Putting People First: Talent Drives the Energy Transition

As governments and businesses around the world step up their efforts to drive the green energy transition, demand for metals and minerals such as copper and lithium is at an all-time high. According to the IEA’s Global Critical Minerals Outlook 2024, copper demand is forecasted to grow by nearly 50% between 2021 and 2040. Demand for lithium is set to increase from 101 kt in 2021 to 1,326 kt in 2040. 

Mexico is well situated to benefit from this surge in demand. The country is rich in copper and lithium. It hosts many of the world’s largest mining companies. Its proven resources are far from tapped. And its pit-to-port infrastructure is rapidly improving. The big question now is whether our industry will have enough skilled talent to deliver on this massive opportunity. 

To be clear, Mexico’s existing mining talent – and there is a lot of it – is excellent. Mexican engineers are renowned for their experience and Mexico’s contractors, suppliers and service providers are world-class. Its schools and coop programs deliver cutting-edge capabilities. Mexico’s engineers and mining professionals are in demand globally. That is putting pressure on already tight supply. 

A Growing Gap 
Ramping up copper and lithium production requires more mines and mineral processing plants. That means more skilled professionals – engineers as well as operators and maintenance professionals, administrative staff and service providers, technicians and mechanics, for example. The biggest talent gap, in my opinion, will be in the engineering fields. 

Once again, Mexico already enjoys a significant head start. Mexico graduates more STEM students per capita than the United States (26% versus 20%, based on 2020 data). In total numbers, it represents the seventh largest producer of engineering talent in the world (behind population behemoths like China, India, the United States, and Russia). 

Yet even so, engineering supply constraints are already being noticed across the country. Part of the problem is that – according to a well-cited report from the Washington Post – just 25% of STEM graduates end up working in their field. At the same time, global competition for talent is heating up with many jurisdictions vying to attract engineers. That is leading to a talent gap that is already creating challenges. 

For consulting engineering firms like Ausenco, success rests on our ability to bring our clients the highest-quality engineering talent and ideas. In fact, one of the first questions prospective clients often ask when considering a firm for a package of work is around their bench strength of engineers, their tenure with the firm and succession plans (just in case top talent leaves the firm). 

What Employees Want 
With demand for Mexico’s engineering and design talent high both globally and nationally, I believe mining companies will need to start placing a much stronger focus on employee attraction, retention and development if they hope to deliver on the opportunity of the energy transition in Mexico. And that will require companies to take a much more dynamic approach to managing their workforce. 

The reality is that different generations are often motivated by different levers. Boomers and Gen X employees are typically motivated by job security, a good benefits package and a retirement plan. They tend to be more loyal to their employers and are reluctant to change companies. Attracting boomers and Gen X employees is challenging, but they are easier to retain.

More recent generations – like millennials and Gen Z – are less motivated by salary and often put workforce values over competitive pay. According to a recent article from Johns Hopkins University, Gen Z employees tend to value meaningful work, a diverse and inclusive company culture, mental health prioritization, open and honest communication, stability and balance, professional growth and development, collaboration, autonomy and flexibility.

Give Them What They Need
At Ausenco, we recognize that our employees are one of the most critical components of our business. And we strive to treat them accordingly. In part, that means offering competitive compensation and benefits packages. But we are also keenly focused on providing our employees with meaningful and balanced work, professional growth and development. We encourage our employees to challenge the status quo and to “find a better way”, regardless of their position in the firm. We have implemented formal programs to ensure our workplaces are inclusive and diverse. 

At the same time, we are deeply committed to helping the industry attract, retain and grow the next generation of engineering talent. Through our graduate programs and our apprenticeships, we are helping STEM graduates find meaningful work in their field, in their country and aligned to their values. We give them the training, exposure and experience they need to jumpstart their careers. 

I believe that, in the very near future, the most successful firms will be those that deliver the best employee experiences to their people and their suppliers. I am convinced that the competition for talent has already started. Are you ready?