According to an industry survey put out by the major recruiting company Hays, more than half (55%) of mining companies reduced their staff to lower costs in 2015 – and 40% expect to make more personnel cuts next year.
Hays also reports that 20% of mining firms either froze salaries or did not increase pay in 2015.
The recruiting firm also surveyed oil and gas companies, which showed 35% expect to make staff cuts in 2016.
In Canada alone, the natural resource industry has lost more than 26,000 jobs, with oil-rich Alberta shedding the majority of those jobs.
However, Rowan O’Grady, president of Hays Canada, said in a statement, “Moving into 2016, the general feeling is that this next year will be better for the industry. Following drastic staffing cuts, this next rebuilding phase will be critical for recruitment and skills shortage issues down the road.”
Additional report highlights:
- In total, 62% of industry respondents made unexpected staff cuts in 2015.
- One of the impacts may be employee burn out. Operating at such a level, with fewer workers, may create fatigue and cause workers to be less productive. 73% of surveyed oil and gas employees experience moderate to extreme workplace pressure due to the lack of employees and skills present.
- 57% of respondents believe the industry suffers from a moderate to extreme skills shortage due to a lack of training and development.
- Working from home, pension/401K contributions, and flexible work hours are the top three incentives oil and gas employers are offering to attract skilled workers.
– Luke Burgess
Energy and Capital