Staff turnover at mining Companies has fallen to levels not seen since the GFC as the impact of the slowdown in the resources sector takes effect.
The results of the latest Resources Industry Turnover Analysis (RITA) Report show that employee turnover levels in the mining industry dropped nearly 5% in the past six months to 14.8% per annum.
Whilst this is good news for employers and will have a positive impact on costs, the flipside for employees is reduced job vacancies and fewer opportunities for promotion or transfer.
The RITA report used data from 66 mining and processing operations around Australia to benchmark employee turnover. Turnover ranged from as low as 3.4% per annum at one site to a high of 75.0% per annum at another site. Releasing the results of their latest survey Jeff Mackie, Principal at ME Solutions, commented that numerous layoffs, deferred and suspended projects and a strong focus on cost reduction saw industry turnover fall substantially over the past six months.
Turnover is measured by the percentage of employees who voluntarily leave the company over a 12 month period. “The latest results will provide some relief for employers but it comes as a result of a broad slowdown in the mining sector. Despite that an overall turnover rate of 15.0% is probably too high and many employers still have annual turnover well in excess of that” Mr Mackie explained.
“If you look back at the boom years annual industry turnover peaked at nearly 30.0% and it is obvious that wasn’t sustainable” Mr Mackie added. “Despite all the doom and gloom around at the moment there is still a reasonable amount of project work in the pipeline and a more subdued environment should help to moderate costs and dampen employee expectations.”
The survey which is conducted bi-annually was based on a sample of almost 30,000 mining industry employees from across Australia. The survey excludes corporate office employees and focuses on both mining and processing operations which include residential, fly in fly out and drive in drive out arrangements.
FURTHER ENQUIRIES to JEFF MACKIE on 0417 911245.