This article presents findings from a survey conducted in the Australian resources sector in 2009 exploring human resource (HR) managers perceptions of how their organizational practices and external contextual changes in industrial relations legislation present challenges for the sector and influence attraction and retention of highly skilled employees. The research makes an important contribution to the literature on good employment/high involvement work practices by investigating organizational practices within the politico-legislative context of this economically significant sector. Our findings indicate that organizations have implemented a range of good employment practices, while dealing with concerns about skills shortages, employee turnover, an aging workforce and changes in legislation. We identify a need for employers to give greater attention to diversity and worka??life balance issues. Further, there is a need for strategies to increase the attractiveness of work in remote locations.