Alternative career paths are more important today than ever before, particularly in the semiconductor industry, where an aging workforce and a host of new fabs under construction threaten to worsen the existing talent shortage. With too few workers entering semiconductor careers to offset the attrition, the industry faces a multifaceted challenge that is undoubtedly going to be the number one issue in the coming years – people.
Less than 25% of the existing semiconductor workforce is under the age of 34, a stark contrast to the nearly 40% aged 50 and above1. As a highly technical industry, semiconductors have historically had a high barrier to entry – a four-year degree. And while there are many positions where university education is necessary to do the job, there are an equal if not greater number of positions where this may not be the case.
According to research on the future of work conducted by Harvard Business School, Accenture, and Grads for Life, as many as 6.2 million workers could be affected by degree inflation – the practice of requiring a college degree for jobs that did not previously require them2. The researchers argue that employers are in autopilot as college degrees have become a proxy for a candidate’s range and depth of skills – a headwind not only for college-educated workers without chip industry experience but also for experienced workers looking to switch positions but who lack a degree.
Some barriers to the growth of the semiconductor talent pipeline are completely out of the industry’s control. The downstream effects of the pandemic – supply chain failures and the unbalanced pressure on women in the workforce, for example – may be felt for years to come. Yet, there are also systemic issues like degree inflation and other recruiting pitfalls that are hindering workforce development. The good news is there are companies that can help diversify career paths to the industry.
Alternative career paths, untraditional routes that give inexperienced workers the skills they need to land a well-paying job and grow their careers, may just give the semiconductor industry new life as it faces a widening talent gap and an impending wave of retirees. One such alternative path to consider, specifically for the nature of semiconductor manufacturing, is Managed Workforce Services (MWS).
Managed Workforce Service companies, such as Westerwood Global, give manufacturers and their suppliers the flexibility to offer project-based work while providing employees with stable, full-time jobs. Employees are trained (at zero expense to themselves), paid on the job, and can work in various areas of a chip facility to help diversify their skill sets. This job rotation is particularly important for entry-level positions, where newcomers may benefit by working in different roles to find the best fit and understanding how different teams work together toward a larger goal. In fact, job rotation is a great way to retain Generation Z workers – soon to pass Millennials as the most populous generation on earth – who are known to value collaboration in their work.
Apart from providing workforce flexibility for manufacturers and suppliers, MWS companies also shoulder the burden of recruiting and hiring, allowing customers to focus on their core business. Recruiters are highly trained and use a variety of complex sourcing strategies to ensure that candidates with the most potential, even if not on paper, are qualified. Recruiting and hiring, particularly for project-based work, is time wasted if the worker is released when the project is over. Managed workforces can be a more efficient use of company resources as well as a more stable experience and career path for the employee.
Though there are other alternative career pathways aside from MWS, few come at no cost to the employee and help the semiconductor industry meet its workforce needs. The current talent gap is a multifaceted problem without a quick answer, but one thing is clear – it’s going to take a collaborative approach to meet existing and upcoming demands for chip talent. With a new report estimating the U.S. will need to add 70,000 to 90,000 semiconductor jobs in the coming years3, we need all the help we can get.
To learn more about alternative career paths and how a collaborative partnership model might be the right approach for you, please join Westerwood Global’s talk Alternative Pathways to Career Success: A Case Study session in the Workforce Development Pavilion at SEMICON West 2022 at 2:00pm on Tuesday, July 12, 2022.
Geoffrey Stoddart is Commercial Director and a member of the Board of Directors at Westerwood Global. He has been involved in the semiconductor service business for the last 35 years.
1. Semiconductor Industry Association: https://www.semiconductors.org/wp-content/uploads/2021/05/SIA-Impact_May2021-FINAL-May-19-2021_2.pdf
2. Harvard Business School: https://www.hbs.edu/managing-the-future-of-work/Documents/dismissed-by-degrees.pdf
3. Eightfold: https://eightfold.ai/wp-content/uploads/How_the_US_Can_Reshore_the_Semiconductor_Industry.pdf