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Making recruitment more effective for a major semiconductor company – and reducing its costs by $3.2m per year

Quanta was one of several suppliers to a major semiconductor company which has several sites across Western Europe – including manufacturing facilities and operational offices.

As an established supplier, Quanta had developed key business relationships within this organisation. As a result of this, Quanta became aware of some internal business process issues that threatened to limit the client’s ability to deliver to a recently won customer contract. These were:

Difficulty in finding required skills, leading to high use of, and dependency on, very expensive external resources.
Strong pressure to reduce dependency and cost of external consultants.
Fragmented internal business process and systems knowledge-retention process.
Internal confidence low in crucial business process and systems areas.
Lead-time from existing suppliers did not meet the business needs.

Approach

To build an effective business process and system knowledge-transfer process in key areas of the business.
To use the knowledge-transfer process to change the mix of internal/external knowledge balance, thus reduce the long-term need for costly external resources.
To build a master vendor programme that was driven from the requirements of the new internal competence teams.
To extend the master vendor agreement to align pricing between vendors within the same internal competence team.
To train internal staff to subsequently manage these processes.

Process

We met with the client’s business leaders to design and build an upgraded internal knowledge-management team.
We met with the client and its suppliers, to understand the problems they faced, the programme’s objectives and particular constraints.
We identified opportunities to design and implement a robust knowledge-transfer process, resource tracking and recruitment processes.
We adopted the approach of appointing a mentor to support the leader of the internal management-knowledge team.
Met with all stakeholders to identify and agree the key issues.
Created and agreed a set of formal rules and procedures to be adopted by all line managers.
Interviewed all line managers to assess their resourcing needs.
Defined and agreed standard role profiles for all requirements.

Outcome

No further programme delays.
Time-to-hire reduced from 5 weeks to 5 days.
Streamlined business processes implemented and a structured knowledge-transfer programme introduced.
External staff dependency was reduced from 43% to 22% in less than 12 months.
Cost savings of $3.2m per annum.