The Costs of Neglecting Employee Training

Effective employees are the cornerstone of any successful company. Highly motivated, well-trained employees can meaningfully boost your bottom line and improve company culture. 

But don’t make this critical mistake: Skimping on employee training to cut costs. This is a major misstep, as even the best employees need regular training to stay up to date with the latest trends in your industry. 

Investing in employee training also shows that you’re serious about career progression. By helping your team improve their skills, you show a commitment in their professional development and future-proof your workforce. 

Negative Impact #1: Morale

As a business leader, you want your team to be content. Happy staff makes for smooth sailing when things are going well—and a workforce with high morale is more resilient should you face some headwinds as a company. Training plays a pivotal role in maintaining morale at your workplace, as employee education programs help people feel valued at work. 

Investing in employee training is particularly important if you have a band of workers who are considered “low-wage employees.” A recent Harvard Business Review (HBR) publication, titled Building from the Bottom Up, explains that many low-wage employees have “surprisingly

deep reserves of goodwill.” But these reserves are quickly eroded if employers don’t make efforts to move up to the next level of employment. 

(See how Allied Universal, a global security company, uses Intellum to increase employee retention in a notoriously high turnover industry.)

If you fail to provide training, expect to see a sharp fall in productivity. And it’s not a stretch to consider that many will jump ship in search of better opportunities. But offering training alone isn’t enough. Employees need to know how to use training to advance their careers. HBR data shows that 50% of workers report that they do not know what skills they need to progress, and 55% say they do not receive support from a mentor. That missing link can make all the difference.

By addressing these issues with relevant training and support, you can boost morale and should expect to see an uptick in productivity. You can further enhance morale at work by using training to: 

• Check in with staff and assess their individual strengths and weaknesses
• Encourage participation in company-wide events 
• Facilitate networking within your firm

These changes will significantly improve your ability to connect with your team and empower employees who want to advance their careers. Even simple changes, like hosting de-briefs with your team after training, will boost buy-in and enhance productivity. 

Negative Impact #2: Productivity

Investing in employee training isn’t just good for morale — it makes your team better at their jobs. This is crucial in today’s highly competitive business world, where marginal gains can make a world of difference. This sentiment is echoed by data collated by Zippia, which finds that:

• 92% of employees say well-planned training programs enhance their engagement at work
• Companies that offer their staff comprehensive training have 24% higher profit margins
• 76% of employees are looking for ways to advance their career

These statistics underline the reality that most employees want to get better at their jobs and are willing to invest time and effort into training programs. As an employer, neglecting these motivations will derail high-performing employees’ productivity and lead to higher turnover rates. 

Additionally, investing in employee training ensures your staff can make use of emerging technology. This is crucial, as the rapid advancement of tech is set to change the way employees around the world work. Rather than being left behind, invest in your team today by offering training programs related to generative AI, automation, and sustainability. 

Negative Impact #3: Compliance and Legal Training

Failing to properly train your employees can land you in some serious legal trouble. Put simply, you may be liable if an employee was not properly trained and made a mistake that leads to financial losses or an accident at work. Ensuring your team is properly trained will also improve your company culture, as folks are more likely to treat their peers with professional respect when they understand the perils of workplace bullying or harassment. 

It’s important to note that your compliance training will need updating if you want it to be impactful. Many companies still rely on outdated videos to communicate concepts like harassment, data privacy, and financial reporting. Don’t be one of those companies!

Rather than ignoring outdated training programs, invest in your compliance training programs to protect your team and boost productivity. For example, if it's been some time since you updated your sexual harassment training, consider giving HR a bigger budget to create engaging, relevant sexual harassment training programs. This is crucial, as the fallout from high-profile cases shows that many workplaces are woefully behind the times. Rather than relying on a single short video, HR should create programs that protect your employees by: 

• Providing real-time updates on relevant, public cases of sexual harassment
• Revisiting policies on a regular basis to ensure all employees are clear on their responsibilities 
• Instilling behavioral changes based on regular feedback to staff who fail to understand their responsibilities 

Making compliance training central to your company culture will help you avoid legal trouble and will boost morale at your place of work. While you may encounter some pushback at first, this resistance is a clear sign that your firm needs further training due to a misalignment between standards and workplace behavior. 

Negative Impact #4: Turnover

Failing to provide relevant, engaging training will result in higher turnover for your firm. This means that neglecting training can be costly, as the average cost of hiring and onboarding new employees in the USA is $4,100. By investing in training, you can boost your retention rate and significantly improve engagement at work. 

Similarly, failing to invest in training may mean that more of your team begins to quietly quit. Quiet quitting is a sign that a staff member is getting ready to leave your team and typically occurs when folks are disengaged from their core responsibilities. This can make the period before an employee quits costly, too, as they’re far more likely to do the bare minimum while looking for employment elsewhere. 

Employees who quietly quit are often dealing with burnout. Burnout is a diagnosable condition, an occupational phenomenon the symptoms of which include exhaustion, disengagement, and negativity towards your job. Therefore, it’s important to include information about what causes burnout as part of employee training. Encourage them not to overwork and get ahead of the issue before it ever becomes something employees have to cope with. 

The Critical Importance of Employee Training for Growing Businesses

Neglecting employee training is a serious misstep if you lead a growing business. You can’t expect folks to stick around if you don’t support their career progression, and may find yourself in legal trouble due to poor compliance training. Rather than neglecting training, consider investing in programs that are cost-effective, highly engaging, and relevant to the needs of your team.