Surviving Market Cycles

By Kenny MacEwen

The mining industry is notoriously cyclical, characterized by periods of rapid growth and sharp decline. These market fluctuations significantly impact talent management, creating unique challenges in hiring and retaining skilled workers. During market booms, the demand for experienced personnel skyrockets, leading to fierce competition among companies. Conversely, market downturns often result in layoffs and a loss of newly trained workers, creating a revolving door effect that disrupts workforce stability.

In times of sustained high commodity prices and increased demand, mining companies look to ramp up their operational capacity through mergers & acquisitions, project development, and operational improvement initiatives, leading to an overall surge in hiring. The competition for skilled workers becomes intense, driving up wages and making it difficult for companies to secure the necessary talent. This rapid expansion can strain existing resources and lead to a bidding war for top talent. As a result, companies may face inflated labor costs and struggle to maintain the bottom line.

However, companies are forced to make difficult decisions to cut costs when the market declines, often resulting in layoffs. Newly trained workers are frequently the first to go, and with their transferrable skillsets they generally end up in a more stable adjacent industry, never to return to mining and significantly losing potential long-term talent. This cyclical hiring and firing disrupts individual career progression and weakens the industry’s overall talent pool, resulting in large generation gaps in most companies’ organizational depth. The instability caused by these market fluctuations discourages long-term career commitments, making the mining sector even less attractive to potential new entrants.

To address these challenges, mining companies must adopt innovative strategies for managing talent. One practical approach is forming strategic partnerships with external mining project management experts. These partnerships enable companies to access top-tier talent and the required expertise without the overhead costs of maintaining a large, permanent workforce. This model provides the flexibility to adjust staffing levels in response to market conditions, enhancing efficiency and reducing financial risk.

Flexible staffing models also play a critical role in managing talent during market cycles. Companies can scale their workforce up or down as needed by employing a mix of permanent staff and contract workers. This approach ensures that core operations are supported by a stable team of permanent employees while allowing for the flexibility to bring additional expertise during peak periods. Contract workers can provide specialized skills for specific projects, helping to maintain operational continuity and reduce the impact of market fluctuations.

Another solution is investing in comprehensive training and development programs that prepare workers for multiple roles within the company. Cross-training employees can enhance their versatility, allowing them to adapt to changing market conditions and take on different responsibilities as needed. This approach helps retain valuable talent during downturns and creates a more resilient and adaptable workforce.

Implementing strategies such as forming strategic partnerships, employing flexible staffing models, and fostering a positive company culture can help, but these approaches demand ongoing attention and resources. The more efficient solution is outsourcing your mining project management to a company like TMG.

TMG already has the talent on staff, attracting the best and brightest professionals in the field. With experienced senior leadership in key roles, TMG brings invaluable insight and expertise to its clients. By partnering with TMG, mining companies can alleviate the challenges posed by market cycles, ensuring operational continuity and resilience without the constant struggle of managing talent in-house.