Recruitment and Retention Challenges in the Mining Industry

G lobally the mining industry is faced with a shortage of qualified talent to meet its production needs. Every year there are more people leaving than entering this sector to pursue job and career opportunities. Some of the key reasons for this trend include the general image of the industry, the declining numbers of graduates from mining related programs , and the draining of talent and knowledge as a result of mining industry turnover and retirement. These trends and challenges have been widely discussed in traditional mining countries such as Canada, the United States, and Australia for well over 10 years. Depending on industry growth estimates, the Canadian mining industry alone will have to recruit between 27,000 and 70,000 employees over the next 10 years, due to retirement and voluntary separation. From 2004 to 2014, the number of individuals employed in the mining industry is expected to decrease by 12.9%. During this same time frame about 40% of Canadian mining employees expect to retire. Mining companies are now beginning to acknowledge that the current supply shortage is already impacting the productivity , efficiency and profitability of their operations. The shortage of skilled workers in combination with high turnover rates are among the top factors impacting industry growth, either by stopping or delaying projects that would otherwise proceed, or by significantly adding to the cost of new projects. MRC-Business Consulting Service's research has revealed the following critical risks for the industry: Increased competition for labour; Expansion of skills shortage; Increased competition for entry level talent; Increasing mismatch between the available labor pool and the competencies and characteristics required; Loss of operational knowledge, due to low retention rates and retirement; Loss of executive knowledge, due to retirement; Impaired productivity; Stagnating growth; Limited capacity among managers and leaders to access and respond to a changing environment. As the mining industry seeks sustainable short and long-term solutions, which often call for the support of and collaboration with government, consulting experts, labor organizations, educational institutions, industry associations, native and special interest groups, there is a tendency to try to find a " One Size Fits All Solution. " Commonly industry wide solutions aim at improving the industry's image, improving relations with the educational sector, and attracting skilled foreign workers. In addition recommendations call for an increased number of women, native people/shareholders and non-traditional workers in the mining workforce as well as for the recruitment of …