MINERALS INDUSTRY WORKSHOP ATTRACTION AND RETENTION OF PROFESSIONAL STAFF – THE FUTURE OF THE MINERALS INDUSTRY THURSDAY 24th JUNE, 2004 – PERTH
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OBJECTIVE To identify factors that are impacting on the ability of the minerals industry to attract and retain professional staff. To ascertain how attraction and retention issues are currently being managed within the industry. To develop a collective strategy to deal with the issues identified.
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BACKGROUND In May 2001, The AusIMM in conjunction with the Department of Education, Training and Youth Affairs released a report prepared by World Competitive Practices Pty Ltd which was entitled “Building professional staff capability in the Australian minerals industry for the new century”. This report looked at the current state of employment of professional staff and what needed to be addressed to ensure a future supply to meet the future needs of the resources industry. During the year 2003 The AusIMM in conjunction with MTEC recommended that industry wide actions were imperative to complement individual employer initiatives to ensure the future supply of professionals and to address issues impacting on retention. A summit of stakeholders was suggested to look at the “myths” and realities and to plan a collective way forward. It was also felt necessary to include major employers and their representative bodies in the processes and strategies going forward. The first Workshop to highlight the issues and to suggest strategies was held in Perth on Thursday 24th June, 2004 hosted by The AusIMM, MTEC and CME (WA) and supported by Newmont, the A.J. Parker Centre, the CRC for Sustainable Resource Processing and the UQ Centre for Social Responsibility in Mining.
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ATTENDANCE Sixty-six people attended representing the employers, the Tertiary Education Sector, representative bodies and research organisations. In summary 14 were from the Tertiary Education Sector and Research (including 5 students), 9 Consultants, 31 from employers/companies (including 8 operational) and 12 from AusIMM and representative organizations.
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PROCESS Presentations were made by: • • • • • •
Mark McCrindle – “Bridging the Generation Gap – the ABC of XYZ” Sue Jeffries – “The Importance of Knowledge Management in a High Tech, Changing Workforce” Professor David Brereton – “Turnover and Retention of Mining Professionals” Dr. Kevin Tuckwell – “Graduate Supply and Demand” Leanne Gordon – “Sustainability in People : Attraction – Development – Retention” Claire Thomas – “Employment Trends in the Resource Sector”
Copies of these presentations are available on The AusIMM website. In summary, the main points were :•
Mark McCrindle highlighted the motivations of the new Generations X and Y such as :o Trying not Planning o Experience not proof o Individuality not conformity o Equality not hierarchy o Style not substance o Global not regional o Lifelong not lifestage o Numerous jobs not long careers o Leaving career growth accepting training o Leaving feedback accepting management style o Leaving work culture accepting work schedule o Leaving leadership accepting employee activities o Leaving dollar remuneration accepting non dollar benefits
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What will keep them connected – Real, Relevant, Responsive and Relational.
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Sue Jeffries outlined models for measuring the assets of an organisation, particularly the non-tangible assets built on individual’s knowledge and relationships. The significant impact of turnover on knowledge held in the organisation, the impact of documented and agreed procedures, access to electronic information and access to built up interpersonal relationships. All of these when managed can build the non-tangible assets of an organisation which gives it a competitive advantage.
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David Brereton illustrated the economic impacts of low retention rates and the impact on human resource development. The mining industry has the highest mobility of any industry sector and second highest percentage exit from the industry. David presented data on turnover rates at site levels for regional areas and mineral categories, workforce length of service for mine employees and contractors and the impact of FIFO on employee turnover rates (range 7.8 – 28.3% with average 20.2%).
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David outlined factors impacting on retention within management control : o Work roster o Commute type o Job design o Remuneration o Workplace culture o Employee satisfaction o And those external to management sphere of control : ! Work/home conflict ! Availability of alternate jobs ! Job search ! Decision to leave site
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In explaining the differences between sites, David suggested the low retention is mainly an issue for the non coal sector; FIFO sites tend to have lower retention than residential (although this is not a simple relationship); all other things being equal, longer FIFO rosters are associated with higher employees turnover and organisational culture and leadership appear to account for much of the variation in turnover between “otherwise similar” sites.
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How sites are managing retention issues were summed up as : o Tendency to see retention as outside the sphere of managerial control o Costs of turnover are significantly understated o Very little monitoring of trends and patterns o Poor follow-up of departing employees o Very little attention given to turnover amongst employees of Contractors
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Factors of particular relevance for professionals were : o Restructured career paths within some companies o Buoyant market conditions o Workload pressures due to excessively lean staffing structures o Family considerations (education of children, employment of partners) and lifestyle o Employment continuity issues for female professionals.
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David suggested the following possible strategies:o Address workload pressures o Longer, eventime, FIFO rosters that give employees more flexibility in where they live. o More flexible work arrangements (part-time, job share, personalized rosters) o Improve career paths within companies o Think outside the box – sabbaticals for industry professionals & management - provide employment opportunities for partners - recruit in the 40+ age bracket; mining could be a second career for many
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David suggested future research possibilities :o How often – and for what reasons – are professionals exiting the industry? o What has been the experience of recent graduates in the industry? o Why do some sites/companies do better than others in retaining staff? o Evaluation of specific retention initiatives
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Leanne Gordon presented the Anglo Gold Ashanti Experience highlighting their people as highly mobile, young, educated and diverse and the emphasis on team orientation and a flat organisation. Also their values/culture based on self belief, equality, innovation and fun. It is essential that the organisations work practices support and reinforce these values and culture.
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Claire Thomas presented the outcomes of a recent CME (WA) survey of 394 employees, people working in the industry and people not working in the industry. Two thirds holding degrees and falling into the 22-45 age bracket. The main reasons why people choose not to work in the resources industry are no jobs, work location and better opportunities. Salary, job security and lost interest were all much lower. Ideas that will attract young people to the industry were primarily Secondary School information followed by Company involvement and then competitive dollars with professional development, image and recruitment at a lower response level.
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Factors attracting people to and from the industry were work and remuneration as high on attracting; with work, other, qualification and work location higher in attraction to other industries.
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45% of respondents rated Graduate Programs in the industry as poor or very poor.
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On the question as to at what point do people choose not to work in the resources industry, just under 50% said this was during or finishing university.
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Claire summarized her presentation as :o CME member companies have recognised there is an attraction and retention issue nationally that is linked to global shortages. o CME is working with member companies to assist in strategies to address both the short and longer term issues related to the attraction and retention of skilled people. o Ongoing research and activities are planned.
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Kevin Tuckwell presented on Graduate Supply and Demand for graduates which showed that the predicated supply of earth science graduates in the years 2004-2007 will be well below previous years (between 60 and 100 per annum); for mining engineering graduates the supply will be about the same as the 2003 levels (just over 100 per annum) and for Metallurgy graduates a predicated increase (of 200 to 250 per annum) over the four year period.
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In response to the question – What is driving this behaviour? He advised : o Declining science literacy (science participation decreasing significantly) o Relevance of tertiary academic programs to expectations of students and industry (business studies increasing dramatically whilst science and engineering decreasing). o Age demographics (an increasing total population, particularly ageing until 2014, followed by a significant decline especially in the 17-19 year olds.
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On the demand side, there has been an increasing demand for Mining Engineers, earth science has been stable and a slight increase for metallurgy graduates.
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Kevin concluded :o Short-medium term supply fragile – except in chem eng/metallurgy? o Long term supply – shift from school leavers to mature employees (plan for this) o Must improve quality and relevance of university courses and programs and o provide more flexible entry & exit pathways if we are going to increase supply o Recognise that the industry has changed ! Owner/operators to contractors & consultants
The Outcomes of the Workshops After lunch the participants were divided into four workshops – attraction, retention, continuing professional development and work practices with the objective to recommend priorities which each group of stakeholders need to implement in order to address the human resource issues about these four key areas. The outcomes were as follows :-
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Stakeholders
Attraction
Industry Wide
• Initiatives to address Image a high priority -Advertise, Inform • Industry is here for a long time • Plan out the cyclical effects on human capital • Highlight global industry, variety of opportunities, great responsibility, experience exceeds expectations
Companies and Employers
• Image- advertise, promote career options • Invest in future- sponsoring schools, scholarships, traineeships • Become an employer of choice • Satellite Offices- more flexible options • Early long service leave and other such options (sabbaticals)
Consultants/Contractors
• Image as high tech, challenging, high responsibility and well remunerated • More appealing rosters and flexibility • Strengthen business partnerships • stronger relationships with representative and professional bodies
Tertiary Education Sector
• Image- promote the careers, lifestyles, etc • Start early- year 8 and 9’s to promote options • Greater Industry interaction with all aspects of the tertiary education sector • Promote cross-skilling options in down cycles
Industry Representative Bodies
• Image- advertise, marketing, promote careers and opportunities • Target high schools- use members, particularly young and high tech • Highlight human resource issues • Conduct research
Government
• • • • •
Individual Professionals
• Provide role models, career profiles • Participate in Professional Associations, etc and in promoting the industry • Assist with feedback
Image- promote importance of industry Provide skilling opportunities Ensure process to make curriculum more relevant Royalties to be paid back in promotional campaigns support during down times
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Stakeholders
Retention
Industry Wide
• Improve Industry Image • Highlight importance of career options and sustainability of human resources • Recognise impact of turnover on costs, knowledge management and intangible assets • Recognise the need for greater research
Companies and Employers
• Provide and improve technical career paths • Provide more structured opportunities for continuing professional development • Provide flexible work practices that allow a balance between city and remote lifestyle • Address ‘burn out’ and professional fatigue • Review impact of FIFO rosters • Think outside the box
Consultants/Contractors
• Provide a range of professional development opportunities including secondments
Tertiary Education Sector
• Develop flexible solutions for educational development • Provide conversion programs and reciprocities • Support national solutions to delivery of programs
Industry Representative Bodies
• Improve coordination between industry professional bodies- remove some of the fragmentation in approaches which sometimes lessens effectiveness • Highlight impact of work practices on retention • Promote research on industry wide basis
Government
• Provide remote infrastructure
Individual Professionals
• Take responsibility for personal/professional development
Stakeholders
Continuing Professional Development Critical to high tech industry Critical to attraction and retention Mentoring- direct in companies and across the industry Change attitude to mentoring and knowledge sharingit is not time wasting • Personal, Professional and Technical Continuing Professional Development • CPD for all employees- not just management and professionals • Recognise that human capital is a sustainability issue
Industry Wide
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Companies and Employers
• Embrace Knowledge Management • Increase the emotional intelligence of the entity to
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increase intangible assets of the organisation • Actively support and train the people skills and relational abilities of all employees • Integrate these aspects into the way and culture of the entity • Understand the value and necessity of both technical CPD and EQ CPD • Recognise the motivations of emerging generations and in particular learning styles
Consultants/Contractors
• Take responsibility and recognise the necessity for providing CPD opportunities for employees on site as more important than short courses • Turnover rates very high- embracing CPD may address turnover issues and safety issues • ensure certification and competencies of employees
Tertiary Education Sector
• More flexible delivery • Transferable Options
Industry Representative Bodies
• Lobby for an attitude change to human resources • Push for Mentoring and its importance- technically, professionally, personally • Facilitate communication across industry • Encourage the facilitation of knowledge sharing across the industry • Provide external recognition for professional competencies- which are not just technical competencies
Government
• Embrace minerals industry- promote to the broader community • Stop thinking in election time frames but long-term • Recognise the high technology nature of the industry
Individual Professionals
• Individuals to take the responsibility for their career planning and development process • Create a vision for themselves • Take responsibility for promoting the industry in conjunction with all other stakeholders • Engage and align the individual with the bottom line
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Stakeholders
Work Practices
Industry Wide
• Information sharing on remuneration, industrial relations, health and safety • Benchmarking to work towards best practice as an industry • Greater emphasis on addressing cultural issues, soft skills, managerial support
Companies and Employers
• Flexible work practices- work design, employment contracts, home based, time off to deal with family needs/issues • Career development through mentoring, continuing training/development • Careers across industry when specific companies cannot offer the opportunities • Culture/Value- alignment of people’s needs within corporate strategy • Demonstrate behaviours that value people as assets
Consultants/Contractors
• Better alignment with work practices of the principal • Demonstrate behaviours that value people as assets
Tertiary Education Sector
• Informing students of work practices/issues- what to expect, necessary skills • More flexibility in how programs are delivered • Assessing students and employers needs
Industry Representative Bodies
• Facilitate interaction between companies • Encourage company/industry involvement and participation in representative bodies • Carry out research on industry wide issues • Highlight implications of global industry
Government
• Reviewing legislation • Immigration/work visas flexibility to meet needs
Individual Professionals
• Feedback on Impact • More active contribution and communication
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Conclusions i.
Attraction and retention of professional and other technically qualified staff are major issues for employers in the minerals sector. In seeking a strategic way forward, the workshop identified the need to: ! determine the impact of regional and commodity specific influences as well as employer practices, and ! address the underlying causes rather than short term initiatives, when seeking mutually beneficial outcomes for all stakeholders.
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Not only now but increasingly into the future, new generations are likely to show a preference for career paths which don’t have the image, the locations and work practices of the minerals industry. Therefore a national approach to address these issues is required and which complements regional and other employer initiatives. In addition, it is essential to address the underlying causes of behaviour rather than implement short-term “fixes” to try to solve the supply issue.
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The workshop identified a role for industry bodies and associations to work collaboratively to collect appropriate employment data on employees within the broader minerals sector. This must include information from owners/operators, contractors, consultants and particular geographic regions.
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Access to professional development/on-going educational opportunities was identified as a positive drivers of behaviour for all employees of minerals companies. Availability of opportunities for continuing professional development and greater flexibility and acceptance of diversity in work practices will greatly assist in attraction and retention. Employers should be aware of the importance of supporting structured professional/trade development and of the employees’ expectation that the companies be involved in helping to plan technical career paths for their employees.
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Significantly, access to professional development and on-going educational opportunities were also identified as major drivers of positive behaviour for employees of service and support companies such as consultants and contractors. Many of these indicated they had high turnover rates.
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Industry and industry associations must work together to develop and provide accurate, current, consistent, and contemporary careers information about the minerals industry.
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Specific actions arising from the workshops include: • All participants in the workshops are encouraged to utilise the information gained from this workshop within their organisations;. • Further workshops and initiatives should be held in other capital cities and regional centres, and • Studies, research and papers on these issues, together with case studies and initiatives be placed on the AusIMM website for review by all participants in the industry.
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