Canadian Mining Industry Employment and Hiring Forecasts - MiHR

under-represented groups. As noted earlier, specific training programs that address barriers to the entry of underrepresented
population groups such as new Canadians, Aboriginal peoples and women are a priority for industry
employers. In addition, investments in foreign credential recognition programs may help to remove barriers for
recent immigrants.
Employment Relations
The relationship between the workforce and their employers is an important element in attracting and retaining talent.
This section presents overviews of four main factors affecting employment relationships in mining, including turnover,
wages and hours, unionization, and use of contractors.
Turnover
Tight labour market conditions and widespread labour shortages have historically been associated with higher employee
turnover rates. As talent becomes scarce, competing employers or industries make more attractive offers and the best
and brightest tend to become more mobile. Turnover in an organization does not translate directly to industry turnover,
because workers leaving a particular employer do not necessarily leave the sector. Competition for talent between industry
sectors in a tight labour market can create pressures on the sector to retain talent and lead to a base-level industry turnover
rate. MiHR’s employment forecast model assumes a base-level industry turnover rate not related to retirement, of about
two per cent per year, which is often lower than average employer- or region-specific turnover rates.
According to MiHR’s 2010 National Employer Survey, the average overall turnover rate for employers is approximately
5.6 per cent. Trades and Undesignated Occupations had higher overall turnover rates than other occupations, with
an average of 8.3 per cent, and in some cases, as high as 25 per cent.
The voluntary and overall turnover rates reported by survey respondents are indicative of a tightening labour market and
do not include lay-offs and call-backs resulting from the recent economic recession. These rates provide an indication
of the churn felt by employers, over and above the base-level industry turnover rates used in the forecasting model.
The greatest level of churn is felt in Trades and Undesignated Occupations, as well as in Support Workers occupations.
Voluntary turnover 11 among these groups was identified as a primary concern for employers. More than 75 per cent
of respondents reported that voluntary turnover of workers in Trades and Undesignated Occupations has impeded
productivity to a great extent over the past two years. In the same period, all survey respondents reported that voluntary
turnover among support workers has impeded productivity to a significant degree. In addition, support services and
exploration employers reported higher voluntary turnover rates in Professional and Management occupations than
other mining employers.
11 Note that voluntary turnover rate is a measure of employee-initiated departures. This is not to be confused with the “non-retirement” departure rates used
in MiHR’s employment forecasting model. Non-retirement departures include all turnover not related to retirement and can include both voluntary and
involuntary turnover.
16 Mining Industry Workforce Information Network