Sustainability meets efficiency: Managing workforce costs in the mining industry

The Australian mining sector is under immense pressure to align its operations with environmental, social and governance (ESG) standards while maintaining profitability.

Investors, regulators and the community are demanding more transparency and sustainability and mining companies that fail to adapt may risk regulatory penalties, reputational damage and operational inefficiencies. A key area where mining companies can enhance sustainability and efficiency is by addressing their workforce management.

Mining is a labour-intensive industry that depends on a highly skilled workforce operating in remote and often harsh environments. Mining companies should rethink how they manage their people, as the sector faces skills shortages, increasing operational costs and stricter compliance requirements.

This is where a people management solution designed primarily for deskless industries like mining can play a transformative role. By leveraging technology-driven solutions, mining firms can optimise workforce costs, improve efficiency and ensure ESG compliance without compromising productivity or safety.

The workforce cost challenge in mining

Workforce-related expenses, including wages, training, safety compliance and accommodation, comprise a significant portion of a mining company’s operating budget. Managing these costs effectively is crucial for maintaining competitiveness, especially in fluctuating commodity prices and rising regulatory expectations.

• Labour shortages can cause costs to rise by increasing the reliance on expensive contractors and short-term hires.
• High turnover rates lead to recurring recruitment and training expenses.
• Regulatory compliance requirements add further financial and administrative burdens, making it essential for mining companies to streamline their workforce management processes.
• Inefficient rostering can lead to excessive overtime, worker fatigue, safety risks and productivity losses.
• Managing employees across vast and isolated mine sites presents additional logistical challenges.

Aligning workforce management with ESG goals

ESG expectations extend beyond environmental impact. The ‘S’ in ESG focuses on fair wages, diversity, safety and community engagement, while the ‘G’ demands robust governance structures and ethical business practices.

Workforce management is at the heart of all these elements. Yet, a modern people management platform solves this challenge for deskless industries like mining, as it can help align workforce operations with ESG principles.

Benefits of a people management platform in mining

• Workforce efficiency: Enhancing workforce efficiency through smart rostering in people management systems allows mining companies to optimise scheduling, reduce unnecessary overtime, and ensure compliance with fatigue management regulations. This approach leads to lower payroll costs and improved employee well-being, mitigating safety risks associated with worker exhaustion.
• Diversity and inclusion: Fostering workforce diversity and inclusion is crucial, yet the mining industry has historically faced challenges in achieving gender and Indigenous representation. A data-driven workforce management platform can address these gaps by monitoring workforce demographics, identifying underrepresented groups and enabling proactive recruitment strategies to build a more inclusive workforce.
• Compliance with labour and safety standards: Another critical area is ensuring compliance with labour and safety standards. A digital people management platform automates compliance tracking, ensuring adherence to Fair Work standards, occupational health and safety regulations, and ESG reporting requirements. Such a system fosters a safer work environment by reducing the risk of fines and reputational damage.
• Carbon footprint reduction: Reducing workforce-related carbon footprints is also increasingly essential, particularly for companies reliant on fly-in, fly-out (FIFO) workforce models. Companies can cut costs and emissions by optimising local hiring and worksite accommodation, supporting sustainability goals.
• Employee well-being: Employee well-being and retention are also key concerns in mining. High turnover rates often stem from poor work-life balance and the demanding nature of the job. A people management system can support well-being programs, track mental health indicators and implement retention strategies that enhance job satisfaction while reducing costly employee churn.
• Improving productivity and efficiency: Additionally, leveraging workforce analytics allows mining firms to assess productivity, identify inefficiencies and make informed strategic decisions. Predictive analytics help forecast labour needs, reduce reliance on expensive contract labour and streamline workforce deployment to meet operational demands effectively.

Technology as a workforce transformation enabler

The mining sector has embraced automation and digital transformation in its core operations, yet workforce management has often lagged.

Investing in an advanced people management system for deskless industries enables real-time workforce tracking, mobile accessibility and cloud-based collaboration. These capabilities allow human resources (HR) and operations teams to make agile, data-driven decisions.

Cloud-based workforce management systems offer real-time rostering, payroll automation, and compliance tracking, reducing HR departments’ administrative burdens. Mobile accessibility ensures that employees based at remote sites can access schedules, submit compliance forms, and engage with their HR department remotely.

Additionally, data-driven insights enable mining companies to optimise workforce planning and decision-making, while automated compliance tools mitigate the risk of regulatory breaches and streamline their ESG reporting.

Conclusion

As the pressure to report on and adhere to ESG metrics intensifies, mining companies must shift their workforce strategies from reactive to proactive. Investing in the right people management solution will allow mining companies to simultaneously reduce workforce costs, improve operational efficiencies and enhance ESG compliance.

Those who embrace digital workforce management solutions will be better positioned to attract and retain talent, mitigate compliance risks and maintain sustainable, profitable operations. By leveraging technology to create a more efficient and accountable workforce, mining companies can build a future where sustainability and profitability go hand in hand.

This editorial was developed in partnership with OneAdvanced Australia and New Zealand head of people management solutions Damien Durston.