MISC Annual Report 2019

Management Discussion & Analysis As the market remains competitive and the skills requirements of organisations undergo rapid change for employee competency development, we continuously develop talent in various ways by investing in new tools to embed a learning culture. A host of leadership and functional skills initiatives were rolled out during the year which included the launch of the 2019 training calendar during HR Learning Day. It was supplemented with the “Platform Series” and “Pocket Size Learning” that serves as an introduction to the 2019 Leadership Development series that enables employees to self-register themselves for relevant training programmes throughout the year. At MISC Berhad, a total of 413 employees participated in 919 man-days of leadership programmes over the year and a further 400 employees participated in 818 man-days of functional programmes. Group investment in training programmes in 2019 was RM7.66 million across more than 3,000 shore employees. In support of the Technical and Vocational Education and Training initiatives by the Ministry of Education, MHB with three other industry partners formed a strategic collaboration to become an active player by providing Structured Internship Programme placements for students from the institutions managed by the Department of Polytechnic and Community College Education. In keeping up with the global trend of moving towards digitalisation to support MISC’s business needs, we embarked on two groupwide digitalisation initiatives in 2019 to increase our efficiency in managing the human resource aspect of the organisation. These two initiatives are the Talent Management System (TMS) and MISC Feedback Platform application. TMS was implemented with the objective of enhancing our efficiency in managing the requirements for recruitment and onboarding, learning management, competency assessments and succession planning for the MISC Group of Companies. It enables the talent management process via a single platform that eliminates the manual process. TMS also empowers MISC employees to take charge of their own development as it includes e-learning functionality and online access to the learning calendar for the year, where employees can register themselves for any training programme listed. TMS is being implemented in phases and Phase 1 which covers learning management, recruitment and onboarding was launched in December 2019. Phase 2, which focuses on competency assessment and succession planning, is expected to go-live in 2020. Meanwhile, the MISC Feedback Platform application encourages and promotes a culture of feedback exchange to further strengthen the institutionalisation of MISC’s Cultural Beliefs among employees. Real- time feedback provides the opportunity for managers to have meaningful and forward- looking conversations about personal and professional development with the employee, resulting in better engagement and improved productivity. Our subsidiaries such as MHB are also moving towards the digitalisation of all HR functions including talent sourcing, interviewing, recruiting, on-boarding, training, and other HR-related matters. Meanwhile, Eaglestar has established several collaborative initiatives with various external partners and technology companies to explore and invest in next generation technology as HR enablers. This will address the transformation of the shipping industry as a result of digitalisation, artificial intelligence, autonomous ships and the Internet-of-Things. AET also took the opportunity to leverage digital technology to improve the employee experience and drive greater efficiencies while building leadership capability to manage different multi-generational and cultural teams. Key Developments for Seafarers Part of the Group’s strategic focus and commitment is to ensure that there is a sustainable pool of seafarers who can execute the business strategies through our integrated marine services subsidiary, Eaglestar. In order for us to achieve that, we are continuously investing in staff training and retraining, talent development and succession planning to enhance their competencies, proficiency and capabilities in various aspects of the business and operations. During the year in review, Eaglestar supported the development of its seafarers by investing RM54.2 million in training and development programmes. Eaglestar is also identifying and developing new and future-ready skills for the seafarers to understand and operate new concepts in smart ships, multi-fuel engine designs, as well as changes in maritime legislation and regulations to build a team of more robust and versatile universal seafarers. During the year, there was a focus on mandatory functional and HSSE training for safe and efficient management of the ships and staff on board, with an emphasis on leadership and talent development. This included ship to shore attachments, shore conferences and engagement sessions for officers and ratings, as well as attachments with our partners for the development of next generation ship management tools. The structured training ensured that they are equipped with sufficient knowledge and skills to adapt to changing regulatory environments, new engine developments, new digital tools, communication protocols and crisis management. On top of that, leadership programmes were also conducted with the aim to inculcate the right culture, beliefs and values ethics, and behaviour in developing the next generation of leaders. Following the Group, Eaglestar also has a structured staff succession planning process to support staff development that will prepare them to take on more challenging or higher jobs, where gap assessment and identified interventions are critical elements of the succession planning process. Moving Forward With talent shortages expected to remain relatively significant in 2020, employers need to remain competitive to avoid losing top talents. As such, retention strategies will continue to be a top priority in 2020. This will continue to be done through strategic talent management initiatives with a structured and holistic developmental framework, that ultimately feeds into the talent pipeline for succession planning. Aside from focusing on succession planning and employee competency development, the Group will work towards implementing our new TMS system in phases. As the impact of global events and direction of domestic policies become clearer, companies will look for digitally savvy talent with a progressive mindset across all functions to bring fresh ideas and perspectives in order to accelerate digitalisation efforts. We will therefore set our sights on providing ongoing upskilling training for our employees to effectively deliver efficient and safe operations, whilst remaining agile to adapt to further developments. There will be high demand for professionals who are not only skilled at what they do, but also possess business acumen and the ability to leverage new technology to innovate and drive the business. In order for us to attract such talent into our organisation, we will strive to communicate clear career development pathways, as well as demonstrate how their work can bring positive impact to the business. We recognise that the employee landscape faces unprecedented changes with the new disruptive technology business models while transforming how work is done, therefore we will have to adapt to remain competitive in the changing landscape. With mature and agile programmes in place to meet emerging needs, we are confident that MISC is well positioned to meet the challenges of a changing environment in 2020. We will relook at new skills that are relevant in the industry to support the aspiration for the workforce to be future-ready as well as strengthen the current and future leadership bench. People Development 135 OUR BUSINESS PERFORMANCE ANNUAL REPORT 2019 134 MISC BERHAD PEOPLE. PASSION. POSSIBILITIES