Employers in the resources and energy industries continue to face record labour turnover and skills shortages according to a new labour trends report.
Detailing the employees market and the correlation between wage increases, labour turnover and skill shortages, the Resources and Energy Workforce Insights & Remuneration report was released in partnership between REMSMART and AREEA.
Providing data on pay, incentives, rosters, leave, training and development and turnover in the resources, energy and related industries, the Workforce Insights report aims to provides participating companies with detail on labour market trends and forecasts.
Speaking on the report and its relevance for the related industries, AREEA deputy chief executive officer, Tara Diamond, said that businesses within Australia are dealing with a variety of different issues.
“As we commence 2023 it is clear Australia still faces crippling skills shortages. On top of this, employers are dealing with the triple impact of increased inflation, minimal unemployment and salaries which have increased significantly over the past six months,” Diamond said.
“We are still very much in an ‘employee’s market’ in the resources, energy and servicing sectors.”
The Workforce Insights survey results showed a number of key data points, with regards to employee turnover.
The report states that the industry has an average of 27 per cent average total employee turnover and 20 per cent average voluntary turnover, determined from 80 per cent response rate across those represented.
When considering the Survey data, the report writes that “turnover continues to be a significant issue for the resources and energy industry.”
The written feedback indicates that resources and energy companies are having some success in reducing turnover, in cases where they are willing to invest in their overall employee value proposition.
Additionally, actions that include reviewing fixed and variable remuneration, investing in training and development (opening up career paths), offering flexibility and identifying and rectifying ineffective management have all seen employers record higher retention of employees.
The recognition of workforce issues as a primary business priority is contributing to the development of teams that are focused on employee management, satisfaction and wellbeing within resources and energy sector businesses.
The report adds that the industries covered, have seen an average increase of almost 20{4a474cbc40b2c884ec07eb0fa121034f26ab055a0dc36607309f0bcf0b401e19} within the HR and related functions of industry participants.
“Recruitment and training are the strongest drivers of growth within the industry’s ‘people teams’. This speaks to the urgency in the market around both attracting and retaining skills and capability,” REMSMART managing director, Allan Feinberg said.
“Employers are building on depth of knowledge of existing people through training and development, while looking to gain new skills and capabilities through targeted recruitment.”
The importance of employers continuing to focusing on non-wage related issues, such as, “workplace flexibility, training and upskilling; and ensuring safe and appropriate workplace behaviours including workplace sexual harassment”, as Diamond suggests is crucial at the critical juncture the resources industry finds itself at.
Resources and Energy Workforce Insights & Remuneration draws upon remuneration data inputted by over 115 participating companies. In addition, the report covers a range of workforce trends including incentives, bonuses and other benefits.
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