A Systematic Literature Review on Intergenerational Tacit Knowledge Transfer: A KPI Perspective

Abstract

Organizations often have several generations working with them at the same time. Without an effective strategy experienced workers of older generations will leave the organizations taking with them a precious amount of relevant knowledge and skills. What do organizations currently do to support tacit knowledge transfer from Seniors to Juniors? Which formats have been proven to be especially successful? What Key Performance Indicators (KPI) could be used to evaluate cost and benefit of Tacit Knowledge Transfer across generations? Decision-makers faced with a potentially critical amount of tacit knowledge loss due to retiring senior experts are applying different solutions and strategies to overcome this problem, while encountering the challenge to measure and quantify the outcomes. Our research revealed that a gap exists regarding the balancing of the investment and compelling business cases for transferring tacit knowledge from senior to junior employees. We offer Key Performance Indicators (KPIs) with financial and social perspectives that may be applied to guide the enterprise. To achieve this, we conducted a thorough analysis and literature review to evaluate the business cases behind different formats of intergenerational knowledge transfer. Various studies have looked at the methodology behind intergenerational knowledge transfer: we analyzed publications that approach this matter from an organizational perspective including the start-up and Business Angel environment and a further stream of publications that look at the perspective of the individuals involved. Even though organizations are increasingly creative and willing to keep senior experts on board beyond legal retirement age the cost/benefit question is difficult to answer. The analyzed literature regarding Serious Games as one format for intergenerational tacit knowledge transfer was often based on small sample groups or specific needs of an organization or industry. The authors writing about Serious Games agreed that transferability was limited. Their contributions are nonetheless significant as the data collected in pilot projects is invaluable in any decision-taking process for potentially larger scale operations. Based on the current need to balance spending and ensure knowledge continuity our study contributes with novel KPIs and success factors for intergenerational knowledge transfer that can help decision makers in building a business case and steering their investments. The KPIs depend on desired outcomes such as Interpersonal Trust and Increased Efficiency – and therefore we see KPIs such as Quality of Relationships and Skill Improvement Score. KPIs also depend on Expected Investments such as Buying Lost Knowledge (e.g., involving rehiring retirees, or external consultants).