Speaking Semiconductor is Kerry Consulting’s semiconductor industry recruitment blog. In this edition Michelle Lee, Semiconductor Practice Lead, discusses her thoughts on why companies should focus on talent bench strength despite short-term challenges in the semiconductor market.
Global semiconductor revenue is projected to decline 11.2% in 2023, according to the latest forecast from Gartner, Inc.
Semiconductor Industry Association (SIA) also announced in May that worldwide sales of semiconductors totaled $119.5 billion during the first quarter of 2023, a decrease of 8.7% compared to the fourth quarter of 2022 and 21.3% less than the first quarter of 2022.
The short-term outlook for the semiconductor market may have deteriorated, but it can still be an opportune time for companies to focus on talent bench strength.
- It’s an opportunity to attract top talent:
During a downturn, skilled professionals may become available in the job market due to layoffs or downsizing by other companies. This creates an opportunity to attract high-quality talent that may have been harder to access during times of high demand.
- Focus on skill development and training:
With reduced production demands and slower business activities, companies can allocate resources to invest in skill development and training programs for their existing workforce. This allows employees to enhance their skills and knowledge, making them more valuable assets when market conditions improve.
- Retention and Engagement:
Investing in talent bench strength sends a positive message to employees, demonstrating a commitment to their professional growth and development. This can boost morale, loyalty, and overall employee satisfaction, leading to higher retention rates and a more engaged workforce.
- Long-Term Planning:
Downturns offer an opportunity for companies to engage in long-term strategic planning. Building a talent bench enables companies to identify future talent needs, assess skill gaps, and develop recruitment and retention strategies that align with their long-term business goals.
- Innovation and Research:
During downturns, companies can allocate resources and talent towards research and development initiatives. Building a strong talent bench with expertise in emerging technologies and innovation ensures companies are well-equipped to drive product advancements and maintain a competitive edge when market conditions improve.
- Adaptability and Innovation:
A downturn can be a catalyst for innovation and transformation in the semiconductor industry. By fostering a strong talent bench, companies can leverage diverse skills and perspectives to drive innovation, adapt to market changes, and explore new areas of growth.
- Continuity in Leadership:
Downturns may lead to leadership changes or attrition. Developing a talent bench ensures a pipeline of skilled individuals who can step into leadership roles when needed, minimising disruptions and ensuring smooth business operations.