Rebranding mining is necessary
Rebranding mining is necessary - Canadian Mining Journal
https://www.canadianminingjournal.com/featured-article/rebranding-mining-is-necessary/
Much ink has been spilled by investors, politicians, and mining executives regarding the future of mining in Canada, and many are optimistic. The green energy transition, if it materializes, will rely on Canada’s abundance of critical minerals, representing a once in a generation opportunity for the industry and the country.
Unfortunately for Canada and its miners, chronic talent shortages represent a major roadblock in the path to production targets, and indeed, prosperity. It is no secret that the Canadian mining industry had been dealing with a persistent shortage of labour, and the future does not look bright. Over 20% of the Canadian mining workforce is over the age of 55 and getting set to retire. At the same time, enrollment in mining programs has dropped nation-wide by 10% with some schools closing their mining programs entirely. If these trends continue (and there is no evidence to suggest they will not), the Mining Industry Human Resources Council estimates that 80,000 mining jobs will go unfilled by 2030.
To understand what these statistics mean for mining organizations and what miners are doing to adapt, Calross Consulting, a recruitment and consulting firm that concentrates on the mining industry, published their recent labour report, following numerous interviews with mining executives and industry HR leaders. The report suggests virtually all mining organizations are being impacted, and numerous initiatives are being developed to mitigate these deep-rooted challenges.
Key trends
Unsurprisingly, the most blatant impacts of such widespread labour shortages are being observed in production. While most Canadian miners have been able to avoid complete work stoppages, some operations conceded that their workforces are spread so thin that above-average absenteeism, has in the most drastic cases, interrupted production.
Happily, most executives reported that they have been able to avoid full operational shutdowns. Even still, 71% of mining executives say talent shortages are holding back production goals.
The talent crunch, combined with growing cost of living concerns, has meant that for many mining companies salary negotiations have become increasingly drawn out and complex. For unionized mines, HR leaders suggest there is an elevated risk of strikes, and organized labour is more willing than in recent years to engage in work stoppages to ensure their demands are met.
Canadian mining leaders also note that workplace loyalty is at an all-time low with many employees willing to change employers given only marginal financial incentives.
Beyond salary and renumeration, Mining executives admit that workplace demands are changing and increasingly employees are calling for better work-life balance. Increased vacation time and PTO have become common negotiation levers, and there is a growing preference for work schedules that accommodate more uninterrupted time at home.
For many, work-from-home arrangements have been considered incompatible with on-site mining operations. However, as hybrid working models become normalized across the country, there is growing demand from mine workers for increased flexibility regarding where their work is done. Workers are now more likely to ask for safety training, administrative work, and other duties that do not necessarily require to be onsite, to be conducted virtually.
Mental health considerations have also become more prominent for employees. Working in isolated areas away from loved ones means that mining workers may be particularly susceptible to mental health challenges. Many organizations report that there is a growing willingness for mine workers to ask for help and more utilization of mental health support programs and counselling.
Mining companies are also reporting that among young employees and jobseekers, ESG consideration are growing in importance. Hiring managers have noted that candidates are more likely to research a perspective employers’ ESG record prior to applying for open roles, and rhetoric is being backed up by concrete action, with some candidates turning down jobs with organizations that do not meet their ESG standards.
What organizations are doing
All interviewees report that their organizations have been adapting their workforce attraction and retention strategies to accommodate the stark labour reality.
Regarding recruitment, the use of third-party recruitment agencies has become widespread, and headhunting is considered increasingly standard in the industry. There is also a growing willingness to recruit from outside of the mining industry to fill labour gaps, with more openness to hire workers without mining specific experience, particularly in administrative roles such as finance and human resources. This diversity of experience is increasingly being viewed as a positive.
For more technical and mining-specific roles, many hiring managers remain reluctant to recruit from outside of the industry but concede that in some cases there is no alternative. To accommodate new employees without mining experience, some organizations have begun developing internal upskilling programs.
Formalized training programs have also become more widespread, with many organizations looking to local communities and experimenting with programs to attract, train, and hire from areas close to mine sites.
To retain existing employees, many organizations have begun investing in cross-training programs to ensure their existing workforce can redeployed and to fill in skills gaps that are being seen as increasingly inevitable due to chronic labour shortages.
Large scale retirements have also forced workforce planners to innovate. As senior employees begin looking to retire, loss of talent and expertise is a growing concern. Savvy mining organizations have begun developing mentor programs to pair senior employees with more junior staff to better facilitate the transition of mining expertise.
Diversity and inclusion have long been important to industry leaders. For many mining organizations, a diverse workforce was seen as only “nice to have.” But as the impacts of skills shortages begin to have concrete impacts, there is a widespread understanding amongst HR experts that a robust workforce will require accessing talent from a diverse range of ages, backgrounds, and genders.
While many mining organizations admit that though there is much that can be done right now to mitigate skills gaps, numerous mining leaders have begun rethinking entirely what the workforce of tomorrow will look like. As technology improves and labour is harder to find, many organizations have begun looking at automation to mitigate talent shortages.
Moreover, with advancements in how mining is done and a changing workforce, mining organizations have begun prioritizing different skill sets. Unsurprisingly, a comfort with technology is more important than ever. Regarding soft skills, many leaders recognize that the realities of mining will require a workforce that is capable of being re-skilled throughout their career. As mining practises change, adaptability is increasingly being valued amongst new hires.
Leadership and communication skills are also in high demand, as many miners understand that strong managerial skills can improve workforce engagement and reduce attrition by listening and reacting to the needs of employees.
What needs to be done
While all mining organizations have begun putting in place initiatives to combat skills shortages, mining leaders agree that more must be done.
A full rebrand of the industry is considered a top priority. The perception of mining as a dirty industry persists and in a recent survey, 70% of respondents between the ages of 15 and 30 said they “definitely would not or probably would not work in mining.” The highest among all industries surveyed. As one executive put it “kids want to work at Google, not in a mine.”
The growing consensus in the industry is that work needs to be done to reverse this perception, and to introduce mining as a career option to young people who are often unaware of the array of opportunities within the industry. Experts agree that efforts should be focused on students before they reach post-secondary, as career choices are already entrenched by the time students graduate high school.
Mining organizations will also need to lean into what young people look for in a career. For example, 54% of Gen-Z and millennials would be willing relocate for a job with an employer that has an ESG strategy. Miners will need to double down on their ESG efforts and improve their communication strategies to market these initiatives to young people.
While effort has been made to increase diversity within the workforce, mining leaders agree that they need to bolster efforts, as drawing on underrepresented communities will be critical to ensure a robust workforce.
HR leaders agree that mining continues to be perceived as a male dominated “macho” industry, and with only 17% of mining workers being female, there is a chance to improve on female workforce participation and retainment. For example, miners can consider increasing investments into camp infrastructure to accommodate female staff and develop formalized mentorship and networking programs to encourage women to enter and stay in the industry.
Over 20% of mining workers are over the age of 55. Despite this, many of the most experienced employees are not ready to fully retire, and the demand for phased retirement programs, which allow workers nearing retirement age to cut back on their hours while keeping some pay and benefits, is growing. Unfortunately, only 6% of organizations offer formal programs for phased retirements. Many mining leaders suggest that more work needs to be done to accommodate experienced workers, and expanding and formalizing programs to ease employees into retirement can be a key tool to reduce the loss of expertise and better facilitate knowledge transfer.
New Canadians and recent immigrants also represent an untapped talent pool for the Canadian mining sector. Immigrants represent just 13% of the mining industry workforce, but 23% of the total Canadian workforce. To attract new Canadians to the mining industry some organizations are looking at putting in place foreign credential recognition support initiatives and language training programs.
To contend with skills shortages, there is also widespread agreement that mining organizations will need to increase efforts to upskill and cross-train existing employees and employees from different industries. To do so, formalizing training programs will be critical.
Changing views
Increasingly, mining executives in Canada are beginning to change how talent is viewed. For years, miners have viewed their workforce as simply a necessary cost for operations. But as skills shortages worsen, there is growing consensus that a robust and engaged workforce will be critical for unlocking value.
While all organizations interviewed had put in place initiatives to reduce the impacts of the talent shortage, experts agree that the industry cannot rely on individual efforts alone. Industry wide collaboration will be critical to shift the perception of mining and to ensure that the industry has the talent necessary to capitalize on the possibilities of the future. If not, the industry and the country risk squandering a once-in-a-generation opportunity. CMJ