How to recruit, hold on to workforces and motivate employees in companies in the natural resources sector? That’s the question raised by a recent study undertaken by the Conference Board of Canada: Compensation Challenges for Natural Resource Companies.
Retaining talent in a context of raw material price instability and long lead times between investments and returns is a problem that particularly affects mining, oil and gas exploitation companies. The problems of retaining the most qualified employees are seen whether prices are high or low. This instability causes an imbalance between payroll management and returns expected by shareholders.
In addition, natural resource economics, which plan for the long term with delayed returns on investments, hardly fit with the need to offer attractive short term returns, according to Christina Medland of Meridian Compensation Partners, lead author of the study.
Strategies to meet the challenge of retaining talent
What solutions do the Conference Board of Canada propose to ensure that companies find a balance? Prior planning, multiplying strategies, communicating clearly with shareholders, taking care to achieve objectives through commodity price changes.
The report also presents a variety of detailed strategies to improve company performance in terms of retaining talent, compensating for results, and establishing long term goals for employees. Among them are implementing a succession plan in the event of staff turnover, balancing compensation between base salaries and incentives, an annual incentive plan, stock sharing plan, etc.