Knowledge Transfer to Better your Business
According to a study from the Work Institute, the estimated costs of employee turnover ranges from 33% to as much as 200% of the departing employee’s salary. Costs include lost revenue from reduced human resource levels, project delays, accidents, recruiting, training and on-boarding new personnel. The range of cost is affected by the skills and experience (knowledge) lost with the employee. Consider the difference between losing a seasonal employee to the cost of replacing a long-term retiring employee with advanced skills and years of experience with the company and the profession. With the later, the loss to the company is not only an employee but the knowledge that employee provided to the success of the operation.
Understanding that knowledge loss is the major casualty of employee turnover is the first step towards better employee management.
Researchers began studying the impacts of knowledge loss in the early 1990’s. The concern was related to one generation retiring and the knowledge lost as retirements increased. From that research the concept of knowledge transfer developed. Knowledge transfer is a method of sharing information, abilities, and ideas across different areas of your business. It helps capture the knowledge before it leaves the organization and is then used to train replacements, expand service offering and or cross train employees to increase efficiency.
One of the major benefits of a structured knowledge transfer process is uncovering the ‘special sauce’. People who have mastered their job have skills and experience that make them more successful. In addition to having the knowledge, they know when, where, and how to use that knowledge to work effectively…the special sauce.
Googling ‘knowledge transfer’ will give you a whole host of resources, however, the Knowledge Maverick is a free web resource which can assist you with understanding the concept of knowledge transfer and how to implement it within your company. They have developed a series of questions to get you started. The questions were developed to be answered in a conversation between the person with the knowledge, and the person interested in receiving the knowledge. The conversations will help develop more questions and productive discussion. They are also a good framework for employee mentors.
Lastly, there are knowledge transfer professionals that can assist you in developing a transfer system. Because the loss of knowledge within your company represents a large risk to the health of the organization, ArboRisk has created a Knowledge Transfer portion of Thrive to lower this exposure. Don’t hesitate to reach out to the ArboRisk team to learn more.
Written by: Jim Skiera