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As we round the corner on 2021, the microelectronics industry continues to face a severe talent crisis. With more than 34,000 jobs remaining unfilled at SEMI member companies in the United States alone, everyone is competing for the same talent pool. While the semiconductor shortage has received extensive media coverage, a critical talent shortage deserves equal attention. One way to address the talent shortage is to hold the line. Meaning, in addition to recruiting more diverse talent into the chip industry, we must retain the quality workforce we have. I believe that a key component of a diversity, equity and inclusion program must be retention. At Edwards, we feel so strongly about this that we have made retention a key part of our Diversity, Equity and Inclusion program – even changing the acronym to DEIR (pronounced DEER; diversity, equity, inclusion and retention) for emphasis. There are three overarching approaches we can take to promoting diversity-focused retention:Investment in on-boarding practices that allow time to hire appropriately and ensure a diverse pool of qualified candidatesEmbedded programming and policies that are learning and development (L D) based including career planning, succession planning, unconscious bias training, employee resource groups (ERG) and mentoringCorporate culture that respects employees through a healthy work life balance and promotes the well-being of society and the planetThis is a very important conversation. I asked Lubab Sheet-Davis, vice president of Strategy Innovation in the Office of the CTO at Lam Research, and Emerald Greig, executive vice president Americas at SurplusGLOBAL USA, to share their considerable experience and insight related to retention and DEI. Following is an excerpt from our conversation, which has been edited for clarity and brevity.Balaguer: In the context of DEI, why is employee retention so important?Sheet-Davis: In my view, there is a strong correlation between inclusion and retention. If people feel that their voices and perspectives are valued, they are more likely not only to stay, but also to perform at a higher level. Driving both inclusion and retention is having a seat at the table, having your voice heard, respectful treatment and fair opportunity. Retention is a core component of our inclusion and diversity strategy, which involves increasing representation by building a pipeline of diverse candidates, recruiting and retaining, fostering an inclusive culture (which supports retention) and open communication to share our progress.Balaguer: What role does data play in the drive to increase retention?Greig: Ours is a data-driven industry and I am surprised that we have not let the statistics drive us into action sooner. Clearly, diversity, equity, inclusion and retention all affect the bottom line. Millennials and Gen Zs already leave faster than any other generational group. The turnover rate in the tech industry averages around 13% with stays around 2-3 years.The cost to hire, train and integrate someone into a company is far more expensive than having a DEIR program in place to keep them. The Society for Human Resource Management (SHRM) reported that, on average, it costs a company 6 to 9 months of an employee's salary to replace them (which includes the costs of hiring, onboarding and training, L D and time to fill the role). For an employee making $60,000 per year, that comes out to $30,000 to $45,000 in recruiting and training costs.Sheet-Davis: Yes, which gives us all the more reason to move quickly! Given how central DEIR is to innovation, and that the challenges and opportunities facing our industry are bigger now than ever before, I believe we should be addressing DEIR with the same vigor that we address Moore’s Law.I worry if we keep saying DEIR will take time, it will take time. Granted many DEIR issues are cultural and culture is hard to change. However, this industry has demonstrated the capability to drive breakthroughs and to do so quickly. Let’s focus on DEIR with urgency while also ensuring the progress is sustainable.Balaguer: There is no doubt we need to move with a sense of urgency. I think a good way to keep the pedal to the metal is to create a DEIR roadmap that tracks our progress on multiple programs and helps us be accountable and stay focused. Meaningful retention strategies begin with solid diversity-focused hiring strategies.Balaguer: How does corporate culture inform retention?Greig: Let’s not forget: Employees, especially millennials, are looking for a corporate culture that demonstrates social responsibility as well as leadership and career development. In a recent study, 65% of employees said positive corporate culture has encouraged them to stay with their company. In fact, companies with strong cultures have seen a four-fold increase in revenue growth.We have raised a generation that strongly believes in being accepting of others and embraces equity and inclusion in their daily lives. They expect their employer to have this as part of their DNA. They believe in science, climate change, recycling, conservation, and similar sustainability issues and they want to know that they are making or doing something that makes the world a better place. If tech companies cannot convince millennials and Gen Z's that the companies are socially responsible and are doing all they can to embrace DEIR as part of their company culture, then the millennials will go elsewhere. Balaguer: How can employee resource groups be a building block for retention?Sheet-Davis: We support employee resource groups that are voluntary, employee-led and coalesce around demographic factors such as gender, ethnicity, sexual orientation or generation. Each has an executive sponsor, budget, plans and leadership structure. ERGs support inclusion by creating a sense of belonging, building comradery, and providing a safe space to raise awareness and help educate the rest of the company through a number of activities such as community service, holiday celebrations, guest speakers, networking, training courses and more. I serve as the executive sponsor of our Women@Fremont group, which is focused on accelerating the advancement of women in their early to mid-career at Lam’s headquarters. I know ERG members genuinely value the company’s support.Balaguer: What can we do during the hiring process to lay a strong foundation for employee retention?Greig: I believe that the work we do at the front end in terms of hiring practices are one of the main reasons we have a low turnover rate at SurplusGLOBAL. We have a policy to have three interviews for each candidate. Not three different people, but bring them in three times. Additionally, we have a 90-day trial and review period to make sure there is a good fit for both parties. Investing time up front ensures the right hire and the small size of our company allows us to know our employees. We can be nimble and quickly respond to employee needs as they arise.Balaguer: In what ways do you think mentoring can help improve retention?Sheet-Davis: Another aspect of building a more inclusive culture, and hence promoting retention, is through mentoring programs. Mentorship supports an employee’s development, growth and career planning. It’s a great way to get to know people, understand their ambitions and support their development. Hopefully, it results in sponsorship because that is what helps drive career advancement. Ultimately, I want to advocate for those that I mentor.Balaguer: At Edwards, we are refreshing mentoring as part of our DEIR program. I see mentoring as a program that can support employee retention in multiple ways including career planning, professional development, succession planning and promoting inclusivity. Encouraging and empowering personal development is key in growing a productive workforce and mentoring does all these things. Often overlooked is the fact that mentoring is a benefit to both the mentor and the mentee. I have personally mentored several young professionals at Edwards, and I can attest that I have learned as much from them as they have from me. Mentoring is definitely a two-way street.Balaguer: What’s your message to our readers about retention as an element of diversity, equity and inclusion?Greig: I am excited to see DEIR and especially, retention, gaining traction. The semiconductor industry has always tended to have a cyclical rhythm to it. A generation of potential employees have grown up witnessing the fallout from periodic down cycles and the inevitable reductions in workforce. I think there is an element of rebranding we need to do in this area to support our retention efforts. Sheet-Davis: If we only focus on recruiting and not retention, we tread water. Consistent with any other successful business strategy, a holistic integrated approach to DEIR that is prioritized, resourced and sustained over time is key. Balaguer: We all agree that retention is a key component in the war for talent. While this conversation has been more wide-ranging than we can share with our readers, the prime takeaways have focused on these elements: Follow the data. Execute with a sense of urgency. Hire right. Work hard on inclusionary programming such as ERGs, mentoring and sponsorship. Build a genuine corporate social responsibility program. Retention will result.Many thanks to Lubab Sheet-Davis and Emerald Greig. As always, comments, questions and suggestions are welcome. We can be reached at [email protected], [email protected] and [email protected]. I invite our readers to join the conversation, as well as review the recently released SEMI Foundation DEI Roadmap and Toolkit.Scott Balaguer is Vice President and General Manager, Semiconductor Division at Edwards Vacuum LLC and Chairman of the SEMI North America Advisory Board.
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SEMI spoke with Andreas C. Zimmer, Executive Search and Selection Consultant at ZIAN Co industrial consulting and recruitment, about strategies for attracting and retaining talent and promoting careers in semiconductor industry. Zimmer shared his views ahead of his presentation at the SEMI Fab Management Forum, 17 February, as part of the SEMI Technology Unites Global Summit, 15-19 February 2021, an online event. Join us to meet experts from ZIAN Co. and other key industry influencers. Registration is open. SEMI: What makes the semiconductor industry such a great career destination? Zimmer: The semiconductor industry is an interesting world for anyone involved in or just fascinated by high-end technology. But if we think about our mobile phones, personal computers or cars, we should all ask ourselves what technology is behind these devices we use in our daily life. The classical Newtonian physics does not reveal the source of the pixels in our mobile phones or why a navigation system knows where I currently am and how I’m supposed to drive to avoid the traffic jam ahead. The semiconductor industry truly is the technological pacesetter. The technologies and applications developed by SEMI and its members are the multipliers directly impacting our daily life. Moore's law not only affects the development of chips themselves, but also how we use the applications and devices they enable. Think about the size-performance ratio of modern smartphones compared to the first- and second-generation devices in the 1970s and 1980s, or compare today's BMW with one from the 1960s. The problem is that the industry is too hermetic. We perceive a lack of willingness to go out and tell in a generally understandable way what this industry is all about! Everyone knows Apple, Samsung, Nokia, but who, besides the specialists, knows NXP, Infineon, TSMC or LFoundry? Many companies are largely unknown to the general public! So why should a graduate from a technical university choose a company such as Applied Materials, TEL or ASML? During their studies students will inevitably have come in touch with IC or MEMS companies, but do they also know what is behind them? Do they really know the value chain that leads to the end product? SEMI: What can the chip industry do to better attract talent? Zimmer: Our industry is extremely attractive for anyone who is interested in technology and would like to push things ahead, but unfortunately access to this industry is almost reserved to the initiated who, in whatever way, came in touch with the industry at some point. Let me get this straight: This is not a conscious, willful attitude. It is just the result of our industry’s hermetic attitude. In my opinion, there is no overarching, uniform strategy in marketing, communications or advertising to promote the potential of the semiconductor industry to a wider audience. That’s why SEMI and the cooperation of its members in attracting talent is essential. SEMI: What concrete actions do you suggest for attracting and retaining talent? Zimmer: In German there is the saying “Do good and talk about it!” – and this is exactly what should be implemented. It is not enough to place an ad when necessary, to promote something here and there, perhaps to sponsor a chair or to provide a device free of charge. These are certainly all reasonable actions, but rather random and not long-term or strategic. Furthermore, these actions will reach only a relatively small group of people. The industry should organize structured recruitment activities under a long-term plan, over 10 years or even extending to the next generation. This shouldn't be a rigid corset, but rather a guideline closely informed by the chip industry’s technology roadmap and companies across the supply chain. If it is the task of an organization’s board and the management to define the strategic direction and to set specific goals, it should be the task of technical management to ensure that these goals can and will be achieved. However, this will only succeed if human resources is involved from the very beginning and can plan appropriate personnel resources accordingly. Employees retire, quit and change employers. New materials, technologies, applications and processes are being developed and require new, specific knowledge. Market requirements change. All of these components need to be recognized and considered in early planning. SEMI: What is your experience as a consultant? Zimmer: As consultants, we experience how organizations literally fall out of the clouds when the situation within the organization itself drastically changes, because a strategically important colleague is retiring or suddenly leaving the team for whatever reason. Then, quite surprisingly, the question “Where and how quickly can we find the suitable replacement?” arises. Instead, that departure should be considered as a possible development up front in overall talent planning – a plan B to keep in the drawer. Developing and implementing a long-term HR development roadmap, aligned with the technology roadmap, enables a company to anticipate when specific resources are needed, identify the right people and get them onboard without gaps. It is also important to keep your team informed and involved in all decisions and process changes, and to make sure they get the respect and appreciation they deserve. Employer-employee cooperation over the long term only works when the relationship is a win-win for both parties. If an organization sees the relationship as one-sided to its exclusive benefit, sooner or later the worker will be terminated or quit at the expense of the organization. Truly live the statement “Our people are our best and most valuable resources!” SEMI: When should organizations start attracting young talent? Zimmer: The sooner, the better! Communications aimed at attracting future employees should be designed to reach people of all ages and levels of education. For many years, the tobacco industry targeted young people by demographic, considering their age, education and cultural mindset to ensure they perceived cigarettes as cool. The result? Many people became addicted, mostly for life, just because some clever communications expert touched the right spot! Our industry will not attract teenagers like tobacco corporations did, but the strategy is basically the same: arouse the curiosity of your target group and speak their language. A possible scenario: A company starts and establishes a relationship with neighboring technical, middle and high schools by providing equipment, documentation, and employees who serve as teachers or coaches, and organizing guided tours, seminars and workshops in coordination with the school management. The cooperation continues with the university, where the respective chairs are supported and financed. With a little creativity there are endless possibilities! In our day-to-day business, we observe that large, well-known companies such as Bosch and Daimler are practically sitting on the lap of students in key universities and institutes, yet are unable to identify talent very early and bind them to their company. SEMI: How can organizations capitalize on shifting retirement patterns to help narrow their talent gap? Zimmer: The answer to this arises from considerations related to personnel planning in connection with a company’s technology roadmap. If the roadmap is linked to HR plans, you automatically have an overview of the time-critical moments when personnel gaps might arise. Then you can easily close these gaps, for example by arranging the onboarding of a successor for a specific position long before the job holder leaves. Considering notice periods and approval processes, a period of at least two years should be planned in order to be prepared for personnel changes. Of course, much of this varies depending on the importance of the position to the organization and the size of the talent pool. For example, it will probably be easier and faster to hire and train a sales engineer than the successor for a development manager, when you know there are maybe only 10 people worldwide who are, professionally speaking, at his level. And this is equally true for internal promotions: Always keep an eye on your own people and try to discover their greatest talent! Senior people tend to look outside the organization rather than just around the corner. Maybe the right talent is sitting next to you. Stay tuned and talk to your people to implement a strategic knowledge transfer as part of your organizational culture. Another aspect that is often overlooked is the deputy function: We often find functions in organizations that literally have a unique selling proposition. But there is no deputy, no one who can step in case of an emergency, because no other colleague possesses the knowledge and information to take over if necessary. Usually this is not a problem during a vacation or illness, but what do you do if a key job holder suddenly cannot work from one day to the other? SEMI: What is the role played by artificial intelligence? Zimmer: AI is both a risk and an opportunity. A new technology can always mean danger if it is used incorrectly, and I am not talking about job losses! This has always proven to be a mistake in the past. On the contrary, new technologies create new jobs! New technology accelerates communication, creates new platforms for interaction, shortens decision-making processes, and turns the world into a small village. In your interview with David Meyer CEO of Lynceus, he hits the nail on the head: The great advantage of AI in our industry is likely to be the management, handling, analysis and drawing of conclusions from an incredible amount of information at an unbelievable speed. Without AI, information cannot be controlled to this extent, not to mention accurately evaluated in real time. The mastery of these processes and the learning curve that results from them – for example for the determination of quality levels – should set completely new manufacturing standards. SEMI: How can technology unite us? What do you expect from your participation at SEMI Technology Unites Global Summit? SONAR GmbH has been in this industry as a personnel and business consultant firm for 25 years now. We have experienced many pig cycles since 1995 and accompanied our customers through all the ups and downs, only to have learned one thing in the end: The semiconductor industry is unfortunately still too fixated on technology and overlooks the fact that this technology is made by people for people. The EU's latest Pact for Skills, which was presented at end of November 2020 by Commissioners Schmidt and Breton, foresees 2 billion € investment to generate 250,000 new jobs in the electronics industry throughout Europe! In 2013, we aimed to sensitize semi industry executives, managers and CEOs to the importance of human resources to the well-being and success of organizations. It’s vitally important to invest in day-to-day relationships with your employees to foster their careers and address their needs. The SEMI Fab Management Forum will feature leading game changers of semiconductor operations to highlight best practices for achieving sustainable operations beyond 2020 and exploring the latest solutions for smarter tools and smarter processes. Andreas C. Zimmer is executive search and selection consultant at ZIAN Co industrial consulting and recruitment, specializing in recruiting talent for high-end technologies in areas such as LED, PV, semiconductors, electronics, and test and measurement. A personnel and industrial consultant with more than 20 years of experience, Andreas is active throughout Europe, the United States and Asia. For more insights about workforce and skills strategies, please see SEMI Workforce Development activities and the European METIS project. Serena Brischetto is senior manager of Marketing and Communications at SEMI Europe.
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