The True Cost Of Poor Training For Business | Resolution Digital

The True Cost Of Poor Training For Business

Do you really know how poor training for business can affect your workforce?

While companies have a pretty clear idea of what it costs to train an employee, most ignore the real question: what is the cost of not training an employee?

Michael Leboeuf in his book “The great principle of management” warns of the dangers of ignoring training for business:

“If you believe that training is expensive, it is because you do not know what ignorance costs. Companies that have the loyalty of their employees invest heavily in permanent training programs and promotion systems. “

The problem is that many businesses see training for business as an expense and not as an investment. Poorly trained or untrained employees will often lack the knowledge to use company resources properly, lack knowledge of procedures and be unaware of correct safety protocols.

Having little awareness of site health and safety alone can have huge implications on your business.

These are the most recent HSE statistics:-

As a business can you really afford to put your staff in this position?

Lets take a look at this from another perspective. Lack of training can have many implications not just in staff health and safety.

A survey conducted by PwC asked, “Which of the following characteristics make an organisation compelling to work for?”


What does this mean? The results show that with training on offer, employees feel like they are valued and are happier in their jobs plus a job that comes with training will attract a higher class of candidate. Giving you that edge against the competition.

Untrained and unhappy employees however are more likely to become frustrated with their job and be less loyal to their company meaning they will make more mistakes and fail to meet even minimum standards. Management often assumes that providing training will lead to employees moving on to other companies, but this simply isn’t true.

What are the other disadvantages of poor training for business?

  • Inconsistent Information

A simple case of miscommunication may seem innocent enough, but over time this inevitably leads to poor productivity and unnecessary expense. Take this for an example; if you have an employee who hasn’t been trained on how to correctly store tools, over time they consistently place heavier equipment on top of lighter tools causing unnecessary, avoidable damage to equipment, with the potential risk of wrongly stored equipment falling and causing injury.

  • Low Productivity

Well trained and experienced employees deliver much more quality output in a shorter time than poorly trained employees or low quality candidates.

  • Turnover & Wasted Investment in on-the-job Training

An effective, efficient training program will reduce any additional costs incurred from having to replace staff and prevent any time and money being wasted on poor training for business, with inexperienced or employees that have no longterm intentions.

  • Lost Opportunities

Think of how much more efficient your business will be if you’re not having to spend your time chasing people and putting out fires. Ask yourself do you have the right people doing the right jobs?

  • Waste and rework

Labour costs are the biggest expense for any company, generally followed by equipment. In fact, the two numbers together represent 50-60% of the total cost of doing business! Lost productivity and rectifying mistakes can be another major expense, but improving productivity with better training can mean substantial increases in profit.


All of these issues can be tied in some way to consistency in training. Crews that are trained how to do the job properly and use equipment safely and effectively will work faster, break less equipment, have fewer injuries, and be more productive.

How to reduce workplace accidents and limit business costs

The best way to avoid exposure to any such financial consequence is to reduce the risk of incidents happening in the first place. Having a good induction & training system for businesses will help eliminate most incidents occurring from day one… literally!

The right induction training for business is crucial in creating a safe and effective working environment for your workforce. Don’t forget failing to have adequate training protocols for your workforce could result in custodial sentences and fines, not to mention loss of profits and staff productivity.

In order to create a safe and efficient working environment most companies induct their workforce using traditional face-to-face delivery. Research has shown that face-to-face training opens itself to inconsistent messaging. Businesses delivering induction training online however have found that the training is far more consistent, cost effective and efficient.

Switching to Online Induction and Training systems can save you more in time, money and staff competency.

​An online system is easily the most effective way of making sure that your employees are properly inducted and compliant.

Learn more about how your organisation can benefit from online induction training.

Got a question feel free to contact our team.

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