Providing the right training for staff is not just a box ticking exercise, it’s a fundamental part of creating a successful business. If a business fails to provide staff with the right training, the risks can range from low staff morale to significant financial losses, and even reputational damage. Understanding the true impact of poor training and training which doesn’t meet the needs of staff or the business itself, is therefore critical for organisations aiming to thrive. Let’s take a look at the main risks of not providing the right training for staff:
Decreased Productivity
When staff are not adequately trained, they are more likely to struggle with day to day tasks required in their role. This leads to inefficiencies, mistakes and a slower pace of work, which ultimately affects the entire business. When staff lack understanding of key processes and systems this can have wider ramifications as they slow down the work of others and consequently over time, these inefficiencies can result in a cumulative loss of productivity, costing the company more than the initial investment in proper training would have.
Increased Employee Turnover
As detailed in an article published by High Speed Training, “poorly trained employees are likely to feel unappreciated in their jobs. As a result, they will either leave in search of better opportunities or could end up underperforming”. This lack of engagement and motivation often leads to higher staff turnover, as employees look for jobs elsewhere in which they will get the right training to help them to maximise their potential. Losing employees is costly—not only in terms of recruitment and onboarding expenses, but also in lost knowledge and experience. High turnover can be a red flag to potential hires, damaging the company’s employer brand and making it harder to attract top talent in the future.
Compliance and Legal Risks
Many industries require staff to be trained in specific regulations and safety standards. Without this mandatory training, businesses run the risk of non-compliance, which can lead to fines, legal issues, and even the enforced closure of the business. In sectors such as healthcare and construction, failing to train staff properly could also put lives at risk or lead to significant financial penalties if accidents occur and staff have not been training properly. By providing the correct training, employers ensure that their employees understand their responsibilities and can perform their duties within legal and ethical guidelines. Delivering one off training in many of these sectors is not enough and regular refresher training is required so it is vital that companies understand if and when refresher training is required. This could be for specific areas such as safeguarding, licences to drive particular vehicles or money laundering.
Poor Customer Service
Employees who interact directly with customers must be properly trained in the company’s products, services, and policies to provide a high quality and consistent customer experience. A lack of training in this area can lead to poor customer interactions, low levels of customer satisfaction and complaints which can be detrimental to the company’s reputation and lead to lost business. Customers who receive poor service are less likely to return and more likely to provide negative feedback about the business. In today’s digital age, where online reviews and social media can greatly influence customer decisions, the cost of poor service is higher than ever and therefore it is imperative to get staff training right. Research data published by Forbes shows in fact that up to 84% of consumers read online reviews before making a purchase decision, if a business has series of negative reviews, some of which can be attributed to poor training, then action is needed before their business is crippled.
Low Employee Morale
Employees want to feel confident in their ability to do their jobs. When they are not properly trained, they can feel frustrated, anxious, and undervalued. This can quickly lead to low morale, which not only affects individual performance but can also spread to other team members, creating a toxic work environment.
Wasted Resources
When staff haven’t received the right training, it is inevitable that there will be a higher frequency of mistakes. Mistakes lead to wasted resources in terms of time, money, and materials. It might be incorrect data entry, mishandling equipment, or offering the wrong solution to a customer, whatever the errors are their costs and impact can quickly add up. Investing in comprehensive training can mitigate these risks by ensuring employees have the skills and knowledge they need to perform their jobs correctly the first time.
Stagnation in Business Growth
It is often said that a business is only as good as its people, and in the case of training, if employees are not developing their skills, the business won’t grow either. Companies which fail to invest in employee training often find themselves falling behind their competitors, especially as industries evolve and technology develops at such a rapid rate. Training equips employees with the tools to adapt to these changes, helping businesses to remain agile and competitive in their markets.
Increased Absenteeism
Untrained or inadequately trained employees are more likely to experience stress, leading to higher rates of absenteeism. When staff feel overwhelmed or unsupported, they are more prone to take time off, either due to work related stress or burnout. This not only affects the individual but also places additional pressure on their colleagues, who may need to pick up the slack, which then simply compounds the problem.
The risks of not providing the right training for staff are significant and far-reaching. For businesses to succeed, they must invest in ongoing, relevant training that not only equips staff to do their jobs effectively but also empowers them to contribute to the company’s growth and innovation. By providing the right training, businesses protect themselves from a variety of risks but also create a more engaged, productive, and loyal workforce.
At CUBE HR, we understand the importance of tailored training solutions that meet the specific needs of your business. If you’re looking to improve your training offer then contact us to find out how we can help.
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Why not also check out our blog on a similar topic Does My Business Need A Training Matrix?
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