{"id":16555,"date":"2023-02-20T07:08:42","date_gmt":"2023-02-20T15:08:42","guid":{"rendered":"https:\/\/www.knowledgecity.com\/blog\/?p=16555"},"modified":"2024-04-01T13:58:19","modified_gmt":"2024-04-01T20:58:19","slug":"the-surprising-cost-of-not-training-employees","status":"publish","type":"post","link":"https:\/\/www.knowledgecity.com\/blog\/the-surprising-cost-of-not-training-employees\/","title":{"rendered":"The Surprising Cost of Not Training Employees"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">From a leadership perspective, it\u2019s understandable that employee training can appear to be a burden. Not only does the training include extra costs \u2013 <\/span><a href=\"https:\/\/pubs.royle.com\/publication\/?m=20617&amp;i=727569&amp;p=24&amp;ver=html5\"><span style=\"font-weight: 400;\">as much as $1,000 or more<\/span><\/a> <a href=\"https:\/\/pubs.royle.com\/publication\/?m=20617&amp;i=727569&amp;p=24&amp;ver=html5\"><span style=\"font-weight: 400;\">per employee<\/span><\/a><span style=\"font-weight: 400;\"> for the average United States company \u2013 but it also takes time out of an employee\u2019s work day, which can lead to short-term loss of productivity. Organizations sometimes try to find ways around this, like mandating training for off-hours or having employees handle training on their own, but these tend to create other serious workplace issues.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, what\u2019s the solution when a company is already short on resources, but training is necessary? First, it\u2019s important for HR teams to understand the importance of training, along with the risks of not continuing this training. Second, organizations can locate affordable, professional resources to augment training at low costs \u2013 and KnowledgeCity can help with that.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.knowledgecity.com\/blog\/wp-content\/uploads\/2023\/02\/The-Surprising-Cost-of-Not-Training-Employees1000x667pix.jpg\"><img loading=\"lazy\" class=\"alignnone wp-image-16560 size-full\" src=\"https:\/\/www.knowledgecity.com\/blog\/wp-content\/uploads\/2023\/02\/The-Surprising-Cost-of-Not-Training-Employees1000x667pix.jpg\" alt=\"Three colleagues engaged in a serious conversation with expressive gestures.\" width=\"1000\" height=\"667\" \/><\/a><\/p>\n<h3><b>Why Do Companies Fail to Train Employees?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">We mentioned a couple of hesitations that company leadership expresses over training, but let\u2019s examine a more complete list of the arguments we frequently hear that lead to canceled or failed employee training programs:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Training is too expensive, and our budget is already tight as it is.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">We need every employee we have, and training takes precious time out of their work day.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Our turnover is too high, and employee training just goes to waste when those employees leave our organization.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Training is a waste of time because new technology and regulations always come along, so we\u2019ll wait until we absolutely have to do it.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No one at the company has the experience or qualifications to offer training and we can\u2019t find outside help right now.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">We have enough money in the budget, let\u2019s spend a bunch on training without wasting time on planning and research.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Let\u2019s train employees in this new technology that I heard about, instead of targeting training for what they actually want and need for their positions.<\/span><\/li>\n<\/ul>\n<h3><b>What Happens When You Don\u2019t Train Your Employees?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Not training employees invites many problems into the workplace, some severe enough to lead to a downfall for companies. At a basic level, employees who aren\u2019t trained will fall behind. Important skills will grow rusty, and they won\u2019t learn about the latest methods and technologies used in their industry. That, in turn, halts plans for investing in newer, more efficient methods in the organization, slowing productivity while competitors race ahead. This also creates a workplace where employees can feel undervalued and stuck in their jobs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But there are worse issues: Avoiding certification and compliance training can lead to legal issues and trouble with local regulation enforcers. It also means an organization can lose many potential clients that are looking for the latest certifications and capabilities, reducing future business.\u00a0<\/span><\/p>\n<h3><b>The Surprising Costs of Not Training Employees<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Expenses are a common issue when getting buy-in for employee training. But the truth is, not training employees for extended periods of time can also create serious expenses for a company. The problems mentioned beforehand can lead to serious issues, including:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Teams could lose the ability to perform certain tasks. As technology progresses, employees need to progress with it. It\u2019s estimated that by 2025, half of employees will require reskilling to keep up with their jobs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a lack of training causes businesses to fall behind on compliance, they could face fines for hundreds or thousands of dollars \u2013 even more, depending on what regulations aren\u2019t being met. Safety, health, and food-handling certifications are important enough that, if employees don\u2019t complete training, the businesses risk being shut down. If accidents occur, lack of compliance opens companies up for expensive lawsuits, as well.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">No training can lead to employees looking for work elsewhere. Employees who aren\u2019t able to advance their career skills are 12 times more likely to leave their job. Hiring new employees also involves a lot of hidden expenses. Estimates report that hiring costs can be up to 30% of an employee\u2019s expected salary \u2013 significantly more than it would take to invest in a training program for that employee.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Failing to provide training leads directly to lost profits due to the problems we discussed. In the early 2000s, researchers found that companies that invested <\/span><a href=\"https:\/\/www.shrm.org\/hr-today\/news\/hr-magazine\/pages\/0101wells.aspx\"><span style=\"font-weight: 400;\">around $1,600 per<\/span><\/a> <a href=\"https:\/\/www.shrm.org\/hr-today\/news\/hr-magazine\/pages\/0101wells.aspx\"><span style=\"font-weight: 400;\">employee in training<\/span><\/a><span style=\"font-weight: 400;\"> saw 24% higher gross profit margins, and 26% higher price-to-book ratios, compared to firms that spent little or nothing on training. Today, the difference is likely even starker.<\/span><\/p>\n<h3><b>Training is Not an Expense, But a Long-Term Investment<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">As the data shows, training yields results: Like many kinds of investment, it trades <\/span><a href=\"https:\/\/www.knowledgecity.com\/blog\/employee-training-costs\/\"><span style=\"font-weight: 400;\">certain initial costs<\/span><\/a><span style=\"font-weight: 400;\"> for long-term productivity, success, and even savings. Talent growth and upskilling can help improve recruitment as well.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Organizations that choose the right kind of training for the employees \u2013 without delaying it \u2013 have opportunities to capitalize on the latest market shifts and outpace their competitors. Additionally, millennials and other younger professionals see their in-house development opportunities as a significant factor when choosing whether or not to stay with a company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If companies are still worried about finding the right resources, KnowledgeCity can help with our comprehensive library of training subjects. We provide whitepapers, ebooks, and comprehensive online training videos that are ideal for introducing new subjects to employees or helping them sharpen existing skills.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our <\/span><a href=\"https:\/\/www.knowledgecity.com\/en\/learning-library\/compliance-courses\"><span style=\"font-weight: 400;\">compliance library<\/span><\/a><span style=\"font-weight: 400;\"> covers important topics ranging from hazard communication in factories to sexual harassment prevention. And our safety courses include a variety of <\/span><a href=\"https:\/\/www.knowledgecity.com\/en\/learning-library\/safety-courses\"><span style=\"font-weight: 400;\">industry-specific safety programs<\/span><\/a><span style=\"font-weight: 400;\"> and information. These courses are designed to be easily accessible, using shareable videos to go over essential, targeted information. KnowledgeCity can help employees prepare for exams, expand their knowledge, and achieve certifications.\u00a0<\/span><\/p>\n<h3><b>Learning More<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Looking to expand your training programs, or start a new training initiative for specific goals? Download our free guide on <\/span><a href=\"https:\/\/www.knowledgecity.com\/en\/resources\/whitepapers\/how-to-implement-a-successful-employee-training-program\"><span style=\"font-weight: 400;\">How to Implement a Successful Employee Training Program<\/span><\/a><span style=\"font-weight: 400;\">, which includes the necessary tips to get started on the right foot. This guide will help you avoid potential pitfalls so you and your teams can reach new levels of success.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From a leadership perspective, it\u2019s understandable that employee training can appear to be a burden. Not only does the training include extra costs \u2013 as much&#8230;<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[4001,4003,4000],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Surprising Cost of Not Training Employees - KnowledgeCity<\/title>\n<meta name=\"description\" content=\"Explore the significant consequences and financial risks of failing to invest in employee training programs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.knowledgecity.com\/blog\/the-surprising-cost-of-not-training-employees\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Surprising Cost of Not Training Employees - 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