Are you familiar with the following situation? You have to take on new tasks because an employee is ill for a longer period of time or has left the company. You ask a colleague about certain processes. The colleague replies: "I don't know how best to explain this." Unfortunately, there are no instructions or notes to help you. There may be valuable experience behind this that is difficult to write down.
But how can this be secured? Find out more about how companies can avoid losing knowledge.
Loss of knowledge in demographic change
There are currently 45.3 million people in employment in Germany (source: Federal Statistical Office, as at February 2022). However, this figure will fall drastically over the next few years as the baby boomers increasingly retire.
Many companies are now reporting a loss of knowledge. The causes include, for example, short-lived projects or the high turnover of young employees who change jobs very flexibly.
Unfortunately, many people forget at this point that old knowledge is invaluable. This is because a lot of the required information and experience is often not written anywhere or is at most floating around in the form of unstructured notes. Yet they offer one of the greatest advantages a company can muster: a competitive edge.
Old knowledge often accounts for up to 60 % of a company. The more "older" employees leave, the higher the percentage. In many companies, however, demographic change means that this valuable, old knowledge disappears and seeps away.
According to a major Kyocera study, 38 percent of 1,600 office workers in the SME sector stated that all their knowledge would be lost if they left their company without a handover. Some also criticized the inefficient organization of knowledge sharing in their company.
For these reasons, it is crucial to secure the know-how of previous employees for posterity and to keep it up to date at all times. But how can this be achieved?
Information transfer depends on the type of knowledge
Knowledge can be broken down into two sub-areas: One is explicit knowledge and the other is tacit knowledge. Explicit knowledge can often be easily converted into written formats. Knowledge can simply be passed on in notes, messages, documentation or instructions.
Implicit knowledge is much more difficult because it is linked to the individual's experiences. It includes subjective learning processes that we automatically fall back on every day. This can include very creative ways of acting or behaviors that we are not consciously aware of.
An example: A person who wants to obtain a driver's license primarily acquires explicit knowledge in the theory section. This is because this can be recorded in textbooks. It is only in the practical part that the learner driver acquires implicit knowledge by learning how to drive on the road with their own body. The task of the driving instructor in this case is to transfer their implicit knowledge to the learner driver in the best possible way.
Hurdle in passing on the implicit knowledge
When passing on knowledge gained from experience, relevant information often falls by the wayside. This is because many people are not aware of the wealth of knowledge they bring with them. If they are asked about it, they are not always able to provide all the necessary details.
The following major challenge arises: Implicit knowledge must be converted into explicit knowledge.
This is often best achieved through personal face-to-face encounters. Explanations, observations and concrete examples give the learner an insight into the world of the knowledge holder. Ideally, the observer applies the knowledge directly. This method enables the learner to link the spoken word with the situation and independently acquire experiential knowledge.
The possibilities of securing knowledge
There are various approaches to securing knowledge. Get an overview of popular and reliable methods in companies here:
- Workshops: Using moderated discussions and creative techniques, the respective working group actively participates and can build up knowledge together.
- Mentoring principleAn experienced, possibly older employee passes on their knowledge to a younger employee.
- After Action Review: This is a brief exchange between project participants directly after a specific event. The exchange allows them to build up experience together in order to achieve common goals more efficiently the next time.
- Generation tandemAn experienced and a younger colleague exchange knowledge. This results in a mutual transfer of knowledge and each benefits from the other.
- On-boarding: New employees are integrated into the company with the support of the HR department, among others, and systematically get to know their new working environment.
- MicrolearningIn very small training courses, an experienced employee passes on their knowledge to other colleagues.
- Interviews: Asking specific questions and following up closely can be very helpful in acquiring the other person's knowledge.
- Lessons LearnedThe method focuses on collecting and documenting all experiences from projects - including successes and failures.
Securing knowledge in the absence of the knowledgeable person
If knowledge cannot be passed on personally, for example because a successor has not yet been found, some companies rely on third parties to document the information. Although external consultants save time, they also cost accordingly. A more economical solution may be to invest in the training of internal process facilitators in the long term. In this case, external consultants train a selected employee to such an extent that they accompany colleagues in their work and independently document and secure knowledge.
Other forms of knowledge retention can be, for example, knowledge trees, simple mind maps or knowledge maps that guide employees to the sources of information. The important thing here is: The wealth of knowledge should be stored in a central and digital location in the company so that all project participants have quick access to it.
Even before the major waves of retirements are due, companies should start thinking about securing knowledge now. After all, this usually requires many personal discussions and, above all, time.
Sophisticated knowledge management is the only way to secure employee know-how for future generations.
Do you also want more knowledge? Do you need support with knowledge management in your company? Then get in touch with us.
