Reflections on BusinessWeek article Cutting Mature Workers Widens the Wisdom Deficit

The followng article from BusinessWeek floated into my Google Reader Cutting Mature Workers Widens the Wisdom Deficit . Alaina Love begins the article with the following:

In the deluge of head count slashing and budget cuts, companies may be making critical mistakes in shedding a vital asset: mature workers. The current economic climate is prompting organizations to reexamine priorities and jobs. In the talent hemorrhage pouring from the arteries of U.S. companies are employees who hold significant institutional wisdom and knowledge–the kind that cannot be easily replaced.

Many of the companies in this area are cutting back, downsizing, right-sizing, or adapting-to-scale, pick your jargon. Some are offering early retirements for senior or experienced employees who are replaced with new people who work for fewer $.

These companies are taking the short term financial gains in favor of long term experience. This gamble may be unavoidable in some cases to keep the company running, but may be detrimental to success later on.

Knowledge, experience, and relationships built up during years of employment are at risk opf being lost. It puts the replacement as well as the company at a disadvantage.

Capturing and retaining information amd knowledge from exiting employees is a challenge for companies moving forward. Improving personal and corporate knowledge management needs to stay in the minds of all of us.

How are you going to compensate?

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