The trend of retiring employees is accelerating, and by 2025, a larger proportion of the workforce will reach retirement age more rapidly than in any previous year. For organizations, this means a rapid and massive loss of experience and expertise, two critical elements that are often not easily replaced. Adding to this challenge is the ongoing disruption caused by technology, particularly artificial intelligence (AI), which is transforming industries and workplaces at a rapid pace.
For HR leaders and organizational managers, this presents a unique dilemma: how can we develop the next generation of experts when the tasks that used to teach these skills are now being automated by AI? And how can we preserve organizational knowledge while facing the looming drain of experienced workers?
The Expertise Drain
As Baby Boomers and Gen Xers retire in large numbers, their departure will leave a massive skills gap across industries. In fact, many organizations are already seeing the impact of this shift, with fewer seasoned employees available to mentor and pass on their knowledge to newer, younger workers. This knowledge loss isn’t just a passing inconvenience, it’s a serious issue that could stunt the growth and agility of entire industries.
This problem is particularly pressing because of the combination of two distinct factors:
A Surge in Retirements: As an aging population moves into retirement, businesses are losing some of their most experienced employees, whose insights and practical expertise have been built over decades.
Technology Disruption: In tandem with these retirements, the rise of AI and automation has fundamentally altered the relationship between expert and novice employees. Junior employees, once given the opportunity to learn through entry-level tasks and hands-on training, now find that many of those tasks are being handled by AI and machine learning systems. The result is a lack of real-world experience for younger employees who might otherwise have built the skills needed to become experts in their own right.
A Gartner survey from May 2024 of 3,375 employees revealed a concerning trend: six out of ten employees reported that they were not receiving the on the job coaching or training necessary to develop core job skills. Without this mentorship and hands-on experience, organizations risk losing not only their most experienced staff but also their ability to cultivate the next generation of leaders and specialists.
The Need for Collective Intelligence: Knowledge Sharing Through Technology
In response to this growing crisis, organizations must adapt their approach to knowledge management and employee development. The traditional model of expertise transfer, where seasoned employees pass on their knowledge through mentoring or hands-on training, needs to be supplemented by more scalable, tech-driven solutions that ensure valuable knowledge is captured and shared across the workforce.
Here are a few ways organizations are addressing this issue:
1. Dedicated Knowledge Management Teams
To preserve expertise and make it accessible to all employees, many leading organizations have implemented dedicated knowledge management teams. These teams focus on collecting and organizing information from experts within the organization by monitoring everyday workflows. For example, they might scan through messages in communication channels like Microsoft Teams, identify recurring solutions in product demos, analyze clarifying emails or Q&A sessions, and extract valuable insights from the thought processes and actions of in-house experts.
This information is then converted into micro-learning resources; brief, digestible pieces of content, such as videos, articles, or activities, that teach specific tasks or concepts. These micro-learnings can then be shared across the organization, empowering junior employees to quickly build their own expertise. Rather than waiting for someone to be available for hands-on mentoring, employees can access bite-sized lessons and learn on their own time.
2. Workforce Management Tools with AI-Driven Insights
Another promising approach being adopted by top performing companies is the use of advanced workforce management tools. These tools track employee performance and identify areas where individuals or teams may need additional support. By leveraging AI, these systems can assess how well employees are performing particular tasks, and based on this data, they suggest specific microlearning resources that can help employees improve their skills.
For example, if a junior employee is struggling with a particular task, the system might suggest a micro-learning module that teaches the best practices for completing that task. Not only does this provide targeted learning opportunities, but it also ensures that employees have access to the exact information they need, when they need it.
3. AI as a Learning Partner, Not a Replacement
Rather than seeing AI as a replacement for human expertise, organizations should view it as a powerful learning partner. AI can streamline repetitive tasks, freeing up time for employees to focus on more complex and creative work. In turn, it can also serve as a repository for knowledge, capturing best practices, automating routine processes, and helping employees become more efficient.
For example, AI tools can monitor an employee’s progress and provide real time feedback on their work, acting as a virtual coach. This can help bridge the gap between employees who are learning the ropes and the experts who are slowly retiring, ensuring that valuable knowledge continues to be passed along, even when the mentor is no longer physically present.
The Path Forward: Building a Culture of Knowledge Sharing
To truly mitigate the risks of expertise loss, organizations must build a culture of knowledge sharing where employees at all levels are encouraged to share their insights and experiences. Leaders can help drive this shift by emphasizing the importance of collaboration and knowledge transfer in everyday operations.
This can include:
Encouraging cross-functional collaboration: By fostering an environment where employees from different teams share their expertise, businesses can create a more integrated, knowledge rich culture.
Recognizing and rewarding knowledge sharing: Encourage employees to contribute to internal knowledge repositories by recognizing and rewarding those who actively share their expertise.
Fostering a continuous learning mindset: Equip employees with the tools they need to stay current, whether through formal training programs, micro-learning resources, or access to mentoring and networking opportunities.
The rapid loss of experienced workers due to retirement, coupled with the disruption caused by AI and automation, presents a serious challenge for organizations striving to maintain expertise and grow their next generation of leaders. However, with the right strategies in place, organizations can ensure that valuable knowledge is preserved and shared across the workforce.
In the face of these challenges, HR leaders and organizational managers have a critical opportunity to lead the way in building a workforce that’s not only adaptable but also equipped to meet the demands of an increasingly complex and technology driven world.
The future of work is here, and the time to act is now.