Yikes Baby Boomers are about to jump and sink the ship at the same time!

Monster Study Reveals Organizations Not Adequately Prepared for Impending Employee “Brain Drain”

Baby Boomer Retirements Threaten to Significantly Decrease Organizational Knowledge, Yet Only 20 Percent of Companies Have a Formal Knowledge-Retention Strategy in Place

MAYNARD, Mass. (BusinessWire EON) September 25, 2007 — U.S. employers largely recognize they face an imminent worker shortage due to Baby Boomer retirements; however, few have a formal strategy in place to manage and retain worker knowledge, according to a survey released today by Monster®. The corresponding report, titled “Building and Securing an Organizational Brain Trust in an Age of Brain Drain,” reveals that only 12 percent of human resource managers report knowledge retention as a high priority within their organizations – despite the fact that one-third estimate 20 percent or more of their current workforce will be eligible for retirement over the next several years. Monster is the leading global online careers and recruitment resource and flagship brand ofMonster Worldwide, Inc. (NASDAQ: MNST).

Bridging this gap represents a significant opportunity for companies to gain a competitive edge in a global economy where knowledge is increasingly becoming the primary resource for value.

“While institutional knowledge is increasingly an organization’s most valuable asset, our study found many companies do not have the processes in place to preserve and redistribute this critical information,” said Jesse Harriott, vice president of research, Monster. “Bridging this gap represents a significant opportunity for companies to gain a competitive edge in a global economy where knowledge is increasingly becoming the primary resource for value.” 

Key Findings

The study reveals that while HR managers recognize the looming issue of losing institutional knowledge due to retirement, many face barriers to establishing strategies and tactics that help preempt the problem. Key findings include:

• Turnover vs. Retirement: More firms perceive conventional turnover as a higher risk to losing organizational knowledge than loss due to retirement, as younger workers leaving an organization not only take away knowledge, but typically bring it to competitors.
• What You Can’t Measure, You Can’t Manage: Only 23 percent of firms report having a formal method to actually identify the knowledge that needs to be protected and retained.
• Proving ROI: 43 percent of respondents cite the ability to measure the ROI and effectiveness of a knowledge retention program as a chief stumbling block to implementing a formal strategy.
• Unmotivated Workers: Only one-third of firms report that their workers are rewarded or encouraged to share organizational knowledge with colleagues.

Recommendations

“As knowledge is perceived to be a key source of internal power, employees often think that sharing what they know makes them less valuable to the organization. In reality, the opposite is true. Therefore, employers must strive to make information-sharing part of the company culture,” added Harriott. “Furthermore, no single tool has emerged that readily enables companies to effectively meet knowledge-retention challenges. Thus, organizations should aim to manage information with a broad strategic approach, utilizing various tactics to determine what will be most successful.”

Despite the obstacles, there are concrete steps organizations can take to help mitigate the affects of brain drain. Key recommendations from the study include:

• C-Level Accountability: Appoint a Chief Knowledge Officer to be responsible for organizational knowledge.
• Pinpoint the Goods: Implement a formal program to actively identify key knowledge assets and its sources.
• Employee Incentives: Provide knowledge-sharing incentives for employees and incorporate standards in performance reviews.
• Tools for Involvement: Create a blogging forum and mentoring program whereby employees can redistribute and access organizational knowledge.

“While brain drain is a looming problem for employers, it presents an excellent opportunity for innovative companies to position themselves for better competitive advantage,” concluded Harriott. “Companies that aggressively manage and protect their knowledge can readily increase their value as an organization.”

Knowledge Retention Webinar

Date: Tuesday, September 25, 2007

Time: 2:00 – 3:00 p.m. ET

Topic: According to The Economist, approximately half the top workers at America’s 500 leading companies will retire in the next five years. How can you help retain the vast knowledge of these workers before they leave your organization?

Register: http://intelligence.monster.com/10312_en-US_p1.asp

Survey Methodology

The study was a nationwide online survey conducted in November 2006 of 550 human resources managers with high level knowledge of their firms’ strategies. The sample consisted of a cross section of U.S. organizations representing small- to large-size firms that operate in the government, private and non-profit sectors. The executive summary and full report are currently available online via http://intelligence.monster.com/14455_en-US_p1.asp.