Wage level for the maritime and offshore personnel depends on many factors, for example on how rapidly changing the industry is. In the volatile market, the crews' salary as long as benefits and welfare packages shall be monitored and reviewed fairly often, in order to keep up with the industry waves, plan and maximize human resources and remain competitive.
Since the crisis hit the shipping and offshore, and many maritime specialists become available in the job market, the companies faced a dilemma if they can apply cost-reduction measures for the crews' wage and benefits, or keep them on the same level, thus make sure high crew retention rate.
There is no simple answer here. The companies with excellent job packages, especially those operating in the offshore market, significantly reduced the salary packages to equal them to the minimum required by MLC. Many have changed employment scheme to achieve flexibility and elasticity of crewing costs.
A crews' salary benchmarking plan created and put together ahead of time is an effective tool not only to be always reactive to the market volatility but making sure you retain the best industry talents and meet the budgets and company financial objectives.
So what are the main features that differentiate a wage benchmarking in the maritime world from the other industries.
1. Nature of the maritime business.
Crews' wage data is analyzed by the nationality, rank, and type of the vessels. As maritime business is international and ships and rigs are operated globally, under various local regulations and unions requirements, the minimum and average market salary for the same position would not be the same. Numerous types of vessels and difference in salary level for the personnel on tankers, container vessels, or offshore supply vessels make the task even more complicated.
2. Flag of the vessel or rig.
Flag State Administrations have various requirements for the minimum wage and benefits for seafarers. To mention a few, NOR flag manning requirements vary from flags of convenience.
3. Trading area.
There are local content requirements to crews wage and crew rotation scheme, applied in some areas, that should be taken into account while benchmarking crews salary.