Mind the gap Closing the skills and gender gap in resources. Dr Matt Guthridge, Partner, PwC Mining, Oil & Gas Consulting Leader

Transcription

1 Mind the gap Closing the skills and gender gap in resources Dr Matt Guthridge, Partner, PwC Mining, Oil & Gas Consulting Leader

2 The resources boom is now 10 years old, as are the skills shortages that came with it Job vacancy index (DEEWR) Labour productivity (mining) Vacancy index (Mining engineers) PwC 2

3 Some professional and trade skills have been in shortage for the better part of the last decade No. of years occupation assessed as being in national shortage* (in the 10 years to 2011) Production manager (mining) Mining deputy Automotive electrician Motor mechanic Electrician Fitter Electrical engineer Mining engineer (excl. Petroleum engineer Production engineer (mining) Geologist Metallurgist (Minerals Number of years in shortage* *Skill shortages exist when employers are unable to fill or have considerable difficulty filling vacancies for an occupation, or significant specialised skill needs within that occupation, at current levels of remuneration and conditions of employment, and in reasonably accessible locations. Source: Department of Education, Employment and Workplace Relations (DEEWR). Historical list of skill shortages, Australia, PwC 3

4 The skills shortage has significant consequences for Australia PwC Productivity In ndex Implications for Australia Australia s productivity has declined by 50% over the last decade In 2012, Australia fell 10 spots in a world ranking of international competitiveness in two years, driven in part by skills shortages Skills shortages threaten the delivery of major capital projects Mining Productivity Index PwC 4

5 Skills shortages threaten the delivery of major projects in Australia Community concerns Lack of economic and social development in communities Lack of informed national discussion on Australia s growth challenge Lack of political leadership Capacity constraints Efficiency problems Timely funding and delivery of public infrastructure Size of projects and sequencing Labour/skills shortage Equipment and materials supply Planning approvals (including conditions) red tape Project design and project management Workplace productivity Shortage of infrastructure that underpins private investment (ports, etc.) Shortage of infrastructure which is vital to increasing city productivity and supporting overall economic growth Funding and financing barriers Investor confidence Quality and predictability of the policy environment Effects on investor confidence Source: Business Council of Australia PwC 5

6 1 The big issues

7 We asked energy and resources leaders to identify and prioritise the root causes of the skills shortages Top 5 root causes Priority issue to solve Agree this is an issue Participating organisations 1 Sector Sector doesn t doesn't do enough enough to attract to women attract women People People are are reluctant to to move move geographically geographically for work for work There There aren t aren't enough experienced experienced workers workers to to recruit in the Australian recruit in the Australian market market Not Not enough young people people are graduating are graduating from relevant educational from relevant programs educational programs We We don t don't offer clear and/or and/or compelling compelling career paths career paths Source: PwC; Interviews with 30 senior executives in the energy and resources sector PwC 7

8 Resources employs a relatively small share of skilled people in Australia Comparison of industry share of skilled workers Distribution of engineers by industry (2006)* Distribution of tradespersons by industry (2006)** Other industries, 18.9 Professional, scientific, and technical series, 20.0 Mining, 2.0 Government administration and defence, 2.8 Other industries, 13.2 Contruction, 29.9 Mining, 3.6 Accommodation, cafes and restaurants, 3.0 Retail trade, 3.7 Property and business services, 3.1 Education and training, 3.7 Wholesale trade, 3.5 Information media and telecoms, 3.9 Electricity, gas, water and waste services, 4.1 Transport, postal and warehousing, 6.1 Construction, 7.2 Public administration and safety, 9.4 Manufacturing, 19.4 Personal and other services, 6.7 Retail trade, 13.8 Manufacturing, 22.0 *Total employed persons = 242,426 **Total employed persons = 1,102,530 Source: ABS Census of Population and Housing (2006) PwC 8

9 The industry employs too few women 36,400 women work in resources in Australia (compared to 206,000 men) 1,500 female engineers are produced each year by Australian educational institutions (16% of all graduates) 18% of mining roles are occupied by women, contrasted with 45 % of roles in the overall Australian workforce 6.3% of key management positions in top 50 Mining and Minerals companies are occupied by women It s a male-dominated industry and not women friendly due to hard physical conditions. 34 is the median age of women working in the industry (compared with 39 years for men) 10.6% of women working full time in WA mining industry stayed with their employer for 10 + years (compared to 21.8% of males ) Reasons Image and reputation of the industry Less encouragement of women to work in the sector Few successful role models Limited scope for flexibility in jobs Inadequate childcare facilities You can employ women from school to the age of 30 or so... but then the women leave and bringing them back is difficult. PwC 9

10 Low representation of women in each of the common mining occupations Top five occupations in the mining industry Occupation Total number Number of females Number of Males Female % Male % Drillers, miners and shot firers Metal fitters and machinists Other building and engineering technicians 39,283 2,299 36, , , , , Truck drivers 7,305 1,488 5, Electricians 5, , Source: Table is based on ABS Census 2011, Australia (Statistical Local Area), Occupation by Sex and Industry of Employment, and is not directly comparable with the Agency reporting organisations. PwC 10

11 Women working in the mining industry show a strong preference for part-time employment Female workforce participation by employment type Casual female employees Part-time female employees Full-time female employees Total female employees Percentage% Mining needs to adapt Part time workers made up only 3.1% of mining workforce in 2009, compared with 29.6% of all industries Mining has lowest incidence of part time employment of any of the industries in Australia Mining reporting organisations All Agency reporting organisations Source: Workforce Gender Equality Agency - Agency reporting data from compliant organisations, 2012 PwC 11

12 Part-time work is also more common for female managers in mining companies Female CEO and managerial representation Female CEOs Casual female managers Part-time managers Mining reporting organisations All Agency reporting organisation Part-time female managers Total female managers Percentage% Source: Workforce Gender Equality Agency - Agency reporting data from compliant organisation, 2012 PwC 12

13 At Board level, the resources sector compares poorly to other industries in terms of female representation Average percentage of women on boards of top 100 companies Source: Mining for Talent, 2013 PwC 13

14 Representation of women on Boards in Australia, Canada, UK and US is below average for Top 100 companies Are there differences between territories? Exchange Average % women on board for all industries top 100 companies Average % women on board of top 100 mining companies Difference between industry average and mining average Australia Canada Hong Kong South Africa UK US Source: Mining for Talent, 2013 PwC 14

15 Growing evidence that mining companies with female Board representation perform better than their peers Average profit margin for top 100 companies All boards All male boards Mixed Boards Source: Mining for Talent, 2013 PwC 15

16 What types of entrenched attitudes and practices have you encountered in the sector? PwC 16

17 2 A blueprint to close the gender and skills gap

18 Gender and skills gaps in the resources sector can be addressed by focusing on four areas Be disciplined about workforce planning Tap a diversity of skills Strengthen the brand Look beyond the money PwC 18

19 Be disciplined about workforce planning 1 4 Bu usiness strategy Business strategy Environmental scan Success levers analysis Future workforce characteristic SPP utilised and monitored by line management Implemented by All HR Competencies: Compensation and Benefits, Incentives, Talent Development, Performance Management, Recruitment, Global Deployment, KPIs, Development/Training etc SPP action plans People levers and workforce plannin ng Workforce analytics Existing workforce and business data Existing HR and business policies and practices Integrate analytics SPP workforce strategy Future Workforce Requirements SPP modelling tool SPP Gap analysis Operational and scenario iteration Risk and control assessment 2 3 SPP modelling and workforce strategies Source: PwC PwC 19

20 Case example: Diversity mapping at two coal mines Criteria for resource allocation 1. Capacity to train 2. Capacity to manage Mine 1 Mine 2 70% New to coal industry within operational workforce 62% New to coal industry within operational workforce Team configuration Productivity 29% Females within operational workforce 25% Females within operational workforce 5. Complexity PwC 20

21 Tap a diversity of skills What attributes do female students look for in an employer? Mean ratings of females enrolled in minerals-related courses* Interesting work Exciting work Significantly different from other courses** Good career opportunities 4.8 Make strong contribution to society 4.0 Working to help others 3.9 Opportunities for travel 3.9 Pleasant working conditions 3.9 Challenging work 3.8 Opportunity for creativity and originality 3.8 Job security Future earning potential Responsibility in job Ability to leave workforce and return later Opportunity for promotion/advancement Combine work and family commitments * The question posed was What are you looking for in an occupation? Please indicate the importance, if any, you attach to each of the following job characteristics. Scale: 1=no importance at all; 2=minor; 3=some; 4=important; 5=very important. Community respect for occupation Graduate starting salary Working closely with people Flexible working hours Professional pretige/high status ** Indicates a significant difference in the mean response of women enrolled in MRCs and women enrolled in other courses. Source: 2003 FYUSS; Women in Social & Economic Research, Curtin Business School, Curtin University of Technology PwC 21

22 Look overseas for skills Country comparison of total number of suitable engineers Number of engineering graduates per year (thousands) * x Suitability** (percent) = Suitable pool of engineers per year (thousands) US China India UK Australia % Malaysia Singapore *Number of graduating engineers each year across all disciplines **Suitable pool estimated based on assumptions on number of engineers and suitability derived from comparable countries 34 Source: National Science Foundation/National Center for Science and Engineering Statistics; Chinese Statistical Yearbook (2010); Ministry of Human Resource Development, Government of India; Engineers Australia; UNESCO (2010). Engineering: issues, challenges and opportunities for development; Department of Statistics, Singapore; McKinsey Global Institute; Team analysis PwC China and India develop significant pools of engineering skills despite lower suitability

23 Look beyond the money One of these EVPs can attract and retain talented women EVP circa 1942 EVP circa 2013 Tangible Intangible Work Interesting, exciting work Part-time and flexible working arrangements Work Opportunities Opportunities Good career advancement opportunities Rewards & recognition High salary Availability of childcare facilities Rewards and recognition Brand and reputation People and culture Brand and reputation Company known for gender inclusiveness Industry advocated by mothers and best friends People and culture Gender inclusive policies and environment Positive female role models at all levels Mentoring relationships and support network * Bechtel-Price-Callahan employment offices c PwC 23

24 The industry is progressing Provision of paid parental leave in Agency reporting organisations, 2012 Percenta age (%) Mining reporting organisations All Agency reporting organisations 0 % Provide paid maternity leave % Provide paid paternity leave Source: Workforce Gender Equality Agency - Agency reporting data from compliant organisations, 2012 PwC 24

25 Who can change entrenched attitudes and practices? Accountability for making change happen Me My organisation can successfully make these changes on our own Us Industry leaders, governments and universities must collaborate to achieve sustainable changes PwC 25

26 Who can change entrenched attitudes and practices in each of these areas? Be disciplined about workforce planning Tap a diversity of skills Strengthen the brand Look beyond the money PwC 26

27 pwc.com.au Thank you PricewaterhouseCoopers. All rights reserved. PwC refers to the Australia member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. Liability limited by a scheme approved under Professional Standards Legislation. PwC Australia helps organisations and individuals create the value they re looking for. We re a member of the PwC network of firms in 158 countries with close to 169,000 people. We re committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at WL241335