Simicon
Simicon
Simicon
o The key problem in the case study is the high turnover rate at Semicon India (SI), a
subsidiary of Semicon Inc. The company is facing challenges in retaining its workforce,
especially in certain segments, which is impacting its productivity and competitiveness.
2. Why the PROBLEM is important to solve?
o The problem is important to solve because high employee turnover can have negative effects
on productivity, revenues, and the competitive position of the company. Retaining skilled
talent is crucial for SI to maintain its position in a highly competitive industry.
3. How Industry future market size is relevant?
o The future market size of the semiconductor industry is relevant because it indicates potential
growth and opportunities for companies in the industry. A larger market size suggests
increased demand for semiconductor products and services, making talent retention even
more critical for companies like SI.
4. What is the status of the Talent (engineers) supply in India?
o India has a substantial supply of talent in terms of engineering graduates, particularly in the
field of electronics engineering. However, there are challenges related to the quality and level
of skills, as well as geographical concentration, with many engineers coming from the
southern part of the country.
5. How does Semicon India see future prospects for the company?
o Semicon India is interested in ensuring its long-term sustainability and strengthening its
competitive position. To achieve this, it recognizes the need to address its high turnover rate
and to add value to its retention policies to reduce turnover below the industry average.
6. Whether attrition rate was same/different at different Individual Contributor (IC)?
o The attrition rate was not the same across different levels of individual contributors (IC) at
SI. It was mentioned that turnover was high in specific segments, such as entry-level analysts
(IC-1), engineers (IC-2), and senior engineers (IC-3).
7. Averaging around industry average is a good benchmark?
o Averaging around the industry average attrition rate may not be a sufficient benchmark for a
company's talent retention strategy, especially if it aims to strengthen its competitive position
and reduce turnover below the industry average.
8. Do all attritions bad? How should attrition rate be calculated across employees?
o Not all attritions are necessarily bad. Attrition can be natural and healthy for a company
when it involves low-performing or less productive employees. Attrition rates should be
calculated by segment or level within the organization to identify areas of concern and to
differentiate between high and low performers. Reducing attrition among high-performing
employees may be a strategic goal, while addressing attrition among low performers could be
seen as a positive outcome.