TORONTO (miningweekly.com) – More than half of Canadian mining and resource employers expect to grow their business in 2015 but only one-third intend to boost their permanent headcount, a recent survey has found.

The fifth yearly ‘Hays Canada Salary Guide’ revealed that despite the mining industry having had to adjust hiring plans as a result of the global downturn, it too, along with all other industries, was optimistic about growth.

Employers also had to contend with a ‘tug-of-war’ over skilled tradespeople who were in high demand, forcing many companies to rely on temporary workers. Overall, the Hays report suggested that mining and resource business targets in 2015 and beyond could be undermined if more permanent recruitment, training and retention solutions were not found.

The survey, conducted in November last year, found that 53% of Canadian mining and resource companies expected increased business activity in the coming months. However, only 34% would add to permanent staff levels. A further 20% were actually planning to cut staff, which threatened productivity and increased stress levels among existing staff.

Many employers (40%) planned to address these issues by increasing temporary staff levels rather than focusing on permanent positions with long-term career growth potential.

“Looking at the results this year, we have to ask ourselves whether mining and resource firms’ focused on short-term hiring will be sufficient in addressing long-term issues. Temporary hires certainly have value, however, focusing on long-term growth through employee development will reduce future shortages,” said Hays Canada president Rowan O’Grady.

He stressed that mining and resource employers should be investing in training and skills development, recruitment and succession planning to keep pace with their current and future ambitions.

SKILLS SHORTAGE
Forty per cent of employers in the mining and resource industry noted that skill shortages affected business activity; however, many of the contributing factors were within their control.

More than one-quarter of respondents acknowledged that fewer people were entering the industry, which mirrored attitudes across all employment sectors, as well as the general opinion that employers had a responsibility to boost volumes of qualified graduates by promoting themselves and their industries at the post-secondary level.

One-quarter of employers also said their lack of training and professional development contributed to their skills shortage issue.

In an effort to attract top talent, 59% of mining and resource employers relied on competitive salary packages. Forestry employers, for instance, struggled to match salaries offered by mining companies and therefore needed to establish competitive recruitment strategies to attract talent.

“Mining and resource employers need to work extra hard to attract tradespeople since the work often requires a candidate to relocate. Employers have to face this head-on but doing so falls outside their areas of expertise. [Hays] can bridge this knowledge gap to support companies as they invest in staff recruitment and retention plans, along with the help they need to future-proof their company,” O’Grady commented.

POSITIVE SIGNS
Despite unpredictable markets worldwide, responses from Canada’s mining and resource employers showed that 83% of employers planned to offer some form of salary increase in 2015 and 33% believed that the country’s economy would continue to strengthen throughout the next 6 to 12 months.

“It appears Canadian employers are poised to capitalise on their positive outlook although I sincerely hope a focus on short-term gain doesn’t distract them from resolving the looming challenges ahead,” O’Grady said.

The survey also found that more than half of employers believed their company’s reputation and low profile were barriers to recruitment, wile 70% felt that recruiting for senior roles was the most difficult and could take anywhere from two to six months to fill.

Eighty-two per cent of employers admitted that they had made the wrong hire likely owing to desperation and a lack of time.