Falling Staff Turnover Reducing Miners Costs

Staff turnover at mining Companies has continued to fall as a reflection of tough industry conditions but is having a positive impact in reducing costs.

The results of the latest Resources Industry Turnover Analysis (RITA) Report show that employee turnover levels in the mining industry dropped a further 2% in the past six months to 12.6% per annum. This is the lowest level recorded since the survey began in 2005.

Whilst the figures indicate there are fewer opportunities for employees already working in the industry, or those trying to secure a job in the sector, the good news for employers is a resultant drop in direct costs and the hidden costs associated with staff turnover.

The RITA report used data from 50 mining and processing operations around Australia to benchmark employee turnover. Turnover ranged from as low as 3.0% per annum at one site to a high of 70.0% per annum at another site. Releasing the results of their latest survey Jeff Mackie, Principal at ME Solutions, commented that generally low commodity prices and a strong focus on cost control was impacting on employee mobility. One bright spot in WA was in Iron Ore where all the major players were still in expansion mode.

Turnover is measured by the percentage of employees who voluntarily leave the company over a 12 month period. “Reduced turnover is not only impacting on current costs but we have two major projects who are using our data to budget for ongoing operational costs and the structure required to replace the employees who leave each year. Lower turnover means fewer medicals and inductions, reduced training requirements and less resources allocated to the recruitment process. When you consider that industry turnover peaked at about 30% during the boom the current levels are providing welcome relief to employers on a number of fronts” Mr Mackie explained.

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  +61 8 93880100 or +61 417 911245.

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