Over the weekend I read a few articles about Bluescope Steel move regarding their plan to cut 1000 jobs. What grabbed my attention was the number of companies seizing the opportunity to source talent and offering different plans for the Illawarra workers.

According to the Illawarra Mercury, Bluescope plans to open a job centre to help workers find work elsewhere and more than 20 companies such as Rio Tinto, Joy Mining, Becker, Rheem and BHP Billiton have registered with hundreds of job vacancies.

Great outlet to assist these companies with the national skills shortage they face, so the bids to attract employees have commenced. Companies have to look at their offers if they want to attract this group of highly skilled employees who have also been classed among the safest workers in the country.

In my view, considerations to ensure these skilled workers choose the right company to work for should take into account not only commissions, bonuses and compensation but also non-cash incentives to attract and retain the new talent they are about to hire.

On the one hand, compensation packages allow employees to live – buy a house, pay the bills, maintain life, manage chores, go on a holiday, etc. That’s what a salary does and these employees will look at these facts with a transactional and functional approach. They will do some calculations when they evaluate a compensation system and compare the money to the work and their needs. No emotions involved, it’s cold, hard, transactional and impersonal. They will value your offer and match it to how much is worth to them.

Employees will face decisions and weigh up opportunities. They may have to move interstate, be away from their families for a period, reassess and look into their mortgages, retirement and other issues that need their attention. In this turmoil, neither companies nor employees should see this as a life rope being thrown to rescue their unemployment situation. Employees are skilled, savvy and confident. They know the mining industry will be after their talent and their decision to choose a company to work for won’t be done in a faint hearted manner.

The bigger question for the Employers is how to attract and keep skilled workers?

Whilst employees will work out the maths and see how the salary offers stack up against new employment opportunities, there are other factors and benefits that they will also be weighing up and mining companies must consider these when putting together their strategies. For an employee there is much more than just a salary when choosing an organisation to work for. They will also look at the emotional, non-transactional connections they can have with a new employer. They will look at factors beyond money – motives that address more than their basic salary needs but rather consider their individual and family goals and personal life matters. Mining companies need to find ways to drive their attractiveness with non-cash incentives, rewards, recognition and community programs that create an emotional, social relationship with potential employees and their families.

It’s hard to do the maths in your head to measure what a reward and recognition program is worth in monetary terms. Measuring how valuable perks are is difficult. For example, how much is it worth to have access to negotiated discounts on a wide range of products simply by being an employee of a company? What’s the worth of attending a company’s employee recognition ‘event’ every year? What is the true worth of an all-expenses-paid weekend-away for you and your partner, for simply changing a behaviour that improved safety? How would company A, that doesn’t offer a recognition program, stack up against company B that offers a program that rewards it’s employees for their loyalty, engagement and achievements? How about rewards for completing training? – The cost of any recognition program is cheaper when you compare it to the true cost that lack of skills, poor retention or low employee loyalty/engagement create for these companies.

Companies across the board mining or not should not confuse compensation with connection as these programs add value, create a sense of community and deeply connect with employees’ behaviour and emotions.

It would be narrow minded to think a salary package alone will entice skilled employees to choose a company. The truth is there are many different motives that will influence the Illawarra workers when they choose their next employer and the fact is they will be looking at the total package not just the salary.