The New Year brought with it a new sense of investor optimism and purpose. Western Australia, which is responsible for more than 50% of Australia’s mining investment, experienced a 1% growth in GDP in 2018-19, and there were signs of further economic and employment growth in early 2020. But within a few weeks of the pandemic arriving on Australian shores in March 2020, this optimism dissipated.
Thankfully, the mining and metals sector moved swiftly in implementing safe working protocols, as did the Australian government when it positioned mining on the list of essential sectors. This decisive action meant the sector’s output was relatively unaffected, unlike heavily downtrodden industries such as hospitality, tourism and retail. What’s more, China has kept buying iron ore from Australia and two of the nation's biggest competitors, Brazil and South Africa, haven't been able to operate as normal.
And while the restricted movement of personnel interstate and interoperation is affecting productivity, anecdotally, this is much less than expected. However, the resources industry is still exercising some caution when it comes to expenditure, and rightly so in the face of such instability.
But the question remains as to how this new business environment is impacting remuneration. Have pay rises and incentives been curtailed across the board? How is the resource sector handling allowances while managing deteriorating commodity markets and distressed assets?
As the pandemic continues to ripple outwards, solid industry benchmarking data will be instrumental in helping companies to shape defensible pay strategies — ultimately arming them with collective industry knowledge to attract and retain high performing talent and to steward their organisations through economically uncertain times.
The following report contains a snapshot of the larger picture, including some key insights across salary forecasting, incentives, allowances, talent shortages and salary inflation, as well as emerging trends which will shed light on how the sector is handling the “new normal”.
Download the report