Labour shortage: To attract young workers, Canadian mining companies need to improve ESG policies

In the investment world much as has been said about the importance, or lack thereof, of ESG investing. Critics suggest that the rise of scrutiny regarding a company’s performance in Environment, Social and Corporate Governance spheres is just another example of the world going “woke.” Proponents argue that viewing investments through an ESG lens helps investors highlight companies that may be riskier than traditional guidelines suggest.

While discussions may continue in the investment world, for employees and job seekers the debate is over. When workers are making the decision on who they will work for, an organization’s ESG strategy matters.

In fact, recent survey data suggests that over 30% of employees will look for roles in the next 12 months if their current employer doesn’t improve its ESG policies. For Millennials and Gen-Z, who will represent 72% of the global workforce in 2029, the data is even more striking. 54% of Millennials and Gen-Z would be willing to relocate for a new job if the organization has a strong ESG strategy and a whopping 39% would be willing to take a pay cut to work for an employer that takes ESG initiatives seriously.

Canadian Mining Organizations should be taking notes of these changing perceptions. As the value workers attribute to their employer’s commitment to ESG initiatives increase, the mining industry continues to struggle with a reputation as performing poorly in environmental and social spheres. The results of this disconnect are shocking, with 70% of young people admitting that they would probably not or definitely not consider working in mining.

For an industry dealing with a chronic workforce shortage, with over 80,000 jobs expected to go unfilled by 2030 and a workforce with more than 20% of workers over the age of 55, developing a robust ESG strategy will be essential to attract younger workers, and to solve the ongoing talent crisis.

Fortunately for Canadian Miners, information on what stakeholders’ value is clear, and developing a roadmap to attract ESG conscious workers is within reach.

Local Community Impact, Climate Change and Diversity and Inclusion were among the key issues most scrutinized by stakeholders. By developing strategies and by investing in programs that take these issues seriously, Canadian miners may be able to begin turning the tide and start attracting a younger, more ESG mindful workforce in greater numbers.

Luckily, the industries’ role in the green transition, by virtue of the importance of critical mineral extraction, can be a key tool in developing an ESG strategy that resonates with workers. Many mining organizations have already reported seeing the impacts their involvement with critical minerals can have. Some Mining executives report seeing an increasing interest from job seekers to work in operations that are directly linked to the extraction of minerals that will be used in the green transition.

While developing strategies to address ESG concerns may be important, Mining organizations should understand that it is only half the battle. To leverage these actions to attract workers, communicating their efforts will be critical.

With over 50% of young job seekers reporting that they researched an organization’s ESG strategy before applying for a job, to ensure that investment in ESG initiatives translate into a more robust talent pipeline, miners must ensure that the results of their ESG efforts don’t just collect dust. Instead, miners will need to double down on communicating their ESG strategy to the public, ensuring that their efforts are well explained, and information is easily accessible.

For Miners that are serious about solving their talent challenges, investments in tangible ESG initiatives should be a key pillar in their workforce development strategies. Miners that continue to ignore the importance of these initiatives should expect to suffer the consequences of an already tight labour market.