Canada’s mining sector will need an extra 70,000 new workers over the next 10 years to meet the industry’s projected growth needs, says a new Ernst & Young report.
“As the supply of skilled workers continues to fall and demand continues to rise, mining and metals companies will need to get creative to solve this problem,” says Bruce Sprague, Ernst & Young partner and human capital practice leader in British Columbia. “If mining companies want to deliver the growth they have planned, they need to rethink the way they recruit and retain talent. Otherwise, the shortage of skilled labour could become a significant strategic threat to the industry.”
“What’s interesting, is that if this study had been conducted today, it’s more likely that the credit crisis would trump labour issues,” says Sprague. “However, the current focus on the financial industry doesn’t take away from the fact that the labour shortage issue is expected to persist in the years ahead and is worth examining now.”
In Canada, 40% of the industry’s workforce will retire by 2014, and staff turnover is also very high. According to the report, the demand for technical talent such as engineers, metallurgists and geoscientists is greater than ever, yet the pool of graduates from universities with the right skills-set is insufficient. What’s more, the competition for skilled labour is driving up salaries, boosting overall mining costs, which are already under pressure from equipment shortages and rising raw material prices.
“Companies that ignore the talent shortage in an already competitive environment do so at their own peril,” says Sprague. “It becomes much harder to control costs effectively if experienced staff retires while companies continue to take on large projects. Innovation could also suffer, leading many companies to lose their competitive advantage.”
The report says many mining and metals companies are responding to the shortage with a traditional approach, which is fast becoming inadequate.
Sprague says it’s time for mining companies to consider creative approaches for everything from financial compensation packages to flexible work arrangements and locations. “The industry needs to find better ways to build talent from within their organizations, explore new ways to attract graduates and start looking outside the industry to other related fields, such as manufacturing or civil engineering.”
Labour shortage threatens Canada’s mining industry
Companies must think outside the box to recruit, retain talent: Ernst & Young
- By: IE Staff
- October 23, 2008 October 23, 2008
- 10:30