DNV Maritime Solutions\' Working Environment Survey of the Norwegian Maritime Cluster 2009

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

Ari Marjamaa, Director, DNV Maritime Solutions
October 8th 2009

Executive summary (1/2)
About the respondents in the survey In Norway, the atmosphere is perceived to be better at the
largest companies
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 …but we are still satisfied working in the maritime industry
compared to around a third having Bachelor degrees
Despite the market turmoil and uncertainties, more than half of
Norwegian women and men choose differently when it comes to the respondents are happy in their current job
education, but not dramatically so
Most of the respondents are happier with their job now than in
Shipowners represent one third of the population, with the rest the previous years, except people working with ship finance and
relatively evenly distributed across the remaining segments classification
Commercial positions are represented by a third of the
population, while operational roles represent a fifth
Why do we work in the maritime industry?
All age groups have similar reasons for choosing the maritime
The crisis is felt by us all… industry, but family & traditions are more important for the
youngest and the oldest
The financial crisis and the downturn in shipping have influenced
all parts of the maritime industry, leading to recruitment freezes Both women and men choose the maritime industry because it is
and cost cutting initiatives an exciting business, but men rank the salary higher than women
do
The larger the firm the more initiatives have been taken to adapt
to the changes in the shipping market All educational backgrounds choose the industry because it is
exciting, but MBAs in particular find the career opportunities
Consulting and ship insurance are the most positive segments, attractive
while agents and shipowners are the most negative segments
Shipowners are the natural hub for employers in the maritime
Only 7 % of the respondents are afraid of losing their job, but industry
14% would be willing to reduce their salary to keep it

DNV Maritime Solutions Working Environment Survey 2009
18 June 2009
© Det Norske Veritas AS. All rights reserved. 2

Executive summary (2/2)
How does the industry players attract talents? The satisfaction of the job largely depends on the satisfaction
with development initiatives and remuneration, but also of how
Advertisements are still the primary source for attracting future challenging your tasks are
employees, but headhunting and personal network have been
more important in the past 12 months as a means of getting a - The three factors explain more than half of the variability in the
new job happiness with the current job, with challenging tasks being
the most important
Developing talents – an upside potential - The way the employer contributes to personal development
Junior management training and job rotation are most used influences how happy you are in your job
career development initiatives - The remuneration is important for job satisfaction, but not the
Less than a fifth of respondents report having talent programmes main point
or structured career planning in place in their organizations But job happiness only explains about 20% of how long an
Talent management is a key issue in today’s HR landscape, and employee expects to remain in her position
it appears that the industry has some improvement potential here Less people are actively looking for a new job, while a larger
percentage have increased their time perspective in the current
Retaining talents by challenging and developing them job
Satisfaction is generally lower than the importance, creating a - The employees on the move will leave their current employer,
latent dissatisfaction (AKA upside potential) but the majority will remain in the industry
There are clear changes in 2009 compared to the overall - The shorter the perspective, the more likely that the employee
averages for motivational factors, but little change in relative will leave the company or the industry altogether
satisfaction
There is a strong correlation between the factors important to the What are tomorrow’s challenges?
employee and how happy she is in her job Environmental issues, recruitment and competence and
There is a clear relationship between how happy you are in your increasing overcapacity of vessels are perceived as the major
job and how long you expect to stay future challenges for the industry

18 June 2009

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

Shifting the focus from the sea to the shore
The big issue has left a shadow onshore Keeping the ball rolling

For many years, the maritime industry has been aware of the In 2007 DNV Advisory Services initiated a working environment
challenges in recruiting and retaining offshore personnel. Many survey for the maritime industry in Norway. The ambition was to
efforts have been made to tackle this issue and a lot of attention contribute to the continuous work of the industry to maintain
has been given to it. To a certain degree, this has come at the competitive advantage for both the Norwegian maritime industry
cost of the attention given to onshore personnel. as a whole, as well as for individual companies.

Also, the maritime industry is inherently traditionalist, some Together with YoungShip, DNV has developed the reference on
would say conservative, and has not always lead the way in the the working environment for young people in the maritime
implementation of sophisticated management practices and industry – what attracts them, how they are and want to be
organizational philosophy. developed, and how companies work to attract and retain them.
The survey database currently contains more than 1000 unique
People – the building block of companies and industries respondents from the maritime industry, allowing a peek into the
mechanisms that makes this industry of ours tick.
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 Since we started the Survey in 2007, we have noticed a shift in
importance of the competence, experience and skills of the the way companies thing about onshore employees – more
people working at our clients’ organizations. focus, more development, more structure. It may seem as if the
ball has started rolling.
Over and over again, we see that this is the key driver for
competitive advantage and long term business performance. Same procedure as last year, or maybe not?
We also see that often too little attention is given to the
development and nurturing of onshore human resources. 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
Not only individual companies suffer from this, but also the once-in-a-lifetime low. Within less than 12 months! How does
industry as a whole. Only the best people can build the best this affect life in maritime companies? And how are the people
industry – but they have to be recruited, trained and developed within them affected and changing?
(not to say retained) by the industry to really matter.
In the following we hope to give you a glimpse of this, so let us
move on.

18 June 2009

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

- Who are they?
- What do they do?


- Attract them
- Retain them

Where to next?

18 June 2009

About the population and the respondents
DISTRIBUTION OF SEGMENTS DISTRIBUTION OF RESPONDENTS’ NATIONALITY
Percent of
France
N total 1,3 %
Shipowner 75 32 %
Equipment maker 8 3% Sweden
3,1 % Singapore
Yard 2 1% 0,9 %
Ship management 21 9% United States
Ship broking 19 8% 0,9 %

Other China
Ship financing 23 10 % Norway 0,4 %
6,2 % Finland
Ship insurance 15 6% 90,7 % 0,4 %
Consulting 16 7% New Zealand
0,4 %
Poland
Maritime law 6 3% 0,4 %
Class society 15 6% Turkey Spain
0,4 % 0,4 %
Agent 4 2%
United Kingdom
Other, please specify 27 12 % Share of respondents 0,4 %
231

DISTRIBUTION OF AGE & SEX DISTRIBUTION OF LOCATION THE SURVEY POPULATION
Percent of The population consists of the members of Youngship
Percent of
total
N total in Norway, spread out among the entire maritime
N
Oslo 119 52 % industry as well as geographically in Norway
20-25 years 16 7%
Bergen 75 32 % (including some abroad)
26-30 years 132 57 %
Haugesund 1 0%
31-40 years 83 36 %
Kristiansand 10 4%
231 • The breadth and diversity of this group allows for
Stavanger 2 1% drawing conclusions on an industry wide level.
Percent of
total Other, please 22 10 %
N
Total 229
Female 77 33 % • There are few respondents in some of the segments,
Male 154 67 % which dictates some caution to be made in the
Total 231 conclusions drawn here.

18 June 2009

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

Age distribution of respondents (2007-2009)
A total of 231 respondents
60,00 %
participated in the survey in 2009
Share of respondents

Total number of respondents over
the last 3 years is 1000+, including
40,00 % respondents in Singapore and the
UK
2007
2008
2009
The respondent group is dominated
by respondents in the 26-30 age
20,00 %
bracket, representing almost 60% of
the respondents
The youngest age bracket
0,00 % represented less than 10% in 2009
20-25 years 26-30 years 31-40 years

18 June 2009

One third of respondents are women and the share is rising
Distribution of gender in 2009 Development in distribution of gender since 2007
100 %

90 %

80 %

70 %

Female 60 %
34 %
50 % Male
Female
Male 40 %
66 %
30 %

20 %

10 %

Share of respondents 0%
2007 2008 2009

About one third of the respondents are female 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

18 June 2009

The majority of respondents are located in Oslo, but around one third
in Bergen and 15% in other locations
IN WHICH LOCATION you work (Norway 2009)(NO 2009)
In which locatio do DO YOU WORK? IN WHICH LOCATION DO YOU WORK? (NO 2007- 9)

Other
100 %

Stavanger 10 %
1%
Kristiansand 90 %
4%
80 %
Haugesund
0%
70 %
Other
60 % Stavanger
Kristiansand
50 %
Haugesund
Oslo
40 % Bergen
52 %
Oslo
30 %

20 %
Bergen
33 %
10 %

0%
Share of respondents 2007 2008 2009

The majority are located in Oslo, with Bergen a good The survey has increased in scope, as the population
number two has widened from being purely Oslo & Bergen based,
to being national
Among “Others” are Bangkok, Bombay, London, Sopot
(Poland), Tønsberg, Arendal, Grimstad, Sortland &
Offshore

18 June 2009

The respondent group is overwhelmingly of Norwegian nationality
The vast majority of the Norwegian
Distribution of nationality of Norwegian
respondents are of Norwegian
respondents nationality
The second biggest group is Swedish
Around 5% are of other origins, among
Sweden these
3%
- Singapore
France
1% - China
Norway Other
- Finland
91 % 5% - New Zealand
- Poland
- Spain,
- Turkey
- United Kingdom
- USA

18 June 2009

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

THE LEVEL OF EDUCATION OBTAINED THE LEVEL OF EDUCATION OBTAINED SPLIT BY SEX
None of the above
5%
MBA
3%
Diploma
2%
Diploma Female
Male

Bachelor

Master Mariner

Bachelor
Master of Science / Master (incl.
33 %
Siviløkonom & Sivilingeniø

Master of Science /
MBA
Master (incl.
Siviløkonom &
Sivilingeniø
53 % None of the above

Master Mariner Other
4%

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

18 June 2009

Norwegian women and men choose differently when it comes to
education, but not dramatically so
What is your educational background? Overall the picture is relatively
similar, but with different weights
100 %

More women have chosen “other”
90 % and among these are
- Natural sciences
80 %
- Teaching
- Merchandising/design
70 % Other, please specify - Marketing
Military education - Marine sciences (fishery and
60 %
Nautical aquaculture)
Law - Humanities/Language
50 %
IT
Finance/Economics The men that have chosen “other”
40 %
Technical/Engineering have background from among
Administrative/Business others
30 %
- Logistics
20 %
- Shipping and Logistics
- Nautical & Business
10 % - Mathematics and Statistics
- Logistics
0% - Maritime Business w/law
Female Male

18 June 2009

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
How many years ofwork experience (Norway 2009)
Total total work experience do you have?

35 %
Similar distribution of the respondents in all

30 %
3 years the survey have been undertaken
25 %
Around 50% of the respondents have
20 %
between 1 and 5 years of experience, with
15 % 5-10 years being the second largest bracket
10 % with about 30%
5%

0%
In 2009, less than 5% were “straight-out-of-
<1 year 1-3 years 3-5 years 5-10 years >10 years, school”
please specify

How long have you worked in the maritime industry?
50 %
Almost half the respondents have been 1-3

40 %
years in the maritime industry, with around
30 % 45% (2009) having more than 3 years
20 % experience
10 %
Around 10% have less than a year
0%
<1 year 1-3 years 4-5 years 6-10 years >10 years, experience from the maritime industry
please specify

2007 2008 2009

18 June 2009

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
Total work experience by educational background
100 %

90 %

80 %

70 %

>10 years, please specify
60 %
5-10 years
50 % 3-5 years
1-3 years
40 %
<1 year
30 %

20 %

10 %

0%
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18 June 2009

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

Other, please specify

Agent

Class society

Maritime law

Consulting <1 year
1-3 years
Ship insurance
3-5 years
Ship financing
5-10 years
Ship broking >10 years, please specify
Ship management The red marker delimits
the percentage with less
Yard
than 5 years experience
Equipment maker

Shipowner

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

18 June 2009

Similar distribution of work experience in the different size segments
Total work experience by size of company

Large

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

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

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

18 June 2009

- Who are they?
- What do they do?


- Attract them
- Retain them

Where to next?

18 June 2009

Shipowners represent one third of the population, with the rest
relatively evenly distributed across the remaining segments
At what type of company do you work?
Yards and agents are the least
Maritime law Agent Yard
3% 2% 1% represented segments with only a
Equipment maker few respondents. This will be taken
3%
Class society
into consideration in the remaining
6% segment wise analyses.
Shipowner
33 %
Ship insurance The other segment consists of
6%
among others
Consulting -Drilling company -FPSO contractor
7% -Bunker Trading -Tax law
-IT -Marine Insurance
-Coastguard Broker
Ship broking -Carrier
-Oil company
8%
-Maritime supply and -Ships Service
Other, please logistics -Marine Operations
Ship management specify -Maritime services -Coating contracting
9% Ship financing 12 % -Research -Oil insurance,
10 % -Ministry of Trade


18 June 2009

Commercial positions are represented by a third of the population,
while operational roles represent a fifth
The “Other” segment include In which area of the company is your current position?

- Analyst Legal
- Finance 7%
Other, please
- Broking, Sales & Purchase + specify
Newbuilding 11 %
- Insurance
- Trainee
- Bank
Commercial
- Product marketing 32 %
- Customer service
- Insurance
Administrative
- Client Relationship 15 %
- Captein
- Inspection co-ordinator
- Service Operational
Technical
- IT 20 %
15 %
- Consultancy/ advisory
- Business Development
- Marine & HSEQ Share of respondents

18 June 2009

More than half the respondents still being with their first employer in
the maritime industry
55% of the respondents are still with their first
How many employers have you previously
had in the maritime industry? 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
55%

How many employers have you previously had in the maritime industry?
80 %

60 %

None
None 1 2 3 >3 40 %
1

2
3
>4
20 %

0%
<1 year 1-3 years 4-5 years 6-10 years >10 years, please
specify

18 June 2009

- Who are they?
- What do they do?


- Attract them
- Retain them

Where to next?

18 June 2009

The financial crisis and downturn in shipping have influenced all parts
of the maritime industry
The company has experiences loss of business Profitability has dropped
All players in the maritime industry
100% have experienced loss of business

75%
Maritime law is “the winner” in the
50% cluster
25%
100 % of the shipbuilding industry
0% report loss of profitability and class
and shipbuilding report most
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Newbuilding cancellation affect the company Lay-up of ship affect the company
Equipment makers, class and
100% shipbrokers suffer the most from

75% cancellations
50% Lay-up of ships effects insurance,
25% ship mgmt companies and owners
0%
Maritime law firms and consultants
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* Note: Few respondents in shipbuilding segment
18 June 2009

The downturn has lead to recruitment freezes and cost cutting
Recruitment is stopped The company has laid off people
External recruitment is widely
100%

stopped
75%
50%
Maritime law and ship insurance
companies are the only employers
25%
that have not yet laid off people
0%
Ship building and ship management
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Cost cutting efforts are initiated Restructuring has been initiated
Organisational measures are initiated
100% in all part of the industry

75%
Cost cutting initiatives are more
50% common than restructuring of the
25% organisation
0% Maritime law and consulting have
experience least restructuring
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18 June 2009

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

Has your company laid Is external recruitment to Has your company started Has your company restructured
off people? your company put on hold? cost cutting initiatives? to adapt to the crisis?

Small
S
(< 50 employees)
S S S

Medium size
Yes Yes Yes Yes
M M M M
(50-200 employees) No No No No

L
Larger L L L
(>250 employees)

0% 25% 50% 75% 100%
0% 25% 50% 75% 100%
0% 25% 50% 75% 100%
0% 25% 50% 75% 100%

Employees at smaller More than half of the 90 % of the largest The larger the firm the
companies have up to companies with less companies have started more initiatives has
now had the safest than 50 employees in cost-cutting initiatives, been taken to adapt to
jobs, with less than 25 Norway are still while only 60 % of the the change in the
% reporting that their recruiting smaller owners have shipping market
company has laid up done the same
people

18 June 2009

Consulting and ship insurance are the most positive segments, while
agents and shipowners are the most negative segments
How would you describe the atmosphere at your company?
Consulting
Ship insurance
Maritime law
Class society
Ship broking
Ship management
Other, please specify
Ship financing
Yard
Equipment maker
Shipowner
Agent

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

Bad atmosphere Good atmosphere

Consulting and ship insurance have the A high number of the respondents find that
best atmosphere in the companies the atmosphere at agents and shipowning
companies is bad
18 June 2009

The atmosphere is perceived to be better at the larger companies
How do you perceive the atmosphere at your company?

Very good atmosphere

Good atmpsphere

Large
Indifferent

Bad atmosphere
Largest companies have all Very bad atmosphere
respondents on the positive
or neutral note Very good atmosphere

Medium
Good atmpsphere
Medium sized and small Indifferent
companies show more Bad atmosphere
mixed results, with Very bad atmosphere

respondents ranging all over
the specter Very good atmosphere

Good atmpsphere
Small

Indifferent
Bad atmosphere

Very bad atmosphere

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

18 June 2009

Only 7 % of the respondents are afraid of losing their job, but 14%
would be willing to reduce their salary to keep it
What would you be willing to sacrifice to keep your job? Are you afraid of losing your job?

Class society
100 %

Maritime law

Ship insurance
75 %
Yard

Ship financing

50 % No Shipowner
Yes
Yes
No
Consulting

25 % Other, please specify

Equipment maker

Ship management
0%
I w ould be w illing I w ould be w illing I w ould be w illing I w ould be w illing Other, please Agent
to reduce my to w ork overtime to reduce my to reduce my specify
bonus unpaid benefits & perks salary Ship broking

0% 25 % 50 % 75 % 100 %

Overtime payment is set higher than benefits and perks 7 % of the respondents are afraid of losing their job
Reduction in salary is the least favourable situation, however employees People with business and administration as
with high bonus schemes (e.g. Ship brokers) are more willing to give up educational background and people in commercial
base salary positions are most afraid of losing their jobs

DNV Maritime Solutions Working Environment Survey 2009 Overall average
18 June 2009

There is a clear willingness to sacrifice bonuses to keep the job, but
more mixed with regards to bonus and overtime payment reductions
What would you be willing to sacrifice to keep your job?

100 % Ship owners, ship

Half the respondents would
finance and insurance
be willing to reduce bonus to
the least motivated to
keep the job, with equipment
reduce salary
makers and ship finance
being the least willing Shipowner
75 %
Equipment maker
Ship management
Ship broking
Ship financing
50 %
Ship insurance
Consulting
Maritime law
Class society
25 % Other

0%
I would be willing to I would be willing to I would be willing to I would be willing to Other, please specify
reduce my salary reduce my bonus work overtime unpaid reduce my benefits &
perks

18 June 2009

- Who are they?
- What do they do?


- Attract them
- Retain them

Where to next?

18 June 2009

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?

60,00 %

40,00 %
2007
2008
2009
20,00 %

0,00 %
Very Unsatisfied Unsatisfied Indifferent Satisfied Very Satisfied

More respondents are “satisfied”, while fewer are Somewhat less respondents are “very satisfied”
“indifferent” in their current job

No difference in satisfaction between the different All segments are more satisfied this year, except
sizes of company ship finance and classification

18 June 2009

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

Satisfied 2009 Unsatisfied 2009 Satisfied 2008

100 % 100 %

90 % 90 %

80 % 80 %

70 % 70 %

60 % 60 %

50 % 50 %

40 % 40 %

30 % 30 %

20 % 20 %

10 % 10 %

0% 0%
Shipbuilding Ship broking Other Consulting Ship Shipowner Ship financing Class society Ship Maritime law
management insurance

Ship management has improved the most with ship Overall, people seem to be more satisfied in their
insurance second jobs in 2009 than in 2008
Both ship finance and classification are less Satisfaction in the job is positively correlated with
satisfied than last year, but marginally so the general atmosphere in the company

18 June 2009

DNV Maritime Solutions\' Working Environment Survey of the Norwegian Maritime Cluster 2009

DNV Maritime Solutions\' Working Environment Survey of the Norwegian Maritime Cluster 2009

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