Conflict in the Middle East is pushing up compensation offers in the bunker market as volatility in oil prices widens margins, according to Vernon Jayanathan, director of Maritime Recruitment Company Ltd.

In an interview with Ship & Bunker, Jayanathan said bunker companies that are benefiting from market volatility are raising salary offers, particularly for experienced traders.

"Salaries have increased mostly in Southeast Asia, where it's up by nearly 30%, and in Europe by roughly 30%," Jayanathan said.

"For experienced traders, it's very competitive.

"There's demand for seniors who have the relationships, who have the experience, who have the cool heads, and they can command high salaries.

"At the same time, firms are seeing the value of them, so they're doing their best to retain them."

He said demand for traders in the Middle East remains strong despite the war in Iran stymying supply in the region, underscoring how regional disruption is shaping hiring as well as trading conditions.

"For seniors it is, for very senior people who are insiders in the region," Jayanathan said. "People who have the network, have the knowledge, have the relationship; that's particularly important in the Middle East."

Junior bunker traders

Hiring of junior bunker traders has also increased.

Jayanathan said schemes such as the Monjasa Oil and Shipping Traineeship have been successful in recent years, prompting more companies to adopt similar programs as they look to build a pipeline of staff rather than rely only on lateral hiring.

"More and more people are setting up graduate schemes for them," he said. "The idea of that is to keep them on board, and try to elicit loyalty."

Non-competes becoming less of a factor

Non-compete clauses, which were once seen as a major restriction on job-market mobility, are becoming less prominent, Jayanathan said.

"People don't mention their non-competes so much to me when they're leaving now," he said. "Some have actually mentioned that a couple of the big players have eased off on them.

"For the people I have spoken to who I'm putting into positions or sending CVs across, non-competes have not been something that they have been concerned with, whereas last year it was one of the first things that they used to talk about."

Advice for job seekers and employers

For bunker traders considering a move, Jayanathan said the current market could be attractive for those with experience and a network, but only if they are not satisfied with their current employer.

"If you've got experience, a network and the appetite to make a jump, then this could be a rewarding time for you," he said. "But you have to weigh up your own personal situation.

"If you're happy where you are, stay, because no doubt you're getting looked after."

For employers hiring new staff, he advised caution.

"Make sure you do your due diligence, because the last thing you want to do is pick up the wrong hire," he said. "Check them on ethics and compliance, because you cannot afford in this day and age to have your name sullied.

"Make that bet accordingly."

Jayanathan wrote about this issue for Ship & Bunker earlier this year.

He also said retention depends on more than pay.

"If you want to retain your staff, you need to make more of an effort to treat them well, and not just financially but generally," he said. "You have to look at stuff like culture and environment; whether your organisation is a meritocracy, whether you're treating all your staff equally or whether there's an insider group that you treat particularly well."

"People will not leave just for money."