Page 11 - Recruitment & Training 2024/25

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Recruit.
The hidden cost of recruitment.
Recruitment costs in yachting are often underestimated, with many
assuming agency fees are the main expense. However, the actual costs,
which include both time for your team and money for your principal, are
significant.
Recruitment peaks during the new build stage, where costs are incorporated
into the build budget, and when a yacht is operational. Managing a
full-time onboard role and recruitment often leads to frequent firing and
rehiring, seen as simpler than training. This requires doubling the budget
to cover both "fire" and "hire" costs.
Onboard, standard costs include repatriation, paid leave, notice period,
uniforms and shoes, with one deckhand’s shoes replacement costing $900,
alongside administrative expenses. Similar costs mirror for new hires.
Ashore, overlooked costs cover insurance, banking, legal, management,
payroll and compliance, doubling with each crew change.
A major overlooked expense is Human Time - the collective hours spent by
all involved in offboarding, recruiting, administering, onboarding, orienting,
and training. Our 20-year analysis shows that onboarding and offboarding
each crew member costs an average of €9,124 for the vessel and €6,471
ashore, adding over €31,000 per change to the operational budget.
With yachts losing 30-35% of their crew annually, especially entry to mid-level
positions, the budget can spiral into millions over three years. Therefore,
before deciding to fire someone, consider the potential savings from training
and retaining them. This not only enhances crew retention but significantly
reduces recruitment costs, turning potential hiring expenses into
investments in crew longevity and satisfaction. This approach saves far more
than it costs, proving more economical than the cycle of hiring and firing.
Losing and rehiring just one member of staff adds €31,000 to the operation
budget without you even realising it. Smaller yachts average slightly less
but when you have yachts losing 30-35% of their crew per annum
(predominantly entry-level to mid-level interior and deck crew) then the
budget spirals into the millions over a 3-year operational period.
You will be proactively saving money for every single day you keep that
crew members onboard within your program and the time spent training
and inspiring them will be a fraction of the time you will spend firing and
rehiring…