Every manager of any organization is aware of how devastating it is when an employee leaves the organization. Either it is the retirement of Baby boomers or job-hopping of employees from one organization to the next, turnover always affects the productivity of the company.
According to Investopedia Baby Boomers born between 1946 and 1964 are heading into retirement in droves i.e. approximately 10,000 a day.
It not only increases the cost but, also initiates a great loss of corporate memory. First, the organization has to go through the entire hiring process all over again which adds efforts and resources. Second, as the employee left took important knowledge away, the new hirees take more time to understand the culture, work, and methods
Reason for Corporate Amnesia
When employees leave your organization they take a wealth of organizational knowledge with them. Such heuristics, expertise, and skills are taken away and become unavailable for the new employees hired to fill the vacant position.
This loss of valuable skills and knowledge which couldn’t be captured to utilize is known as Corporate Amnesia. This situation could be very threatening for any organization as this lost and uncaptured data and knowledge can affect employee productivity and efficiency.
Reinventing the Wheel:
When this valuable knowledge is not stored anywhere, every time the newcomers have to start from the beginning. They have to create their own methods and trials. They have to reapply new methods and techniques, which increases the chance of getting things burst much more.
“Global Knowledge Workers Say They Spend 29 Percent of an Average Work Day Searching for Corporate Information to Do Their Job” – JiveSoftware
Again the knowledge of these employees will remain undocumented and will be lost again because of being virtual in nature. This creates a skill gap among the employees from different generations because the knowledge is not captured and not transferred to others.
Furthermore, not only the documents and methods but the explicit knowledge, i.e. the experiences of employees is also lost when they leave. These antecedent experiences can be utilized for a better understanding of the implementation of procedures by other employees.
The Cure to Corporate Amnesia:
Now is the environment when organizations are much more vulnerable to corporate amnesia than ever before. It’s time to increase the competency of your company. And for this, first, you have realized the value of your organizational resources.
It is difficult to manage such resources, therefore, many HR professionals suggest opting for knowledge management platforms such as Vneda. Knowledge management platforms as Vneda helps organizations in better data storage, sharing, and knowledge management.
Maintenance of the organizational data and knowledge should always remain one of the priorities for every manager. You should introduce such a platform as soon as possible in your organization to beat the corporate amnesia. The transfer and management of all the tacit and explicit knowledge acquired by each employee are important to capture like any other asset in an organization.