Mining salaries to increase

MORE than 70% of resources and mining employees worldwide will see their permanent base salaries rise this year, according to the latest data from recruitment researcher Hays.
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Justin Niessner

The figures cast a more complicated light on recent mining industry contraction, signalling a 10% increase in expected salary rises versus total pay increases recorded last year.

In its annual global study of remuneration trends, Hays found the amount of employers keeping salaries static this year fell to 25%, compared to 31% last year, while only 3% planned to decrease salaries after 7% made pay cuts in 2012.

The recently published Resources & Mining Global Salary Guide is slated for an official launch at the Diggers & Dealers conference next week in Kalgoorlie, Western Australia.

It was based on a survey of more than 10,000 people working in 37 countries in 18 discipline areas.

The report found that the discipline demanding the highest rates of pay in Australasia was general management at $US179,822 ($A200,492).

It was followed by construction management ($167,972) and business development and strategy ($165,372).

By comparison, in North America these professionals earn $146,615, $119,400 and $109,250 respectively.

Hays said bonuses had slowly become an integral part of the remuneration strategy in the resources industry with 33% of survey respondents saying they received one.

It noted that most employers would seek to pay base salaries in line with market forces and then tailor the bonuses to align the candidate and company’s interests.

In this way they improve hiring results and retention rates.

Of those employees receiving a bonus, it is on average worth 19% of their total package.

The report also said it expected contracting to decline marginally in the first half of 2013, before starting to recover at the end of the second quarter.

Almost 45% of respondents said they employed up to 20% of staff on a temporary or contract assignment, while 23% said they did not use contractors whatsoever.

By region, day rates for local contractors were the most in Australia at $710, followed by Europe at $450 and North America at $420.

Regarding confidence that staffing levels will change in the next 12 months, the survey found that 56% expected an increase while 12% foresaw a decrease.

Hays considers this a fairly bullish result, especially considering that 17% said they believed staffing levels would increase by 10% or more.

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