Future Trends in Maritime Human Capital Management
Human Capital Management (HCM) is an approach to workforce management that views employees not just as resources, but as valuable assets whose skills, well-being, and engagement are critical to organisational success.
Unlike traditional Human Resource Management (HRM), which focuses on administrative functions like payroll and recruitment, HCM takes a strategic, holistic view. It integrates processes such as talent acquisition, onboarding, learning and development, performance management, and retention into a cohesive framework aimed at maximising the value of the workforce.
In the maritime industry, where safety, efficiency, and compliance are paramount, taking an HCM approach is especially valuable.
Managing a global workforce of seafarers and shoreside staff comes with unique challenges, from high turnover rates and complex training requirements to ensuring mental and physical well-being in demanding environments. By adopting HCM practices, maritime companies can create a more resilient, skilled, and satisfied workforce, setting the foundation for long-term operational success and sustainability.
With a focus on evolving recruitment, training, and retention strategies, HCM equips teams and companies to meet the increasing demands of safety, efficiency, and environmental compliance.
As our industry moves forward, human capital management strategies will be the key to achieving broader organisational goals, making a compelling case for maritime leaders to prioritise HCM initiatives in their strategic planning.
Embracing Advanced Technologies
The adoption of new technologies in the maritime sector is not just reshaping the landscape of global shipping operations; it’s compelling maritime businesses to rethink how they manage and develop their most valuable asset – their people, to realise the value of these innovations.
Autonomous vessels, advanced propulsion systems, and smart navigation are no longer futuristic concepts but present-day realities. While these developments promise to enhance efficiency and safety, they require a skilled workforce to operate them and do so safely, According to a survey conducted by Wärtsilä Marine Business, two-thirds of shipping companies have started on their digital journey, with this being just the beginning, as 69% of them are currently exploring digital solutions.[1]
As maritime operations become increasingly advanced, workforce management must encompass more than recruitment and training,, it requires a holistic approach to workforce development, strategic planning, and retention. Training plays a key role, but effective HCM also focuses on long-term career development, ensuring employees have opportunities to grow and adapt alongside emerging technologies such as LNG, hydrogen, and ammonia fuels. By aligning workforce planning with the industry’s transition to greener fuels and advanced systems, HCM strategies not only equip individuals with essential technical skills but also help develop engagement and build loyalty, creating a more resilient and future-ready workforce.
Leveraging Data for Strategic Decision-Making
Data is playing an increasingly important role in the maritime industry. In an industry as dynamic and globally dispersed as shipping, the ability to rapidly collect, analyse, and respond to data translates directly into enhanced operational efficiency and crew satisfaction.
When Royal Caribbean implemented Eniram big data analytics systems on 12 of its Cruise ships, it saw an estimated savings of 4% or USD12m annually.[2]
Data is also unlocking the full power of Human Capital Management, with data now backing decisions with precision and insight that was previously unattainable Integrating a connected data layer within HCM systems changes how maritime businesses manage compliance and workforce dynamics. This system combines information from crew performance, training completions, and compliance audits into a unified dashboard. Such integration enables HCM managers to spot trends and anomalies quickly. For example, if an uptick in compliance issues is observed, managers can investigate and address potential causes, such as gaps in training or the makeup of the crew aboard. Once the cause has been identified, the manager is then empowered with data to take a proactive approach to protect against such falls in standards in the future – smoothing out operational wrinkles and ensuring adherence to safety and regulatory standards, safeguarding both the crew’s well-being and the company’s reputation.
The power of predictive analytics in workforce management is incredibly important for the maritime industry. Through detailed trend analysis, companies can anticipate future staffing needs and skill shortages – a present and looming issue, allowing them to prepare effectively without the scramble associated with last-minute hires.
This foresight is particularly crucial in a sector where the timely availability of skilled personnel directly impacts the bottom line. By planning for potential retirements or identifying the need for additional training, HCM systems enable companies to maintain continuous operational readiness, turning potential disruptions into well-managed adjustments.
Commitment to Continuing Professional Development (CPD)
As regulations shift and technologies advance, the need for up-to-date skills and knowledge becomes more acute. HCM systems play a pivotal role in this educational evolution. Ongoing learning is core developing crew and the incorporation of advanced learning management systems enables maritime companies to deliver training programmes which are both responsive to the changing maritime landscape and offer maritime professionals’ multiple options for advancing their knowledge. This flexibility ensures that learning and development opportunities are not confined to the shore but are an ongoing process that crew members can engage with wherever they are.
According to research data from Gilbert Maturan, Global Training Manager at Teekay (Casey & Sturgis, 2018), “60% of learning occurs onboard, through practical, hands-on experience; 30% takes place through interaction with peers (coaching and mentoring); 10% comes from formal, short courses taken while ashore”. Therefore, the providing of specialised base education on a high-level of competence beneficially contributes to the preparation of future maritime professionals.[3]
The data-driven capabilities of HCM systems allow companies to track and analyse the effectiveness of their training programs in real time. This means they can quickly identify areas where learning is not translating into practice and adjust their training methods accordingly. By continuously refining training approaches, maritime companies ensure that their workforce is not only well-prepared to handle the demands of their current roles but also primed for future advancements and responsibilities.
Enhancing Crew Welfare Through Technology
Technology is becoming key in improving the welfare of crew members aboard vessels. As the industry acknowledges the critical importance of crew well-being for overall operational effectiveness, companies are turning to different solutions. For instance, enhanced onboard connectivity is no longer a luxury but a necessity, allowing crew members to maintain contact with family and friends, which is vital for their mental health.
The 2023 SEAFiT Crew survey, which is the largest survey on crew welfare conducted worldwide with the participation of 1.6K ships and almost 20 thousand seafarers, highlighted that the internet plays a vital role for life onboard. Over 70% of the crew members do not experience difficulties in establishing good relationships with their colleagues and rely on high-quality internet access to maintain connections and communicate with their loved ones back on land, a need expressed by an astounding 91% of participants.[4]
It’s not just the internet though, various different startups and SMEs have been diligently working on pushing out their new technologies that are specifically designed for not only crew welfare but vessel safety as well.
Sensing Feeling is a smart system of visual analytics that uses CCTV cameras to observe behavioural patterns and then analyse them using Machine Learning. It can generate hourly stress and fatigue indices for individuals during trial scenarios and monitor individuals’ performance in high-risk scenarios such as bridge procedures during watch handovers, activities involving the wearing of PPE equipment and in the machinery room, as well as providing surveillance of workflow patterns, any onboard accidents or falls and incursions by unauthorised personnel.[5]
The integration of health monitoring devices such as these onboard ships is a growing trend aimed at safeguarding physical health just as much as mental health. Wearable devices can track vital signs and alert medical staff of potential health issues before they become critical. This technology fosters a safer working environment by preemptively managing health risks, significantly reducing medical evacuations, which are costly and logistically challenging.
Integrating AI and Automation
AI and Automation offer many solutions for time-stretched crew and office teams.
Through the automation of routine processes, companies can free up time for people to do the work that require a human touch. Crewing managers can reduce their administrative loads and spend more time supporting the crew. Technical managers can spend less time chasing approvals and focus on optimise vessel safety and performance, Automation and AI promise to maximise productivity, enhance the accuracy of work, and improve reliability. Improved accuracy and efficiency can have a knock-on impact on crew wellbeing and retention. For example, automated payroll process will reduce the risk of errors in salary distribution, ensuring that crew members receive their correct pay on time, an important factor in maintaining high morale on board and ashore.
Imagine AI reviewing pre-employment questionnaires to match seafarers and office staff with the best-fit vessels, offices, or teams. While promising, this approach isn’t without challenges, AI can inherit biases from training data, and legal issues in other sectors highlight the need for fairness and transparency to ensure responsible use. In time it would be possible to highlight where operations run more smoothly within a certain department of onboard crew. It might show that budgets are exceeded or that KPIs of safety performance decline or improve. Predictive analytics can help identify these insights that may not be attainable today, at a reasonable cost.[6]
For some though, the question remains: Will AI replace the roles of seafarers? While AI holds the potential to overhaul many facets of the shipping industry, seafarers are not on the verge of becoming obsolete. The human element, with its adaptability, empathy and decision-making abilities, still remains a crucial component of maritime operations. Instead of fearing the rise of AI, seafarers should embrace it as a complementary tool that can enhance their work performance, safety, and efficiency.
Aligning with Sustainability and ESG Goals
In the maritime industry, caring for your crew goes hand in hand with caring for our planet and society. That’s why integrating Environmental, Social, and Governance (ESG) principles into HCM isn’t just good practice, it’s essential for a sustainable future.
When companies genuinely invest in their crews through safety training, fair treatment, and respect they’re not just complying with regulations; they’re building a positive workplace culture that echoes far beyond the confines of their ships.
But it’s not just about compliance; it’s about building a brand that people trust and want to be part of. Companies that prioritise ESG in their operations don’t just attract investments; they attract passionate employees who are eager to work for a business that matches their values. This dedication not only minimises the risk of accidents and disputes but also enhances the company’s reputation, ensuring long-term operational success.
The shipping industry often focuses on improving environmental sustainability and fuel consumption but pays less attention to the “S” in ESG. Raal Harris from OTG emphasises the importance of social factors in creating a positive workplace culture and attracting and retaining talent. He suggests that companies should align their values with their actions, communicate them effectively, and listen to employees’ concerns. ESG can impact financing, recruitment, and sales as stakeholders increasingly prioritise values and ethics. Transparency in documenting ESG efforts is crucial for demonstrating commitment and building successful company cultures.
What’s Next?
Investing in human capital means investing in the very heart of maritime operations.
By prioritising continuous learning, leveraging technology, and ensuring that business practices are sustainable and ethical, the industry is not only enhancing the efficiency and safety of operations but also securing a competitive edge in a rapidly evolving global marketplace.
This commitment to empowering maritime professionals paves the way for a future where the greatest asset – the people – are equipped to lead safely and sustainably.
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