Inefficient Knowledge Sharing Costs Large Businesses $47 Million Per Year

Kazuki

Hatched by Kazuki

Sep 12, 2023

3 min read

0

Inefficient Knowledge Sharing Costs Large Businesses $47 Million Per Year

Knowledge sharing is crucial for the success of any organization. When employees have access to the right information at the right time, they can make informed decisions and work more efficiently. However, a recent report by Panopto revealed that large businesses in the US are losing an average of $47 million in productivity each year due to inefficient knowledge sharing practices.

The report found that knowledge workers waste 5.3 hours every week either waiting for vital information from their colleagues or working to recreate existing institutional knowledge. This wasted time leads to delayed projects, missed opportunities, and frustration among employees. Ultimately, it has a significant impact on the bottom line of these businesses.

One of the reasons for this inefficiency is the reliance on conversation as the primary mode of sharing knowledge. When information is only shared through conversation, it becomes fleeting and easily forgotten. It is essential for businesses to provide tools and platforms that can preserve institutional knowledge and make it easily accessible to employees.

To address this issue, businesses need to instill a culture of teaching among employees. Instead of hoarding knowledge, employees should be encouraged to share their expertise and insights with their colleagues. This can be done through training programs, mentorship opportunities, and knowledge sharing platforms.

Additionally, businesses should invest in technologies that enable efficient knowledge sharing. This could include platforms for creating and organizing documentation, internal wikis, and collaboration tools. These tools can help employees easily find the information they need and avoid wasting time searching for it.

Furthermore, businesses should prioritize onboarding efficiency. When new employees join an organization, they often face a steep learning curve as they try to familiarize themselves with the company's processes and systems. By streamlining the onboarding process and providing new employees with the necessary resources and support, businesses can ensure that they become productive members of the team more quickly.

Inefficient onboarding is a significant contributor to the overall productivity loss. The cost of onboarding inefficiency was calculated by considering factors such as employee turnover, average hourly wage, and time spent inefficiently during the onboarding process. By reducing this inefficiency, businesses can save a significant amount of money and improve overall productivity.

In conclusion, inefficient knowledge sharing is costing large businesses in the US $47 million per year. To address this issue, businesses need to prioritize knowledge sharing and invest in tools and technologies that enable efficient sharing and preservation of institutional knowledge. Additionally, streamlining the onboarding process can significantly improve productivity and reduce costs. By taking these actions, businesses can ensure that their employees have access to the right information at the right time, leading to improved decision-making and increased productivity.

Actionable advice:

  • 1. Invest in knowledge sharing platforms: Provide employees with tools and platforms that enable them to easily share and access information. This can include internal wikis, collaboration tools, and documentation systems.
  • 2. Foster a culture of teaching: Encourage employees to share their expertise and insights with their colleagues. Implement training programs and mentorship opportunities to facilitate knowledge sharing within the organization.
  • 3. Streamline the onboarding process: Develop a comprehensive onboarding program that provides new employees with the necessary resources and support to quickly become productive members of the team. This will reduce the time spent inefficiently during the onboarding process and improve overall productivity.

By implementing these strategies, businesses can significantly reduce the cost of inefficient knowledge sharing and improve overall productivity.

Hatch New Ideas with Glasp AI 🐣

Glasp AI allows you to hatch new ideas based on your curated content. Let's curate and create with Glasp AI :)