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Benchmark Remuneration Data: Base Salary Benchmarks by Grade – Citizen of the World Base Salary Benchmarks by Host Region Salary Benchmarks by Point of Hire – by global region & country (factors Cost of Living if remunerated by ‘point of hire’) Salary Benchmark movements Variable Remuneration Trends – STI & LTI Benchmarks Salary Reviews (year on year) Company Specific Remuneration Data: Company Rankings by Grade against other Survey Participants Employment Conditions: Site-based conditions, facilities and accommodation Leave Entitlements (annual, sick etc.) Roster Benchmarks & Patterns Benchmark Travel Arrangements Insurances & Medical Coverage & Inclusions Schooling Benchmarks Taxation & Currency Treatment HR Management Practices: HR Information Systems Effectiveness Performance Management Systems Recruitment, Retention & Training Localisation & Succession Planning
Distribution of Participants by Region Distribution of Participants by Commodity Distribution of Participants by Size Expatriate Point of Hire by Region
Flight Class, Rosters and Travel Time Travel in Whose Time Flight Class for Expatriates Roster Pattern Distribution
Salary Movements for Expatriates employed from Aust/NZ
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• About the Presenter • Case Study Introduction • Common Issues Experienced • Common Causes of Poor Performance • Proven Successful Implementations • How to Make Nationalisation Work 35 - 40 minutes • Personnel • Personnel Selection • Psychometric Evaluation • Skills Gap Analysis • Conclusion • Questions & Open Discussion 20 – 30 minutes
Peter Edwards Country Manager, Learning and Development, Sierra Leone Greenfield Iron Ore Mining Operation: 2010 – 2015 • 30 years experience in international mining industry in Training, Safety and Learning and Development roles. • Worked in Australia, Africa, North & South America, Europe & Middle East • 20 years developing, testing and implementing robust nationalisation planning programs • Developed Competency-based Skills Management & Assessment Systems and Psychometric Evaluation systems specific to bulk national selection • Most recently in Sierra Leone responsible for skills development of 10,000+ local employees on $3Bn Port, Rail and Mine start-up over 5 years
Average IQ v Education Level Overall Workforce 132 116 103 74.5 78.5 76.5 85.5 78.5 0 0 No School to 3rd 4th to 9th Grade Grade 10th to 12th Uni Ent or 13th Grade year Uni Degree or National IQ V Education Expat IQ V Education Equal
Mining Operations National Human Resources Procurement Logistics Warehousing Construction Maintenance
Primary Causes Failure to identify and employ the person right for the position initially Lack of acceptance that Nationalisation also involves cultural change Other Common Causes • Company / Senior Management too eager to boast high nationalisation results • Government pressure • Company driven to realise financial reward too soon e.g. reduced expat costs • Failure to understand limitations of the national workforce • Inadequate training and mentoring programs as departments often do not adequately plan • Not understanding the local culture • Presumption that the national workforce are equally qualified, experienced & educated as expatriates • Rapid promotion without structured and ongoing support Result When You Get It Wrong: • Unproductive and expensive workforce
• Invest in nationalisation and treat it is an asset and not an expense • Implement a formal nationalisation program as early as possible • Have a complete mentoring and training program • Promotion gradually and based upon performance, quality of work and mind set • Set the benchmark high • Provide consistent & ongoing support • Roles should be regularly reviewed and changed to identify the most suitable role for the candidate • Introduce pre-employment screening where the nationalisation team make final employment recommendations including: • LEDA – Level of Education Assessment • VTS – Psychometric Assessment (VTS conducted on all expatriate personnel to gain benchmark) • Driving, operational or skill assessments • Set up a mandatory school at the mine to further educate your workforce
Understand the Goal • Is it a statutory requirement to lodge a Nationalisation Plan? • Is the role currently filled with an expatriate or is this a new role? • Do you want the performance to be equivalent to the expatriate? • How critical is poor performance to the bottom line of the financial success of the business? • Is it skilled (professional) or unskilled. Focus on unskilled today. • What are the skills necessary to successfully perform the role? • What are the skills necessary to successfully evolve and advance along the career path? Conduct a Skills Gap Analysis • Identifying the skill gaps within the operation will define where to move forward • Develop a detailed job description for each and every role • Identify all skill sets/competencies needed for the role and for further career development • Basing skill sets on an expert will set the standard high and drive continued growth • Define the education (literacy & numeracy) level required for each role • Define the psychometric requirements for the role
Implement a Formal Personal Development Plan: • A successful PDP requires a lot of work to complete, however a well written and executed PDP will ensure that the Nationalisation program will be a success. • What is the anticipated life of mine? • Accept that development takes time, education and experience to succeed. Some roles require generational development • Items to be included in the PDP: • Organisational Goals • Objectives • Create a Job Chart for each role within a career pathway listing both generic and job specific competencies
Implement a Formal Personal Development Plan: • Identification of progressive development • Setting the Benchmark • Training and Support • Implementation • Review and Evaluate
Psychometric Baseline Identify Potential Personnel: National Expat • Choosing the right people is critical 100 • Not every person chosen will be 90 successful 80 • If in-house, choose personnel who show potential and have good work ethics 70 • All new hires should meet a minimum 60 predetermined criteria 50 • Conduct psychometric assessments to 40 understand the candidates mental potential and align against expatriate 30 benchmark 20 • Conduct LEDA assessments to 10 understand the candidates educational 0 level 1 2 3 4 5
Target Psychometric Baseline 70 60 50 40 30 20 10 0 1 2 3 4 5
Summary • All mining companies primary focus is production and return on investment • Nationalisation is an investment in your companies success, do not think you can fast track! • Nationals are employed all too often based upon who they know rather than what they can do • Firmly understand the local culture • Implement pre-screening of prospective candidates and conduct pre-employment assessments • Remember, most of the local community, especially in remote regions have never seen a mine, driven a vehicle or worked a roster • Employ the right person the first time, they are there, they just need to be identified Conclusion Question Time & Discussion
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