TORONTO (miningweekly.com) – Skills shortages remain top of mind for Canadian resources and mining sector employers, after 75% of companies polled in a recent international recruitment agency Hays Canada survey described the shortage as “moderate” to “significant”.

Hays Canada’s ‘2014 Salary Guide’, which collected data from more than 150 industry-specific employers in November, had found that the Canadian resources and mining sector experienced a drastic reduction in business and hiring activity in 2013.

The survey found that there was a 30-point difference between expected and real decreases in business activity last year. Eleven per cent of the respondents expected a dip in activity, and yet 42% actually experienced one.

This translated into fewer people being hired for permanent positions. Ten per cent of businesses expected to decrease their permanent headcount in 2013, when in fact 45% did.

When asked about potential causes for skills shortages 24% cited a lack of training and professional development, while 39% thought too few people were entering the labour market.

SILVER LINING

However business optimism remained high, perhaps owing to a resurging forestry industry. Almost half (45%) of Canadian resources and mining employers expected business activity to increase in 2014, and a quarter (25%) expected permanent staff levels to increase, while half (51%) expected staff levels to stay the same.

“During the downturn we anticipate that larger owner operators will focus on efficiency projects and hire improvement and maintenance professionals to reduce the cost of production. It’s also possible that mining professionals with highly transferable skills will move over to the forestry industry because of rising global demand for timber; particularly process and mechanical engineers and maintenance staff,” Hays Canada president Rowan O’Grady said.

The survey found that 28% of employers believed that the economy would strengthen in the next 6 to 12 months, while 60% believed it would remain the same.

Twenty-five per cent of employers expected permanent staff to increase in the upcoming year, as opposed to 24% expecting it to decrease, and 51% expecting it to remain the same.

When it came to salaries, 44% of employers expected to increase salaries by 3% over the next 12 months, 32% expected to increase salaries by 3% to 6%, and 4% expected to increase salaries by 6% to 10%.

The top five benefits offered by Canadian employers included extended health benefits; individual performance-related bonuses; more than ten days vacation for new hires; pension/registered retirement savings plan contribution matching; and training and/or certification support.

KNOWLEDGE TRANSFER

There were, however, several options at employers’ disposal, despite the frustration at the inability to find skilled professionals, particularly at the mid-management level, where there was additional pressure to fill vacancies.

Hays said it was possible to hire a slightly less experienced candidate with transferable skills who could be trained and mentored to develop into the ideal employee. However, employers would have to invest more in their human capital to achieve the desired results.

Succession planning should also play a role. Knowledge transfer would become a critical issue for many companies that would lose the baby boomer generation to retirement in the coming years. While 57% of companies had or were implementing a succession plan, that number was too low.

“Unsuccessfully transferring knowledge from one demographic to the next would only serve to exacerbate shortages in all industries,” Hays said.