Brain Drain: Managing Workforce Knowledge Loss Effectively

Introduction: The Brain Drain Problem

There are several challenges facing the modern manager and human resource professional. One looming issue, supported by years of statistical analysis and field study, reveals that 80% of all executives in larger companies are concerned about "wisdom withdrawal." This problem, also called brain drain, stems from two major sources. First, from 2010 onward, someone in the United States turns 60 every 60 seconds — and while retirement age is being pushed further out, experienced employees still approach the age at which they begin to consider leaving the company or reducing their responsibilities. Second, contemporary workers are often noncommittal about the prospects of long-term employment. Not only do many believe a company does not have their best interests at heart, they are also reluctant to make what seems to them an excessive promise of decades of service (Fisher, 2006).

Smarter Hiring to Combat Knowledge Loss

Because managers recognize that this drain is a matter of "when," not "if," it is important to use every available tool to direct hiring and training resources toward the right individuals. In the interview process, for example, seek out clues to determine whether a candidate is simply looking for a "job" or genuinely wants to be part of a team effort over the medium and long term. Use behavioral interviews to predict future performance. Ask unconventional questions that require the candidate to think without a prepared answer. A candidate who truly wants a career rather than just a job will also have researched both the company and the role, demonstrating initiative and genuine interest (Buehler, 2007).

Globalization and Workforce Diversity

The exit of experienced employees is not a challenge unique to the United States. It is equally important that managers recognize that globalization is rapidly moving the workforce toward greater diversity, encompassing different physical and cultural needs as well as differing attitudes about work and performance. Moving from a candidate who is highly specialized but likely to resist ongoing training, to one who has solid foundational knowledge but may require some development, is often the preferred choice. The latter will likely remain with the company far longer, having invested their time in the organization in broader and more meaningful ways (Fox, 2007).

References

Buehler, P. (2007). Managing in the new millennium: Ten keys to better hiring. Supervision, 68(4), 17–20.

Fisher, A. (2006, July 19). How to plug your company's brain drain. Fortune.

Fox, A. (2007). China: Land of opportunity and challenge. HR Magazine, 52(3).

Frauenheim, E. (2007). Your co-worker, your teacher. Workforce Management, 86(1).

Millman, J. (2008). The "brain drain." Diversity Inc., 7(1).