Knowledge Retention As A Key Of Company Performance

2183 Words9 Pages
Knowledge Retention as a Key of Company Performance

In business, employees are kind of investment for the company/organisation. In terms of ability and knowledge in field, or specialization, particularly their experiences. On the other side, it can be stated that employees, mostly known as human capital, can be categorized as an intangible asset for the company. Human capital has become a priceless asset for the company. Moreover, knowledge is a long term investment as in business when all the things likely uncertainty, the one sure source of lasting competitive advantage is knowledge. Knowledge is not only about hard data with processing it, but also the soft data on how to manage the data as well as processing it. Furthermore, it
…show more content…
Because it takes time to reach the same productivity of the existing employees.
Consciously or not, the value of employees is high, especially experienced employees. So, losing them mean loss of cost. The society for Human Resource Management found that total cost of replacement can range from 90 per cent to 200 per cent of an annual salary, it already includes training and the loss of productivity (Manpower Group Solutions, 2010). Such as expensive unbalance at cost, as Kent (2004) and Bersin (2013) stated that the leaving employees are like disruption spread through the organisation, because turnover creates cost, not only in recruiting and administrative fees, but also invisible cost, such as lost productivity, lost engagement, customer service and errors, training cost and cultural impact. Those things that cannot be calculated clearly should be realized and considered by the company.
Whereas, the appraisal of performance company can be determined by performance of employees. Employees in companies like spirit that evoke the company. Even though nowadays, information technology system has been started to change human capital in their working behaviour and system, but without employees, a company as if like a body without the soul. Still, human capital acts as the main role of a company. So, keep on retaining them is a way to maintain the performance of the company. It is a
Get Access