Case Analysis For Maersk Group
Case analysis for Maersk Group
张雯扬 2014211809
The Maersk Group was founded in 1904 and became the largest company in Denmark. Maersk operates one of the largest container shipping businesses globally as well as oil and gas exploration and container terminal operations. Now it is transforming from a family business to a global conglomerate. However, Maersk is experiencing five notable talent challenges during its strategic transition.
Firstly, employee turnover has increased. Traditionally the company relied heavily on employees who started with the Group as trainees and then spent the entirety of their career there. But now only 20% of the trainees remained after five years. Secondly, with employee attrition rates rising, and industry competitors targeting Maersk employees because of their strong training, the company feels its training and development programs needed to be redesigned. Thirdly, Maersk must decide whether it should continue to hire experienced individuals from outside the firm and also how to integrate these experienced hires. Fourthly, Maersk need to think about if it should rehire former employees, which had historically been considered taboo but could bring in external talent and reduce integration risk in the current situation. Lastly, Maersk is considering how to create an inclusive culture in order to adapt to the increasing diversities in both customer base and business environment.
Before 2003, Maersk was not doing well enough on leveraging the talent of individuals. Moreover, employees in the company are connected more with a familial relationship. However, as Maersk transitioned from a family owned Danish company to a publicly-traded global business, its workforce changed, as did its talent needs. Therefore the company’s HR policy and practice also need to make significant changes. After 2003, Maersk had already made some adjustments in its talent management practices. For example, it accelerated the career progression of trainees.
张雯扬 2014211809
The Maersk Group was founded in 1904 and became the largest company in Denmark. Maersk operates one of the largest container shipping businesses globally as well as oil and gas exploration and container terminal operations. Now it is transforming from a family business to a global conglomerate. However, Maersk is experiencing five notable talent challenges during its strategic transition.
Firstly, employee turnover has increased. Traditionally the company relied heavily on employees who started with the Group as trainees and then spent the entirety of their career there. But now only 20% of the trainees remained after five years. Secondly, with employee attrition rates rising, and industry competitors targeting Maersk employees because of their strong training, the company feels its training and development programs needed to be redesigned. Thirdly, Maersk must decide whether it should continue to hire experienced individuals from outside the firm and also how to integrate these experienced hires. Fourthly, Maersk need to think about if it should rehire former employees, which had historically been considered taboo but could bring in external talent and reduce integration risk in the current situation. Lastly, Maersk is considering how to create an inclusive culture in order to adapt to the increasing diversities in both customer base and business environment.
Before 2003, Maersk was not doing well enough on leveraging the talent of individuals. Moreover, employees in the company are connected more with a familial relationship. However, as Maersk transitioned from a family owned Danish company to a publicly-traded global business, its workforce changed, as did its talent needs. Therefore the company’s HR policy and practice also need to make significant changes. After 2003, Maersk had already made some adjustments in its talent management practices. For example, it accelerated the career progression of trainees.