Maersk Group Case Study Solution
Increasing employee benefits
The company could consider an increase in the employee benefits in terms of increase in annual bonus, employee rewards, salaries, allowances etc. The company could introduce performance based employee benefit program in order to increase the benefits for the employees along with the improvement in the work efficiency as well as in the achievement of employee retention.
Moreover, the management could also provide a high salary increment as compared to the other companies in order to achieve the employee retention. Along with it, the company could provide various allowances including; conveyance allowance, accommodation allowance, medical allowance etc. to increase the retention rate.(Merla, 2018)
Providing career Opportunities
Employee retention rate could be increased by providing certain career opportunities to the employees. The company could utilize its extensive growth to provide high career opportunities to its employees in terms of promotion etc. to increase the retention rate. The career opportunity that could be provided is to allow the employees to choose the country where the employee wants to work in, from the total 130 countries, the company is operating in. Moreover, providing timely promotional benefits also has the potential to enable the company to increase its employees’retention rate.
Introducing Reward System
The company could introduce a diversified reward system for each of its branches in order to increase the retention rate. The rewards make the employees feel valuable and motivate them to improve their performances. The company should also provide rewards to its underperforming employees who have the potential to provide better services to the company. Moreover, the reward system should include the praise letters or emails on frequent basis to make the employees feel valuable for the company.
Reducing cohesiveness in the Organizational Culture
The company should reduce the cohesiveness in its business culture to reduce the turnover rate of the new employees non-familiar with the corporate culture. The strong and cohesive culture lead the new employees face certain challenges in form of integration and difficulty in mingling with other employees. Provision of a flexible organizational culture could reduce the employee turnover especially of the new employees without training.
Approach to be adopted to address the Hiring and integration of Experienced Personnel
The increase in the employee turnover has led the company to hire experienced employees from outside the company in order to fill the gap in the highly growing business scenario. Hiring of experienced employees rather than the fresh school or university graduates provides certain benefits to the company. Hiring experienced employees saves the extensive training and development costs and time of the company.
Experienced employees bring certain external experiences with them, which could be utilized for gaining certain advantages at the company. Moreover, experienced employees belong to various diversified cultures which could allow the diversity in the corporate culture and reduce the cohesiveness of the corporate culture.
However, the company’s policy related to providing no training to the experienced personnel causes the new experienced employees to face certain challenges, such as; having difficulties in understanding the corporate culture, difficulties in doing work with employees with a different cultural background, problems in integration with former employees etc.
Therefore, in order to reduce the struggle of the experienced employees in their initial years, the company should arrange a short training program for the experienced employees as well, to avoid the employee turnover of the newly hired employees. (Groysberg, 2013)
Alternative Solutions/Changes to Address the Talent Management Issues at Maersk
An efficient talent management is necessary to save the potential HR resources and to achieve the desired profitability levels. Being an in-charge at the company; the following changes are suggested to Maersk to achieve an efficient talent management.
- The company should change its organizational culture from a strong, cohesive, familial culture to a more diversified and performance based culture.
- The company should change its perspective over hiring former employees, as hiring the former employees could benefit the company at a high level.
- The company should arrange a short training program for the experienced employees as well to avoid the employee turnover of the new hires.
- The company should reduce the cohesiveness in its business culture in order to reduce the turnover rate of the new employee’s who are unfamiliar with the corporate culture.
- The company should introduce a diversified reward system for each of its operating branches in order to increase the retention rate.
- The company should provide certain career opportunities to its employees. The company should utilize its extensive growth to provide high career opportunities to its employees in terms of promotion etc. to increase the retention rate.
Conclusion
Although, despite of being a profitable firm, Maersk is facing critical challenges due to the increase in its employee turnover and its strong and cohesive culture, but, these challenges could be addressed by adopting certain strategies and with efficient talent management. The valuable HR resources could be saved by achieving efficient talent management, which would ultimately result in increasing the employee performance at Maersk along with the achievement of the desired profit levels............
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