Classification: Internal

Employee turnover was mostly caused by the worldwide crisis that occurred in 2008. It had a significant
negative impact on Maersk's top line and return on investment. Though it didn't have much of an impact
because the operating result improved and the company made record profits in 2010.

• However, Maersk's low employee turnover rate has increased significantly in recent years, which is
exceptional. The changeover also resulted in a noticeable shift in company culture. Employee turnover
has typically been based on young graduates who were employed right out of college and stayed for the
duration of their career. Only 20% of the 400 trainees Maersk hired each year remained after five years.

The Maersk Line is noted for their goal-setting, KPIs (Key Performance Indicators), and behavior-
prescription programs. Benchmarking made it difficult for employees, particularly those who were
underperforming, to stay on the job for long periods of time.

• The rigorous KPI structures clashed with cross-functional collaboration. Talent requirements and
procedures evolved in tandem with the changing workforce. Because the organization was undergoing a
big cultural transformation, employees had to adjust to changes in work dynamics.

• Different people inherited different talents, but Maersk didn't do a good job of recognizing individual
talent until 2003, when it began focused on individual career development and faster career growth for
its trainees.

The company could try the following to keep the talent:

• Recruiting the right person from the start is critical to the company's success. The management must
prioritize the employee's personal needs in order to achieve this. By providing additional flexibility, you
can build employee trust and loyalty.

Employee behavior in the workplace can be changed by effective leadership and forceful
communication. Employee interaction and employee trustworthiness can also be improved through
leadership. It would increase their level of participation and enjoyment even more. The most crucial
factor that companies look for in a boss is recognition and respect. To look for a tough position where
they can learn and improve their skills. Compensation and benefits, as well as bonus schemes, are also
beneficial to the organization. The firm will be able to build better tactics to keep their personnel for a
longer amount of time as a result of these.