Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The end of the mining boom does not mean victory in the war for talent, according to a new EY report. Instead, EY says it’s merely a ceasefire – and companies must maintain a focus on talent to minimize risks presented by more enduring trends.
“The war for talent just got a lot more complex,” says Bruce Sprague, EY’s Canadian Mining & Metals Leader. “During the boom years, many mining companies hired talent at any cost. Now, as cost cutting exercises mean there are fewer jobs to fill, the best people are able cherry pick the top roles in a global marketplace, and in other sectors as well. Now more than ever, mining companies must not lose their focus on talent management.”
EY’s report, It is only a ceasefire – the war for talent will continue, notes things like an aging workforce, globalization and disruptive technology are all affecting the future supply of talent. Amid these trends, without a strong focus on talent management, companies are faced with two significant risks:
“In the past 10 years, we’ve seen more semi-skilled people in skilled roles,” explains Sprague. “It’s not a sustainable way to resolve the labour productivity challenge. You can’t underestimate experience in this sector. It’s critical to have the right people in place who can lead projects based on firsthand experience.”
According to EY, while labour productivity programs are important, they must focus on the acquisition, maintenance and optimization of human capital.
“Companies must optimize their inventory of skills for their most valuable projects, and implement robust people programs,” adds Sprague. “Retaining the right people is becoming a key competitive advantage in this sector.”
EY’s report notes that senior, experienced mining professionals are best positioned to lead the sector through this period of turbulence because they have the right skills, deep knowledge of the mine and the sector and have “seen it all before.”
“The demand for this senior, experienced mining professional is growing,” says Sprague. “But the reality is that the supply is decreasing. Those companies that are innovative and flexible in how they effectively attract, retain and grow talent will be the ones to realize productivity gains now – and position themselves to win in the next upturn.”
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