Study Estimates 25% Annual Turnover Rate for FIFO Workers
A study by an Edith Cowan University School of Management research team estimates a 25 per cent annual turnover rate for the 50,000 fly-in, fly-out (FIFO) workers in Western Australia.
Professor Alan Brown, who led the study, said the report could provide insight into the causes behind the high turnover rate among transient workers as more industries and countries rely on securing the services of highly skilled and highly paid but temporary staff to fill in manpower shortages in certain positions.
The study is expected to fill in the gap in information due to hesitancy of companies that engage in FIFO such as mining firms to disclose turnover figures and complications that arise from different measures used by the companies.
Mr Brown estimated that the cost to replace a FIFO worker who opts for a more permanent job elsewhere is between $10,000 and $50,000. His study has a limited number of respondents, 60 FIFO workers in Pilbara's iron ore mines, but the team plans to extend their study in the coming months to the gold industry.
Debunking the common belief that it is the high pay that attracts FIFO workers, Mr Brown said the findings indicate salary is not the main motivator why such type of employees leave or opt to stay. He identified the stronger drivers as the training and development of mining career opportunities and the ability to get along with coworkers.
The release of the study came at about the same time that consulting firm, Hay Group, found that the pay gap between mining workers and the national average is 35 per cent.
Mr Brown added that most of FIFO workers in the mining sector have long-term career goals such as 5- and 10-year plans. Many of them also see their temporary entry as FIFO staff as opportunities to further develop their careers in the booming resources sector.
Mr Brown advised mining firms grappling with high turnover rates to address the problem by offering to FIFO and regular employees development opportunities, better managers and leaders and building of team work.
The Queensland council, in a bid to halt the entry of more FIFO workers, said it will write to the state premier and Australian prime minister to protest a plan to further develop the FIFO workforce.
Queensland and Canberra will appoint coordinators in the Gold Coast and Wide Bay regions to liaise with airlines to help find people willing to work in the mining industry.
Virgin Airlines is set to resume its Mount Isa-Brisbane flights in response to the growing demand for air services to ferry FIFO workers. However, Mount Isa Mayor Tony McGrady protested the impact of encouraging more FIFO workers on the social fabric of coastal communities.
"Going ahead and employing coordinators to encourage people to leave the luxury of the coastal environment, come in, earn the big dollars in places such as Cloncurry, Mount Isa and other places, then go back from whence they came - well you will destroy the social fabric of these communities," ABC quoted Mr McGrady.
The mayor stressed that the whole myth of Australia is about the bush and pushing the practice of FIFO is un-Australian and destroying history as well as the backbone of the great Australian dream.
Canberra is pushing the idea of FIFO to address the skills shortage in the mining industry amid $500 billion worth of resource projects in the pipeline.