Knowledge Loss Risk Management When Key Employees Approach Retirement
Keywords:
: knowledge loss, retirement, knowledge transfer, succession, organizational memory, expertise retentionAbstract
This study investigates knowledge loss risk management as senior employees approach retirement, using a quantitative analysis of 100 organizations’ knowledge retention practices. Drawing on Knowledge Management Theory (Nonaka & Takeuchi, 1995) and the Organizational Memory Framework (Walsh & Ungson, 1991), the study examines mechanisms and organizational implications of knowledge transfer. Findings reveal that 78% of organizations lack formal knowledge transfer protocols for retiring employees, and knowledge capture typically begins only 4.2 months before retirement, well below the recommended 18–24 months. Retirees rated 68% of tacit knowledge—including relationships, judgment, and institutional memory—as non-transferable. Critical knowledge loss occurred in 54% of cases within 12 months post-retirement. Regression analysis showed that transfer lead time (β = 0.38), documentation culture (β = 0.28), and mentoring program quality (β = 0.26) explained 46% of variance in knowledge retention success. These findings offer both theoretical insights and practical guidance for managing knowledge continuity in organizations.
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