Recruitment experts Hays have released an employment report for the resources sector for the July-September quarter, finding a significant demand for engineers across all disciplines.

MINING

 

The Hays Quarterly Report finds that in New South Wales, some significant Greenfield developments are working their way through approvals and require Project Directors, Infrastructure Managers and Engineering Managers to achieve project milestones. Engineers with Mine Planning, Drill & Blast and Ventilation experience are sought to fill requirements for expanding operations and increased production across open cut and underground coal mines. Mine Geologists and Geotechnical Engineers continue to be requested in both the base metals and coal sectors.

 

The ever increasing number of expansion projects across the state is also fuelling demand for Engineers across all disciplines, Project Managers, Project Planners, OH&S Advisors, Contract Administrators and Estimators. Materials handling Design Engineers (mechanical and structural) and Electrical Engineers are also needed for expanding mines and to replace aged infrastructure.

 

In Queensland, an ongoing skills shortage and increase in demand is fuelling a need for all technical candidates, but in particular Mine Engineers, Mine Surveyors and Geologists. The state is also suffering from a lack of skilled trade staff and operators with relevant mining experience.

 

South Australia is experiencing a similar level of demand for all technical candidates. Like Queensland, Mine Engineers (planning and operations) and Geologists (mine/exploration) are sought. The need for engineering candidates is primarily driven by new mine developments across several sites in regional South Australia. Geologists are needed for both operation mines and also a significant increase in new exploration programs.

 

Also in demand in South Australia are Maintenance Planners for existing operations across the state and Mobile Plant Operators since new developments are close to production, especially open pit operations, and new companies are picking up contracts.

 

South Australia is rapidly running out of suitably qualified and experienced staff and candidates are increasingly willing to change roles for an increase in hourly rates.

 

Victoria also has a need for Senior Mining Engineers and Geologists with both consulting and operational experience. This is due to the increase in mining consultancy activities based out of Melbourne as well as major mining operations moving into production.

 

Also sought in the state are Senior Mechanical Engineers and Designers with mining, heavy industrial and bulk materials handling exposure. This is because major EPCM companies are designing and project managing mining and heavy industrial infrastructure and materials handling projects.

 

Last but certainly not least we turn to Western Australia, where the civil and heavy industrial construction sectors linked to the state's resources sector are red hot with activity. The demand for skilled white collar staff is extremely high and we expect this trend to continue well into the future, particularly since the booming Chinese and Indian economies continue to move from strength to strength.

 

Several large mining projects are headed into the detailed design phase, which is also fuelling demand for Technical Design Engineers with mining experience. In particular, bulk materials handling experts are needed.

 

Overcoming skills shortages

Employers in the resources and mining sector are using a range of strategies to help overcome skills shortages. They are becoming flexible on salary packages to attract the right level of expertise and we have also seen cases of one-off sign on bonuses to attract staff. Relocation packages are again on the table; smaller consultancies in particular are offering attractive relocation packages.

 

They are running campaigns for larger scale recruitment and working with training providers.

 

Major employers are recruiting skills from overseas. Indeed, we are seeing an increased reliance on attracting overseas staff on 457 skilled migrant visas given the domestic shortage of talent.

The coming quarter

The start of the new financial year will see increased growth continue within resource and resource related companies. With this growth new jobs will be created; indeed most companies have indicated that they are either currently looking or will be looking to hire this quarter and multiple vacancies are on offer within technical, operational and maintenance teams in many mines.

 

Many mining operations are recruiting permanent placements to ensure they secure talent long-term, although temporary requirements still remain high and employers are prepared to negotiate fixed-term contracts with those candidates that want such options.

 

The market has either returned or is close to pre-global financial crisis levels. As a result, the skills shortage is now at a critical level for those candidates mentioned above.

Executive recruitment

We are currently recruiting for various senior appointments at the executive level, including Mining Managers, Project Directors and Engineering Managers. Senior Project Managers are also required to head up new projects, assist with securing future business and help run studies. We've also seen board movements, with several local companies repositioning themselves.


Employer trends

Given the high demand for staff, employers are becoming more flexible in their requirements, such as the industry experience they will consider. There are still few opportunities for unskilled people or those without relevant industry experience, but transferable skills are now being considered.

 

Employers are also showing flexibility when it comes to job descriptions and will act quickly with interviews and offers once a suitable candidate is identified. Most employers have found that adhering to a rigid criteria and a long recruitment process will not secure top talent.

 

As noted above, employers are increasingly willing to sponsor international candidates.

 

The 2011 Hays Salary Guide shows that salaries are increasing as employers compete for available expertise. Remuneration and benefits packages are already gaining momentum as sought after candidates choose between offers, and employers act to retain existing staff.

Candidate trends

The competitive candidate-driven market is attracting experienced professionals who are looking for new challenges. But these candidates are aware of the demand for their skills and consequently have high expectations.

 

Senior positions are attracting a high quality of candidate looking for their next challenge and a role that gives them diversity and future opportunities.

 

A number of candidates are working as independent contractors in order to take advantage of daily rates.

 

South Australian candidates are increasingly attracted to roles interstate, where larger projects and salary packages, as well as fast-moving recruitment processes, are often the deciding factor in their move.

 

OIL AND GAS

 

In Queensland, Project Controls candidates are needed. As LNG projects reach a favourable final investment decision (FID), Engineering, Procurement, Construction Management (EPCM) firms and Owner Operators are building project control teams to ensure that the correct risk management and project delivery mechanisms are in place throughout project execution.

 

For similar reasons Construction Management is another area of demand to focus on the physical construction management of upstream, midstream and downstream facilities.

 

Discipline Engineers are also required to complete and finalise FEED on certain LNG projects as well as move into full scale detailed design on others.

 

Discipline Engineers, in particular mechanical, subsea and E&I, are also sought in Victoria, since Melbourne based consultancies have won local and international projects, at FEED and detailed design stage.

 

Given the continued growth of Western Australia's oil & gas market, skilled professionals remain in high demand. Subsea Trees Engineers, Subsea Pipeline Engineers, HSE Advisors, Environmental Specialists, Implementation Engineers and Process Engineers are all in short supply.

Overcoming skills shortages

In order to cope with the skills shortage, employers have increased their internal recruitment teams and are turning to international recruitment, particularly for subsea skills, through the international networks of recruiters. They have also increased remuneration and day rates.

 

We expect to see organisations draw candidates from other project sectors where availability is higher, such as infrastructure and building.

 

In addition, companies are now creating innovative web and e-marketing campaigns to sell themselves as an employer of choice.

The coming quarter

We expect both permanent and temporary recruitment to continue to increase over the coming six months as projects get underway.

Executive recruitment

Candidates at a senior management level with leadership capabilities are in demand. Business Development Managers and General Managers with Australian (ANZ) experience and contacts are in high demand as more companies from Asia open offices here to increase their presence in the market.

Employer trends

Employers remain focused on securing industry specific experience in non-conventional oil and gas, specifically onshore CSG projects. Increased salaries are being offered. While the recruitment process remains lengthy, some employers are starting to make improvements to shorten timeframes in order to secure talent ahead of competitors. These employers are making decisions quickly and reduce the number of interviews required by interviewing with a panel of decision makers.

 

Increasingly employers are open to considering candidates without Australian experience, with Latin America, Africa and Asia being seen as potential sources of candidates.

Candidate trends

As major projects ramp up, the overall candidate pool is diminished. Western Australia and Queensland in particular are becoming more active, with high profile projects attracting candidates from other states, who in turn struggle to secure talent.