Investing in employee training is often seen as optional—something to consider if time and budgets allow. However, the reality is that the cost of NOT training your employees far outweighs the cost of investing in their development.
When businesses neglect training, they experience higher turnover, reduced productivity, more errors, and lower employee engagement—all of which have a direct financial impact.
So, let’s explore why training is essential, the common misperceptions about employee development, and the undeniable business case for investing in your team’s skills.
Why Training is a Business Necessity, Not an Expense
Training is more than just a learning experience—it’s a business growth strategy. Research from the Association for Talent Development (ATD) found that organisations that provide comprehensive training programs enjoy 218% higher income per employee than those with minimal training efforts.
Moreover, a report by LinkedIn’s Workplace Learning Report revealed that 94% of employees said they would stay longer at a company if it invested in their career development.
These figures alone highlight a simple truth: Training is not a cost—it’s an investment in your workforce and, ultimately, your business success.
Common Misperceptions About Training
Despite its benefits, training is often deprioritised due to several common misperceptions:
“Training is too expensive.” In reality, the cost of employee turnover, lost productivity, and poor performance due to inadequate training is far greater. According to Gallup, the cost of replacing an employee can be up to two times their annual salary.
“What if we train them and they leave?” A better question to ask is: What if you don’t train them and they stay? An untrained workforce is more likely to struggle, leading to lower morale and higher attrition.
“On-the-job experience is enough.” While learning through experience is valuable, structured training ensures consistency, efficiency, and the ability to adapt to new technologies and business changes.
The Impact of Not Training Employees
When businesses overlook training, the negative consequences ripple throughout the organisation.
1. Higher Employee Turnover
Employees who feel unsupported in their development are more likely to seek opportunities elsewhere. According to Deloitte, millennials and Gen Z workers rank learning and development as one of the top factors in job satisfaction. A lack of training sends a clear message: this company isn’t invested in your future.
2. Decreased Productivity and Performance
Poorly trained employees take longer to complete tasks, make more mistakes, and require more supervision. Research from IBM found that 84% of employees in high-performing organisations receive the training they need, compared to only 16% in low-performing organisations.
3. Increased Errors and Compliance Risks
Employees who lack proper training are more likely to make costly mistakes. In industries where compliance and safety are critical, training is essential to avoid regulatory fines, legal issues, and reputational damage.
4. Lower Employee Engagement and Morale
When employees don’t receive training, they often feel frustrated and disconnected from their work. Gallup’s research shows that engaged employees are 17% more productive, while disengaged employees cost the global economy an estimated $8.8 trillion in lost productivity.
How Training Transforms Employees—and the Business
On the flip side, a well-trained workforce leads to significant business advantages:
Employees gain confidence in their abilities, leading to higher job satisfaction and motivation.
Teams collaborate more effectively, reducing inefficiencies and errors.
Businesses experience increased profitability, as companies with strong learning cultures are 30% more likely to be market leaders.
A study by McKinsey & Company found that companies with robust training programs increase productivity by 25%—a direct impact on the bottom line.
Is Your Business Investing in Its People?
The decision is clear: Training is not optional if you want to build a thriving, competitive business.
So, the real question is—what is your organisation doing to support employee growth?
If you’re ready to empower your team, boost productivity, and future-proof your business, WorkPlan Learning is here to help. Let’s talk about how we can create a tailored learning strategy that aligns with your goals.
Contact us for more information.
Phone: 1300 726 708
Email: contact@workplan.com.au
