More than 2000 Aboriginal employees have been hired and more than 700 traineeships created through member company efforts in the past 12 months.

The fourth annual survey conducted by the BCA shows significant growth in the collective Aboriginal workforce among members companies, and the important influence staff and shareholder expectations have on indigenous engagement activities.

The 2012 survey attracted a record 81% response rate from member companies, up from 74% last year, with 76% of respondents reporting they had formal indigenous engagement strategies in place.

According to BCA president Tony Shepherd, the mining industry has been a trailblazer in an area that is fast becoming an essential aspect of business practice among Australia’s largest companies.

“Employers see it as a practical way of contributing to significant social change that simultaneously makes them better businesses, and employees are starting to really value and expect it in the workplace,” Shepherd said.

In another change from the 2011 report, the largest barrier for companies without indigenous engagement programs was a lack of resources (69%). In 2011, 53% of respondents without programs said indigenous engagement was not in line with business objectives, but this year that figure dropped to just 6%.

According to BHP, outside resources can be helpful to develop effective programs.

“We also look to industry bodies like the Minerals Council of Australia, the International Council on Mining and Minerals, and organisations like the United Nations for information on international best practice,” it told the BCA.

Almost a third of respondents reported having more than 50 Aboriginal employees. Of those, 17 companies reported employing more than 250 indigenous people, while at least eight companies employed more than 500 indigenous Australians.

At Fortescue Metals Group, 10.4% of the workforce is Aboriginal.

Fortescue media relations officer Yvonne Ball said its Vocational Training Employment Centres (VTEC) were the main reason for the increased employment rates, because participants were guaranteed a job upon successful completion.

“More than a thousand men and women have been trained or assisted by VTEC since 2006,” she told MiningNewsPremium.

Fortescue has also awarded $A600 million in contracts to Aboriginal-owned businesses and joint ventures as part of its “Billion Opportunities” commitment to invest $1 billion with Aboriginal business.

In the past year, the largest increases in Aboriginal employment were in companies whose sectors experienced the greatest employment growth overall – mining, construction and the professional and financial services industries. Six mining companies hired more than 51 indigenous employees, while three had an increase of more than 51 indigenous trainees. The survey showed that location was the driving factor for the mining industry to create Aboriginal engagement activities, followed by customer and staff expectations.

In the mining sector, more than 90% of respondents had engagement activities and formal employment strategies for indigenous Australians. Downer Mining and Rio Tinto had both won awards for their Aboriginal training programs.

Downer Mining general manager of indigenous affairs and business development Daniel Archer said its indigenous employment program focused on finding the right personality for the right position. Candidates from local communities were assessed for attitude and trained for skills on the job.

“We match job seekers with our business, and we don’t lower the bar or say we have to lower our standards to employ Aboriginal people,” Archer said.

“We look for the same competencies, but use a different methodology to find the right fit.”

Archer said his team developed the hiring process when they noticed few Aboriginal people were applying for positions through mainstream recruitment.

“Typically, the process was online applications and panel interview, but those don’t cater for diverse needs and can often make it difficult for people who don’t have access to technology or are not confident in that situation,” Archer said.

Rio’s iron ore division has roughly 950 Aboriginal employees, not including contractors. The Work Ready Programme in the Pilbara provides several months of literacy, numeracy, driving, health and safety training in addition to work skills.

“Because we operate in partnership with traditional owners, we are committed to growing sustainable Aboriginal business capacity, as well as offering training and employment opportunities,” said Rio senior advisor for media and communications Rebecca Murphy.

MMG focuses its efforts on creating a pathway from unemployment to a meaningful career for Aboriginal communities around its Queensland and Western Australia mines. Communications coordinator Kathleen Kawecki said the vocational training programs were extremely successful.

“Century mine in Queensland has a more than 20% indigenous employment rate thanks to the pre-vocational training program,” she said.

The Queensland and Western Australian programs, run over 12 weeks, provide the training necessary to work in the full spectrum of disciplines across the site. Participants are offered apprenticeships and traineeships at the end of the program. Applicants are sourced through local native title groups. The employment transition ratio is currently around 90%.

According to Kawecki, MMG is committed to Aboriginal training and engagement for the long term.

“We believe in sustainable development, and the communities give us the opportunity to extract resources from their land, and it’s about providing them with long-term opportunities,” she said.

“Even when mine life comes to an end, there are still opportunities for people to take these skills into other roles and other industries.”

Since the first BCA survey in 2009 the number of companies with indigenous engagement strategies has jumped from 28 to 72, while those with Reconciliation Action Plans increased from 9 to 29 companies in the same time. Despite the positive figures, Shepherd cautioned that there was still more to be done.

“While there were many positives this year, it also reminds us that there is still plenty of work to do, for government and for the business community,” Shepherd said.

“The business council and its members want to see all Australians experiencing the benefits of economic prosperity.”

This article first appeared in ILN's sister publication MiningNews.net.