Miners are no strangers to data analytics. In the mining industry numbers drive decision making. Though I suppose it should come as no surprise that an industry so dominated by engineers has a good grasp of quantitative analytics.
As such, rigorous data analysis has allowed mining organizations to predict with great accuracy how certain inputs will change their production processes, and how the bottom line will be impacted.
Unfortunately, despite enjoying such a strong analytical tradition, for many miners, the importance of data driven decision making ends where human resources begin.
The dominating view of the HR department is one of touchy-feely concepts. For many miners, things like company culture are hard to quantify, and therefore not worthy of serious analysis.
When it comes to making strategic HR decisions, too often long-term planning is based on nebulous feelings. And when talent challenges arrive miners are forced to be reactive. Looking to plan on 1–3-year time periods, or scramble to put out fires as they come up.
It’s thus no surprise that instead of HR teams acting as key business partners that help guide company strategy, for many miners, HR departments devote much of their time to recruitment and administration, with little time to plan for the future.
It’s clear that humans aren’t widgets and shouldn’t be treated simply as resources that are mere inputs in spreadsheet formulas. Though that doesn’t mean that miners can’t drive performance with more rigorous people analytics.Â
And they should. As mining labour is more and more specialized and talent continues to be in short supply, skills shortages are having big impacts on the bottom line of Canadian mining organizations. 71% of mining executives say talent challenges are holding them back from production targets. As such, it’s no surprise that talent is growing in importance as a key driver of value for miners.
According to consulting company McKinsey & Co., businesses that incorporate rigorous people analytics into their decision-making process can enjoy a 25% increase in business productivity, 80% increase in recruitment efficiency, and upwards of 50% reduction in attrition rates.
At minimum, Miners should look to align their people analytics programs with a focus on a few key elements. Beyond headcounts, miners should seek data to drive decision making regarding:
Future talent requirements
Long-term workforce requirements, corresponding to mine life
Talent sourcing tactics
Planned attrition rates
Recruitment and hiring strategies
For years miners have known that in a capital-intensive business, small improvements to production efficiency can have huge bottom line impacts. But as labour pools tighten, and the supply of mining specific skills dwindles, developing data driven HR strategies will be a key tool in driving long-term value for mining organizations.