dnv maritime solutions\' working environment survey of the norwegian maritime cluster 2009

$: DNV Maritime Solutions\' Working Environment Survey of the Norwegian Maritime Cluster 2009$
Ari Marjamaa, Director, DNV Maritime Solutions October 8th 2009

DNV Maritime Solutions Working Environment Survey 2009Taking the pulse on the maritime industry

© Det Norske Veritas AS. All rights reserved.

DNV Maritime Solutions Working Environment Survey 2009

18 June 2009

2

Executive summary (1/2)About the respondents in the survey

The typical respondent is around 30 years old, but almost 40% are between 30 and 40

The majority of the Norwegian respondents have a MSc degree compared to around a third having Bachelor degrees

Norwegian women and men choose differently when it comes to education, but not dramatically so

Shipowners represent one third of the population, with the rest relatively evenly distributed across the remaining segments

Commercial positions are represented by a third of the population, while operational roles represent a fifth

The crisis is felt by us all…

The financial crisis and the downturn in shipping have influenced all parts of the maritime industry, leading to recruitment freezes and cost cutting initiatives

The larger the firm the more initiatives have been taken to adapt to the changes in the shipping market

Consulting and ship insurance are the most positive segments, while agents and shipowners are the most negative segments

Only 7 % of the respondents are afraid of losing their job, but 14% would be willing to reduce their salary to keep it

In Norway, the atmosphere is perceived to be better at the largest companies

…but we are still satisfied working in the maritime industry

Despite the market turmoil and uncertainties, more than half of the respondents are happy in their current job

Most of the respondents are happier with their job now than in the previous years, except people working with ship finance and classification

Why do we work in the maritime industry?

All age groups have similar reasons for choosing the maritime industry, but family & traditions are more important for the youngest and the oldest

Both women and men choose the maritime industry because it is an exciting business, but men rank the salary higher than women do

All educational backgrounds choose the industry because it is exciting, but MBAs in particular find the career opportunities attractive

Shipowners are the natural hub for employers in the maritime industry



18 June 2009

3

Executive summary (2/2)How does the industry players attract talents?

Advertisements are still the primary source for attracting future employees, but headhunting and personal network have been more important in the past 12 months as a means of getting a new job

Developing talents – an upside potential

Junior management training and job rotation are most used career development initiatives

Less than a fifth of respondents report having talent programmesor structured career planning in place in their organizations

Talent management is a key issue in today’s HR landscape, and it appears that the industry has some improvement potential here

Retaining talents by challenging and developing them

Satisfaction is generally lower than the importance, creating a latent dissatisfaction (AKA upside potential)

There are clear changes in 2009 compared to the overall averages for motivational factors, but little change in relativesatisfaction

There is a strong correlation between the factors important to the employee and how happy she is in her job

There is a clear relationship between how happy you are in your job and how long you expect to stay

The satisfaction of the job largely depends on the satisfaction with development initiatives and remuneration, but also of how challenging your tasks are

- The three factors explain more than half of the variability in the happiness with the current job, with challenging tasks being the most important

- The way the employer contributes to personal development influences how happy you are in your job

- The remuneration is important for job satisfaction, but not the main point

But job happiness only explains about 20% of how long an employee expects to remain in her position

Less people are actively looking for a new job, while a larger percentage have increased their time perspective in the current job

- The employees on the move will leave their current employer, but the majority will remain in the industry

- The shorter the perspective, the more likely that the employee will leave the company or the industry altogether

What are tomorrow’s challenges?

Environmental issues, recruitment and competence and increasing overcapacity of vessels are perceived as the major future challenges for the industry



18 June 2009

4

What does the presentation contain?

Background and introduction

The survey population- Who are they?- What do they do?

The times are tougher – does that make a difference?- What are the effects of the market turbulence? - Does the charm of the maritime industry remain, despite the tough times?

Managing your talents- Attract them- Retain them- But is that enough to keep them?

Who are tomorrow’s winners?

Where to next?



18 June 2009

5

Shifting the focus from the sea to the shoreThe big issue has left a shadow onshore

For many years, the maritime industry has been aware of the challenges in recruiting and retaining offshore personnel. Many efforts have been made to tackle this issue and a lot of attention has been given to it. To a certain degree, this has come at the cost of the attention given to onshore personnel.

Also, the maritime industry is inherently traditionalist, some would say conservative, and has not always lead the way in the implementation of sophisticated management practices and organizational philosophy.

People – the building block of companies and industries

DNV Advisory Services work with our clients on a wide range of issues. A constantly repeating factor in all the work we do is the importance of the competence, experience and skills of the people working at our clients’ organizations.

Over and over again, we see that this is the key driver for competitive advantage and long term business performance. We also see that often too little attention is given to the development and nurturing of onshore human resources.

Not only individual companies suffer from this, but also the industry as a whole. Only the best people can build the best industry – but they have to be recruited, trained and developed (not to say retained) by the industry to really matter.

Keeping the ball rolling

In 2007 DNV Advisory Services initiated a working environment survey for the maritime industry in Norway. The ambition was to contribute to the continuous work of the industry to maintain competitive advantage for both the Norwegian maritime industry as a whole, as well as for individual companies.

Together with YoungShip, DNV has developed the reference on the working environment for young people in the maritime industry – what attracts them, how they are and want to be developed, and how companies work to attract and retain them. The survey database currently contains more than 1000 unique respondents from the maritime industry, allowing a peek into themechanisms that makes this industry of ours tick.

Since we started the Survey in 2007, we have noticed a shift in the way companies thing about onshore employees – more focus, more development, more structure. It may seem as if the ball has started rolling.

Same procedure as last year, or maybe not?

The survey is currently in its third year – and what a year! The shipping industry has gone from a once-in-a-lifetime high to a once-in-a-lifetime low. Within less than 12 months! How does this affect life in maritime companies? And how are the people within them affected and changing?

In the following we hope to give you a glimpse of this, so let us move on.



18 June 2009

6

About the survey

The survey consists of 50+ questions on topics such as- The respondents background (age, sex,

nationality, education) - Current workplace and employer (what

company and department, size of company, etc)

- What attracts to the industry or a certain job- What are the motivation in the current

position- Mobility- Remuneration (salary, bonus & benefits)- Personal development (training, etc.)

The survey is distributed as an online questionnaire provided by Questback, www.questback.com



18 June 2009

7







Where to next?



18 June 2009

8

About the population and the respondents

THE SURVEY POPULATIONThe population consists of the members of Youngship in Norway, spread out among the entire maritime industry as well as geographically in Norway (including some abroad)

• The breadth and diversity of this group allows for drawing conclusions on an industry wide level.

• There are few respondents in some of the segments, which dictates some caution to be made in the conclusions drawn here.

DISTRIBUTION OF RESPONDENTS’ NATIONALITYDISTRIBUTION OF SEGMENTS

DISTRIBUTION OF AGE & SEX DISTRIBUTION OF LOCATION

Other6,2 %

Poland0,4 %

New Zealand0,4 %

Finland0,4 %

China0,4 %

Spain0,4 %

United States0,9 %

Turkey0,4 %

France1,3 %

Singapore0,9 %

Sweden3,1 %

Norway90,7 %

United Kingdom0,4 %

NPercent of

total20-25 years 16 7 %26-30 years 132 57 %31-40 years 83 36 %

231

NPercent of

totalShipowner 75 32 %Equipment maker 8 3 %Yard 2 1 %Ship management 21 9 %Ship broking 19 8 %

Ship financing 23 10 %Ship insurance 15 6 %Consulting 16 7 %

Maritime law 6 3 %Class society 15 6 %Agent 4 2 %Other, please specify 27 12 %

231

NPercent of

totalOslo 119 52 %Bergen 75 32 %Haugesund 1 0 %Kristiansand 10 4 %Stavanger 2 1 %

Other, please 22 10 %Total 229

NPercent of

totalFemale 77 33 %Male 154 67 %Total 231

Share of respondents



18 June 2009

9

The typical respondent is around 30 years old, but almost 40% are between 30 and 40

0,00 %

20,00 %

40,00 %

60,00 %

20-25 years 26-30 years 31-40 years

200720082009

A total of 231 respondents participated in the survey in 2009

Total number of respondents over the last 3 years is 1000+, including respondents in Singapore and the UK

The respondent group is dominated by respondents in the 26-30 age bracket, representing almost 60% of the respondents

The youngest age bracket represented less than 10% in 2009

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Age distribution of respondents (2007-2009)



18 June 2009

10

One third of respondents are women and the share is rising

Since the first survey, the share of women has risen by almost 10 percentage points

This is probably a reflection of a higher share of women in the shipping industry in Norway

Male66 %

Female34 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

2007 2008 2009

MaleFemale

Distribution of gender in 2009

About one third of the respondents are female

Development in distribution of gender since 2007

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18 June 2009

11

The majority of respondents are located in Oslo, but around one third in Bergen and 15% in other locations

The majority are located in Oslo, with Bergen a good number two

Among “Others” are Bangkok, Bombay, London, Sopot(Poland), Tønsberg, Arendal, Grimstad, Sortland & Offshore

The survey has increased in scope, as the population has widened from being purely Oslo & Bergen based, to being national

In which locatio do you work (Norway 2009)

Oslo52 %

Bergen33 %

Other 10 %Stavanger

1 %

Kristiansand4 %

Haugesund0 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

200920082007

Other StavangerKristiansandHaugesundBergenOslo

IN WHICH LOCATION DO YOU WORK? (NO 2009) IN WHICH LOCATION DO YOU WORK? (NO 2007- 9)


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18 June 2009

12

The respondent group is overwhelmingly of Norwegian nationality

France1 %

Other5 %

Sweden3 %

Norway91 %

Distribution of nationality of Norwegian respondents

The vast majority of the Norwegian respondents are of Norwegian nationalityThe second biggest group is SwedishAround 5% are of other origins, among these - Singapore- China- Finland- New Zealand- Poland- Spain,- Turkey- United Kingdom- USA




18 June 2009

13

The majority of the Norwegian respondents have a MSc degree compared to around a third having Bachelor degrees

Diploma2 %

Master Mariner4 %

Bachelor33 %

Master of Science / Master (incl.

Siviløkonom & Sivilingeniø

53 %

MBA3 %

None of the above5 %

0,00 % 20,00 % 40,00 % 60,00 %

Diploma

Bachelor

Master Mariner

Master of Science / Master (incl.Siviløkonom & Sivilingeniø

MBA

None of the above

Other

FemaleMale

THE LEVEL OF EDUCATION OBTAINED THE LEVEL OF EDUCATION OBTAINED SPLIT BY SEX

Share of respondentsShare of respondents



18 June 2009

14

Norwegian women and men choose differently when it comes to education, but not dramatically so

Overall the picture is relatively similar, but with different weights

More women have chosen “other”and among these are - Natural sciences- Teaching- Merchandising/design- Marketing- Marine sciences (fishery and

aquaculture)- Humanities/Language

The men that have chosen “other”have background from among others- Logistics- Shipping and Logistics- Nautical & Business- Mathematics and Statistics - Logistics- Maritime Business w/law

What is your educational background?

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

Female Male

Other, please specifyMilitary educationNauticalLawITFinance/EconomicsTechnical/EngineeringAdministrative/Business

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18 June 2009

15

The average total work experience in Norway is between 1 to 5 years, while the majority have been 1-3 years in the maritime industry

Similar distribution of the respondents in all 3 years the survey have been undertaken

Around 50% of the respondents have between 1 and 5 years of experience, with 5-10 years being the second largest bracket with about 30%

In 2009, less than 5% were “straight-out-of-school”

Almost half the respondents have been 1-3 years in the maritime industry, with around 45% (2009) having more than 3 years experience

Around 10% have less than a year experience from the maritime industry0 %

10 %

20 %

30 %

40 %

50 %

<1 year 1-3 years 4-5 years 6-10 years >10 years,please specify

2007 2008 2009

Total work experience (Norway 2009)

0 %

5 %

10 %

15 %

20 %

25 %

30 %

35 %

<1 year 1-3 years 3-5 years 5-10 years >10 years,please specify

How many years of total work experience do you have?

How long have you worked in the maritime industry?

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18 June 2009

16

No educational groups stand out with very short work experience, but law and technical/ engineering have the most respondents with less than 5 years experience

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

Admini

strati

ve/Bus

iness

Techn

ical/E

ngine

ering

Financ

e/Eco

nomics IT La

wNau

tical

Military

educ

ation

Other, p

lease

spec

ifyAve

rage

>10 years, please specify5-10 years3-5 years1-3 years<1 year

Total work experience by educational background

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18 June 2009

17

Some segments have very low average work experience, especially yards and maritime law

0 % 20 % 40 % 60 % 80 % 100 %

Shipowner

Equipment maker

Yard

Ship management

Ship broking

Ship financing

Ship insurance

Consulting

Maritime law

Class society

Agent

Other, please specify

<1 year1-3 years3-5 years5-10 years>10 years, please specify

Total work experience by employer


The red marker delimits the percentage with less than 5 years experience



18 June 2009

18

Similar distribution of work experience in the different size segments

0 % 20 % 40 % 60 % 80 % 100 %

Small

Medium

Large

<1 year1-3 years3-5 years5-10 years>10 years, please specify

Total work experience by size of company

The red marker delimits the percentage with less than 5 years experience




18 June 2009

19







Where to next?



18 June 2009

20

Shipowners represent one third of the population, with the rest relatively evenly distributed across the remaining segments

Yards and agents are the least represented segments with only a few respondents. This will be taken into consideration in the remaining segment wise analyses.

The other segment consists of among others

At what type of company do you work?

Shipowner33 %

Other, please specify12 %Ship financing

10 %

Ship management9 %

Ship broking8 %

Consulting7 %

Ship insurance6 %

Equipment maker3 %

Class society6 %

Maritime law3 %

Agent2 %

Yard1 %

-Drilling company-Bunker Trading-IT-Coastguard-Oil company-Maritime supply and logistics-Maritime services-Research-Ministry of Trade

-FPSO contractor-Tax law-Marine Insurance Broker-Carrier-Ships Service-Marine Operations-Coating contracting-Oil insurance,




18 June 2009

21

Commercial positions are represented by a third of the population, while operational roles represent a fifth

The “Other” segment include- Analyst- Finance- Broking, Sales & Purchase +

Newbuilding- Insurance- Trainee - Bank- Product marketing- Customer service- Insurance- Client Relationship- Captein- Inspection co-ordinator- Service- IT- Consultancy/ advisory- Business Development- Marine & HSEQ

In which area of the company is your current position?

Legal7 %

Operational20 %

Commercial32 %

Technical15 %

Administrative15 %

Other, please specify11 %




18 June 2009

22

More than half the respondents still being with their first employer in the maritime industry

None 1 2 3 >3

55%


How many employers have you previously had in the maritime industry?

55% of the respondents are still with their first employer in the maritime industry

Only about 7% have had 3 or more employers

With work experience the number of previous employers grows, but still a third of the respondents with more than 10 years experience in the industry have only had one other previous employer or less

0 %

20 %

40 %

60 %

80 %

<1 year 1-3 years 4-5 years 6-10 years >10 years, pleasespecify

None123>4

How many employers have you previously had in the maritime industry?

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What does the presentation contain?Background and introduction





Where to next?



18 June 2009

24

The financial crisis and downturn in shipping have influenced all parts of the maritime industry

Equipment makers, class and shipbrokers suffer the most from cancellations

Lay-up of ships effects insurance, ship mgmt companies and owners

Maritime law firms and consultants see little or no negative effect of the overcapacity in the markets

0%

25%

50%

75%

100%

Shipbu

ilding

Class so

ciety

Ship br

oking

Ship in

suran

ceShip

owne

rShip

financ

ing

Ship m

anag

emen

t

Other

Consultin

gMari

time l

aw

Newbuilding cancellation affect the company Lay-up of ship affect the company

0%

25%

50%

75%

100%

Shipbu

ilding

Ship m

anag

emen

tShip

owne

rShip

brokin

gClass

socie

tyShip

insu

rance

Other

Ship fin

ancing

Consultin

gMari

time l

aw

The company has experiences loss of business Profitability has dropped All players in the maritime industry have experienced loss of business

Maritime law is “the winner” in the cluster

100 % of the shipbuilding industry report loss of profitability and class and shipbuilding report most negative effect of the situation*

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* Note: Few respondents in shipbuilding segment



18 June 2009

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The downturn has lead to recruitment freezes and cost cutting

0%

25%

50%

75%

100%

Ship m

anag

emen

tClass

socie

ty

Other

Shipbu

ilding

Ship fin

ancing

Shipow

ner

Consultin

gShip

brokin

gShip

insu

rance

Maritim

e law

Cost cutting efforts are initiated Restructuring has been initiated

External recruitment is widely stopped

Maritime law and ship insurance companies are the only employers that have not yet laid off people

Ship building and ship management companies report most employment terminations

0%

25%

50%

75%

100%

Class so

ciety

Consultin

gShip

build

ingShip

financ

ingShip

owne

rMari

time l

aw

Other

Ship m

anag

emen

tShip

brokin

gShip

insu

rance

Recruitment is stopped The company has laid off people

Organisational measures are initiated in all part of the industry

Cost cutting initiatives are more common than restructuring of the organisation

Maritime law and consulting have experience least restructuring

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The larger the firm the more initiatives have been taken to adapt to the change in the shipping market

0% 25% 50% 75% 100%

L

M

S

YesNo

Has your company laid off people?

0% 25% 50% 75% 100%

L

M

S

YesNo

Is external recruitment to your company put on hold?

0% 25% 50% 75% 100%

L

M

S

YesNo

Has your company started cost cutting initiatives?

0% 25% 50% 75% 100%

L

M

S

YesNo

Has your company restructured to adapt to the crisis?

Small(< 50 employees)

Medium size(50-200 employees)

Larger(>250 employees)

Employees at smaller companies have up to now had the safest jobs, with less than 25 % reporting that their company has laid up people

More than half of the companies with less than 50 employees in Norway are still recruiting

The larger the firm the more initiatives has been taken to adapt to the change in the shipping market

90 % of the largest companies have started cost-cutting initiatives, while only 60 % of the smaller owners have done the same




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0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %

ConsultingShip insurance

Maritime lawClass societyShip broking

Ship managementOther, please specify

Ship financingYard

Equipment makerShipowner

Agent

Bad atmosphere Good atmosphere

Consulting and ship insurance are the most positive segments, while agents and shipowners are the most negative segments

Consulting and ship insurance have thebest atmosphere in the companies

How would you describe the atmosphere at your company?

A high number of the respondents find thatthe atmosphere at agents and shipowningcompanies is bad




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The atmosphere is perceived to be better at the larger companies

0 % 10 % 20 % 30 % 40 % 50 % 60 %

Very bad atmosphere

Bad atmosphere

Indifferent

Good atmpsphere

Very good atmosphere

Very bad atmosphere

Bad atmosphere

Indifferent

Good atmpsphere


Very bad atmosphere

Bad atmosphere

Indifferent

Good atmpsphere


Sm

all

Med

ium

Larg

e

How do you perceive the atmosphere at your company?

Largest companies have all respondents on the positive or neutral note

Medium sized and small companies show more mixed results, with respondents ranging all over the specter




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Only 7 % of the respondents are afraid of losing their job, but 14% would be willing to reduce their salary to keep it

7 % of the respondents are afraid of losing their job

People with business and administration as educational background and people in commercial positions are most afraid of losing their jobs

Are you afraid of losing your job?What would you be willing to sacrifice to keep your job?

Overtime payment is set higher than benefits and perks

Reduction in salary is the least favourable situation, however employees with high bonus schemes (e.g. Ship brokers) are more willing to give up base salary

0 % 25 % 50 % 75 % 100 %

Ship broking

Agent

Ship management

Equipment maker


Consulting

Shipowner

Ship financing

Yard

Ship insurance

Maritime law

Class society

Yes

No

0 %

25 %

50 %

75 %

100 %

I w ould be w illingto reduce my

bonus

I w ould be w illingto w ork overtime

unpaid


benefits & perks


salary

Other, pleasespecify

No

Yes

Overall average


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There is a clear willingness to sacrifice bonuses to keep the job, but more mixed with regards to bonus and overtime payment reductions

0 %

25 %

50 %

75 %

100 %

I would be willing toreduce my salary

I would be willing toreduce my bonus

I would be willing towork overtime unpaid

I would be willing toreduce my benefits &

perks


ShipownerEquipment makerShip managementShip brokingShip financingShip insuranceConsultingMaritime lawClass societyOther

What would you be willing to sacrifice to keep your job?

Ship owners, ship finance and insurance the least motivated to

reduce salary

Half the respondents would be willing to reduce bonus to keep the job, with equipment makers and ship finance being the least willing

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Where to next?



18 June 2009

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Despite the market turmoil and uncertainties, more than half of the respondents are happy in their current job

How satisfied are you in your current job?

0,00 %

20,00 %

40,00 %

60,00 %

Very Unsatisfied Unsatisfied Indifferent Satisfied Very Satisfied

200720082009

Somewhat less respondents are “very satisfied”in their current job

All segments are more satisfied this year, except ship finance and classification

More respondents are “satisfied”, while fewer are “indifferent”

No difference in satisfaction between the different sizes of company

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Most of the respondents are happier with their job now than previous years, except people working with ship finance and classification

Ship management has improved the most with ship insurance second

Both ship finance and classification are less satisfied than last year, but marginally so

Overall, people seem to be more satisfied in their jobs in 2009 than in 2008

Satisfaction in the job is positively correlated with the general atmosphere in the company

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

Shipbuilding Ship broking Other Consulting Shipmanagement

Shipowner Ship financing Class society Shipinsurance

Maritime law0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

Satisfied 2009 Unsatisfied 2009 Satisfied 2008

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The satisfaction differs between the different parts of the company, but also differs from year to year

Commercial becoming increasingly more satisfied than average

Operational departments are increasingly less satisfied than average

Legal department generally more positive

Other segment has dropped from 12% above average to 4% below average Other

Administrative

Legal

Operational

Technical

Commercial2009

Other

Administrative

Legal

Operational

Technical

Commercial2008

Other

Administrative

Legal

Operational

Technical

Commercial2007

-15% -10% -5% 0% 5% 10% 15%Percentage difference in average scores by department compared to overall average satisfaction (2007-2009)



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What does the presentation contain?Background and introductionThe survey population- Who are they?- What do they do?The times are tougher – does that make a difference?- What are the effects of the market turbulence? - Does the charm of the maritime industry remain, despite the tough times?Managing your talents- Attract them

- Why the maritime industry- Changing jobs – why & how?- Mobility – where do they move?

- Retain them- But is that enough to keep them?

Who are tomorrow’s winners? Where to next?



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All age groups have similar reasons for choosing the maritime industry, but family & traditions are more important for the youngest and the oldest

0 % 20 % 40 % 60 % 80 %

Exciting business

Good career opportunities

International andmulticultural industry

The opportunity presenteditself

Family ties & traditions

Travel opportunities

Good salary and/orbenefits

The position of thenational maritime industry


Job security

20-25 years26-30 years31-40 years

Why did you choose the maritime industry?


The qualities of the business itself is the main reason for choosing the industry, being both exciting and international in its nature

The industry is perceived to give good career opportunities

Fairly similar picture among the various age brackets, with family ties & traditions and the position of the industry being the key differences



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Both women and men choose the maritime industry because it is anexciting business

Both men and women rank the business as primary reason

Men rank the salaries higher than women do

“The opportunity presented itself” is the second most important reason for women, which might indicate that women seem to choose the maritime industry more by chance than the men do0 % 25 % 50 % 75 %

Exciting businessThe opportunity presented itself

Good career opportunitiesInternational and multicultural industry

Travel opportunitiesGood salary and/or benefits

Family ties & traditionsThe position of the national maritime industry

Job securityOther

Exciting businessGood career opportunities

International and multicultural industryTravel opportunities

Good salary and/or benefitsThe opportunity presented itself

Family ties & traditionsThe position of the national maritime industry

Job securityOther

Wom

enM

en





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All educational backgrounds choose the industry because it is exciting, but MBAs in particular find the career opportunities attractive

Opportunity attracts the respondents with no educational background

0 %3 %0 %0 %0 %1 %0 %Other, please specify

11 %15 %10 %15 %14 %13 %0 %International and multicultural industry

3 %0 %0 %5 %0 %5 %8 %The position of the national maritime industry

3 %0 %0 %1 %2 %1 %0 %Job security

17 %18 %25 %21 %16 %21 %25 %Exciting business

17 %12 %10 %12 %19 %12 %8 %Travel opportunities

17 %9 %10 %10 %16 %11 %17 %Good salary and/or benefits

14 %18 %25 %16 %14 %17 %8 %Good career opportunities

9 %3 %5 %6 %14 %7 %17 %Family ties & traditions

9 %21 %15 %14 %5 %12 %17 %The opportunity presented itself

Other

None of the aboveMBA

Master of Science / Master (incl.

Siviløkonom & Sivilingeniør)

Master MarinerBachelorDiploma


MBAs perceive the career opportunities to be good in the maritime industry

Share of respondents by educational background



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39

The reasons for choosing the maritime industry differ significantly between those who have or have not been to sea

The respondents who have been to sea generally rate the top reasons higher, and also have different priority than the others

Travel is important as is the salary

International industry and chance are less important reasons for choosing the industry if you have been to sea

The seagoing respondents have stronger family ties to the industry 0 % 20 % 40 % 60 % 80 %

Exciting business

Good career opportunities

Travel opportunities

Good salary and/orbenefits

Family ties & traditions

International andmulticultural industry

The opportunity presenteditself

Job security

The position of the nationalmaritime industry


Have been to seaHave not been to sea





18 June 2009

40

0 %

20 %

40 %

60 %

80 %

Don't know Very low status Low status High status Very high status

Seagoing experience SGP

No seagoing experience SGP

Seagoing experience

No seagoing experience

Those who have been to sea find the status of the industry to be lower than those who have no seagoing experience

How do you perceive the status of the industry – Norway compared to Singapore?



18 June 2009

41

The majority perceive the status of the industry to be high

0 % 20 % 40 % 60 % 80 % 100 %

Shipowner

Equipment maker

Yard

Ship management

Ship broking

Ship financing

Ship insurance

Consulting

Maritime law

Class society

Agent

Other

Don't knowLow statusHigh statusVery high status

How do you perceive the status of the industry?


No respondents find the industry status to be “Very low”



18 June 2009

42




Managing your talents- Attract them




Where to next?



18 June 2009

43

The reasons for changing job have shifted over the past years

Improving salary is less of a reason for the latest job changes than it has been over the past 5 years

Almost half of those who changed jobs in the last 1-2 years followed a better opportunity

Restructuring has been a returning issue, with between 5-10% of respondents citing that as a reason for changing jobs

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

0-1 year 1-2 years 2-5 years 5-10 years >10, pleasespecify

Other

More challenging position

Better salary

Better opportunity

Restructuring in my formercompany

Sha

re o

f res

pond

ents

Time in current position

Why did you change job?

NOTE: Few respondents in “>10 years” bracket



18 June 2009

44

0 %

10 %

20 %

30 %

40 %

50 %

60 %

Better opportunity More challengingposition

Better salary Other Restructuring in myformer company

Better opportunities and a more challenging position have been the key reasons for changing jobs

The respondents who have changed in the last year have somewhat different reasons from the overall average

It appears in particular that improving salary is less of a reason these days

Among other reasons are mentioned change of location, family reasons, expatriation/repatriation, following previous boss, human relations

Few respondents state that they changed job because they lost their previous job due to restructuring

Why did you change job?Overall average

Respondents who have changed job in the last year

Sha

re o

f res

pond

ents



18 June 2009

45

0 % 10 % 20 % 30 % 40 % 50 % 60 %

Morechallenging

position

Betteropportunity

Other

Restructuringin my former

company

Better salary

FemaleMale

Men are more driven by salary when changing jobs, but both sexesprimarily seek challenges and better opportunities

Men and women have different priorities

Both seek more challenging positions, but men prioritize better opportunities higher

Better salary is a more important driver for men, while only 4% of the women have changed job because of salary increases

Both groups have changed jobs for other reasons, mentioned among these- Expatriation & repatriation & moving between

cities- Following current manager to a new position - Education- Family reasons- Friends & relations- Going ashore

Why did you change job ?




18 June 2009

46

Advertisements are still the primary source for attracting future employees

0 %

10 %

20 %

30 %

40 %Adv

ertisem

ent

Person

al netw

orkOpe

n app

licati

onHead

hunte

dInt

ernsh

ip

Intra-

compa

ny relo

catio

nCampus

Caree

r Fair

Other,

pleas

e spec

ify

Profes

sional

network

(e.g.

YoungS

...Sch

olarsh

ip

200720082009

Use of headhunters is growing in importance

Personal network and open application are still central

How did you get your current job?



18 June 2009

47

Headhunting and personal network have been more important in thepast 12 months as a means of getting a new job

0 % 5 % 10 % 15 % 20 % 25 % 30 % 35 % 40 % 45 %

Advertisement

Personal network

Headhunted

Open application

Campus Career Fair

Other

Internship

Intra-company relocation

Professional network (e.g.YoungShip, ICS, BIMCO)

Scholarship

200920082007

If you changed job in the past year, how did you get your current job?

Share of the respondents who changed jobs last year

When comparing how the respondents who changed job in the last year previous to answering the survey, there have been some changes over the past three years

Advertisements are less used as a medium in 2009 than has been case previously, probably due to less jobs been advertised

Open applications are also reduced in past 12 months

On the other hand, personal network and headhunting has been more used in past year



18 June 2009

48

0 % 10 % 20 % 30 % 40 % 50 %

Advertisement

Personal network

Open application

Headhunted

Intra-company relocation


Internship

Campus Career FairProfessional network (e.g. YoungShip,

ICS, BIMCO)Scholarship

Both men and women use advertisements as the key medium for finding jobs, but women increasingly so

Advertisement

Open application

Personal network

Headhunted


Intra-company relocationProfessional network (e.g. YoungShip,

ICS, BIMCO)Internship

Campus Career Fair

Scholarship

Female (average 2007-2009)Female (2009)

Male (average 2007-2009)Male

WO

MEN

MEN

Women are increasingly being recruited on the basis of advertisements

Personal network is somewhat less used by women for finding new jobs

Men are using advertisements and personal networks to find jobs

Headhunting men to new positions has shown an increase since 2007



18 June 2009

49




Managing your talents- Attract them




Where to next?



18 June 2009

50

Shipowners are the natural hub for employers in the maritime industry

Where do they og next

Current employer

50 %50 %Class society25 %25 %25 %Consulting67 %33 %Ship insurance

17 %50 %33 %Ship financing7 %13 %27 %40 %13 %Ship broking

33 %33 %Ship management100 %Yard

50 %50 %Equipment maker6 %8 %6 %10 %10 %2 %49 %Shipowner

Class society

ConsultingShip insurance

Ship financing

Ship broking

Ship mgmtYard

Equipmentmaker

Shipowner

Future employer

The majority stay within their business and change to competing companies, i.e go from one shipowner to another

Shipowners recruit from the whole industry

People currently working for Shipowners choose different careers afterwards, with careers ranging from equipment makers, ship mgmt, broking, finance, consulting and class

When workers in yards change employer they go to class societies

Analysis based on where respondents currently work and their previous work experience, analyzing the patterns in job mobility




18 June 2009

51

It is common to change field within the industry, however most people shift over to operational or commercial positions

Current position Future position

The majority choose positions within their current field

The exception is administrative positions who recruit more from other departments, both commercial and operational

Technical positions are held by employers with either technical or operational background

Commercial and administrative positions recruit people from different fields

Commercial roles attract from all parts of the company

Analysis based on in which departments respondents currently work and where they have previously worked, analyzing the patterns in position mobility

27 %9 %0 %9 %0 %5 %Other20 %27 %0 %6 %0 %12 %Administrative7 %0 %100 %0 %0 %0 %Legal13 %36 %0 %72 %29 %22 %Operational27 %9 %0 %3 %71 %10 %Technical7 %18 %0 %9 %0 %51 %Commercial

OtherAdministrativeLegalOperationalTechnicalCommercial




18 June 2009

52




Managing your talents- Attract them- Retain them

- Develop & grow them- Challenge them- Pay them- But is that enough to keep them?


Where to next?



18 June 2009

53

-30 % -20 % -10 % 0 % 10 % 20 %

Personal development

Challenging tasks

Pleasant working environment

Good base salary

The quality of the company'smanagement

Influence in decision making

International exposure

Benefits

Flexible working hours

My immediate manager

Opportunities to travel

Geographic work location

Working in a multi-cultural environment

Additional paid vacation

Personal development and challenging tasks are the most motivating factors for the young people working in the maritime industry

Average score for all motivational factors is 3,02 on a 1-4 scale

Personal development and challenging tasks are the key motivating factors for job satisfaction

Pleasant working environment is third highest factor

The top 3 factors are each more than 15% higher weighted than the overall average

Salary and benefits rank as number four and eight respectively

What are the most important factors for your job satisfaction?

Percentage difference from overall average

3,6

2,3



18 June 2009

54

Opportunities to travel

International exposure

Personal development

Pleasant working environment

Working in a multi-cultural environment

Challenging tasks

My immediate manager

The quality of the company's management

Benefits

Influence in decision making

Good base salary

Geographic work location

Additional paid vacation

Flexible working hours

The different generations are motivated by different factors

When sorting the respondents according to what generation they belong to, clear differences arise

The respective generations are all above average on the factors important to them

The Y’s focus more on “softer” factors around their personal situation, whereas the X’s focus on elements connected to the job itself

Generation Y

Generation X

Generation YGeneration X

What are the most important factors for your job satisfaction?

100%95%90% 105%

Percentage difference from overall average

* Generation X, is a term used to refer to the generation born after the baby boom ended (early-to-mid 1960s to late 1970s). Generation Y is a term used to denote demographic group born after Generation X (late 1970s to late 1990s). Distinct characteristics apply to each generation. (Source: Wikipedia)

85%

Overall average



18 June 2009

55

Generation Y must be managed in a way building on their characteristics, placing demands on current management practices

Just like any other group of human beings, Generation Y is made up of individuals. There are wide variations in their attitudes and behavior.

Viewpoint is important. How each person sees him/herself and how others may see that person is often different and leads to stereotyped images of Generation Y and of older generations by Generation Y.

Many of the attitudes and behaviors of people are more a reflection of their age than their generation.

The current education system is largely failing this generation in terms of preparation for the workforce, especially concerning communication and numerical skills, approaches to learning, creativity, working with others and rewards and development.

Core behaviors and attitudes that need focus when working with Generation Y include: confidence, ambition, self-awareness, communication, resilience and maturity.

Generation Y are very adaptable in terms of technology but have as varied skill levels as older generations.

It is more critical than ever before that the [Generation Y] individual and the organization or group where they work are matched in terms of culture and attitude to ensure success.

“Give me a child until he is seven and I will give you the man.”Many of the issues with Generation Y highlighted in this report have been created when they were very young. The focus has been to blame Generation Y for their bad behavior and yet the older generations have the ultimate responsibility.

Characteristic traits of Generation Y

Source: Ashridge Education, www.ashridge.org.uk



18 June 2009

56

-25 %

-20 %

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

Person

al de

velop

ment

Cha

lleng

ing ta

sks

Pleasa

nt work

ing en

viron

ment

Goo

d bas

e sala

ry

The qu

ality

of the

compa

ny's

manag

emen

t

Influ

ence

in de

cision

mak

ing

Inter

natio

nal e

xpos

ure Ben

efits

Flexibl

e work

ing ho

urs

My i

mmediat

e man

ager

Opp

ortun

ities t

o trav

el

Geo

graph

ic work

loca

tion

Work

ing in

a mult

i-cult

ural e

nviro

nmen

t

Additio

nal p

aid va

catio

n

Respondents are generally less satisfied with the factors that are most important for their motivation

Respondents are generally less satisfied with the factors that are important to them

Personal development and base salary are the two factors with the largest gap between importance and satisfaction

On the less important factors, respondents are more satisfied, than the factor is important

Percentage difference between how satisfied you are with the factor and how important it is for your motivation (ranked by importance from left to right)

Per

cent

age

diffe

renc

e be

twee

n m

otiv

atio

nal a

nd s

atis

fact

ion

scor

es

Average 2007-2009

Scores 2009

Satisfaction is higher than the factor is important

Satisfaction is lower than the factor is important



18 June 2009

57

0 % 20 % 40 % 60 % 80 %

Junior management training

Job rotation

External courses

Talent programmes

Internal training courses

Mentoring

Career planning

Other

Junior management training and job rotation are most used careerdevelopment initiatives….

Job rotation shows strongest growth

Less than a fifth of respondents report having talent programmes in place in their organizations

Mentoring is dropping ff somewhat from 2007/2008 levels

Only about 10% report having structured career planning in place

200720082009

What formal career development initiatives are in place at your current company?




18 June 2009

58

…but not all find that satisfactory

1

2

3

4

5

Class so

ciety

Ship in

suran

ceCons

ulting

YardShip

owne

r

Ship fin

ancing

Agent

Other

Ship br

oking

Ship m

anag

emen

tMari

time l

aw

Equipm

ent m

aker

100

150

200

250

300

350

Satisfaction with developmenteffortsPeople development index

Respondents’ satisfaction with the way the company contributes to their personal development compared to the effort spent by the company

People developm

ent score index (max score 800)

Ave

rage

sat

isfa

ctio

n w

ith d

evel

opm

ent e

fforts

(sca

le 1

to 5

)

Average satisfaction 2009

Large differences in how satisfied respondents are with personal development initiatives in companies

Employees at class societies score highest on the 1 to 5 scale

Respondents at equipment makers and law firms rate the personal and career development initiatives at their companies the lowest

Overall average for respondents is a score of 3,3

No clear relationship between satisfaction and the efforts spent on development

Some seem to get a lot of satisfaction from relatively low development efforts*, e.g. ship broking

* The People Development Index summarizes the efforts a company uses on developing its employees



18 June 2009

59

0 % 20 % 40 % 60 % 80 %

Junior management training

Job rotation

External courses

Talent programmes

Internal training courses

Mentoring

Career planning

Other

200720082009

“Everyone” agrees that talent management is the top priority, but employees have not fully seen the results of it

In a survey undertaken by the Boston Consulting Group (BCG) and the European Association for People Management (EAPM) in 2009*, the headline topics for HR managers in Europe were identified:

- Managing talent

- Improving leadership development

- Strategically planning the work force

- Enhancing employee commitment

- Managing work force performance

- Managing change and cultural transformation

- Becoming a learning organization

The main issue, managing talents, does not appear to be sufficiently emphasized in the companies employing this survey’s respondents

What formal career development initiatives are in place at your current company?

* “Creating People Advantage – How to tackle the major HR challenges during the crisis and beyond”, BCG & EAPM (2009)


TALENT MANAGEMENT IS THE TOP PRIORITY…. …BUT APPARENTLY NOT FOLLOWED UP IN ACTION

Source: BCG/EAPM



18 June 2009

60

Satisfaction is generally lower than the importance, creating a latent dissatisfaction (AKA upside potential)

2,0

2,5

3,0

3,5

4,0

Person

al de

velop

ment

Challe

nging

task

s

Pleasa

nt work

ing en

viron

ment

Good b

ase s

alary

The qu

ality

of the

compa

ny's

manag

emen

t

Influe

nce i

n dec

ision

mak

ing

Intern

ation

al ex

posu

re

Benefi

ts (ov

ertim

e com

pens

ation

, bon

us et

c.)

Flexibl

e work

ing ho

urs

My immed

iate m

anag

er

Opport

unitie

s to t

ravel

Geogra

phic

work lo

catio

n

Work

ing in

a mult

i-cult

ural e

nviro

nmen

t

Additio

nal p

aid va

catio

n (ov

er the

mini

mu...

(0,80)

(0,60)

(0,40)

(0,20)

-

0,20

0,40

0,60

Development index 2007-2009Relative satisfaction 2009

The difference between how important the motivational factors are and how satisfied respondents are with them, compared to the factors’ importance (2009)

Motivational factors’ importance

The satisfaction with a given factor is generally rated lower (on a 1-4 scale) than its importance, i.e. to what degree the factor motivates respondents (on a 1-4 scale).

Stated factors are ranked according to what degree they motivate respondents

Difference betw

een satisfaction and motivation

Ave

rage

sco

re, s

cale

1-4



18 June 2009

61

There are clear changes in 2009 compared to the overall averages for motivational factors, but little change in relative satisfaction

2,0

2,5

3,0

3,5

4,0

Person

al de

velop

ment

Challe

nging

task

s

Pleasa

nt work

ing en

viron

ment

Good b

ase s

alary

The qu

ality

of the

compa

ny's

manag

emen

t

Influe

nce i

n dec

ision

mak

ing

Intern

ation

al ex

posu

re

Benefi

ts (ov

ertim

e com

pens

ation

, bon

us et

c.)

Flexibl

e work

ing ho

urs

My immed

iate m

anag

er

Opport

unitie

s to t

ravel

Geogra

phic

work lo

catio

n

Work

ing in

a mult

i-cult

ural e

nviro

nmen

t

Additio

nal p

aid va

catio

n (ov

er the

mini

mum le

gal re

q...

(0,80)

(0,60)

(0,40)

(0,20)

-

0,20

0,40

0,60

Motivational factor 2007-2009Motivational factor 2009Relative satisfaction 2009Relative satisfaction 2007-2009

1

1 Challenging tasks are more important than previously

2

2 Quality of mgmt gives higher motivation

3 Benefits rising in motivational importance, but salary somewhat lower -> breadth of package more important3

A more difficult labourmarket than in the previous years may have influenced the priorities and satisfaction of employees in the maritime industry

KEY OBSERVATIONS

Difference betw

een satisfaction and motivation

Ave

rage

sco

re, s

cale

1-4

The difference between how important the motivational factors are and how satisfied respondents are with them, compared to the factors’ importance (2009 & 2007-2009)



18 June 2009

62





- Develop & grow them- Challenge them- Pay them- But is that enough to keep them?


Where to next?



18 June 2009

63

Large variability in the work load per segment, with the respondents within maritime law working the most, followed by finance and broking

0 % 20 % 40 % 60 % 80 % 100 %

Shipowner

Equipment maker

Yard

Ship management

Ship broking

Ship financing

Ship insurance

Consulting

Maritime law

Class society

Agent

Other

<4040-4546-5051-5556-60>60

How many hours do you work per week?



18 June 2009

64

0 %

20 %

40 %

60 %

80 %

100 %

Shipow

ner

Equipm

ent m

aker

YardShip

man

agem

ent

Ship br

oking

Ship fin

ancing

Ship in

suran

ceCons

ulting

Maritim

e law

Class so

ciety

Agent

Other

I do not travel in myjobAfrica

South America

North America

Australia / NewZealandMiddle East/India

South East Asia

North Asia

Europe

Domestically

The travelling is primarily within Europe, with equipment makerstravelling the most intercontinental

Where do you predominantly travel in your job?

Split between continental and intercontinental travel



18 June 2009

65

The majority travel within Europe or Norway, with equipment makers travelling the most in number of days

Europe41 %

Domestically27 %

South East Asia11 %

North America6 %

Australia / New Zealand1 %

I do not travel in my job4 %

Middle East/India4 %

Africa1 %

South America2 %

North Asia3 %

Where do you predominantly travel in your job?

0 1 2 3 4 5

Equipment maker

Agent

Consulting


Ship management

Yard

Maritime law

Class society

Total

Shipowner

Ship insurance

How many travel days do you expect in 2009?

0-10 11-25 26-50 51-100 >100Travel days per year

Minimum & maximum



18 June 2009

66

Women in the commercial and legal departments report the highestsatisfaction with how they are being challenged

Both men and women in administrative departments report below average satisfaction with how they are being given challenging tasks

Among the men, it is those working in operational and legal departments who are the most satisfied

How satisfied are you with the degree of challenging tasks in your job?

Overall average 2009

- 20 40 60 80 100

Commercial

Technical

Operational

Legal

Administrative

Other

Total

Commercial

Technical

Operational

Legal

Administrative

Other

Total

Fem

ale

Mal

e

Average score as percent of maximum score on a 1-5 scale



18 June 2009

67





- Develop & grow them- Challenge them- Pay them

- But is that enough to keep them?


Where to next?



18 June 2009

68

Industry average basic salary was 517 kNOK in 2009Average basic salary in 2009 was517 kNOKAverage bonus payment was 115 kNOK (for those with bonus schemes)

Average overtime was 45 kNOK(for those with overtime payment)

Steadily increasing paymentBasic salary increased steadily

over the last three years (6% and 2% respectively)

Average bonuses increased with 8% between 2007 and 2008, but were steady last year

Increasing pay per working hourBoth basic salary per working

hour and total remuneration per hour increased over the period

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

2007 2008 2009 Total

Year

NO

K p

er y

ear

150

175

200

225

250

275

300

325

350

Ave

rage

hou

rly w

age

(NO

K)

Salary BonusBasic salary per hour Total remuneration per hour

8%

0%

6%2%

NB: Basic salary averages are based on all respondents, while bonus and overtime are averages for those respondents who have bonus schemes and/or overtime payment. Basic salary is thus comparable, but bonus and overtime are indicative only.



18 June 2009

69

There are significant differences in total remuneration between the different geographical working locations

Average total remuneration is larger in Oslo than most other locations partly due to a larger share of people working in finance and brokering

* Please NOTE: The number of participants in Haugesund and Kristiansand was fairly limited and might hence be skewed

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

Oslo Bergen Haugesund Kristiansand Stavanger Other150

175

200

225

250

275

300

325

350

375

400

Overtime Bonus Salary Basic salary per hour Total remuneration per hour

*

*

NO

K/Ye

ar NO

K/H

our




18 June 2009

70

Both total remuneration and basic salary is very dependent on working experience and have increased steadily for all groups up to 10 years

Average 2009 remuneration for 5-10 years experience was 935 kNOK (for those with bonus schemes and overtime payment), which was the highest earning group

All groups have been steadily increasing their basic salary, except those with 3-5 years of experience who have dropped slightly last year

Those with more than 10 years of working experience have seen a steady decline both in basic salary and total remuneration over the last three years (but there are few respondents, so conclusions are uncertain)

0

100 000200 000

300 000

400 000500 000

600 000

700 000

800 000900 000

1 000 000

<1 year 1-3 years 3-5 years 5-10 years >10 years150

175200

225

250275

300

325

350375

400


0100 000200 000300 000400 000500 000600 000700 000800 000900 000

1 000 000

2 007 2 008 2 009 2 007 2 008 2 009 2 007 2 008 2 009 2 007 2 008 2 009 2 007 2 008 2 009

<1 year 1-3 years 3-5 years 5-10 years >10 years

Salary Bonus Overtime

NO

K/Ye

ar NO

K/H

our

NO

K/Ye

ar NO

K/H

our




18 June 2009

71

There are surprisingly small differences in basic salary and total remuneration between educational levels

Master mariners have the highest basic salary with 562 kNOK, but they also had the lowest average bonus and overtime pay

MBA students have seen the largest variation in total remuneration over the last three years primarily due to differences in bonus payments

Master students are the only group with steady increase in total remuneration

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

Bachelor Master mariner Master MBA Other200

225

250

275

300

325

350

375

400


300 000

400 000

500 000

600 000

700 000

800 000

900 000

1 000 000

Bachelor Master MBA Other

2 007 2 008 2 009

NO

K/Ye

ar NO

K/H

our

Basic salary + bonus




18 June 2009

72

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

1 000 000

Ship fin

ancin

gEqu

ipmen

t mak

erShip

owne

rShip

insu

rance

Yard

Other

Ship m

anag

emen

t

Agent

Consu

lting

Class s

ociet

yShip

brok

ingMari

time l

aw

150

175

200

225

250

275

300

325

350

375

400


There are large variations in pay depending on which industry segment you work in, where broking and financing receive the highest pay

There are significant differences in:

Basic salary: ship finance 570 kNOK to maritime law 435 kNOK* – 37% difference)

Total remuneration: ship finance 966 kNOK to ship mgmt 508 kNOK – 90% difference)

Composition of remuneration package

* Maritime law saw all respondents having less than five years of working experience

NO

K/Ye

arN

OK

/Hour




18 June 2009

73

Small companies pay significantly more than both medium sized and large companies with 593 kNOK in base salary

Small companies have the clearly highest:basic salarybonusovertimetotal remuneration…and pay per working hourof the groups

The average working experience is quite similar between the groups

* The number of respondents with over time pay is very limited0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

Small Medium Large200

225

250

275

300

325

350

375

400

Overtime BonusSalary Basic salary per hourTotal remuneration per hour

Definition of company size:Small: Less than 50 employeesMedium: Between 50 and 250 employeesLarge: More than 250 employees

569 44268 695517 053Large669 560192 381490 654Medium841 348285 250593 304SmallTotalBonusSalaryCompany size

*

NO

K/Ye

ar NO

K/H

our




18 June 2009

74

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

Privatelyowned

Publicly owned State /government

owned

Other200

225

250

275

300

325

350

Overtime BonusSalary Basic salary per hourTotal remuneration per hour

Maritime employees in state and governmentally owned companies receive the highest basic salary and total remuneration

Average basic salary with state and governmentally owned companies was 550 kNOK,while private and publicly owned was 502 kNOK and 542 kNOKrespectively

Average total remuneration was 767 kNOK in state and governmentally owned companies while the private and publicly owned equivalents were 676 kNOK and 706 kNOKrespectively

*

NO

K/Ye

ar NO

K/H

our

* The number of respondents working with state and governmentally owned companies are somewhat limited




18 June 2009

75

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

Commercial Technical Operational Legal Administrative Other150

175

200

225

250

275

300

325

350

375

400


Commercial positions offer the highest pay with technical, operational and legal positions offering the lowest

There are significant differences in:

Basic salary: commercial 570 kNOK to average other 491 kNOK* – 16% difference)

Total remuneration: commercial 871 kNOK to average other 576 kNOK – 51% difference)* Legal saw all respondents having

less than five years of working experience

NO

K/Ye

arN

OK

/Hour




18 June 2009

76

The supply/offshore sector have the highest salary level, both in absolute and per hour terms

-

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

Supply/Offshore

Cruise Container Tanker/Chemical/LNG/ LPG

Bulk RoRo Other,pleasespecify

200

250

300

350

400

450

Average salary by type of vessels primarily owned or operated

NO

K/Ye

ar NO

K/H

our

OvertimeBonusSalaryTotal remuneration per hour (2007->)Basic salary per hour (2007->)

Offshore segment has the highest base salary, followed by the cruise segment

Also hourly pay is highest in these segments

Examples of vessel types included in the “Other”segment are reefers, heavy lift vessels, FPSOs& FSOs, live fish carriers and cement




18 June 2009

77








Where to next?



18 June 2009

78

There is a strong correlation between the factors important to the employee and how happy she is in her job

There is a clear relationship between how happy you are in your job and how long you expect to stay

The way the employer contributes to personal development influences how happy you are in your job

The remuneration is important for job satisfaction

Correlations

1 ,313** ,457** ,184**,000 ,000 ,005

883 231 883 231,313** 1 ,562** ,224**

,000 ,000 ,001

231 231 231 231

,457** ,562** 1 ,415**,000 ,000 ,000

883 231 883 231

,184** ,224** ,415** 1,005 ,001 ,000231 231 231 231

Pearson CorrelationSig. (2-tailed)NPearson CorrelationSig. (2-tailed)

N

Pearson CorrelationSig. (2-tailed)N

Pearson CorrelationSig. (2-tailed)N

How long do you expectto remain in yourcurrent job?

How satisfied are youwith the way thecompany contributes toyour personal andcareer developement?

How happy are you incurrent job?

How satisified are youwith the totalremuneration of yourcurrent position (incl

How long doyou expect toremain in yourcurrent job?

How satisfiedare you withthe way thecompany

contributes toyour personal

and careerdevelopemen

t?

How happyare you in

current job?

How satisifiedare you with

the totalremunerationof your currentposition (incl.salary, bonus,

overtime &benefits)?

Correlation is significant at the 0.01 level (2-tailed).**.



18 June 2009

79

Model Summaryb

,731a ,535 ,528 ,521Model1

R R SquareAdjustedR Square

Std. Error ofthe Estimate

Predictors: (Constant), How satisfied are you with theway the company contributes to your personal andcareer developement?, How satisified are you with thetotal remuneration of your current position (incl. salary,bonus, overtime & benefits)?, How satisfied :Challenging tasks

a.

Dependent Variable: How happy are you in current job?b.

The satisfaction of the job largely depends on the satisfaction with development initiatives and remuneration, but also of how challenging your tasks are

The three factors explain more than half of the variability in the happiness with the current job, with challenging tasks being the most important

In addition, the overall atmosphere in the workplace seems to be an contributing factor*

ANOVAb

70,701 3 23,567 86,892 ,000a

61,567 227 ,271132,268 230

RegressionResidualTotal

Model1

Sum ofSquares df Mean Square F Sig.

Predictors: (Constant), How satisfied are you with the way the company contributesto your personal and career developement?, How satisified are you with the totalremuneration of your current position (incl. salary, bonus, overtime & benefits)?, How satisfied : Challenging tasks

a.

Dependent Variable: How happy are you in current job?b.

Coefficientsa

,902 ,195 4,620 ,000

,450 ,056 ,401 7,994 ,000

,224 ,039 ,268 5,738 ,000

,269 ,041 ,333 6,585 ,000

(Constant) How satisfied :Challenging tasksHow satisified are youwith the totalremuneration of yourcurrent position (incl.salary, bonus, overtime& benefits)?How satisfied are youwith the way thecompany contributes toyour personal andcareer developement?

Model1

B Std. Error

UnstandardizedCoefficients

Beta

StandardizedCoefficients

t Sig.

Dependent Variable: How happy are you in current job?a.

*Not included as question is only contained in 2009 survey



18 June 2009

80

But job happiness only explains about 20% of how long an employee expects to remain in her position

Job satisfaction explains about 20% of the propensity to leave your current job

The rest is either highly variable (i.e. individual reasons) or not identified in the current survey

Model Summaryb

,457a ,208 ,208 1,020Model1

R R SquareAdjustedR Square

Std. Error ofthe Estimate

Predictors: (Constant), How happy are you in currentjob?

a.

Dependent Variable: How long do you expect to remainin your current job?

b.

ANOVAb

241,280 1 241,280 231,944 ,000a

916,462 881 1,0401157,742 882

RegressionResidualTotal

Model1

Sum ofSquares df Mean Square F Sig.

Predictors: (Constant), How happy are you in current job?a.

Dependent Variable: How long do you expect to remain in your current job?b.

Coefficientsa

,945 ,166 5,680 ,000

,631 ,041 ,457 15,230 ,000

(Constant)How happy areyou in current job?

Model1

B Std. Error

UnstandardizedCoefficients

Beta

StandardizedCoefficients

t Sig.

Dependent Variable: How long do you expect to remain in your current job?a.

Reasons listed by the respondents include: - Need new challenges- Shifting from trainee position

to permanent position- Need a change

- Nearer at home - Go ashore- Better working environment- Time to get new impulses

- More personal development- More hands on position- Want more travel- Broaden horizon



18 June 2009

81

A regression analysis of the three years of data shows that the job satisfaction is largely influenced by three key factors

Three key factors explain more than half the variation in the job satisfaction

Job satisfaction only explains about 20% of the variation in the propensity to leave

Satisfaction with challenging tasks

Satisfaction with total remuneration

Satisfaction with personal development efforts

How happy you are in your job

R2 = 0,53

How long you will stay in your current position

R2 = 0,21

?



18 June 2009

82

Less people are actively looking for a new job, while a larger percentage have increased their time perspective in the current job

0 %

20 %

40 %

60 %

80 %

100 %

2007 2008 2009

>5 more years

3-5 more years

1-2 more years

< 1 year

Currently looking for a new job

How long do expect to remain in your current job?

Sha

re o

f res

pond

ents The group with a 3-5 year

perspective has grown from 29% of the respondents in

2007 to 39% in 2009

The percentage of the respondents who are expecting to change jobs

within a year has decreased from 19% in 2008 to 11% in 2009, with the

largest drop in those who are currently looking for a new job

Year



18 June 2009

83

The difficult year have made dissatisfied employees look for other opportunities

0 %

20 %

40 %

60 %

80 %

100 %

Currentlylooking

for a newjob

< 1 year 1-2 moreyears

3-5 moreyears

>5 moreyears

0 %

20 %

40 %

60 %

80 %

100 %

Currentlylooking

for a newjob


3-5 moreyears

>5 moreyears

0 %

20 %

40 %

60 %

80 %

100 %

Currentlylooking

for a newjob


3-5 moreyears

>5 moreyears


2007 2008 2009

SatisfiedIndifferentDissatisfied

Those currently looking for a job are normally fairly evenly split between the categories. In 2009, however, if you are satisfied, you do not look for a job.

Higher share of the indifferent expect to change in less than a year in 2009 than in previous years

Sha

re o

f res

pond

ents



18 June 2009

84

The majority of the respondents are solid citizens, with less zappers than before due to the market situation

Zappers are opportunists and with less opportunities in the market their share is lower than normal

More people make up the solid citizen group, with high satisfaction and long perspective

Somewhat fewer enthusiasts in the respondent group

On-the-move

3 %

Zappers

8 %

Passive workers

1 %

Solid citizens

71 %

Enthusiasts

15 %

Job

satis

fact

ion

Low

Hig

h

LoyaltyLow High

Average scores 2007-2009

On-the-move

4%

Zappers

12 %

Passive workers

1 %

Solid citizens

66 %

Enthusiasts

16 %

Job

satis

fact

ion

Low

Hig

hLoyaltyLow High

Respondents break into the following groups according to satisfaction and loyalty (2009)

Based on Ennova’s structure for employee loyalty (www.ennova.com)



18 June 2009

85

The employees on the move will leave their current employer, but the majority will remain in the industry

The shorter the perspective, the more likely that the employee will leave the company or the industry altogether

Those who expect to stay with the same employer for a long time, also expect to get a new job internally

Leaving the employer is first and foremost an immediate response, but stays an option even for those who have a longer term perspective

Comparing the absolute numbers, it is about a 50-50 chance that employers stay or leave the company if their perspective is less than 5 years

Within the same company With another company in the maritime industry Other industry

0 %

20 %

40 %

60 %

80 %

100 %

Currentlylooking for a

new job


3-5 moreyears

>5 more years

Where do you expect your next job to be?

Sha

re o

f res

pond

ents




18 June 2009

86








Where to next?



18 June 2009

87

Top 5 employers in the maritime industry are unchanged from year 2008

13%

16%

17%

39%

53%

% ranked top 3 2009

% ranked top 3 2008

28%Wilh. Willhelmsen Group2.

32%Det Norske Veritas1.

Top employers – all education fields

14%Frontline5.

16%Odfjell4.

19%Leif Höegh3.

41% of all respondents listed at least one of the top 3 employers.

Other popular employers were:

DNBNOR BW Group StatoilHydro Grieg Maersk



18 June 2009

88

DNV and Wilh. Wilhelmsen are the winners for employees with bothbusiness and technical background, similar to 2008 and 2007

14%

14%

21%

28%

72%

% ranked top 3 2009

15%

15%

17%

45%

45%

% ranked top 3 2009

18%Frontline5.

-Aker Solution5.

-Odfjell4.

28%Leif Höegh3.

31%Wilh. Wilhelmsen Group2.


% ranked top 3 2008

Top employer – background in technical studies

19%Leif Höegh4.

-Odfjell3.


33%Wilh. Wilhelmsen Group1.

% ranked top 3 2008

Top employer – background in Admin/business studies



18 June 2009

89








Where to next?



18 June 2009

90

Environmental issues, recruitment and competence and increasing overcapacity of vessels are the major future challengers for the industry

Modernise and innovate to face

stronger competition

Recruitment & Competence

Increased regulations and focus on

environmental issues

Overcapacity of vessels and issues related to

the global financial recession

Tax issuesPiracy

The crisis is realRespondents are concerned of the overcapacity of idle vessels resulting in low earnings and a tougher market as well as access to capital

It’s a people’s business after allConcern relating to the ability to recruit employers with the right competence. Will Norway manage to remain a strong maritime cluster?

Necessary innovationConcerns are related to the large demand of innovation and new technology to adapt to stronger competition and new trades

The environment = hot issueIncreasing focus and stricter regulation on use of fuel, emission gaseous and ballast water.



18 June 2009

91

Increased environmental regulations and lack of competence personnel onshore and off shore are still among the major concerns

Debate in 2008 focused on the Norwegian fleet flagging out and an increasing oil price which is reflected in the graph of major concerns

In 2009 taxation debate has settled and shipping industry is facing high number of idle vessels and low earnings. Piracy seems to be a higher challenge than tax issues.

2008

2009



18 June 2009

92

Safeguarding life, property and the environment

www.dnv.com

For more information about the survey, please contact:

Ari Marjamaa, Director, DNV Maritime Solutions

Email: [email protected]

Tel: +47 92 22 69 21

dnv maritime solutions\' working environment survey of the norwegian maritime cluster 2009

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