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There is an old saying that “you pay for training whether you schedule for it or not.” Unfortunately, your organization may be overlooking the importance of investing in employee training and end up paying the price in the long run.

There are many ways that this lack of training can have a negative impact on the bottom line for your business, including:

· Reduced productivity and efficiency

· Negative impacts on the company’s reputation

· Decreased employee morale

· Increased errors

· Lack of compliance

· Increased turnover

Many recent study results back this up, including:

· The average cost of losing an employee is six months of their base salary. The average employee salary is $53,000, so the average cost of losing an employee would be $26,500. (Society for Human Resources Management)

· An average of 40% of employees in the U.S. leave their jobs within the first year because of poor training. (SHRM)

· For each dollar you spend on training, there is a 353% ROI. (Accenture)

Employees who are not adequately trained are less likely to be productive, efficient, or capable of performing their tasks to the best of their ability. Employees may be trying to complete tasks in ways that are inefficient, dangerous, non-compliant, or less productive.

Pulling other employees off-task for needed instruction or mistake correction ties up the productivity of two people for one task. Errors can be costly and time-consuming to correct.

Lack of proper training can also result in poor customer service and satisfaction. The untrained worker may not be aware of policies, or guiding principles of the business. These unintended interactions under the banner of your company brand may have widespread consequences.

The cost of correcting the service and public relations damage will most likely be costlier than training. Without the proper training, the employee may also be less likely to use your company resources in a profit saving manner.


Employees that are not trained or developed are less likely to understand the importance of their assigned task and the value of completing it in an efficient manner. These employees may suffer from lack of engagement, and poor morale. They may feel unfulfilled in their role. This can sometimes have a negative effect on the organizational culture of the company.

This lack of engagement can lead to turnover. Training and development of your workforce will help to reduce this costly problem. If the worker doesn’t feel comfortable and efficient in their work, they may wish to leave on their own terms.

Your long-term employees may have little patience with an inefficient co-worker and may encourage their departure. Their exit will create yet another expense of recruiting a replacement. Many workers may just simply not see any growth opportunities for themselves and leave for a better opportunity. Gallup has discovered that 93 percent of millennials left their company the last time they changed roles.

While their motivations for leaving may vary, some millennials might have switched companies because they believed they had little to no opportunity for growth.


Without proper compliance training, an employee may cost you in a variety of ways. Legal expenses and penalties could be extremely costly. You also run the risk of losing lucrative contracts due to non-compliance of government or industry standards. Poor safety and sanitation practices can create a public relations nightmare for your overall brand and products.

By prioritizing employee training and development, your organization can avoid many of these unwanted costs while also improving productivity, customer relations, and employee morale. It will contribute to a culture of growth and development which reduces turnover.


Create a clear and specific learning objective for each training session: Define the intended outcomes for the training, such as new knowledge or skills, and ensure that all activities and materials are aligned with these objectives. This will help employees understand what they need to learn and how it will be applied in their work.

Incorporate interactive and engaging activities: Passive training methods, such as lectures or presentations, are not as effective as interactive activities that encourage participation and engagement. Incorporate role-playing, group discussions, case studies, simulations, and other activities that make the training more interactive, engaging, and memorable.

Provide ongoing feedback and support: Employees need ongoing feedback and support to reinforce what they learned and to identify areas where they can improve. Provide regular feedback sessions, offer coaching and mentorship programs, and provide access to resources such as online courses or books to help employees continue their learning beyond the initial training.

Making an investment in training helps to safeguard all other investments in the business. Consider maximizing training to equip your employees with the skills and knowledge necessary to drive success in the long run for a positive return on the investment of training.

Need help crafting a communications program to better explain and execute your organizational training? The UpWrite Group has built and deployed internal strategies for companies across the United States.  

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