The Australian Resources and Energy Employer Association (AREEA) and REMSMART – the leading provider of remuneration survey services in Australia – have released a joint report series that provides insight on the record high labour turnover, crippling skills shortages and considerable wage increases in the resources, energy and servicing sector.
The Resources and Energy Workforce Insights & Remuneration report provided data on pay, incentives, rosters, leave, training, development and turnover. The report offers participating companies an extraordinary depth of detail on labour market trends and forecasts.
The report 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.
AREEA Deputy CEO, Tara Diamond, said as 2023 begins 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,” Ms Diamond said.
“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 five per cent, while companies continue to manage 27 per cent 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 per cent 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,” Mr Fienberg said.
“Employers are building on the depth of knowledge of existing people through training and development, while looking to gain new skills and capabilities through targeted recruitment.”
Ms Diamond said, “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.”
Published biannually, the new joint report series will assist employers to get ahead of labour issues and position themselves to deal effectively with a highly competitive workforce landscape in 2023.
