Employment trends in the transportation industry today are a mixed bag. Many employers have increased their hiring activity and job seekers should be encouraged by this recent increase in employment opportunities. Competition is heating up for human capital, funding resources and market share. We read daily that many of the major players are investing considerable resources on big-ticket items such as new ships and significant infrastructure projects.
Conversely, some of these same companies have been forced to reduce staff in some markets or have shifted certain functions to inland support centers. In select segments, hiring has been virtually flat. In the name of competition, the race to start and complete infrastructure projects is on and the effort to improve productivity while controlling costs is an ever-present challenge.
We’ve drawn on our own experiences of late and polled our client companies to try to make sense of what’s happening in maritime employment and to identify the issues that encourage, mystify and frustrate.
1. New ocean carriers. New liner companies in the U.S. market offer job seekers potential risk in terms of long-term stability and rewards in new opportunities and greater earnings potential. It’s uncertain whether these new carriers can survive in the long run, particularly with fierce competition and megaships on the horizon, but significant salary increases and the opportunity to be part of a startup company has been enough to entice some to leave their current employers. Not long ago, employees were reluctant to make a move, but the pendulum has swung, and confidence in the job market has shifted back in favor of the job seeker. 2. Port competitiveness and productivity. With more gateway options for moving cargo, port authorities are seeking creative ways to compete and provide increased value for shippers. Many ports now need to increase hiring in response to improved cargo volumes and in order to meet the demands for major infrastructure projects that are beginning to roll out. Scrutiny on spending and hiring often dictates how aggressively and expeditiously these organizations will be able to ramp up their efforts. 3. Continued shortage of qualified, experienced street salespeople. Street salespeople are perhaps the hottest commodity in the maritime employment sector today. Ocean carriers can’t hire sales executives fast enough, and there is a noticeable shortage of talent in the marketplace. The absence of entry-level sales opportunities and/or training programs for recent college graduates could be a factor in this deficit. Most companies are requiring at least a few years of relevant experience, so finding candidates with the precise qualifications is an ongoing challenge. A strong industry reputation and a clean background check are still critical, so honesty and openness regarding job and salary histories are imperative. 4. Directives to move personnel internally vs. hiring externally. Providing growth opportunities for employees from within can be ideal if the fit and situation align. Sometimes, however, an external search yields the most qualified candidate, but corporate directives may restrict hiring managers to hire from within. Moving an internal candidate into a vacant position within the company may provide an immediate fix, but can sometimes backfire. The company saves time and money up front but runs the risk of sacrificing productivity in the long run and even the possibility of losing an employee who isn’t satisfied or fully qualified for the new role. 5. Moving to lower business cost areas. For many companies, the benefits of relocating offices in order to reduce costs outweigh the risks of finding enough qualified local talent. However, new hubs such as Phoenix now have an improved pool of industry talent, thanks to increased carrier presence in the region. Solid companies have found that loyal employees are often willing to relocate, but strong organizational talent is inevitably lost (at great expense to the employer) when long-time employees are unable to make the move. 6. Aggressive hiring for critical positions. Hiring managers must be prepared to move quickly once they have identified desirable candidates. Waiting for headcount approvals or otherwise delaying the process with inadequate offers or an absence of relocation assistance can lead to foiled deals and a need to restart the process. Candidates now have choices, and often multiple offers to consider. Failure to move quickly can be disappointing and costly. 7. Higher demands on employees. Companies that are less optimistic about the economic recovery are opting to keep staffing at moderate levels in order to control costs. This can result in increased demands on the current work force, and employers run a risk of increased turnover due to employee burnout and frustration. One upside for employees is that they sometimes have the opportunity to diversify and learn new skills, making them more valuable to the organization and possibly opening up new career paths. 8. Competitors attracting employees with higher wages. Some companies are losing employees to competitors willing to pay significantly higher salaries. The sentiment over this issue is heated and is a hot topic for many industry discussion groups. Whether the companies are start-ups or established companies, one wonders if these salaries and positions are sustainable in the event of another economic downturn. For some candidates, the increased earnings potential simply can’t be refused, despite the potential risks. 9. Geographic relocation. The real estate market continues to play a critical role in career decision-making. The inability to sell a home quickly or the potential financial burden related to a home sale can sometimes make relocation unfeasible. Employers need to be prepared to offer relocation assistance, temporary living allowances and other incentives in order to secure highly qualified candidates. 10. Perpetually hard-to-fill jobs. Simply put, some jobs are so highly specialized or geographically limited that the search process can be an exercise in frustration for hiring managers, human resources departments and recruiters. In many cases an employer’s “ideal candidate” may not exist or be available, and concessions may have to be made. Geographic flexibility or a willingness to train those with loosely related skills could help in some cases. Overall, we see the employment outlook improving. Competition is high for quality candidates and companies may need a deeper “bench” for succession planning. One of the keys to cultivating a stronger talent pool may be the willingness of employers to provide employment and training opportunities for those individuals interested in entering the industry. While the recent shift in the employment market favors the job seeker, employers continue to be selective and seek not only the best qualified candidates, but those with impeccable reputations in the industry. Susan Shey Dvonch is a partner at executive recruiting firm Shey-Harding Associates in Seal Beach, Calif. She can be contacted at sue@shey-harding.com.