Three Commitments “ “

The Maritime Human Capital Crunch

The Maritime industry is witnessing a significant crunch in retaining mid-level seafarers. Despite improved salary and perks, good working conditions onboard and the advancement of technology, marine companies are struggling to retain experienced mid-level seafarers. These experienced professionals often drop out of seafaring right when they are at the peak of their capabilities. Marine employers struggle to fill the gap created by this exodus of their most talented people. According to statistics, in 1995 there was a shortage of 10% in the critical ranks, which accelerated to 20% in 2020. There is a severe talent deficit that is affecting the maritime industry.

Without sufficient mid-level professionals, commercial ships that play a key role in logistics may struggle to meet the growing demands of global supply chains. There is an urgent need for a framework that can help Marine employers cope with this human capital crunch.

The” Three Commitment” Framework: Road to better employee commitment?

At the heart of employee retention is “Commitment”. Commitment is the degree to which employees feel invested in their employer. The more committed the employee, the lesser the chance for them to move on. The “Three Commitment” framework is a powerful framework to guide employee retention. This framework is the result of an indepth study conducted by author covering several marine employers and seafarers.

The Three Commitments

The study shows that seafarers’ commitment to their employer is a complex construct involving three key components: Salary and Perks, Emotional Bonding, and a Sense of Obligation. Each of these factors has an important role to play in driving employee retention.

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Financial (Cost-Based) Commitment

Remuneration (salary and benefits) is a major driving force for any job and it is applicable to the maritime industry as well. A lucrative salary and benefits package can create “stickiness” by making it financially risky for the seafarer to move. However, this is not a long-lasting solution. When salary is the only driving force, chances are high for seafarers to shift to another company or profession that is offering more. Beyond a point, increasing remuneration loses its power to foster commitment.

Emotional Commitment

Social psychology tells us that peoples’ needs extend beyond food, clothing, and shelter. We want to belong, be valued, and be respected as individuals. Emotional commitment is the sense of “belonging” felt by an employee towards the employer. It is a powerful driver of retention.

Research shows that effort invested in creating Emotional Commitment among seafarers has an 8-fold impact on retention compared to investment in salary and benefits. Therefore, building emotional commitment is a strategy that can help in employee retention for a longer period of time. People should feel connected with the company, they should feel valued and appreciated.

Small gestures like arranging team lunch, celebrating birthdays, and organizing meetings and events with the team members can have a impact on employees’ minds and an emotional attachment is formed automatically accompanied by a sense of commitment.

Obligation-based Commitment

Obligation-based commitment refers to the sense of obligation engendered in the mind of an employee due to a favourable action of the employer that benefits the employee without an obvious quid pro quo. An employer sending an employee overseas

As a factor in driving retention, every dollar invested in obligation-based commitment achieves the same impact as $36 spent on initiatives targeting salary/benefits. [beyond the hygiene salary level]

To employ obligation-based commitment, the company should be proactive toward employees’ welfare and pay attention to the staff’s individual growth. The company may initiate the process to upskill employees, arrange training programs, and invest in these activities without expecting anything in return. The staff will grow and deep down, they will develop a sense of gratitude for these unconditional initiatives. Employees’ gratitude can increase their loyalty to the company and make them stay longer.

What next?

Maritime organizations may need to evaluate the level of commitment and job satisfaction of the employees to

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