Hays Resources & Mining - July 2010
Hotspots
Statutory positions across Surveying, Electrical & Mechanical Engineering, as well as Mine Managers, Ventilation Officers and Undermanagers are needed in NSW. But there is reluctance from candidates to gain their statutory tickets given the significant increase in responsibility and risk associated with these positions.
Coal Geologists and Coal Mine Engineers are needed in Queensland and NSW in response to continued expansions in coalfields, which adds continued pressure to existing stretched teams.
Geologists are needed in the Northern Territory in response to drilling campaigns and capital projects as the dry season starts to deliver opportunities to complete larger infrastructure projects.
Demand is also evident in the Territory for Heavy Duty Fitters, although there is a continuing shortage of experienced trades across all mine sites. Mechanical Project Engineers are needed as projects demand higher-level short-term capabilities.
South Australia needs Mining Engineers at all levels and Drill and Blast Engineers since an increasing number of new projects are commencing, creating demand from operators, mine owners and consultancies, primarily in open cut . Expanding operations at major sites and new iron ore mines are further fuelling demand for drill and blast capabilities.
The state also needs Geologists. By the end of the 2010 calendar year, demand is expected to return to pre-GFC levels.
In Perth Geologists, Mining Engineers, Metallurgists, HD Fitters, Excavator Operators and Electrical Trades are needed. Mechanical Design Engineers, Study Managers, Construction Engineers, Estimators and Planners are also in demand. Southeast Asia's demand for minerals continues, so mine production and exploration levels are rising. With more new development projects recommencing post-GFC, we have started to see higher levels of demand for Mechanical Engineers and Study Managers.
The coming quarter
Jobs numbers are increasing due to general growth across the board, such as in Queensland where new jobs will be created in coal exploration as resource companies conduct exploration projects. Across the country, an increased number of candidates are moving companies, which is also adding to overall job momentum.
Following negotiations with the mining industry, in early July the Federal Government reached a breakthrough regarding minerals taxation. Iron ore and coal projects will be subject to the new Mineral Resource Rent Tax. Limited to 320 companies, and agreed in consensus with the mining industry, it moves Australia's mining industry away from the uncertainty that was evident in the market under the proposed RSPT.
In the context of broader market optimism, job numbers are expected to continue their steady upwards growth. But many companies are already struggling to keep up with current demand and desperately require key personnel. This skills shortage is not likely to ease over the quarter.
Employers are beginning to favour the flexibility of contract employment, with a view to permanent employment once current concerns ease. Having said this, many will still seek to secure engineering skills in a permanent role, particularly since confidence in the market is increasing.
Executive recruitment
The consolidation period for many companies is now over. They are now looking to grow and require key personnel to lead teams and generate new business. Engineering Managers (Mechanical and Electrical), Project Managers and Operational Managers are all in demand, providing they have the desired skill set and industry contacts. So too are Principals and Project Directors.
Employer trends
Companies are becoming creative when it comes to attraction and retention, offering internal referral schemes, flexible salary packaging and giving more consideration to contract hourly or daily rates to entice candidates whose salary expectations are outside current salary bands. Retention bonuses, salary and performance reviews (which were uncommon over the past 12 to 18 months), flexible working hours, improved rosters, increased leave allowance and support for professional development are also on offer.
Many employers are also determined to shorten recruitment timelines in order to capture available candidates. This is also accompanied with more defined role descriptions to enable informed decisions.
In order to tackle skills shortages, employers are considering overseas and less experienced candidates who can be trained into a role.
Yet some employers maintain unrealistic salary expectations and as a result they often miss out on suitable candidates. Those candidates in demand know their market value, and if one employer will not offer it, another will.
Candidate trends
As the year has progressed, there have been noticeably less candidates actively looking for their next career step. Once again we are heading towards a candidate-tight market, and in some areas we are already there.
Candidates are very selective in the role they are prepared to take. They still look for high levels of security and most are more focused on the opportunity than the salary on offer, although there have been some initial indications that this could be changing.
The Northern Territory has attracted an increased number of Geological candidates as exploration activities assisted by the Northern Territory government draw attention interstate. But there has been a noticeable drop in highly skilled Design Engineers across all sectors as projects interstate drive demand and expectations upwards.
