Businesses face challenge of retaining institutional knowledge

While companies scramble to retain the knowledge of retiring workers, they also are faced with the challenge of attracting and keeping younger workers.

More than 19 million American workers will reach 65, the traditional retirement age, during the next three years. Because of this outflow, the Bureau of Labor Statistics projects that by 2010 there will be a shortfall of more than 10 million skilled workers.

The National Association of Professional Employer Organizations says that only 28 percent of small businesses have a plan to transfer the knowledge of older workers to younger workers. And a report by Novations Group says that only a quarter of large businesses have a knowledge-transfer plan.

Tim Vigue, an executive consultant with Novations, said he expected more people to have at least an informal plan. His company's research showed that only 4 percent of businesses have created a formal process to transfer knowledge, 23 percent have an informal process, 29 percent plan to and 44 percent have no plans.

"Perhaps some have their heads in the sand and are too busy doing their own thing or they don't think it is an issue," he said. "I think a lot of organizations assume that people pass things along. I think what organizations underestimate is the amount of information that people are holding in their heads that is not really documented."

To implement a plan that will keep knowledge within a company, several steps can be taken.

Vigue said the first step is to determine what knowledge needs to be captured. After that, a business should prioritize that information and determine who it should be transferred to. The third step is developing a process to transfer the information, such as documentation or one-on-one mentoring.

After that is completed, a follow-up strategy must be in place to ensure the plan is working.

Lockheed Martin is one company that has established leadership and development mentoring programs to capture the knowledge of retiring baby boomers, including an internal Web site called Unity.

Keith Mordoff, a spokesman for the company, said the site is similar to Facebook and allows employees to share ideas and experiences, and network to help them solve problems.

He said Lockheed Martin also has information technology apprentice programs in Phoenix and Philadelphia that train high school students, allowing them to receive certifications and tuition reimbursement.

Laura Benjamin of Pinehurst Press Ltd. in Colorado Springs has been a communication coach and executive career coach for 11 years.

She said there are many ways that knowledge can be shared among workers.

Benjamin suggests that employers consider hiring more part-time employees, having senior workers provide mentoring or having experienced staff members document or archive their knowledge.

Vigue said that some forward-thinking organizations are hiring retired workers as consultants or on a part-time schedule.

The National Council on Aging says that one in three Americans age 65 and older works at least part time.

"The best up-and-comers are absolutely the people who are predisposed to learn not just from the textbook but from other people," Vigue said.

Steve Gutierrez, chairman of Holland & Hart's labor and employment practice, said his firm uses the promise of training and career enhancement to attract young lawyers.

"We have an education program where we assist with better understanding of career path -- how to develop their career or expertise," he said. "By doing that we think we can minimize our attrition rate."

Copyright 2008 Dolan Media Newswires
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