Talent Management Maersk Fin.pptx

WELCOME ONBOARD A.P. Moller - Maersk Evaluating Strategic Talent Management Initiatives

Prepared by

The A.P. Moller – Maersk Group (APMM) • Founded in ?1904 • Global headquarters in Denmark

? , Copenhagen

• 110,000 employees • Offices in around

? countries 130

• Operates more than 550 container vessels • Ranked at 107 in Forbes Magazine’s ‘Fortune 500’ survey in 2009 (151 in 2008) A.P. Møller - Mærsk A/S was established in the Danish town of Svendborg by 28year-old Mr Arnold Peter Møller together with his father, Captain Peter Mærsk Møller. On the death of his father in 1965, Mr Mærsk Mc-Kinney Møller assumed the leadership of the A.P. Moller - Maersk Group which developed into a major international business. In 1993 Mr Mærsk Mc-Kinney Møller withdrew from the day-to-day management and today the Group is headed by Mr Nils S. Andersen who took over as the fourth Group Chief Executive Officer and Partner in 2007.

What Maersk do

Timeline of Talent Management 1. “Familial relationship” with employee 2. Underleverage in individual career management 3. Slow to let go underperforming employee 4. Similarity in leadership value, not ideal for a global business 5. Execution-focused

Pre-2003 Maersk Shipping Academy

1. New talent management process 2. Focus on : right people right job right time, leadership development, reward differentiation

1. Hiring experienced professionals and accelerating career progression of trainee 2. Performance measurement standard

2003

2008

Maersk become increasingly global in business and employee base Maersk Line Graduate Programme

2012 HR function changed from administrative to strategic management

Talent Management – an end-to-end process 1

Attraction Scenario Planning

5

2 Right Person, Right Place, Deployment

Identification

Right Time

Development 4

3

The PSS structure Business priorities

The Positions

The People

Organizational gaps

Talent Development – Development Shop

CONTENT OF THE SHOP Opportunities can be found by area of learning or by type of development AREA OF INTEREST: •Communication •Self Leadership •People Leadership •Change Leadership •Strategy & Business Acumen •Financial Literacy •Process & Project Leadership TYPE OF DEVELOPMENT •FEE: Books, E-Learning and Courses •FREE: Articles, Podcasts and Webcasts, Learning Partner Resources

The aspiration of the Development Shop is to provide the right development opportunities to the right people at the right time via the right channels.

LEARNING CORNER •Leader & learner guides to managing development

Measuring performance ● Increased emphasis on performance measurement and standardized benchmarks ● Driven by objective settings → scorecard and associated KPIs with targets confirmed by the executive team.

Strengths Experience d HR/Busin ess Unit Company name makes it easy to attract new talent Skilled workforc e from solid training programs

Opportuni

Weakness es High turnover rate Cohesive culture makes it difficult to integrate new hires Low diversity amongst upper level manage ment Threat

Maersk Critical Talent Challenges

Employee Retention

Employee Development

Integrating Experienced Hires

Re-Hiring

Employee Diversity

Employee Retention • Sudden increase in historically low turnover rate • Rapid business growth and increased hiring needs • Limited candidate pipeline • Lack of planning to mitigate risks of turnover

Employee Retention • Lost “familial relationship” value • Hiring gap • Increase in training and development costs • Negative impact on company revenue and profitability • Potential decrease in the quality of product or customer service

Employee Development Inception – 2004 ✓ Employee training is costly and time consuming ✓ Company not reserving return on investment in employee training (400 trainees, from 80 countries hired per year, only 20% remain after 5 years) ✓ No indication if training program aligned with HR long term goals and objectives 2008 ✓ New internal training which emphasize in development and pay-for-performance initiatives ✓ Training became more individualize ✓ Establishment of Development Shop

leadership

Integrating Experienced Hires ● Build-buy-borrow approach ● No training or coaching for experienced hires who join Maersk ● Challenge for experienced hires to get into Maersk culture and establish a relationship with current employee

Re-Hiring • Maersk unwritten policy of not rehiring boomerangs • Research says 10% of new hires at many companies were boomerang employees • Boomerang are lower risk, less costly, hiring and recruiting process shorter and less labor intensive, high performance level and establish network • Maersk need to change “policy” and consider returning employee on an opportunistic basis

Employee Diversity ● “Sameness”, diversity

lack

of

● Change in mindset and leadership as the company growth and diverse ● Understanding employee culture are vital in order to attract and retain talent from all over the globe

Employee Turnover Drivers

Employee Retention Strategies

- Keep

updating what compensation is being offered by competitor and offer comparable benefits packages - Offer additional perks such as flexible schedules, stock options, on-site fitness rooms or day care, discounts on services or travel

- Find ways to position potential employee for future advancement within the company

- Provide job training

for new entry and consistently train current employee to improve work performance

- Acknowledge

employee personal life and cultural background - Create a well balance work and life working environment

- Revisit job description - Assign employee to a special project or expand their role - Keep employees excited about what they’re doing through team-building activities

- Recognized job well done

- Increment in salary or bonus or non monetary reward (day off, membership, award event)

Recommendation Retention should be synced with Development

Recommendation 1. International Acceleration Program Intensive training and cultural education for high-performing leaders across units 2. Increase job satisfaction and work motivation Ex : Dual ladder track, Skill variety, Task identity, Feedback 3.Emphasize on employee’s perception of work environment Ex: Engagement survey

Recommendation

Recommendation Recruiting 1. Broadened the understanding of potential talent to build a more sustainable pipeline. –Talent is global and independent of gender, race, culture, age

2. Create inclusive environment that enables the organization to benefit from different perspectives of the diverse employee

Recommendation Rehiring 1. Exit interview- provide employers with opportunity to gain feedback and maintain relationship with departing employee and provide data for HR strategy 2. Develop tracking system to keep touch with key employee for rehiring opportunity Ex: Database and Alumni Network

Bon Voyage!