Positions vacant

Over the next few years, the mining industry faces eyewatering labor shortages. North American Mining spoke to mining recruitment specialists at CSG Talent about this challenge and what more mining companies could be doing to attract new people into the industry.

by Jonathan Rowland

Expected demand for mineral products over the next few decades is huge. According to one estimate, as much copper will have to be mined over the next 20-25 years as has been mined over the course of human history to date. Meanwhile, the International Energy Agency has calculated that demand for battery minerals will grow tenfold by 2040. Dive beneath that headline into figures for specific minerals and the numbers can be even higher: by 2040 the world is expected to need 42 times the lithium, 25 times the graphite, and 21 times the cobalt as was produced in 2020.

U.S. shortfall in these critical minerals is “staggering,” said Dr. Walter G. Copan, vice president for Research and Technology Transfer at Colorado School of Miners, in his June 2023 testimony before the House Subcommittee on Energy and Mineral Resources. “The U.S. is largely dependent on other nations for supply of key minerals and metals […] at the same time we have seen the effects of depleting the domestic mining sector, as well as major gaps in the ancillary industries for extraction, metals processing and high-value product manufacturing.”

Securing increased domestic supply of critical minerals is thus a priority for both government and industry alike. There are a range of challenges to achieving this. One most often mentioned is the issue of labor – or lack thereof. As Dr. Copan pointed out in his testimony, the U.S. has gone through an “era of offshoring and globalization in many supply chains, including those related to mining and critical minerals.” This has resulted in a steep decline in workers who are trained in mining, mineral engineering and processing.

The numbers are significant. In May 2022, the U.S. mining sector had 36,000 job vacancies, up from 27,000 the previous year, according to McKinsey. That labor gap looks likely to increase as the industry experiences a “grey tsunami” of retirements over the next few years: 221,000 workers are expected to hang-up their hard hats by 2029. At the same time, the number of students taking mining-related programs has been falling precipitously. Mining companies thus face significant challenges when it comes to recruiting fresh talent into the industry.

With the mining industry facing a significant skills shortage, expanding the pool of potential candidates could prove critical when it comes to plugging the gap. CSG Talent has seen the success of this approach, supporting clients move individuals from related industries into leading technical and project management roles within the mining industry. Graphic: CSG Talent

More than just a paycheck
“Historically, one of the major draws of the mining industry was the high levels of pay compared to other sectors,” Simon Gillibrand, senior director of Natural Resources and Special Projects at CSG Talent, told North American Mining. “While the pay is still good, a lot of other industries now also pay really well. At the same time, younger workers are more aware of issues beyond pay. They see their job as part of their identity and are looking for roles where they can make a difference.”

Yet mining companies still too often believe that throwing more money at people will solve the problem. It is an “old-fashioned attitude that is both unsustainable and fails to acknowledge what people actually want from an employer now,” concluded Gillibrand.

An image problem
The mining industry is also hindered by poor public perception and a narrative dominated by the industry’s critics. “Changing this image will be vital to attracting new talent,” said Christina Theoklitou-Panagiotou, head of OEMs, technology and processing – Mining, Minerals and Metals at CSG Talent. “Prospective employees need to understand not only that mining has a place in a sustainable future, but that it is an essential foundation of that future.”

Communicating that message will require mining companies “to think more collaboratively here,” continued Theoklitou-Panagiotou. “Individual companies can only go so far. To really change the narrative – and to do so quickly – we need all those involved in the sector to deliver a positive and more inspiring image of the industry.”

Anglo American came up against this reputational challenge when trying to fill a number of senior positions at its Woodsmith polyhalite mining project. The project had “suffered from some negative coverage in the press, which had exacerbated the recruitment challenge,” explained Sophie O’Mahoney, who is head of research at CSG Talent and was part of the team engaged to support recruitment to Woodsmith. Anglo American’s internal recruitment team also “did not have the resources and processes in place to efficiently manage the scale of recruitment for such a large volume of business-critical roles.”

CSG Talent took a twofold approach to the challenge. “We managed the initial recruitment process, from defining the target audiences and sourcing candidates, through to detailed candidate assessments and managing the interview process,” added Theoklitou-Panagiotou. “But our marketing team also created an employee brand candidate pack to tackle those reputational issues and further engage candidates with the unique work and opportunities offered by the Woodsmith project and Anglo American.”

Christina Theoklitou-Panagiotou (left), head of OEMs, technology and processing – Mining, Minerals and Metals, and Simon Gillibrand (right), senior director of Natural Resources and Special Projects, at CSG Talent.

Mining recruitment and digitalization
There is no doubt that digital innovations are improving the way mine sites operate. On the human side, mine automation is keeping personnel safe by removing them from hazardous environments. It can also allow mine personnel to operate sites remotely from the comfort and convenience of centralized operation centers, such as Rio Tinto’s Iron Ore Operations Centers in Perth, which enables all autonomous trucks, trains and drills at the company’s mines, ports and rail systems in Western Australia.

But such technologies also bring with them the need for skill sets not traditionally seen in the mining industry. From data scientists and software architects to experts in automation and machine learning, mining companies are now competing not just with their peers but with many other industries to secure access to talent.

“We often find that mining companies can be quite rigid in their expectations of candidates,” said Theoklitou-Panagiotou. “But given the size and scale of the skills gap – and especially when it comes to these new skills requirements – I think there needs to be much more flexibility.

Companies need to ask what are the real essentials, and what are just nice-to-haves that could easily be filled in with training or other professional development after the person has joined.”

Taking a more flexible approach could allow companies to fill roles far more quickly than they currently do. But they often “want every box ticked,” added Theoklitou-Panagiotou. “They want the finished article, rather than having to invest in people to bring them to the level needed. It is a shortsighted approach that is often a sign the company is thinking about recruitment too late.”

An attractive prospect?
What then should mining companies be thinking about when it comes to improving recruitment? Perhaps the first thing to understand is that attitudes to work have changed. “The COVID-19 pandemic shifted a lot of people’s perspectives on work-life balance and what was important to them in a prospective employer,” explained Simon Gillibrand. “Candidates also want to know what the company can do for them and their career. What are the career pathways available? What is training is available? Is there healthcare or childcare available? What about pensions and holidays?”

“There has not been a lot of benchmarking around what is actually important to people when it comes to attracting and retaining them in a role,” added Theoklitou-Panagiotou. “But a lot of the time, it comes down to how invested in and valued people feel. People who feel appreciated by their employer are more likely to show loyalty to the company, which not only helps retain skills but creates a positive work environment that will attract new people into the business.”

This is particularly true when it comes to attracting candidates from more diverse backgrounds and skills. “When recruitment processes are too rigid, they tend to attract similar sorts of people, which does not lend itself well to building a diverse and inclusive workforce,” continued Theoklitou-Panagiotou. “We need to start consciously thinking about the language used in job adverts and job description, the diversity of the interview panels, and the recruitment and onboarding processes, as they all have an impact on the audience you are appealing to.”

“Companies often set targets around inclusivity and diversity, but do not consider how they are going to achieve them. The intention is there, but delivery needs to be more thought through,” concluded Theoklitou-Panagiotou. “Rethinking and redesigning recruitment processes to be inclusive from the beginning is really the first step to achieving a more diverse workforce.”

A good fit: culture and recruitment
Success also depends on more than just recruitment processes; often a shift in corporate culture is also needed. “You can change how a job’s advertised; you can change the interview process; but you will not keep hold of people if the culture within your organization does not reflect these changes,” said Gillibrand. “Are you creating a working environment where people feel safe and valued? I have been working in the mining industry for the last 20 years and have seen some really positive change. But we are nowhere near there yet.”

Yet culture can be key when it comes to recruitment, particularly those hard-to-fill roles. For Peabody Energy, CSG Talent used the company’s positive culture around training and development, succession plant, and talent management, as well as its emphasis on safety and environmental stewardship, to recruit into two complex HR manager roles. These roles were based at remote working sites and thus required candidates who were both willing to relocate and had strong experience dealing with a highly unionized workforce.

“Conventional job adverts were not going to yield the right results, so we adopted a targeted headhunting campaign that highlighted Peabody’s culture, positioning the roles not only as jobs but as promising career advancements,” explained Evan Jones, senior recruitment consultant – Mining at CSG Talent, who worked with Peabody on this project. “We could only do that because of Peabody’s existing cultural commitment to investing in their people. Ultimately, it helped to deliver successful candidates for what were otherwise difficult positions to fill.”

Start planning, yesterday
A final lesson for mining companies to learn is that recruitment “takes time, take energy, and takes expertise,” concluded Theoklitou-Panagiotou. “In general, recruitment either falls to the hiring managers or the HR team. In both instances, this is just one aspect of their roles. In order for recruitment to be timely and successful, it is important to have a dedicated recruitment team or recruitment partner that understands the needs and can provide a positive experience for both clients and candidates.”

On the flip side, there are companies that recognize the challenge and are looking ahead years when it comes to planning recruitment. “We were on a conference call with a client recently, who was looking at succession planning across the whole business, not just at the top level, but two and three steps down, to identify where they are likely to face gaps and what issues around recruitment they may face going forward five or ten years,” added Gillibrand. “Companies like this realize that you cannot run a business without people and that, unless they act now, those people might not be available when they need them.”

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