Resources and energy employers continue to face record high labour turnover, crippling skills shortages and considerable wage increases, with the “employee’s market” forecast to continue indefinitely, according to a new labour trends report.
Resources and Energy Workforce Insights & Remuneration is a new report released in partnership between REMSMART, a provider of remuneration survey services in Australia, and AREEA, the most diversified national employer association for the resources, energy and all service sectors.
Providing data on pay, incentives, rosters, leave, training and development, turnover and more, Workforce Insights provides participating companies with an extraordinary depth of detail on labour market trends and forecasts.
AREEA Deputy CEO Tara Diamond said: “As we commence 2023, it is clear Australia still faces crippling skills shortages.
“On top of this, employers are dealing with the triple impact of increased inflation, minimal unemployment and salaries which have increased significantly over the past six months.
“We are still very much in an ‘employee’s market’ in the resources, energy and servicing sectors.”
Demonstrating this point, employers are forecasting average wage increases over the next 12 months to be as high as 5%, while companies continue to manage 27% average employee turnover in the sector.
The elevation of workforce issues as the number one business priority is also fuelling a broad expansion of ‘people teams’ within resources and energy sector businesses.
The past six months has seen an average increase of almost 20% within the HR and related functions of industry participants.
REMSMART Managing Director Allan Feinberg said: “Recruitment and training are the strongest drivers of growth within the industry’s ‘people teams’.
“This speaks to the urgency in the market around both attracting and retaining skills and capability.
“Employers are building on depth of knowledge of existing people through training and development, while looking to gain new skills and capabilities through targeted recruitment.”
Ms Diamond added: “Employers also continue to focus on critical non-wage related issues, such as workplace flexibility, training and upskilling; and ensuring safe and appropriate workplace behaviours including workplace sexual harassment.”
Resources and Energy Workforce Insights & Remuneration draws upon remuneration data inputted by over 115 participating companies.
In addition, the report covers a range of workforce trends including incentives, bonuses and other benefits.
Published biannually, this new report series will assist employers to get in front of labour issues and position themselves to deal effectively with a highly competitive workforce landscape in 2023.