Preserving Knowledge and Celebrating Legacy
- debbiebcoaching
- Jun 21, 2024
- 8 min read
Updated: Jul 5, 2024
A New Approach to Employee Departures
As a learning professional, I've observed a critical challenge facing organisations today: the loss of valuable knowledge when employees leave. Whether due to layoffs or voluntary departures, this exodus of expertise can significantly impact a company's operations and bottom line. In this article, we'll explore this issue and discuss strategies to mitigate its effects, including a novel approach to leveraging the notice period.
The Inevitable Reality of Employee Turnover
Employee turnover is an unavoidable aspect of business. In today's dynamic job market, professionals often seek new opportunities for growth, better compensation, or improved work-life balance. Additionally, economic fluctuations may force companies to reduce their workforce through layoffs that undoubtably will cause more people to resign once layoffs are announced. This second wave almost always consists of the best and brightest who have opportunities. While these changes are part of the business cycle, they come with hidden costs that are often overlooked.
According to a study by the Work Institute, "The cost of turnover is estimated to be 33 percent of an employee's annual salary" [1]. This statistic underscores the significant financial impact of employee departures on organisations.
The Hidden Penalty: Knowledge Loss
When employees leave, they take with them not just their skills, but also their unique understanding of company processes, client relationships, and institutional knowledge. This loss can be particularly acute when key employees or high-potential individuals depart. The impact is twofold:
1. Direct loss of expertise and experience
2. Indirect costs associated with knowledge transfer and training new employees
David DeLong, author of "Lost Knowledge: Confronting the Threat of an Aging Workforce," states, "The loss of critical knowledge poses one of the biggest threats to organisational sustainability and competitiveness in the 21st century" [2].
"Knowledge has to be improved, challenged, and increased constantly, or it vanishes" . Let's make sure that when employees leave, their knowledge doesn't vanish with them."
The "Knowledge is Power" Paradox
One of the most challenging aspects of knowledge retention is the "knowledge is power" mentality. Some employees, intentionally or unintentionally, hoard information as a form of job security. This gatekeeping can create silos within the organisation and make knowledge transfer difficult when an employee leaves.
As a learning professional, I always emphasise that "Knowledge may be power, but knowing how to share that knowledge is even more powerful." This shift in perspective is crucial for creating a culture of knowledge sharing and continuous learning.
"Knowledge may be power, but knowing how to share that knowledge is even more powerful."
The Asymmetry of Onboarding and Off-Boarding
Companies invest heavily in onboarding new employees but often neglect the off-boarding process. Exit interviews, when conducted, may not yield honest feedback due to employees' fear of burning bridges. Even when candid feedback is given, it's rarely acted upon effectively. This asymmetry represents a missed opportunity for organisations to learn and improve.
A New Approach to Knowledge Retention
While it's not feasible to invest significant resources in every departing employee, organisations should identify in advance key individuals who possess critical knowledge. These are often the high-potential or senior employees who have been valuable assets to the company and therefore flagged for retention. But, even these individuals can decide to leave, and when they do, there are strategies to mitigate the knowledge loss.
The more obvious approaches are:
Knowledge Management Systems: Create a centralised repository for documenting processes, best practices, and key information.
Encourage Knowledge Sharing: Foster a culture where sharing knowledge is rewarded and recognised.
Cross-training and Mentorship Programs: Ensure that critical knowledge is distributed among multiple team members.
Structured Off-boarding Process: Develop a comprehensive off-boarding program that includes knowledge transfer sessions.
Alumni Networks: Maintain positive relationships with former employees, creating opportunities for future collaboration or knowledge sharing.
Succession Planning: Identify and prepare potential successors for key roles well in advance.
As Josh Bersin, a leading industry analyst in HR and workplace technologies, notes, "Companies that excel at knowledge management are 5 times more likely to be highly effective at onboarding, 4 times more likely to be highly effective at developing leaders, and 3 times more likely to be highly effective at developing employees" [3].
But what if you cannot invest in all that?
Does that mean you have to settle for losing valuable information?
Part of what I do as a consultant is find high impact and low cost solutions to knowledge loss issues and if you don't have the ability for whatever reason to do any of the options listed above there is a simple and effective solution that you can apply ad-hoc in a short period of time.
If you are a company looking to implement these solutions, schedule a discovery call with me today to see how we can implement these and other valuable policies without adding to your headcount.
Have you tried, using an employee exiting as an opportunity to capture critical information?
Leveraging the Notice Period: A Celebration of Knowledge and Legacy
One often overlooked opportunity in the employee departure process is the notice period. Instead of viewing this time as a countdown to loss, organisations can reframe it as a valuable window for knowledge capture and celebration of the employee's contributions. This is a win-win for employer and employee. The company gets to preserve information and the employee who has already decided to leave can be given a new purpose that celebrates the legacy they are going to leave can reinvigorate a person and make the entire experience more pleasant for everyone. Because lets face it, when an employee leaves thez are most likely disengaged/bored/tired/frustrated/sad or any other emotions that are legitimate to feel at this time and these are infection emotions we want to keep away from our employees.
So what can we do?
Here is the proposed method to prevent losing high-value employees and knowledge loss:
Start by identifying, who the high value employees that have valuable knowledge are. Don't wait till they leave to say, "we really need to know what is inside that black-box". Actively curate their knowledge as part of knowledge sharing activities and mentoring.
Actively invest in furthering their skills. Make a development plan for them and make sure they have ample opportunities to grow and learn, especially new trends and technologies. The misconception that employees, even the high-value ones are independant and can fend for themselves or "ask if they need something" is a reason why many high-value employees leave. To state it simply, they don't need to be asked to work hard, why should they have to ask for the time and opportunity to be valued?
Strategically map their knowledge and skills and knowledge gaps as part of development talks and succession planning to have a good idea of what you need to invest in them and whet you will lose if you lose them. (A note about data privacy and GDPR: some countries do not permit creating a file like this on an individual. Consult with your legal team and see how it can be acomplished legally. A good practise is to keep it in personal and address the knowledge in that area/division/team aspect as opposed to individuals - Talk to me if you are interested in learning more about this method.
I spoke to 15 different executives in a large 10K+ company and asked a simple question: "When was the last time the company invested in growing your knowledge?" All of them had been working in the same place from between 5-8 years. All were high value employees with mountains of knowledge and information in their fields. The responses were all the same, a look of surprise, a moment of retrospect when they were trying to remember and a faint look of disappointment when responding that they could not remember when they last had time or opportunity to learn.
If ultimately the high-value employee decides to leave, there is no reason to have this be stressful to the company or the person leaving. This is how celebrating a leaving high-value employee could look like:
Make Dedicated Knowledge Transfers and Preserve Institutional Memory: During the notice period, consider reassigning the departing employee to work closely with the learning and development team. Professional learning designers can work with the departing employee. They can help transform the employee's knowledge into effective learning materials, ensuring that their expertise becomes a lasting part of the organisation's knowledge base.This dedicated time allows for a focused effort to document processes, share insights, and capture tacit knowledge that might otherwise be lost. And its a fun new experience with a different team that can be invigorating and productive for everyone.
Actively Celebrate Contributions: Leaving a job can be emotionally challenging for employees who have invested significant time and effort into their work. By celebrating their contributions, you not only boost their morale but also send a positive message to the remaining team members.
Organise knowledge-sharing sessions where the departing employee can present their key projects and learnings.
Create a "legacy document" highlighting the employee's major achievements and contributions to the company.
Mitigate Contagious Dissatisfaction: When an employee leaves due to dissatisfaction, there's a risk that their negative feelings could spread to their colleagues. Focus on positive aspects and celebration, you can help mitigate this risk and maintain team morale.
Exit Interviews Reimagined: Instead of a single exit interview, conduct a series of knowledge-capture sessions. These can be more focused on gathering insights about processes, client relationships, and best practices rather than just feedback about the organisation.
Creat a Positive Alumni Network: By ending the employment relationship on a high note, you increase the likelihood of maintaining a positive connection with former employees. This can lead to future collaborations, referrals, or even the employee's return in a different capacity. Dont wait for alumni to band together, make a nice place for them to share the good memories and support each othe.r
Dr. Diane Mulcahy, author of "The Gig Economy," suggests, "Companies should view departing employees as alumni, not as deserters. This shift in perspective can lead to ongoing relationships that benefit both parties" [4].
"Companies should view departing employees as alumni, not as deserters. This shift in perspective can lead to ongoing relationships that benefit both parties"
The Solution: A Paradigm Shift in Knowledge Management
The answer to mitigating the cost of knowledge loss is simpler than many realise: it requires a shift in how we view and manage knowledge within organisations. By treating knowledge as a shared asset rather than individual property, companies can create an environment where information flows freely and is preserved beyond any single employee's tenure.
Implementing this shift involves:
1. Recognising and rewarding knowledge sharing
2. Investing in technology that facilitates easy documentation and access to information
3. Making knowledge transfer a key performance indicator for all employees, especially those in leadership positions
4. Creating a culture of continuous learning and teaching - cultivating curiosity.
Conclusion
While employee turnover is inevitable, the loss of critical knowledge doesn't have to be. By recognising the value of institutional knowledge, fostering a culture of sharing, and implementing structured knowledge management processes, organisations can significantly reduce the hidden costs associated with employee departures.
Moreover, by reframing the departure process as a celebration of an individual's impact and a concerted effort to preserve their legacy, organisations can turn a challenging situation into an opportunity for learning, growth, and positive cultural reinforcement. This approach not only helps in retaining critical knowledge but also contributes to a more positive organisational culture, demonstrating that the company values its employees' contributions beyond their tenure.
by reframing the departure process as a celebration of an individual's impact and a concerted effort to preserve their legacy, organisations can turn a challenging situation into an opportunity for learning, growth, and positive cultural reinforcement
Remember, in the modern workplace, the true power lies not in hoarding knowledge, but in effectively sharing and leveraging it across the entire organisation. By implementing these strategies, companies can ensure that the legacy of their departing employees continues to benefit the organisation long after they've moved on.
As Peter Drucker, the father of modern management, once said, "Knowledge has to be improved, challenged, and increased constantly, or it vanishes" [5]. Let's make sure that when employees leave, their knowledge doesn't vanish with them.
References:
[1] Work Institute. (2019). 2019 Retention Report.
[2] DeLong, D. W. (2004). Lost Knowledge: Confronting the Threat of an Aging Workforce. Oxford University Press.
[3] Bersin, J. (2019). The Definitive Guide to Corporate Learning. Josh Bersin Academy.
[4] Mulcahy, D. (2017). The Gig Economy: The Complete Guide to Getting Better Work, Taking More Time Off, and Financing the Life You Want. AMACOM.
[5] Drucker, P. F. (1999). Management Challenges for the 21st Century. HarperBusiness.
Citations:
[1] https://www.insidehighered.com/opinion/blogs/just-explain-it-me/2023/05/09/human-resources-code-words-employee-departures
[2] https://www.linkedin.com/pulse/navigating-employee-exits-zahyd-s-ep7te?trk=articles_directory
[3] https://oppscience.com/human-resources-analysis-of-departure-reasons
[4] https://www.indianachamber.com/navigating-employee-departures-essential-steps-for-small-business-owners/
Comments