As quoted in McKinsey & Co’s recent article titled ‘Navigating a Decade of Challenges: Five winning initiatives for Mining CEO's, “Miners are grappling with severe shortages of workers, sparking production cuts and shipment delays as they compete with other industries for talent while simultaneously navigating constraints imposed during the pandemic.”
Furthermore, one of the five initiatives is - “Collaborate with others in the ecosystem. Miners can no longer afford to do it alone. To maximize innovation and growth, they need to be willing to form partnerships with various components of the broader ecosystem. Across three focus areas, one of which being Innovation – collaborating with partners to introduce innovations that reduce costs across the value chain.”
These initiatives are directly aligned with DGC’s strategy - helping our industrial customers optimize their maintenance costs and improving plant performance by providing innovative solutions, together with market-leading technologies to enhance the service life of their operating assets.
BENEFITS OF OUTSOURCING SKILLED WORKERS
With the severe shortage of skilled workers in the mining and metals industries, outsourcing staffing efforts provides numerous benefits for companies looking for quality candidates for their specialised services. There are various benefits of outsourcing staffing needs to companies that have the requisite experience and in-house expertise to provide these specialised services. Trevor Dickinson, Chairman of DGC, and Tim Biesemans, Regional Director – of Southern Africa of SARENS, offers these reasons to consider outsourcing as an option for the mining and metals industries.
Gaining access to skilled workers and professionals. One of the main benefits of outsourcing is that companies can gain access to more skilled workers and professionals. For example, if a mine’s strategy is to focus on its ‘core business’ – maximizing productivity and output, the mine may lack workers with the skills and experience required to undertake ‘non-core activities’ - specialised services or turnkey mechanical projects, instead, chooses to outsource to get the right level of expertise.
Reducing overhead costs. By outsourcing certain tasks of specialisations, companies can potentially reduce their overhead costs. Outsourcing allows companies to pay a contractor rate without benefits, saving money for the company to invest elsewhere. Companies can also avoid the need for additional facilities and decrease overhead costs. For example, instead of a mine owning and having to maintain their own mobile cranes, together with the need to permanently employ skill mechanical workers, the company may consider to outsource their mechanical projects and maintenance services to DGC & SARENS.
Providing access to specific skills. Outsourcing can also grant access to specific skills that their workforce might be lacking. For example, if a mine needs the expertise of a mechanical engineering company, with the requisite in-house expertise and skills, they may consider working to find the right skills for the project. These niche skills may also help to give companies a competitive advantage in their industry, as they might have access to skills, techniques, and/or equipment they might not otherwise have. Some companies may choose to hire skilled workers as full-time employees of their skill set is exactly what the company needs for expansion or growth
Reducing hiring needs. By outsourcing certain positions, companies can reduce their hiring needs. The hiring process can also be costly, so reducing any recruiting, interviewing and onboarding costs may also save the company time and resources. The company can potentially focus saved resources on their ‘core business', new projects, or research and development. Outsourcing can also allow companies to hire additional outsourced workers for larger projects, planned outages, or shutdowns.
Allowing for internal staff development. Companies that outsource may have more resources to invest in their internal staff. Internal employee development can help companies create more skilled and productive teams, which can help increase the company’s earnings. Internal investments may also help the company earn the loyalty and respect of its employees, reducing turnover rates and increasing each employee’s commitment to their role. The company may offer training opportunities, professional development courses, rewards for productivity, or tuition reimbursement, for example.
Creating a more focused internal business strategy. With the weight of certain tasks and operations removed from company leadership, the business can dedicate time and effort to creating a more focused internal strategy. This can allow the company to plan for the future and determine what its strategy is for the overall success of the organisation.
THE BENEFITS OF A BLENDED TALENT STRATEGY
Today, organisations are increasingly taking a blended workforce approach, in which they utilize a combination of outsourced and in-house workers. This lets them develop an agile, cost-efficient workforce that matches business needs over the long haul.
“Despite recent headwinds, the world’s big miners are strong and optimistic. Alongside the energy transition megatrend and other developments, the pandemic triggered sudden elevated demand coupled with supply disruptions, which raised commodity prices, resulting in significant upside for miners.” (McKinsey).
Being prepared to leverage your outsourced workforce for specific skills, territory expansions, or sudden business growth is the key to competitive, successful enterprises.
HOW TO GET IN TOUCH WITH US
Ask a DGC consultant about our Skilled Workforce Outsourcing at sales@dgc-africa.com or sales@dgrpint.com
ABOUT OUR COMPANY, HISTORY, AND PARTNERS
DGC AFRICA is a member of the Dickinson Group of Companies founded in 1910. For comprehensive information about Our Company – History, Vision & Values, Strategy, Global Alliances, Africa Footprint, Our Commitment to Safety, Anti-Corruption Policy, References, and Industrial Solutions, please visit our website.
