Australian Mining speaks with industry experts about how the country’s resources sector can recruit, train, and retain employees during what has been called “the worst skills crisis in a generation”.
It’s a common topic of conversation in businesses across Australia, seemingly regardless of industry.
“I can’t find enough staff.”
“We’re still looking for new people.”
“We’re having trouble keeping the team we have.”
“One of our biggest challenges is recruitment and retaining people.”
As Australia continues to move out of and recover from the COVID pandemic, the country is experiencing the type of skills shortage not seen in decades.
According to the Australian Bureau of Statistics (ABS), at the time of writing there were more than 400,000 job vacancies across various Australian industries.
And the mining industry is among those hit hardest. A July report from the Australian Resources and Energy Employer Association (AREEA) stated that the mining industry would need 24,000 new workers over the next five years to uphold new projects across the country, with AREEA chief executive officer Steve Knott calling the problem “the worst skills crisis in a generation”.
“This is threatening the continuity of existing operations, resulting in temporary or permanent production downgrades, and driving other workforce issues including historic levels of staff turnover,” Knott added.
At least 107 projects across coal, gold, and critical minerals are at risk of being severely affected by the worker shortage.
AREEA head of policy and public relations Tom Reid has called the challenge of the skills shortage “significant”.
“We don’t have enough people to continue operations at their full productivity level,” Reid said.
The talk surrounding the skills shortage seems dire, but all is not lost.
According to key industry players, the solution might lie in the younger generations.
Starting at a school level
“We need to start with vocational education in TAFE and those sorts of systems to ensure that the skills and qualifications that people are leaving institutions with matches up to what the industry needs,” Reid said.
This statement echoes the thoughts of many companies that have already started targeting those in later high school years as potential new employees in the mining sector.
Komatsu is one company that has successfully put this method to use.
“Our apprentice program is specifically targeted at that high-school-aged group,” Komatsu regional talent acquisition manager, northern region Nickie Keating told Australian Mining.
The Komatsu apprenticeship program, Komatsu Apprentices Development, is a learning pathway to formal qualification while training and working in a job. The program includes eight apprenticeship streams, ranging from mechanic and electrician to fitter and customer support representative.
“We’ve had really good engagement from the local community on the program,” Keating said. “We have over 2000 schools that we’ve approached with the apprenticeship program across Australia and New Zealand.”
The Komatsu apprenticeship program is a way for young people to understand the careers available in the mining industry and grow into them while earning money and working within Komatsu’s culture.
Giving school-leavers knowledge about the sorts of jobs available in mining is often the first hurdle for companies looking to boost their employee numbers.
With ever-increasing access to social media, many young people may have a negative view on what the mining industry does.
But, according to Queensland Resources Council (QRC) chief executive Ian Macfarlane, if companies can help to shift this thinking, they may see more benefits.
“The first roadblock to getting young people on board is a constant barrage on social media, which gives them a false impression of the industry and the opportunities that lie in there,” he said.
“There are highly paid jobs waiting for you in an industry that is doing everything it can to improve its environmental and social performance.”
For Samantha Zanevra, who runs the 2022 Komatsu apprenticeship program, success also lies in helping the younger generations understand what sorts of jobs and pathways are out there, and that those options might be broader than people think.
“I had a kid tell me that he was interested in doing something in IT, and so that’s when I had a chat to him about our autonomous range,” she said. “So it’s really important for kids to find out what’s out there, either through us or through their schools.”
Programs and initiatives
The apprenticeship program is not the only initiative Komatsu runs in an effort to gain more skilled employees.
The company’s employee referral program is an added benefit in which a $5000 payment is given to an employee who successfully recommends someone to fill a vacant role in the company.
“You’ve got to trust your employee’s judgement on a person and employee referrals are one of the top three ways we hire the most people,” Zanevra said.
Komatsu is not alone in turning to alternative recruitment measures. As job openings become harder to fill, mining companies across the globe are pulling out the stops to attract candidates.
Earlier this year, mining giant Rio Tinto launched two recruitment programs: the Transferable Pathways campaign in Western Australia, and the Women in Leadership Program in New Zealand and eastern Australia.
These programs combined to attract more than 3000 applicants. Both campaigns targeted women who had not previously worked in the mining industry, and Rio Tinto chief executive, Australia Kellie Parker said the response was overwhelming.
“Traditional recruitment practices for our industry mean we are hiring women from the same talent pool,” Parker said.
“By opening up our operational roles to women without industry experience but with transferrable skills and talent, we not only increase representation of women in our business but also diversity across the industry as a whole.”
The campaigns mirror Komatsu’s target of 40 per cent female engagement in its apprenticeship program.
METS Ignited chief executive office Adrian Beer said these more modern recruitment methods more effective in attracting new talent.
“Competitive wages are how the industry traditionally attracted new talent,” he told Australian Mining in August. “It’s a high-paying industry, but it’s no longer a sustainable method. “Wages have balanced across industry sectors. Work habits have changed – there is more to a career than just the job.
“Employees place a much greater emphasis on social impact and lifestyle factors.”
This is something that Komatsu knows well, with Keating ensuring that she promotes the positive culture that employees will find at Komatsu.
“People want to enjoy coming to work every day,” she said. “It’s not always monetary.”
Retention Going through the recruitment process is one thing, but how do companies ensure they retain employees once they’ve hired them?
Again, Komatsu has an answer: career progression.
“We’re always looking at the next step for each employee,” Zanevra said.
“It all depends on which direction they want to go in. There are so many options.”
One part of these options is Komatsu’s dual trade option. If someone is hired as a tradesperson, and they want to expand their skills into a second apprenticeship, they aren’t paid apprenticeship wages – they’re paid tradesperson wages.
As always, however, those in the industry wager that simply throwing money at the issue in the form of higher salaries will not solve it.
Instead, creating a culture of belonging and professional development opportunities, and offering clear career progression is the way to go.
Komatsu’s dual trade program is only one option that the company uses to retain its employees, but combining it with the positive company culture and career progression opportunities means the company is well placed to overcome the recent skills shortage.
“The skills shortage is a global challenge, with high demand across multiple industry sectors,” Beer said. “While Australia is blessed with an abundance of natural resources and a strong innovative culture, if we don’t effectively commercialise this capability we will become a less significant player on the global stage.
“We must open up our market if we want to attract new skills locally, building a sustainable technology ecosystem for the benefit of all of our major industry sectors. If we don’t, our local businesses will be overtaken by global competition, and this opportunity will go elsewhere.”
This feature appeared in the October issue of Australian Mining.