Maersk Line: Running a tight ship

The first Maersk liner set out on its maiden voyage in 1928, leaving the American East Coast via the Panama Canal to the Far East and back. The cargo consisted of Ford car parts and other general cargo. Today, the Danish shipping giant is a market leader, transporting one in five of the world’s goods.

Employees form the crux of the company’s mammoth global operations. It hires some 25,000 employees and seafarers across 125 countries worldwide. Recent changes in organisational strategy are calling for employees to upgrade their skills sets. The company has been investing in education and training to help them gain confidence in unchartered waters.

When the tides change

Steeped in tradition, the shipping industry is known to be process-oriented and transactional. In recent years however, Maersk Line has been making some organisational changes to maintain its lead position in the industry. The company has turned its attention to the commercial side of the business. “There is a need to be more customer-focused,” says Pete Baker, HR Director, Asia Pacific at Maersk Line.

HR is at the heart of these changes as they call for new competencies among employees, says Baker. For example, customer service, employees who previously just handled routine transactions are now also required to establish closer relationships with customers and solve problems. “We need to give employees skills in areas with customers such as communication, agility and problem-solving.”

To achieve this, Maersk Line has been making special arrangements to allow front-line staff to be away from their desks from time to time in order to attend training workshops. Transactional and administrative tasks are also being assigned to global shared service centres so that employees can focus on providing a superior and more customised customer service experience.

Supporting employee development

Maersk Line places a lot of emphasis on its training and development efforts. Its online Learning Management System offers over 100 courses that will help employees improve their ability in a range of competencies like selling and negotiation skills. Employees can proactively select and complete a module in their own time. “In some offices where English is not the first language, doing a course at your own pace is very helpful,” says Baker.

The company also organises more structured courses for specific groups of employees. Its ‘Leading Others’ programme, for example, is a one-week course that equips high-performing employees with skills to become good managers and coaches. Some of the topics covered include prioritising and setting objectives, work delegation and assessing performance. “A leadership role is a really critical jump and you need to give employees the right skills to be successful,” Baker says.

Netting new talent

The shipping industry’s traditional image does not illicit the same sex appeal as banking and finance, management consulting or information technology – sectors that fresh graduates typically flock to.

Yet the industry is one of the most global in nature and ripe with opportunities, says Baker. “Our big challenge is raising awareness of the roles within the industry.” To achieve this, the company has started participating at campus recruitment campaigns in local universities. Its global online job portal also gives potential candidates more information about the roles and vacancies available.

Another outreach effort is the Maersk Line Graduate Programme (MLGP), which aims to hire top talent from universities who can be groomed to become future leaders in the organisation, says Baker. The two-year programme exposes them to the operations as well as commercial side of the business, through a series of accelerated assignments. Upon completion, participants are posted to management positions within the company.

Roles at Maersk Line are not limited to entry-level recruits, especially in emerging markets where competition is stiff. In fact, the company is hiring mid-career leaders to increase its talent pool.

Maersk Line is also looking for talent outside of the industry as many roles in shipping do not require specialist skills, says Baker. “For example, members of my HR team do not have a shipping background.” More importantly, Maersk looks for candidates who fit a desired personality profile – individuals who drive results, exhibit good leadership qualities and have the ability to collaborate. It does this by having candidates take an IQ test and an interview with HR.

Another attractive employee value proposition presented by Maersk Line is the flexibility to move across different business units in the A.P. Moller-Maersk Group, which also covers sectors like oil, drilling and logistics. “We offer a global career so it is possible for an employee to relocate to another country and find a similar role there,” Baker says.

Workplace diversity

Shipping is largely viewed to be a male-dominated industry. However, a study conducted by the Maersk Group found that teams with an equal number of women and men will have a higher employee engagement score that translates to better financial results. The survey also found that 40% of teams at A.P. Moller-Maersk had no gender diversity.

Addressing this situation, the group has started a bigger push for diversity in the organisation, and rolling out a new programme in 2010 saw the appointment of ‘diversity drivers’ in its six largest business units. They maximise opportunities for a diverse workforce through mentoring, fair recruitment strategies and talent planning.

The group’s Asia-Pacific businesses seem to be ahead of the curve, hiring a much higher percentage of female leaders. This is especially true in the Philippines, where 42% of General Managers are female. Two out of three Director positions in Manila are also filled by women.

“As a global company, greater diversity is a natural progression” Baker says.