
as contributing to a culture of care
such as wellbeing, good workplace
culture (bullying, harassment,
cultural awareness and soft skills). It
demonstrates that these have been
undertaken by over 400,000 crew since
2017 with a steady upward trend in
overall activity, from 25,000 events
per quarter to over 125,000 at the end
of 2023 and the doubling of number
of titles consumed by each seafarer.
Creating a supportive welfare-
focussed environment, where the crew
have strong soft skills, will require
some training for crew. Crew who
have received the training will likely
work on better ships and be more
likely to stick around for the long
term. This brings us to retention.
2.5
Training activities per person
2.0
(n = 447,411)
1.5
1.0
2020 2021 2022 2023
 Why Human Capital Management is the future of HR and crewing 31

more timely and efficient remuneration.

RETENTION This includes calculating hours worked,
Earlier this year, the Seafarers overtime, and any other allowances or
Hospital Society (SHS) introduced a deductions automatically. This also helps
toolkit of key performance indicators to ensure crew are paid in accordance
(KPIs) designed to assist maritime with regulatory requirements.
organisations in monitoring regulatory Some systems today are also designed
adherence and the annual effects to handle multiple currencies or tax
on seafarer health and welfare. The regimes, making it easier to pay seafarers
toolkit offers various methods for in their preferred or local currency.
companies to assess the health and
mental wellbeing of their seafarers, and It is also important for onboard
to guarantee prospective employees personnel to have access to nutritional
that their health will be protected. 30 food for both physical and mental
health. At present, energy-dense, low-
These KPIs don’t just cover the
employee, they cover their family
too. Torbjørn Eide, Vice President of
Maritime Personnel at Klaveness Ship
Management drew on the importance “Many are just starting
of providing a total care package for to learn about the value
both seafarers and their families. This
includes making sure health benefits
that HCM can add to
are available to the family. “It’s really the management of
important for us to recognise the role
seafarers. It’s not just
the families play and the impact this
career has on them. We recognise them about booking flights and
for their patience in allowing us to use getting them from A to B,
their spouses for four to eight months
each contract. We have sailors who it’s about their motivation,
have spent more time on board our their engagement, their
vessels than they have spent with their
families. And if you include the families,
career development,
the likelihood of keeping our seafarers their wellbeing, and their
for another 30 years or more is high.”
training. It’s also about
One of the most important steps an how we design, integrate,
employer can take is to ensure its
employees feel valued. This includes and adapt our HCM
paying crew their salaries on time practices to get the best
and in a currency most useful to
them. Sometimes crew are paid in
out of our most valuable
local currency which means getting resources – our people,”
the money back home is difficult and
Katie Lea, Director of Culture
costly. Under an HCM strategy, the
and Engagement, V. Group.
deployment of digital and automated
technologies can help to drive cohesion
between HR and payroll, facilitating

30 Nautilus International (Feb, 2024) Toolkit launched to monitor seafarers’ health

fibre, high-starch, sugary, fatty and
salty foods are often the go-to options
for seafarers.31 “You need to make sure
that people on board get the right and
proper food they need in order to do
the best possible job,” Torbjørn Eide,
Vice President of Maritime Personnel at
Klaveness Ship Management told us.
But making these investments, whether
into training technology or the social
life onboard require the organisation
to be able to measure the return.
Achieving that requires the ability to
measure the impact of these initiatives
across every facet of the organisation.

Similarly, the provision of recreational

facilities onboard alongside access to
good connectivity also help to create
a good employee experience. Gyms, The provision of
social activities and access to WIFI are recreational facilities
necessary to create a living environment
that is closer to the one on shore.
onboard alongside access
to good connectivity also
help to create a good
employee experience.

31 Baygi, F et al (2021) Global overview of dietary outcomes and dietary intake assessment
methods in maritime settings: a systematic review, Research Unit of General Practice,
Department of Public Health, University of Southern Denmark, Odense, Denmark

The major investment
required to implement HCM
effectively is in unifying the
data that exists in multiple
HR and crewing systems
across the organisation.
SYSTEMS:
THE VALUE OF A
CONNECTED DATA
L AYER
At its most basic level, HCM involves
using data from a wide range of
sources to make holistic decisions to
improve every aspect of working at an
organisation. But so much data is siloed
across an organisation that drawing a
link between, for example, training and
vessel detentions is almost impossible.
The major investment required to
implement HCM effectively is in unifying
the data that exists in multiple HR and
crewing systems across the organisation.
If your crewing system can’t share data
with your training system, or you cannot
measure SIRE deficiencies against
crew retention, you will not be able
to gain the full benefit of HCM. This
will almost certainly require investing
in new systems at some level.
Why Human Capital Management is the future of HR and crewing 33
Data privacy is also a concern as HCM
systems contain personal information.
HCM systems that are capable of
aggregating data from various sources
into a central data warehouse are
key. For example, a modular HCM
system that covers all data from the
hiring process, payroll, performance
management, learning and development,
and employee engagement can help end
users make sense of the data available.
The rate of technological advancement
is also more rapid today than ever before.
Companies adopting new tools have
to determine whether to replace what
they have or build upon it, adding
layers to their ‘technology stack.’ As
many solutions only do part of the
job, adding, rather than replacing is
common. However, if not done in the
right way, this approach can lead to
layers of complex systems that fail to
integrate or communicate well with
each other. This decreases rather than
increases efficiency, resulting in the
fragmented implementation of HCM
systems. Ultimately, this can lead to
difficulty in consolidating and organising
data, a lack of access to essential
data and long timeframes to obtain
meaningful insights from the data.
To avoid this tech stack issue, it’s
necessary to understand exactly how
HCM systems could benefit the business.
This first involves examining current
processes and identifying inefficiencies,
then determining whether there are
HCM systems that could fill this gap.
It’s important to think about whether
there are current systems in place
that could be replaced by a new, all-
encompassing solution. In thinking about
the organisation’s technology stack it
is important to conduct a full audit.
Look at the current HCM technology
stack, if one exists, and determine what
systems could be removed or replaced.

When exploring how your
IT architecture can assist
in the deployment of HCM,
seek systems that can
easily integrate with new
technologies and expand
in functionality as the
organisation grows and as
new needs emerge is vital.
Consolidate platforms where possible by
reducing the number of systems in place.
Choose scalable and agile solutions that
enable their capabilities to expand as the
business grows. The ability to integrate
should be high on the agenda when
reviewing existing technologies. APIs
that can enable seamless data flow and
communication between different HCM
systems create more value from the data.
It’s also important to centralise data
where possible. Implement a data
management strategy that centralises
HR data, making it easier to analyse
and extract insights. This should take
compliance and security into account.
Work with vendors who can ensure HCM
systems are compliant with regulations
such as GDPR as they contain vast
amounts of personal information.
When exploring how your IT architecture
can assist in the deployment of HCM,
seek systems that can easily integrate
with new technologies and expand in
functionality as the organisation grows
and as new needs emerge. Modular and
cloud-based systems make it easier to
add new features or modules without
significant disruptions. Selecting vendors
with a continuous development and
‘over the air’ deployment model will
give you access to regular feature
improvements and protect against
software obsolescence. This doesn’t
mean you need to use a single supplier
for all related systems. But it is
critical that your systems can either
communicate with each other, or better
yet, with a single data analysis system
that makes it possible to ask questions
and measure impact across the multiple
facets of human capital management.
Finally, it is critical to focus on user
experience. HCM tools should be
easy for users to engage with to
ensure high adoption rates. Once the
systems are in place it’s important to
monitor and measure performance.
Only once they are fully operational
and functioning as needed will it be
possible to fully implement HCM and
enable the crewing and HR teams to
make investment decisions based on
a unified view of the organisation.
 Why Human Capital Management is the future of HR and crewing 35

THE BOTTOM LINE: GETTING

A RETURN FROM HUMAN
CAPITAL MANAGEMENT

T his report so far has

highlighted the challenges
the industry faces in securing and
retaining talented personnel and
how to begin thinking about HCM.
The following section explores
the business critical benefits
HCM can bring to an organisation
both the top and bottom line.
With such a scarcity of
talent, companies are
not always able to find
personnel at the quality
standards they have
demanded in the past.

One of the key benefits of HCM

is that it can help to ensure the
right level of competence exists
throughout the organisation.

With such a scarcity of talent, companies

are not always able to find personnel
at the quality standards they have
demanded in the past. The question
today is ‘how can I get these people
quickly to where they need to be?’ A
good HCM strategy helps to improve
the chance of recruiting top talent by
ensuring the right people are selected
and placed into the right roles for
them. Psychometric and personality
assessments are a part of the toolkit
of any professional HCM strategy and
can be applied to ensure the chosen
candidates’ attitudes and behaviours
are well matched to the requirements of
roles, helping to optimise performance.
Adaptive learning can
be deployed to maximise
the efficiency of learner
time by using prior
assessments to identify
individual knowledge gaps
and build personalised
learning pathways

Competency management helps

to lay out a clear framework of
proficiencies that must be achieved
to qualify for specific ranks or be
selected for increased responsibilities
a specific rank, providing clarity to
both the company and the employee.
Adaptive learning can be deployed
By setting clear
to maximise the efficiency of learner performance metrics
time by using prior assessments to and providing regular
identify individual knowledge gaps and
build personalised learning pathways feedback, shipping
to close individual learning gaps, companies can identify
potentially reducing training time
where knowledge already exists.
areas for improvement and
When crew and staff feel equipped
recognise high performers.
with the right skills they are far more
likely to progress. But progressing an
individual means backfilling their role. When crew are promoted they need
Sometimes this means hiring, sometimes to be continuously evaluated. Systems
this means developing an existing used under an HCM strategy can include
employee. Either way, HCM enables you tools for monitoring and evaluating
to take a longer term view to workforce the performance of crew members.
management. Systems such as OTG’s By setting clear performance metrics
Compas solution enable the user to plan and providing regular feedback,
crewing far into the future. This makes it shipping companies can identify areas
possible to identify gaps ahead of time for improvement and recognise high
and train, promote, and hire as needed performers. This approach encourages
via structured succession planning. continuous improvement and helps to
maintain high levels of productivity.

One major benefit not discussed so far is
the ability for systems that support HCM
to automate mundane and repetitive
administrative tasks. This removes the
need to deploy a talented member
of the crewing or HR staff. Rather
than having a skilled worker spend
hours of the day inputting data into
spreadsheets, systems that talk to each
other or to a data warehouse can do
this automatically. This doesn’t just save
time, it reduces human error and makes
everything from onboarding to payroll
run more smoothly. Ultimately that
leads to a better employee experience
for everyone and better retention.
Why Human Capital Management is the future of HR and crewing 37
Ultimately, this creates
a virtuous circle,
where great people
are selected, receive
a positive onboarding
experience, are trained
effectively to do their
current job, and are
continuously developed.
Better retention relieves the pressure
on recruitment, a costly and time-
consuming process. WIth fewer roles
to fill, recruiters can spend more
time on assessing candidates and
improve the overall quality of hires.
Ultimately, this creates a virtuous circle,
where great people are selected, receive
a positive onboarding experience, are
trained effectively to do their current
job, and are continuously developed.
This increases the value people
provide to their organisation and
drives personal progression. They are
well looked after while employed, and
therefore don’t see the need to move
on. All of these factors, and how they
interact can be measured in a data-
driven way to ensure the organisation
can live up to its vision and values.
CONCLUSION AND
RECOMMENDATIONS
A s this report has explored, talent acquisition and retention
is complex and there are many challenges in securing an
organisation’s most important assets, its people. Successful
HCM can bring an array of opportunities to employees,
whether this is through finding and managing talent, allocating
resources, creating a culture of care, providing mental and
physical health support and ensuring crew feel valued.

HCM is key in facilitating

meaningful connections onboard
ships and the remote offices
that exist today. This ultimately
drives a community of seafarers
who feel positive, engaged,
and supported in their work.

HCM is key in facilitating meaningful

connections onboard ships and the
remote offices that exist today. This
ultimately drives a community of
seafarers who feel positive, engaged,
and supported in their work. Not
only does this improve the quality of
talent recruited, but also increases
the safety of shipping, and lessens
the likelihood of turnover.

The following includes a list of

recommendations to optimise HCM
for maximum business benefits.

01
START WITH
A VISION AND
COMMUNICATE
THIS TO YOUR
EMPLOYEES
The most important place to start when
implementing an HCM strategy is to
visualise the organisation you want
to be and the employee experience
you want to shape. You then need to
understand your current state and
create a roadmap for achieving this
vision. This includes employee journey
mapping, which includes outlining the
key stages of the employee lifecycle
and identifying opportunities to
enhance the experience at each stage.
This process will help
to pinpoint areas that
require attention, such as
cultural or skills gaps.
Why Human Capital Management is the future of HR and crewing 39
The most important place
to start when implementing
an HCM strategy is to
visualise the organisation
you want to be and the
employee experience
you want to shape.
This process will help to pinpoint
areas that require attention, such as
cultural or skills gaps. You then need
to identify the data points you want
to collect to measure your progress.
At the same time, you need to identify
the systems you need to put in place
to turn your vision into reality.
It is important to also communicate
this vision to your employees and be
transparent in keeping them updated
on overall company performance
and expectations. This will help to
ensure alignment of the vision and
values across the organisation.
02
CONDUCT REGUL AR
TEMPER ATURE
CHECKING OF YOUR
PEOPLE
Regularly check-in to gauge the
overall mood, engagement, morale,
and wellbeing of employees within an
organisation. The goal is to identify
potential issues, concerns, or areas of
improvement that can enhance the
workplace culture, increase employee
satisfaction, and ultimately improve
performance and retention. The
ultimate goal is to determine if your
vision and message is landing with the
03
FOCUS ON CH ANGE
M ANAGEMENT
If you are implementing an HCM system,
as with any new tool or process, the first
step is to win hearts and minds. Some
software users find they have trouble
getting buy-in from certain areas of the
organisation because they have concerns
about the technology replacing their
job. Be aware that there may be some
reluctance from users to engage with
Regularly check-in to
gauge the overall mood,
engagement, morale, and
wellbeing of employees
within an organisation.
people who are performing the work.
This can help to better understand
how your employees are interpreting
your messages, how they feel about
the work being asked of them and the
overall strategy of the organisation. For
example, consider collecting employee
feedback as actionable data through
pulse surveys. This will help to shape
and modify your strategy going forward.
In order to ensure HCM
brings the changes you
are after, you need to
prepare and ready those
who will be affected by it.
digital tools or solutions at first. In order
to ensure HCM brings the changes you
are after, you need to prepare and ready
those who will be affected by it. Define
the vision and goals of HCM and identify
who and how will be affected by it. Then
focus on developing a strategy that
encourages organisational-wide buy-in.

04
ENSURE YOU H AVE
GOOD DIALOGUE
WITH YOUR
VENDOR S
This is critical to getting the most
out of your HCM system. During this
research we spoke with end users
that realised after some time they had
features within their systems that they
were paying for and yet were not aware
of. This is not only a costly mistake,
but may also lead the user to believe
the system is not as useful as they
anticipated it to be. This also ties back
05
ACKNOWLEDGE
THE CONSTR AINTS
OF THE INDUSTRY
As this report has explored, the
shipping industry presents many unique
challenges for the seafarers of today. The
remote working environment means that
it is a hard place to get HCM right. But
those same constraints also require the
additional support that HCM provides.
It's important to not let perfection be
the enemy of good. HCM is a journey
Why Human Capital Management is the future of HR and crewing 41
Having a vendor that shares
or buys into your vision,
and has the experience to
support you through the
transition can be priceless.
to our first recommendation. If people
are not aware of why a system is being
implemented and how it can help them,
it will be harder to secure their support
and the business will not realise the full
value of the solution. Having a vendor
that shares or buys into your vision,
and has the experience to support you
through the transition can be priceless.
so concentrate on the low-hanging fruit
that will bring the quickest returns and
support your most important KPIs.
By taking this approach, you will be
better placed to harness existing talent
and develop the talent pool. Ultimately,
this will reduce the risk of critical
positions being left unfilled and drive
organisational resilience. Because of this,
it is critical to have an effective HCM
strategy that harnesses existing talent
and provides the tools and support to
develop the talent pool. This helps an
organisation to prepare and plan for new
hires with enough time, reducing the risk
of critical positions being left unfilled. In
turn, this drives organisational resilience.
 06
ENSURE TH AT HCM systems must work to bring
people, processes, and systems together.
YOUR HCM They must be able to integrate and

TOOLS DRIVE communicate with other systems

and solutions. Understanding the
COLL ABOR ATION value that different HCM systems

BETWEEN PEOPLE, play and calculating the savings that

they make can help you to decide
PROCESSES, AND where best to inject future investment

SYSTEMS and avoid the tech stack issue.

Understanding the value

that different HCM systems
play and calculating the
savings that they make
can help you to decide
where best to inject future
investment and avoid
the tech stack issue.
 Why Human Capital Management is the future of HR and crewing 43

Ultimately, a suite of targeted and effective

HCM systems will facilitate greater operational
efficiency and generate higher financial returns.
While performance management is not always
easy to get right, seafarers who are well
rested, not worrying about salary payments,
receiving the right training, and feel supported
to move up the career ladder, are more likely
to perform well. This ultimately translates to
the development of an asset that can make
sustained improvements to the performance
of the fleet and the wider business.
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