Shipping by its very nature is a particularly mobile business sector. Ships trade globally and can be managed from almost any well-connected location, whatever the flag the vessel is flying. Cities such as London, Oslo, New York, Hong Kong and Singapore all compete for a share of the shipping business, but it is Singapore which has seen the strongest growth since 2000.
In recent years, we have seen a huge influx of international shipping companies and professional service providers such as shipbrokers, lawyers, insurers and financiers opening regional offices in Singapore. From Greek shipping companies to British law firms, Norwegian insurers to American offshore specialists, more and more companies are bringing in staff from overseas and hiring locally in order to do business in the Asia-Pacific region.
Despite the high-profile difficulties of the shipping industry and last year’s dramatic collapse in freight rates, ships still need to sail safely and run efficiently. Whether an experienced technical superintendent, a well-connected sale and purchase shipbroker, or highly qualified commercial and technical shipping professionals, employers often struggle to find the right people.
It’s equally a challenge ensuring that this talent remains within the firm and is not tempted to seek fresh pastures. It has become a hugely competitive local market with the demand for maritime talent predicted to soar in 2010.
This global war for talent is having a spill-over effect on traditional Asian-focused companies. HR managers in Asian or Singaporean shipping, maritime and oil and gas companies should start thinking of innovative retention strategies, whether it is through salaries, benefits, working environments or flexi-time.
One way they can address this is by adopting more international standards when it comes to compensation terms and conditions they offer employees.
For example, a European company usually offers up to 21 days of leave to employees so an Asian company that typically offers 12 to 14 leave days could readdress that in order to attract good global talent to work in Singapore.
Working alternate Saturdays five years ago was seen as the norm in shipping circles but today, as in other international shipping centres, most activity takes place between Monday and Friday. Once a common feature of a typical Singaporean working week, Saturdays are now spent shopping and relaxing with friends and family, rather than working. Of course, technical people are usually on call 24/7, but flexi-time working practices have been introduced in many companies as employers recognise the importance of establishing a good work-life balance for employees.
Companies can also consider providing private medical insurance to employees on top of Singapore’s Central Provident Fund contributions. Similarly, child care and maternity leave are important issues for young families so Asian companies would do well to raise or offer child-care and maternity allowances to better match those offered in Europe and the US.
Another aspect, which traditional companies can become more focused on, is making the working environment more pleasant and ensuring that the office is located near public transport. Employers have to understand that shipping and offshore professionals have many choices when it comes to employment so it makes good economic sense to ensure that they are kept happy.
From the international employees’ point of view, we have seen a big shift in attitudes towards being based in Singapore. A few years ago, many expatriates viewed it as a place to possibly make some good money in their 20s and early 30s before returning home to raise a family. Today, however, many are seeing Singapore as a work destination of choice and somewhere to lay down roots. Houses and apartments are being bought, children sent to local schools and, in the event of redundancy or seeking the next career jump, a move to a rival in Singapore, rather than back to Europe or the US is the first choice.
Because of the international nature of shipping and the fact a lot of regional offices are based in Singapore, traditional Asian shipping companies here could take a more European view to holidays and flexi-time. Taking the benefits the firm provide to a more international platform, might even help non-shipping companies such as local SMEs to retain talent better because talent appreciates such perks.
Mark Robertshaw
Vice president
Faststream Recruitment Asia Pacific
www.faststream.com.sg
