Retaining organizational knowledge helps the bottomline

Organizational Knowledge

Every time employees walk out the door, they take their organizational knowledge with them. And your workforce becomes at least temporarily less efficient every time someone leaves. 

On an average, over 40% of the skills and expertise required to capably perform in a given position will be known only by the person currently in that role. That means, when that person leaves, their remaining co-workers won’t be able to do those 40% of their work. And someone hired into that role will need to learn 40% of it from scratch.

A new hire will spend almost 300 hours working inefficiently. They will be asking colleagues for information and waiting for responses, forging ahead by trial and error, and/or “reinventing the wheel” to produce the expected outcome. 

These inefficiencies lead to employee frustration, unnecessary delays in work products, and an overall loss of productivity that significantly impacts a company’s bottom line.

If you have an average of 10% turnover, with 100 employees, then the cost is roughly $250K/year. And that’s excluding the associated recruitment cost.

Now, turnover happens despite companies’ best efforts.

However, what most companies overlook is having a plan and process in place to retain “organizational knowledge” as much as possible. 

Most organizations believe they require dedicated resources to retain the knowledge. But at affabi, we believe everyone should be a resource, for a fraction of their regular work time and contribute to their “owned” or respective knowledge base. It can just be a “by the people, for the people” principle. 

The way we work is changing. So needs to be the way we communicate. And the way we share our knowledge for a better tomorrow.

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