As businesses across the globe continue to cut costs and look for ways to increase their bottom line, one area that always seems to be on the chopping block is training.
Training is often viewed as an expense instead of an investment in overall business success. Yet, according to the HR Magazine’s recent research, effective training can help organizations improve profits by as much as 24%.
We all know that if you buy cheaper components for your car or cut corners on construction, you will end up having to pay more down the road to replace those cheaper parts and fix the damage they caused. Similarly, if you cut corners on training, it will cost you more in the long run. In this article let’s look at 5 different costs of ineffective training for enterprises and insights into how businesses can save money and increase their bottom line by improving employee training.
Ineffective training often leads to frustration, boredom, and confusion, which can cause employees to feel disengaged about learning and their jobs overall. In fact, according to Gallup’s 2021 State of the American Workplace study, only 15% of employees report being engaged at work. That’s tragic because engaged employees are more productive and loyal — resulting in better performance for their companies.
If your training isn’t engaging, you won’t keep your employees’ attention — which means they won’t retain the information or apply it on the job.
You might think that turnover rates are only related to compensation. But it turns out that employees who receive more training are less likely to leave the company. According to a study by Deloitte, companies that offered high-quality training and development opportunities had an average of 31% lower voluntary turnover.
Why? Employees can get bored and disengaged when they don’t have the opportunity to learn new skills or gain exposure to new projects. If you’re not offering your employees effective training and development opportunities, they’ll go somewhere else that does offer those opportunities.
Poor talent development and management are two of the biggest costs of ineffective training for enterprises. Ineffective training leaves companies unable to keep up with a worker’s changing job responsibilities, resulting in an untrained workforce that can’t effectively perform their functions. This ultimately leads to poor employee engagement and a lack of employee confidence in the organization’s leadership.
When employees are not properly trained, they are less likely to feel confident in their skill set. As a result, they may not take on new challenges or roles in the company, which is detrimental to career growth and future success.
According to the U.S. National Safety Council, the US economy alone lost more than $171 billion in 2019 because of workplace injuries and accidents. The number one cause of these accidents? Lack of training.
The most obvious cost of ineffective training is an increase in on-the-job injuries and related worker compensation claims. After all, if your employees aren’t trained well enough to do their jobs safely, they’re more likely to get hurt on the job. This means those injuries are costing you money for more than just medical bills — it also means paying for lost productivity and downtime because that employee is unable to work until recovered.
Poor training can create wide-reaching problems that extend beyond your company walls. It can even have an impact on your customers’ experience with your brand. For example, if your employees aren’t sure how to use your products and services or how to handle certain customer service scenarios — they’re not going to be able to meet your customers’ needs on time.
Worse yet, this could make customers feel like you don’t care about them, resulting in a bad customer experience that could even lead them to switch to one of your competitors.
In this scenario, ineffective training can be costly in two ways: lost repeat business and higher spending on marketing efforts to replace these customers.
VR training is a game-changer for enterprises. It can help significantly reduce training costs, improve employee engagement and performance, and enhance retention and recall of course content.
With VR Training, you can create a more immersive and engaging learning experience for your employees. It allows users to learn by doing and experience training as they would in real-life situations. This reduces mistakes in practice which leads to an increase in productivity and a reduction in the cost of errors.
In summary, VR Training is an effective solution for all types of enterprises, that enables people to learn faster, retain more information and enjoy the learning experience – all at a lower cost than conventional training methods.
To know more about VR Training click here.