A Strategic Approach to Workforce Planning in the Mining Industry

Transcription

1 Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 1

2 This project is fuded i part by the Govermet of Caada. The opiios ad iterpretatios i this publicatio are those of the author ad do ot ecessarily reflect those of the Govermet of Caada. Copyright 2013 Miig Idustry Huma Resources Coucil (MiHR) All rights reserved. The use of ay part of this publicatio, whether it is reproduced, stored i a retrieval system, or trasmitted i ay form or by meas (icludig electroic, mechaical, photographic, photocopyig or recordig), without the prior writte permissio of MiHR is a ifrigemet of copyright law. For more iformatio, cotact: Miig Idustry Huma Resources Coucil 260 Hearst Way, Suite 401 Kaata, Otario K2L 3H1 Tel: Fax: research@mihr.ca Or visit the website at: Published August 2013 Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 2

3 Table of Cotets About MiHR...5 Ackowledgemets...5 Project Backgroud...6 About this Research...6 About the Report...7 Ifographic Strategic Workforce Plaig Keeps Miig Workig...7 Ifographic A Strategic Approach to Workforce Plaig i the Miig Idustry...8 Strategic Workforce Plaig...9 The Cyclical Miig Idustry...10 Workforce Plaig i the Caadia Miig Idustry...12 How is Workforce Plaig Implemeted?...13 Strategic Workforce Plaig i Actio Kowledge Trasfer...17 Itroductio...18 Overview of the Program ad Process...20 Expected Impact...23 Implemetatio ad Dissemiatio...23 Key Challeges ad Lessos Leared...24 Key Resources...24 Summary Worker Deploymet...26 Itroductio...27 Overview of the Program ad Process...30 Expected Impact...33 Implemetatio ad Dissemiatio...34 Key Challeges ad Lessos Leared...34 Key Resources...35 Summary Facilitatig the Mobility of Talet...36 Itroductio...37 Overview of the Labour Market Framework...39 Expected Impact...44 Implemetatio ad Dissemiatio...45 Key Challeges ad Lessos Leared...45 Key Resources...46 Summary Successio Plaig...47 Itroductio...48 Overview of the Program ad Process...49 Expected Impact...53 Implemetatio ad Dissemiatio...54 Key Challeges ad Lessos Leared...54 Key Resources...55 Summary...56 Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 3

4 5 Capacity Plaig...57 Itroductio...58 Overview of the Program ad Process...59 Expected Impact...61 Implemetatio ad Dissemiatio...62 Key Challeges ad Lessos Leared...62 Key Resources...63 Summary Educatio ad Idustry Parterships...64 Itroductio...65 Cyclical Nature of the Miig Idustry ad Traiig Challeges...66 Overview of the Program ad Process...67 Program Partership...68 Implemetatio ad Dissemiatio...69 Key Challeges ad Lessos Leared...72 Summary Workforce Parterships...73 Itroductio...74 Overview of the BC Task Force ad SMA Iitiatives...77 Expected Impact...83 Implemetatio ad Dissemiatio...84 Key Challeges ad Lessos Leared...85 Key Resources...86 Summary Orgaizatioal Assessmets ad Forecastig...88 Itroductio...89 Overview of the program ad process...90 Expected Impact...94 Implemetatio ad Dissemiatio...95 Key Challeges ad Lessos Leared...95 Key Resources...96 Summary...96 Coclusio...97 Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 4

5 About MiHR The Miig Idustry Huma Resources Coucil (MiHR) is the atioal HR coucil for the Caadia mierals ad metals idustry. MiHR is the recogized idustry leader i the idetificatio ad aalysis of huma resources (HR) issues facig the idustry ad a catalyst for developmet ad implemetatio of solutios. The Coucil cotributes to the stregth, competitiveess, ad sustaiability of the idustry by brigig all stakeholders together to address skills ad labour shortages ad HR issues. Ackowledgemets MiHR is grateful to all of the orgaizatios that provided resources ad materials to project activities. These geerous cotributios ad participatio made this research possible. MiHR would also like to thak the idividuals that cotributed to the completio of surveys ad iterviews, ad provided expertise ad isight. The MiHR project team also ackowledges the geerous voluteer cotributios of the project steerig committee members ad their orgaizatios for their hard work, expertise ad guidace i the developmet of this research ad the completio of the case studies ad report. Steerig Committee Orgaizatios Cameco (committee chair) Vale Teck IAMGOLD Goldcorp Baffilad The Govermet of Yuko Lauretia Uiversity Case Study Cotributors Cameco Teck Vale Goldcorp The Govermet of Yuko BC Miig HR Taskforce Saskatchewa Miig Associatio Glecore Xstrata BHP Billito Cambria College Cosultatio Services KPMG Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 5

6 Project Backgroud Employmet i miig is tightly tied to ecoomic cycles: employmet growth is see durig boom times ad employmet reductios, durig recessios. Recet ecoomic ucertaity has led to cost-cuttig measures ad challeges i retaiig key idustry talet. Despite loomig skills shortages, employers fid it difficult to pla for the log term ad to strike a balace betwee immediate eeds ad logerterm treds. Further, educatioal istitutios are affected by fewer opportuities for their studets ad graduates, ad studets get discouraged whe faced with a sudde lack of idustry opportuity. Retaiig experieced workers is icreasigly challegig durig ecoomic dowturs, as workers ted to prefer more stable employmet as their career progresses. I additio, local commuities ca be sigificatly affected durig a ecoomic dowtur, especially if regioal employmet is largely depedet o miig. To maage the effects of the ecoomic cycle, while balacig the log-term skills shortage, there is a growig eed for miig idustry stakeholders to collaborate i the itegratio of more flexible ad proactive workforce plaig strategies. I recet MiHR cosultatios, stakeholders ackowledged that workforce plaig is typically a short-sighted reactio to ecoomic cycles ad established the eed for tools ad resources to help them develop proactive, log-term strategies. Furthermore, they expressed deep cocers that decisios ad actios take i dowturs compoud existig labour force issues ad threate to udo the hard work the idustry has doe over the past decade to attract ad build the future workforce. Stakeholders also stated that they are missig tools ad resources to help them react quickly, i respose to ecoomic pressures, without losig sight of future workforce eeds. MiHR s stakeholders have idetified employmet volatility as a primary cocer ad have expressed a eed for timely, reliable ad relevat labour market iformatio ad resources for workforce plaig. About this Research The purpose of this research was to support proactive plaig through the collectio ad dissemiatio of workforce plaig tools ad resources curretly i use by Caadia miig idustry employers. I additio, this research provides the foudatio for the developmet of a collaborative idustry-wide strategy to smooth employmet volatility ad strategically maage the workforce through ecoomic cycles. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 6

7 The research icluded a literature review of preset practices i miig orgaizatios; a employer survey of strategic workforce plaig iitiatives ad practices; ad stakeholder cosultatio sessios. Participats were asked to idetify the workforce plaig resources, tools ad strategies their orgaizatios use to mitigate the effects of the ecoomic cycle. Key workforce strategies were idetified ad through cosultatio with a idustryled project steerig committee, several importat topics were determied. Case studies were developed to highlight the cotext ad applicatio of the selected workforce plaig strategies ad iitiatives. Case studies iclude discussio of the strategy or iitiative; orgaizatioal cotext; examples of the tools ad resources used by workforce plaers; ad the lessos leared i executio of the iitiatives. The case studies illustrate examples of the desig ad executio of iitiatives withi the operatioal cotext of the compay or orgaizatio. Miig idustry employers ad other miig-related orgaizatios ca use the case studies to guide them as they build their ow strategies ad iitiatives. The idustry the beefits from the experieces ad leadership of their peers i the selected workforce plaig topics. About the Report This report begis with a discussio o key issues ad provides some theoretical groudig i workforce plaig from the academic literature. This is followed by a discussio of workforce plaig i the idustry ad a orgaizig framework for strategies ad iitiatives used i miig. Case studies are the preseted for key topics withi the orgaizig framework. Fially, a summary ad idustry call to actio for ogoig collaboratio ad cooperatio are preseted. Ifographic Strategic Workforce Plaig Keeps Miig Workig The ifographic foud o the followig page summarizes the eed for strategic workforce plaig i Caada ad the eight tools that are outlied i this report. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 7

8 STRATEGIC WORKFORCE PLANNING KEEPS MINING WORKING EMPLOYERS REACT TO ECONOMIC CONDITIONS WITH EMPLOYMENT ADJUSTMENTS The miig idustry is... Miig GDP Employmet...HIGHLY SENSITIVE TO ECONOMIC CYCLES AND CHANGES Ifographic IN COMMODITY PRICING A Strategic Approach to WorkBut we kow that our miig idustry force Plaig i eeds to build a log-term workforce the Miig Idustry NEED TO HIRE 145,870 THINGS ARE CHANGING! 53% OF MINING HR MANAGERS MENTIONED RETENTION AND DEVELOPMENT AS A KEY PRIORITY DURING ECONOMIC DOWNTURN WORKERS BY ,180 HIRES WILL REPLACE RETIRING WORKERS Strategic Workforce Plaig is a proactive tool that eables HR practioers to build log-term strategies that maage the workforce through the miig cycle BY CONNECTING HR STRATEGY AND PRACTICES TO BUSINESS STRATEGY, STRATEGIC WORKFORCE PLANNING ENSURES THAT CANADIAN MINING COMPANIES HAVE: 7. Workforce parterships 6. Educatio ad idustry parterships 8. Orgaizatioal assessmet ad forecastig Strategic Workforce Plaig 4. Successio plaig 5. Capacity plaig > THE RIGHT PEOPLE > IN THE RIGHT PLACE > AT THE RIGHT TIME > AT THE RIGHT COST 3. Mobility of talet 1. Kowledge trasfer 2. Redeployig workers

9 Strategic Workforce Plaig People strategies are top-of-mid for busiess leaders i miig ad are part of soud busiess strategies. Demographic shifts i the Caadia labour market have resulted i skills ad labour shortages that threate busiess potetial ad growth. I miig, these treds are compouded by ecoomic cycles, volatility ad a agig workforce. Icreasigly, miig compaies are shiftig towards strategic huma resources (HR) maagemet, workforce plaig, workforce optimizatio ad HR aalytics. Workforce plaig i miig is evolvig from short-term, eeds-based staffig ad recruitmet plaig ito a itegrated, strategic fuctio that eables orgaizatios to mitigate busiess risks. By measurig workforce characteristics ad forecastig eeds, strategic workforce plaig has helped orgaizatios to proactively ivest i the retetio ad developmet of their workforce, i efforts to offset skills gaps. This esures the right kowledge, skills ad abilities are i place at the right time to meet overall busiess objectives. Strategic workforce plaig ca be desiged to softe the impacts that the ecoomic cycle ad fluctuatig commodity prices have o the idustry s labour force. It allows for more effective ad efficiet use of workers ad for workforce maagemet decisios that meet both immediate ad log-term eeds. Advaced workforce aalytics are desiged to help idustry predict what type of ecoomic obstacles lie aroud the corer ad proactively pla workforce eeds over a loger time horizo. The Caadia miig sector is comprised of a wide variety of orgaizatios from small compaies with flat corporate structures ad lea operatios, to large multiatioal orgaizatios with complex orgaizatioal desigs ad extesive resources. Despite differeces i structure, all orgaizatios i the miig idustry are competig for the same skilled labour. This competitio amog employers ca be expesive ad ofte, oly shuffles talet already employed i the idustry. To address log-term issues, a coordiated idustry approach to workforce plaig is essetial for attractig ad retaiig critical talet. This report illustrates the eed for timely, itegrated ad collaborative workforce plaig i Caadia miig, to allow the idustry to smooth out employmet treds durig booms ad busts. Workforce maagemet strategies used durig various phases of the ecoomic cycle are idetified ad explaied, usig a costruct of practical short-, medium-ad log-term strategies. Eight case studies were developed to give a overall view about the practices used i strategic workforce plaig so that peers i the idustry ca review ad cosider the strategies i their ow plaig. These case studies also illustrate a compedium of tools ad resources used by workforce plaers. The report cocludes with a idustry call to actio for collaborative workforce plaig strategies. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 9

10 The Cyclical Miig Idustry The Caadia miig idustry is a pillar of the Caadia ecoomy, employig early 235,000 workers i exploratio ad developmet, miig ad quarryig, support services for miig, ad mieral processig. However, labour ad skill shortages pose a cosiderable threat to the sustaiability ad growth of the sector. Accordig to MiHR s 2013 atioal miig labour market outlook, more tha 145,000 workers will be eeded by 2023 to fill ew positios ad replace workers leavig the idustry. Ecoomic Cycles Explaied I a market-based ecoomy, ecoomic cycles are a iheret reality, ad miig is both a cyclical ad capital-itesive idustry. Typically, periods of high growth result i icreases i et employmet, ad durig a recessio or ecoomic dowtur, employmet losses esue. Ecoomic growth ad ew developmet are major factors i determiig demad for commodities i the iteratioal market. I recet years, coutries such as Chia, Brazil ad Idia have udergoe periods of high ecoomic growth that have resulted i a high demad for commodities. This iteratioal demad for commodities ofte results i higher prices, followed by high output, iducig a cyclical patter i the idustry. A declie i demad for commodities ofte results i a decrease i price ad total output resultig i job losses withi the idustry. There is a strog correlatio betwee ecoomic cycles ad employmet i Caadia miig. Volatility i commodity prices creates a cyclical patter of employmet i the idustry. Research at MiHR has show that idustry employmet levels are sesitive to ecoomic fluctuatios, which i tur are strogly affected by commodity prices. Figure 1: Metals ad Mierals Price Idex ad Gross Domestic Product 1, ,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 1,000 Miig GDP MMPI Source: Miig Idustry Huma Resources Coucil, 2013; Statistics Caada, 2011; Bak of Caada, 2012 Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 10

11 Figure 2: Gross Domestic Product ad Employmet i the Caadia Miig Idustry ( ) % Chg Emp % Chg GDP Source: Miig Idustry Huma Resources Coucil, 2013; Statistics Caada Employmet i Caadia miig is volatile, makig log-term workforce plaig a particular challege. Coupled with market volatility, the idustry faces several labour market challeges that highlight a icreasigly acute labour ad skills shortage. The mai labour challeges for the sector are a agig workforce ad a lack of diversity specifically a uder-represetatio of wome, Aborigial Peoples, youth ad ew Caadias. Most of miig s projected hirig requiremets stem from the eed to replace retirig workers ad other workers leavig the sector. Employmet volatility, alog with the lack of workforce diversity ad a agig workforce, exacerbates the projected skills gaps. I miig, workforce plaig geerally aims to maximize productio ad miimize costs i respose to immediate pressures. Workforce plas, therefore, take a operatioal perspective, rather tha a strategic HR maagemet perspective. I order to softe the impact of ecoomic cycles o idustry employmet ad to meet future labour eeds, the idustry eeds to develop couter-cyclical workforce plaig strategies. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 11

12 Workforce Plaig i the Caadia Miig Idustry Workforce plaers ad huma resources (HR) maagers i the miig idustry traditioally operate uder short-term plaig horizos (usually less tha two years) a practice drive maily by the cyclical ature of the idustry ad the eed to remai imble i makig workforce adjustmets i respose to chagig ecoomic coditios. However, i recet years, the idustry s workforce plaers have bee developig ad implemetig more proactive log-term strategies. The purpose of this research was to examie these strategies ad provide a framework for peer orgaizatios to develop their ow practices. As a part of this research, MiHR admiistered a survey to idustry stakeholders focusig o strategic workforce plaig ad the impact of ecoomic variability o their plaig horizos. Sevety six percet of the survey participats cited commodity prices as the mai reaso for the variatio i employmet. MiHR s survey of idustry stakeholders also foud that most compaies do ot have a coordiated workforce plaig program to aticipate ecoomic cycles but they do react to chages i the ecoomy. Participats stated that, o average, these reactios result i a 25 per cet chage i the workforce, with icreases durig boom cycles ad decreases durig bust cycles. Figure 3: Factors Drivig Workforce Adjustmet Chage i commodity price Stage of miig or exploratio activities Retiremet of workers Seasoality of workers Local Competitio Do t Kow Other Source: MiHR Workforce Plaig Survey, Workforce plaers i miig orgaizatios use differet strategies to couter the effects of the ecoomic cycle. MiHR s survey respodets idicated that reallocatio of workers; forecastig ad aticipatig labour eeds; ad workforce adjustmets were the top-three strategies used by their orgaizatios. However, some respodets also described usig outsourcig or cotractig; short-term hirig; ad strategic parterships to meet their eeds. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 12

13 Workforce plaers i the idustry traditioally adopt strategies that are liked with specific stages of the ecoomic cycle. Durig ecoomic slowdow, plaers emphasize reallocatig of workers, reducig shifts, reducig the workforce ad outsourcig the work whereas durig booms, compaies emphasize retaiig ad developig employees to icrease productivity. Figure 4: Strategies Used by Compaies durig Dowturs i Ecoomic Cycles Reallocatio of workers Forecastig labour eeds Workforce reductios Outsourcig Short term hirig Strategic Parterships Other Source: MiHR Workforce Plaig Survey, Efforts to exted plaig horizos ad implemet loger-term strategies are carefully balaced with busiess realities. For example, durig a dowtur, busiess priorities shift, ad HR departmets must alig with ad support cost-savig measures. Survey participats idicated that idustry is gaiig a broader uderstadig of the labour shortages it will face. As a result, approaches to cost savigs are chagig. Fifty three percet of the survey participats oted that retetio ad developmet are ow key priorities durig dowturs a strategy oce see as couter to cost-savigs i the short term is ow see as part of a loger-term solutio. Talet maagemet, workforce plaig ad aligig HR goals to corporate targets are essetial for maitaiig competitive advatage i a market with a cotractig labour pool. Workforce plaig is a cotiuous process ad HR departmets are icreasigly ivolved i orgaizatioal strategy. Miig compaies are itegratig, redesigig ad implemetig ew strategies to better maage their talet to balace short-term eeds with log-term pressures. How is Workforce Plaig Implemeted? There are umerous ways to implemet workforce plaig i a orgaizatio. It geerally ivolves aalysis of the curret ad future goals of the compay; the work eeded to reach those goals; the competecies of the workforce that will be eeded to accomplish the work; ad developmet of a pla for buildig the workforce to esure orgaizatioal success. Proactive plaig i a cyclical idustry also ivolves exteded plaig horizos ad puts the curret state of the orgaizatio i the cotext of log-term goals. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 13

14 Numerous models ad techiques are available to assist orgaizatios i the executio of a strategic workforce pla. Most models are based o maagig the curret stock of talet ad usig a suite of aalytic tools to determie the optimal allocatio of labour required to meet curret ad future busiess goals. Some techiques make use of sophisticated software while others focus o short-term logistical plaig. However, as show by fidigs from other idustry sectors ad the iteratioal miig commuity, most orgaizatios do ot implemet complicated approaches or processes for workforce plaig. I most cases, the mechaisms used to make busiess decisios are also effective for HR decisio makig; for example, the busiess techiques used i aligig strategies ad likig goals; optimizig risk ad retur; market aalysis ad cosumer research; performace optimizatio; ad portfolio diversificatio are all techiques highly applicable to workforce plaig ad HR maagemet 1. May orgaizatios have developed their ow tailor-made workforce strategies to address specific goals. The primary approach accetuates the value of adaptig prove busiess tools, also kow as metrics, to maage talet i HR. Oe particularly valuable model is the performace-based techique i talet maagemet. This approach defies the performace-optimizig capabilities of tested busiess tools, such as Kao Aalysis, riskretur aalysis ad costrait aalysis. Implemetig these pre-developed cocepts ito HR plaig will ehace the retur o improved performace (ROIP) i the workforce. Strategic workforce plaig is a systematic process that idetifies, builds ad sustais workforce ad skills requiremets to esure that busiess or operatioal goals are met. Formig a effective ad resposive workforce pla ivolves careful aalysis of metrics to track progress ad maage people requiremets to alig with busiess outcomes. I miig, it also ivolves predictig chagig ecoomic coditios ad remaiig imble ad resposive to these chages. Similar to other busiess processes, workforce plaig ca be implemeted usig differet models ad techiques. However, the basic structure of the strategy is similar across orgaizatios. As illustrated i Figure 5, workforce plaers alig operatioal goals with workforce eeds; collect ad aalyze workforce data ad metrics; idetify ad collect data o operatioal eeds; idetify curret ad future workforce ad skills eeds to achieve goals; idetify gaps betwee curret ad future talet requiremets; ad create relevat ad resposive strategies for attractig, recruitig, retaiig ad developig the orgaizatio s workforce. 1 For a excellet discussio o busiess tools i the cotext of HR maagemet, see Joh Boudreau s Retoolig HR: Usig Prove Busiess Tools to Make Better Decisios About Talet, Harvard Busiess School Publishig, Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 14

15 Figure 5: Illustratio of a Strategic Workforce Plaig Cycle Create strategies for retaiig ad attractig talet Idetify gaps Defie the operatioal ad HR goals of the orgaizatio Strategic Workforce Plaig Idetify the curret workforce eeds ad forecast the future demads Collect data related to exteral factors ad cyclical variables affectig HR Collect iteral data ad defie operatioal eeds Source: Miig Idustry Huma Resources Coucil, 2013 Strategic Workforce Plaig i Actio The miig idustry i Caada is actively egaged i a variety of workforce plaig strategies. The case studies i this report illustrate how various orgaizatios have implemeted workforce plaig iitiatives ad tools. Resource allocatio ad time horizos play a crucial role i the success of a workforce strategy. Some tools are more useful for a short-term correctio; others are more helpful over a log-term plaig horizo. May of the tools ad strategies refereced i the case studies have implicatios for both short- ad log-term plaig of a miig orgaizatio s workforce. The highlighted iitiatives ad tools are characterized based o the legth of time for a expected impact at the described orgaizatios, ad o the amout of time ad resources required for implemetig the strategies. Strategic Workforce Plaig coects HR strategy ad practices to busiess strategy: esurig a compay has the right people i the right place at the right time ad at the right cost to execute its busiess plas. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 15

16 Short-term Strategies: These workforce plaig tools ad strategies have bee implemeted to have a impact o the immediate eeds of a orgaizatio ad are useful for mitigatig a sudde short-term chage i the labour market. Volatility i commodity prices ca result i a chage i demad; i tur, a decrease i demad affects productio levels. Miig orgaizatios are usig tools such as redeploymet of workers ad coordiated vacatios to softe the impact of these chages. These short-term strategies support ot oly orgaizatios operatioal goals but are also helpful i retaiig skills ad talet. Medium-term Strategies: These plaig tools ad strategies have bee implemeted to meet workforce plaig eeds i the oe-moth to oe-year plaig horizo. These strategies target pre-plaed chages i the workforce. They are more focussed o buildig capacity i the orgaizatio s workforce for respodig to chages i the exteral ecoomic eviromet. They iclude capacity-buildig by ivestig i traiig ad educatio of the workforce, ad successio plaig for key skill sets, to retai competitive advatage. Log-term Strategies: These workforce plaig tools are implemeted to meet workforce eeds i a loger tha two-year plaig horizo. These strategies are more focussed o aligig log-term orgaizatioal goals with HR strategies. These iclude orgaizatioal assessmets ad forecastig, itegrated plaig, ad developig log-term workforce parterships. Figure 2: Time Horizos of Workforce Plaig Strategies Strategic (2+ year plaig horizo) Operatioal (1 moth to 1 year plaig horizo) Tactical (immediate term eeds) Log-term tools iclude: Medium-term tools iclude: Short-term tools iclude: Orgaizatioal assessmet ad forecastig Workforce parterships Educatio ad idustry parterships Mobility of talet Successio plaig Capacity plaig Kowledge trasfer Redeployig workers Source: Miig Idustry Huma Resources Coucil, 2013 Workforce plaig is a cotiuous, iterative ad log-term process that complemets other orgaizatioal goals ad iitiatives. Every orgaizatio has its ow uique eeds; therefore, there is o stadard formula for success or a golde-egg workforce pla. However, the iitiatives illustrated i this report provide a uique perspective o the ladscape of workforce plaig i Caadia miig, ad offer miig idustry employers a opportuity to lear from the examples of their peers whe developig their ow workforce plas. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 16

17 1 Kowledge Trasfer Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 17

18 Itroductio Kowledge trasfer is a importat workforce plaig tool that miig compaies ca use to maitai ad improve the quality All iformatio ad ad skill level of their workforce. Kowledge trasfer programs statemets i this case are the systematic documetatio, orgaizatio, creatio, capture are based o a series of ad distributio of kowledge to esure its availability for future iterviews performed with users. The loss of kowledge whether from retirig employees experts i the miig idustry or orgaizatioal dowsizig is a sigificat issue for may coverig their experiece compaies. I the techical ad potetially hazardous eviromet i creatig ad utilizig of the miig idustry, kowledge loss ca be very detrimetal to workforce plaig tools operatios ad risk maagemet. Risk maagemet is a primary ad couter-cyclical cocer of all compaies i the miig idustry, especially i relatio strategies uless otherwise to techology, the eviromet, ad health ad safety. Kowledge idicated. trasfer, particularly related to risk maagemet, ca couter some of the drastic effects felt whe ecoomic cycles or demographic treds cause chages withi the orgaizatio. This cosequetly improves safety, makig it easier to idetify key kowledge ad skills ad to track whether this kowledge is cocretely embedded i the workforce. Usig kowledge trasfer effectively ca help compaies pla to fill importat seior positios through iteral promotio usig appreticeship-style rotatios to esure future leaders are fully equipped with a soud kowledge of the busiess across departmets. Similarly, itegratig kowledge trasfer ito every aspect of traiig, safety ad maiteace ca reduce the abrupt learig curve for employees i ew positios ad validate that key cocepts are well uderstood. These programs aid compaies to idetify kowledge that is critical for operatioal excellece, safety ad evirometal compliace ad to build it ito every level of the busiess from basic traiig upwards. These programs also help to shape future leaders makig kowledge trasfer a itegral compoet of executive successio programs. Mature kowledge trasfer programs will regularly review ad update program tools, to esure they capture the curret scope of each occupatio or task, as well as up-to-date health ad safety cotrol measures. Programs should also have a method or schedule for re-verificatio ad if ecessary, retraiig employees o critical operatios or tasks. Miig orgaizatios ca use kowledge trasfer i cojuctio with other workforce plaig tools to create a workforce prepared for cyclical fluctuatios. For example, a defied kowledge trasfer program will become part of iductio ad basic traiig esurig that all employees have a cocrete grasp of the kowledge required to perform their occupatios safely. By stadardizig the kowledge trasfer process, compaies ca more easily track each worker s skills ad coordiate traiig for employees o ew tasks ad processes as eed is idetified through capacity or successio plaig. Give the expected shortage of employees i the miig idustry ad the realities of agig workforce demographics, kowledge trasfer programs are becomig a critical tool. These programs eable orgaizatios to capture kowledge from retirig ad other exitig workers ad the to trasfer that kowledge to the curret ad future workforce. Kowledge trasfer programs also help icrease employee egagemet ad reduce safety icidets, as employees feel more accoutable for processes leared through these programs. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 18

19 Situatios that cause compaies to implemet kowledge trasfer programs are may ad ca iclude: Evidece that a sigificat portio of the workforce does ot fully uderstad critical operatios ad/or processes or the reaso for doig them Successio plaig idicatig a eed to prepare employees (ofte youger oes) for the move ito supervisory roles i which they require high-level kowledge of the fuctios of multiple departmets Sigificat safety, evirometal, regulatory or techological chages affectig operatios ad employee roles ad resposibilities Repeated experiece of kowledge loss i the trasitio of key roles Kowledge trasfer fits ito the suite of workforce plaig programs as a short-term tool, as show i Figure 1. Figure 1: Time Horizos of Workforce Plaig Strategies Strategic (2+ year plaig horizo) Operatioal (1 moth to 1 year plaig horizo) Tactical (immediate term eeds) Log-term tools iclude: Medium-term tools iclude: Short-term tools iclude: Orgaizatioal assessmet ad forecastig Workforce parterships Educatio ad idustry parterships Mobility of talet Successio plaig Capacity plaig Kowledge trasfer Redeployig workers Source: Miig Idustry Huma Resources Coucil, 2013 Kowledge trasfer programs couter some of the challeges related to shiftig demographics ad a iterally mobile workforce (commoly due to uioized employees cotractual rights to trasfer). Buildig traceable documetatio of workforce skills has prove to be a key success factor for may miig compaies workforce plaig programs. Compaies that have this documetatio ca better maage traiig ad reviews, track skills i a highly mobile workforce ad offer trasparecy to workers. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 19

20 This study aalysed the kowledge trasfer program at Teck Caada s largest diversified atural resources compay, with operatios across North ad South America. The case provides several key isights ito how to capture the beefits of kowledge trasfer, as well as how to overcome some key implemetatio challeges. Overview of the Program ad Process At Teck, the kowledge trasfer program was established by the Superitedet, Maagemet Systems i the Operatios Admiistratio Departmet at the request of Huma Resources. The Operatios Admiistratio Departmet is resposible for overseeig a umber of areas, icludig traiig i multiple departmets, maitaiig Iteratioal Stadards Orgaizatio (ISO) systems, documet cotrol ad evirometal-regulatio compliace. Teck realized that its curret method of traiig which relied o providig iformatio ad checkig a box to cofirm the employee had bee give this iformatio was o loger sufficiet. The compay recogized a eed to validate learig by havig employees demostrate or explai each traiig compoet. The program developed for the uioized workforce was based o creatio of a tool called Verifiable Learer Objectives (VLOs). VLOs are essetially a checklist of key learer objectives for a occupatio or process which focus o Hazards, Risks ad Cotrol Measures of Safety, Eviromet, Operatioal Cotrol or Geeral Kowledge, Equipmet, Tools Use, Supportig Documets/Procedures ad Record Keepig. A example of the cocept ad format ca be see i Figure 2. Key aspects of the VLOs are: Stadardized Templates These templates keep the process focussed ad replicable across varyig operatig eviromets ad esure that all bases are covered i the developmet of ew VLOs. Cover all Traiig Activities The VLOs are used by istructors as a traiig tool, by experieced operators for o-the-job traiig ad eve i some classroom traiig. VLOs are divided by fuctio or busiess area, ad a large or complex process may have more tha oe VLO associated with it. Some VLOs iclude tests ad quizzes o certai learig aspects. Clear ad Measurable The objectives use the phrases ca explai ad ca demostrate for each step, task ad process. Simplicity ad Orgaizatio The VLOs ru cosistetly through the VLO documet, which provides a overview with the key objectives, ad validates ad lists all of the more complex job aids, istructios ad other elemets required for each traiig thereby helpig the istructor to gather all ecessary tools. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 20

21 Build Accoutability Both the employee ad the istructor/traier are required to sig off o each task o the list. A supervisor the sigs off o the completed process VLO, to esure the employee receives credit for completio. The importace of comprehesio is impressed upo employees; they are ecouraged ot to sig but to ask for further iformatio ad explaatio, if they do ot feel they fully uderstad the task or step. This approach is buildig a culture of accoutability i the ew workforce. Figure 2: Verifiable Learer Objective Template Verifiable Learer Objective # ad Title Course # Area: Name Empl # Sectio 1 - Safety, Health ad Hygiee Hazards/Risks Uderstads ad ca explai, the sigificat safety hazards/risks ad associated cotrol measures withi job/activity: Activity (or Task withi job where hazard/risk is most prevalet) Hazard Risk Cotrol Measure Iitial Whe Complete Employee Istructor Sectio 2 Evirometal Hazards/Risks Uderstads ad ca explai, the sigificat safety hazards/risks ad associated cotrol measures withi job/activity: Activity Hazard Risk Cotrol Measure Source: Based o iformatio provided by research participats to KPMG, The VLOs were developed with the help of a expert cosultat who suggested that Tellig is t traiig to express the importace of employees beig able to demostrate their uderstadig of the objectives at every stage. I the begiig of the program s developmet, a few VLOs were created without a official stadardized format, to pilot the idea. Today, there are over 400 stadard format VLOs. The guidelies that led to successful VLO creatio were: Keep the documet as a checklist of key kowledge ad capabilities, ad avoid duplicatio of process. Fid a efficiet ad widely applicable template to allow for ease of use ad updatig across all areas. Each VLO is reviewed by the Superitedet, Maagemet Systems ad the staff members that report to the Superitedet. Ay ew ideas or eeds are icorporated ito ew ad existig VLOs i a timely maer. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 21

22 A software system for trackig both the VLOs ad employees kowledge certificatio has played a sigificat role i the success of the kowledge trasfer program at Teck. The high mobility of the uioized workforce (stemmig from a right to trasfer jobs, i the collective agreemet) creates challeges with capturig the capabilities attaied ad required by each employee i a processitesive eviromet. Teck s software system keeps a record of all VLOs completed or credited to each employee allowig electroic segmetatio ad reportig to pait a clear picture of the workforce, i real time. The system also tracks the VLOs themselves, promptig regular reviews of each oe, every three years. It also flags VLOs that are liked to processes that have udergoe a sigificat chage. Teck took a similar approach to prepare employees to step ito supervisor positios. The compay developed the Shift Leader Developmet Program, which uses Learer Outcomes. Learer Outcomes use a similar checklist ad format to that of the VLOs, to support appretice or rotatioal-type sessios through key departmets, such as Safety ad Health, Eviromet, Reliability, Maiteace ad Productio Facilities. The mai differece is that while VLOs have very specific objectives, Learer Outcomes are more focussed o a high-level uderstadig of what is ivolved i each departmet ad process. The rotatio i each departmet has a specified duratio, desigated target group, pre-requisites, recommeded supportig courses ad a metor-type relatioship. Each rotatio covers Learer Outcomes i categories such as: Risk Assessmet Safety Meetigs Icidet Ivestigatios ad Follow Up Provicial Workers Safety Regulatios Reportig Systems Critical Parts Project Maagemet Safety Health Protectio Program Maagig Ergoomic Requiremets The metor i each departmet iitials each activity oce it is completed with the traiee. At the ed of the rotatio, the traiee has a feedback sessio with the Busiess Area Superitedet to discuss the completed Learer Outcomes. The Superitedet validates that the traiee has leared all of the cocepts by sigig off o completed modules. A evaluatio of the program ad the traiee s performace is also completed at this meetig ad ay cocers from either side are discussed; the evaluatio is the filed through the Developmet Coordiator. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 22

23 Expected Impact The primary goal of the kowledge trasfer program at Teck is compay-wide stadardizatio of kowledge ad compliace. Some of the impacts wholly or partially attributed to the implemetatio of VLOs have bee: Reduced Number of Safety Icidets The compay reduced the umber of safety icidets occurrig o site, as well as reducig major disruptios to operatios ad product o-coformity. Culture of Accoutability This was achieved through the sig-off process, which has led both learers ad istructors to take traiig more seriously. Employees have a greater appreciatio of the busiess perspective ad the critical eed to demostrate the results of traiig. New workers have foud the traiig records particularly rewardig, as they provide a visual represetatio of everythig they have leared. Testig the System The use of scheduled tests allows the compay to verify kowledge retetio ad idetify areas that eed requalificatio. The VLO is used to retest the items o the checklist; for may processes, a test is sufficiet to verify that the employee has retaied kowledge of a process that has ot udergoe major chages. This approach is more cost-efficiet tha requalificatio. Idetificatio of Need to Revisit Stadard Operatig Procedures (SOPs) Creatio of the VLOs showed the compay that the desire to streamlie SOPs had led to loss of the reasoig behid some processes. The why of a process usually stems from best practices, cost or other stadard measures ad metrics, but uderstadig the origial ratioale ca be critical to employees retaiig the process rather tha developig other habits. By revisitig SOPs ad traiig materials to iclude the why, the compay hopes to provide iformatio that will compel people to chage their habits ad retai the prescribed processes. Track the Kowledge Implemetatio of software trackig for the VLOs ad employees has allowed the compay to maipulate this data to access real-time iformatio o the kowledge, capabilities ad traiig of their workforce. This permits ehaced plaig, preparatio or admiistratio of a highly mobile workforce, ad better idetificatio of areas of cocer. Networkig This has bee achieved through creatio of Learig Outcomes ad the rotatioal format of the Shift Leader Developmet Program, which allows soo-to-be supervisors to meet key people i the orgaizatio ad begi to develop their etworks. Implemetatio ad Dissemiatio Teck s kowledge trasfer program was developed at oe site usig some outside expertise, but mostly relyig o existig traiig materials, job aids ad istructios. From this material, the compay extracted key objectives ad captured them i the VLOs, thus optimizig use of existig documetatio. The objective was to create a tool that clearly orgaized these materials ad shifted the focus from simply tellig the traiee what to do, to esurig that the traiee could demostrate or explai what they eeded to do for each process. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 23

24 VLOs were developed gradually ad as the umber icreased (there are over 400 VLOs today), critical eeds for ehacemets were idetified ad implemeted for example, the requiremet for a stadardized template. The regular review of VLOs has also bee a key to success. These reviews esure that ew employees are traied with the most up-to-date iformatio, as well as idetifyig all employees that will eed to be iformed whe a process does chage. The program has gaied recogitio across the miig sector ad other operators have expressed iterest i developig similar kowledge trasfer programs as may miig idustry employers face comparable challeges with kowledge preservatio ad workforce reewal. Key Challeges ad Lessos Leared The pricipal challege the compay faced was the attitude of some seior employees, who were reluctat to sig the VLOs for fear of beig held accoutable should a problem occur. Compay leaders explaied to employees that i reality, they had always bee accoutable ad that without verificatio of their kowledge of how to perform their duties safely, they would ot be allowed to perform their job. By approachig this as a frak coversatio about the busiess imperative rather tha threateig disciplie the compay was able to help employees recogize the eed for this type of itervetio ad the value i it. It is importat to ote that this program was developed over time ad evolved with experiece. The ogoig creatio ad update of the VLOs is a process of cotiuous improvemet, ad requires the collaboratio of a large umber of stakeholders ad dedicated resources. Key Resources Key resources that ca have a major impact o the successful developmet ad implemetatio of a kowledge trasfer program iclude: Key Kowledge Workers It is importat to utilize the expertise/skills of those employees who hold a wealth of kowledge i specific domais, by havig them review ad validate traiig materials, as well as extract the learig objectives that are critical to safe ad efficiet executio of each process. These idividuals will be key leaders i the iitial implemetatio providig traiig for istructors ad actig as o-the-job traiers. Leadig Practices The practices used i developig ad updatig VLOs ca also be used to iform employees o the ratioale behid processes. Electroic Trackig Give the volume of processes ad employees at ay give site, may compaies will sigificatly beefit from the automatio that ca be achieved with a electroic system. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 24

25 A Orgaized Repository for Materials Holdig materials i a cetralized locatio provides istructors with a guide or checklist for materials required for each traiig. Havig a accessible repository for job aids, istructios ad traiig tools will icrease efficiecy ad decrease the likelihood that items will be missig whe eeded. Access to Supportig Persoel ad Specialists Persoel are available to help address ay ucertaities ad help itegrate the process by leadig workshops, attedig sessios ad drivig aalytics. Summary Kowledge trasfer programs ca help miig compaies address may challeges associated with a cyclical idustry. These programs help orgaizatios to preserve the kowledge of exitig ad trasferrig workers, thus reducig kowledge loss durig dowturs i the idustry. This kowledge ca the be trasferred to ew or returig employees, as the workforce is reewed. Kowledge trasfer programs beefit workers by ehacig their kowledge of specific jobs, while also assistig orgaizatios o a broader scale as learig outcomes o safety ad evirometal resposibility get itegrated ito all aspects of the busiess. Kowledge trasfer programs ca complemet ad support other couter-cyclical workforce plaig tools, such as capacity ad successio plaig by creatig a catalogue of existig skills withi the workforce ad a tool to quickly trai employees with stadardized kowledge to fill gaps i the workforce. The clarity of kowledge trasfer programs, such as the VLO ad Shift Leader Developmet Program at Teck, gives less experieced employees easy-to-follow documetatio to aid their developmet ad performace, as they are promoted to high-resposibility positios due to retiremets or dowturs. The program s electroic compoet supports realtime trackig of each employee s skills. The software also has a automated maiteace system for verifyig, validatig ad updatig program compoets as required by chages i compay processes. As the miig idustry cotiues to see marked levels of retiremet i the comig decade, it is clear that kowledge trasfer programs will be a essetial tool i successful workforce plaig. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 25

26 2 Worker Redeploymet 2 Worker Deploymet Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 26

27 Itroductio Redeployig workers is a critical workforce plaig tool that miig compaies with multiple operatios ca use to build strategies for maagig fluctuatios i both ecoomic ad productio cycles. At a orgaizatioal level, workforce eeds evolve with chages to compay structure or slowdows at the ed of a mie s life. I additio, miig is sesitive to shifts i the broader ecoomy ad these shifts greatly affect workforce forecasts. Durig a ecoomic dowtur, orgaizatios must streamlie their workforces ad durig upswigs, orgaizatios race to icrease their workforce to capitalize o growth opportuities. Through redeploymet, miig compaies ca offer employees relevat employmet opportuities at specific locatios based o curret ad forecasted workforce eeds. All iformatio ad statemets i this case are based o a series of iterviews performed with experts i the miig idustry coverig their experiece i creatig ad utilizig workforce plaig tools ad couter-cyclical strategies uless otherwise idicated. Whe this strategy is used, the compay typically supports the employee to some degree i the trasfer ad relocatio. The compaies iterviewed for this report highlight a umber of beefits associated with movig employees to differet locatios to fill job vacacies. Redeploymet helps improve the effectiveess of successio plaig ad kowledge trasfer. It also reduces exteral hirig costs; improves access to resources for rampig up or dow productio; ad allows orgaizatios to retai kowledgeable skilled workers. Whe mies close, may compaies istictively tur to immediate layoffs to reduce operatig expeditures but redeploymet ca be a valuable alterative. I additio to the labour ad skills beefits previously described, this strategy also lesses the impact of mie closures o local commuities, miimizes morale problems ad builds loyalty withi the workforce. Redeploymet is also widely used to develop employees movig ito key positios that require i-depth ad/or broad kowledge. Examples iclude maagers of multiple operatios, operatioal specialists ad employees o the executive track. It is commo for compaies i various idustries, icludig miig, to require maagers to work at more tha oe productio site, so they uderstad the complexities of multiple operatios. This approach allows a compay to reduce requiremets for Subject Matter Experts (SMEs) employees specializig i a particular topic, area or process. These experts are ofte the hardest ad most expesive staff to recruit. Buildig redeploymet ito the career path of key positios, otably those that require kowledge across multiple operatios, ca help compaies icrease the use of mobility ad decrease employees resistace to relocatio, as the cocept becomes more familiar. Maagig through the Cycle A Strategic Approach to Workforce Plaig i the Miig Idustry 27