Inefficient knowledge-sharing costs large US businesses $47M a year
- Big U.S. companies lose $47 million in productivity a year from inefficient knowledge-sharing, according to the Panopto Workplace Knowledge and Productivity Report. The study also shows that knowledge workers waste 5.3 hours a week waiting for crucial information from coworkers or recreating information that already exists, resulting in frustration, missed opportunities and financial loss.
- Panopto says that this first of a kind study finds that 42% of institutional knowledge is unique to employees in their role and not shared with coworkers. This means that if they leave the company or are otherwise inaccessible, colleagues can't perform 42% of their job. And 65% of employees in companies with high turnover find it difficult to nearly impossible to get the information needed to do their jobs.
- Other highlights in the study show that 60% of the 1,000 respondents find it difficult to almost impossible to get vital information for their jobs from colleagues. And while the average new hire is formally trained for 2.5 months, getting new employees up to speed in their new roles can take as long as six months, exacerbating these issues.
Knowledge loss, or “brain drain,” has become a serious concern for a number of organizations, especially as workers age and job-hopping is increasingly common. An accumulation of years of knowledge can provide continuity to business operations and functions, which can be invaluable to organizations. The challenge for employers is capturing and preserving information from workers before they retire or leave the company through a strategic plan.
Inefficient digital communication can also derail information-sharing. Outdated systems or platforms can slow down the transmission of information, frustrating employees and forcing them to waste time recreating already existing information, as the Panopto report affirms. A Randstad US report found that employers who make a successful digital transformation and keep up with technological advances are digitally “superior” and are better able to attract talent and retain and engage employees.
Inefficient knowledge-sharing can drive frustrated employees into leaving their jobs, presenting a self-fulfilling retention challenge for employers. Between the high cost of information loss and replacing departed employees, employers must address the causes and results of derailed information-sharing as a necessity, not a choice.