What is Human Capital Management?
In an industry where talent is both scarce and critical to success, the way companies manage their people can make all the difference. Traditional HR, crewing and training functions all play important roles, but they often work in isolation and miss the bigger picture. This is where Human Capital Management comes in. It is a strategic, long-term approach that brings together recruitment, development and retention into a single, joined-up strategy.
Understanding Human Capital Management in Maritime
Human Capital Management (HCM) is an approach to growth that puts people at the heart of strategy and goes beyond a single function or area of responsibility, such as crewing or HR. By taking a data-driven approach to managing workforce development, HCM establishes a culture in which people are recognised as an essential part of business success. HCM encompasses recruitment, onboarding, training and development, career planning, and performance management.
Bringing all these elements together, and understanding their impact on each other, and on business performance, is the true power of human capital management. By understanding, planning, and evolving HCM strategies, businesses can reduce costs, improve crew performance and retention, and build a sustainable business with a motivated and capable workforce. More importantly, by employing an HCM approach, it is possible to evidence the direct business impact of workforce-related policies.
Why Human Capital Management is essential for Maritime
For shipping companies, investing in people is critical to building a resilient workforce that can adapt to industry challenges and ensure long-term success. The maritime sector is evolving rapidly, with decarbonisation and regulatory changes reshaping operations, and increasing competition for skilled talent, elevating the importance of being able to attract, retain, and grow the best people. Companies that fail to plan for these shifts risk being left behind.
Human Capital Management provides a structured approach to developing and retaining talent, ensuring businesses have the people they need when they need them. Succession planning is key to avoiding skills shortages and operational gaps, allowing organisations to build expertise in-house rather than constantly relying on external recruitment. This is not just a cost-saving measure, it is a way to create a committed, high-performing workforce that drives business success.
HCM in action: How CLSICO is benefitting from a Human Capital Management Approach
China LNG Shipping International Co. Ltd. is a leading LNG shipping company that has put Human Capital Management at the heart of its business. Through its commitment to investing in its people it has improved retention, enhanced performance, and has a very strong reputation in the crewing market – never having to advertise positions.
John Wood, Assistant General Manager and Head of Manning and Marine at CLSICO, explains why this approach matters. “Our charterers want reliability. They do not want delays or breakdowns. The service we provide is top quality because of our commitment to training and development.”
CLSICO’s approach highlights several important benefits of Human Capital Management:
- Building Competence and Confidence
The company uses structured competency frameworks to assess crew performance and provide targeted training. This ensures that their workforce is always working to industry standards and best practices. - Retaining Talent by Investing in People
CLSICO has built a strong reputation as an employer that values career development. This has helped the company retain top talent and reduce the cost of constantly recruiting new crew. - Improving Performance and Reliability
The company’s structured training programmes, including the Ocean Learning Platform, provide crew members with the skills they need to work safely and efficiently. This played a key role in securing a major contract with QatarEnergy. - Keeping Costs Under Control
With crewing costs rising across the industry, CLSICO’s focus on upskilling its own people means it does not have to rely as much on expensive external recruitment. This approach builds a strong, committed workforce that delivers long-term benefits.
If you are looking to future-proof your workforce and create a strong talent pipeline, CLSICO’s story is a great example of what is possible. To learn more about how Human Capital Management can transform maritime operations, read the full CLSICO case study here.
Human Capital Management as a tool for success
By embracing Human Capital Management, maritime organisations can build a skilled, engaged, and future-ready workforce that drives operational excellence, enhances safety, and ensures long-term business success in an increasingly complex industry.
As the sector navigates challenges such as decarbonisation, evolving regulations, and a competitive talent market, companies that prioritise workforce development and strategic planning will be best positioned to thrive. Investing in people is not just an operational necessity – it is a competitive advantage that enables businesses to remain resilient, adaptable, and prepared for the future.
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