Employee training is crucial to maintaining a competitive edge, ensuring staff efficiency, and optimizing company operations. However, training employees comes with significant costs, both direct and hidden. As businesses look for ways to simplify processes and cut costs, it’s important to explore how digital adoption platforms (DAPs) can help reduce training expenses without compromising on quality.
Understanding Employee Training Costs
Employee training involves several factors, from the direct costs of trainers, materials, and venues, to the hidden costs of lost productivity while employees are in training. On average, organizations spent $1,411 per employee on, with midsize companies incurring lower costs than smaller firms. However, the cost of training varies depending on factors like the complexity of the training, the industry, and the method of delivery.
Breakdown of Training Costs
Direct Costs:
- Instruction and Training Materials: The cost of instructors, either internal or external, and any training materials such as manuals, software, or digital tools.
- Venues and Logistics: The costs associated with organizing in-person training, including renting venues, accommodation, and travel expenses.
- Learning Management Systems (LMS): Organizations that utilize LMS platforms to deliver online training also incur subscription and management fees.
Indirect Costs:
- Lost Productivity: While employees are in training, they are not contributing to the company’s regular operations, which can result in a temporary drop in productivity.
- Time Spent on Training: The hours spent on training, whether in a classroom or via online modules, represent time that employees could have spent working on revenue-generating activities.
- Onboarding New Employees: Training new hires, especially in specialized roles, can be costly due to the time required to bring them up to speed.
The Impact of Poor Employee Training
Without effective training programs, companies risk wasting both time and resources. Poorly trained employees are less efficient, make more mistakes, and require more supervision, ultimately driving up operational costs. Inadequate training can also lead to employee dissatisfaction and high turnover rates, further compounding expenses. Here are some specific consequences:
- Increased Employee Turnover: According to research, 40% of employees are likely to leave within their first year if they are not given adequate training. Employee turnover is costly, with onboarding new employees often costing up to twice the former employee’s annual salary.
- Decreased Productivity: Employees who lack proper training struggle to use the systems and tools available to them. This inefficiency leads to slower operations, missed deadlines, and a drop in overall company performance.
- Wasted Resources: Companies often invest in digital tools and software that go underutilized because employees are not trained to use them effectively. This results in wasted investments and a lower return on investment (ROI) for the organization.
Lear more about the risks and consequences of poorly trained employees: Empower Your Teams to Master CRM Tool and Boost ROI – CBTW | Collaboration Better’s The World
Turning Challenges into Opportunities: The Power of Digital Adoption
Fortunately, every challenge comes with solution —and if we look closer, even an opportunity for innovation!
In a world driven by technology, why not let it work for us? By leveraging the power of Digital Adoption Platforms (DAPs), organizations can transform the way employees learn and interact with digital tools. DAPs provide intuitive, real-time guidance that eliminates the need for lengthy training sessions, helping teams become productive faster and with greater confidence.
What is a Digital Adoption Platform (DAP)?
A digital adoption platform (DAP) is a technology that simplifies the use of digital tools by providing users with in-app guidance, self-help resources, and contextual assistance in real-time. DAPs are designed to make software more intuitive and easier to use, especially for employees who may not be tech-savvy.
How DAPs Work
DAPs offer step-by-step guidance for users as they navigate software, helping them learn as they work. For example, if an employee is using a CRM system but is unsure how to complete a task, the DAP will provide prompts and instructions without the user needing to leave the application. This ensures that employees can complete tasks quickly and accurately, even with minimal prior training.
Key Features of DAPs:
- In-App Guidance: DAPs provide real-time, interactive tutorials that walk users through tasks as they use software, reducing the need for formal training sessions.
- Self-Help Resources: Employees can access help at any time through built-in wikis, FAQs, or support documents without leaving the platform.
- Analytics and Monitoring: DAPs track how users interact with the software, allowing managers to identify areas where additional training might be needed.
How DAPs Can Reduce Employee Training Costs
Implementing a digital adoption platform can dramatically reduce the costs associated with employee training in several ways:
1. Reducing the Need for Extensive Training Programs
Traditional training programs can be costly, especially when they involve external trainers, travel, or extensive course materials. DAPs, on the other hand, provide on-demand guidance, allowing employees to learn in real-time. This significantly reduces the need for long, costly training sessions and allows employees to learn at their own pace.
2. Decreasing Lost Productivity
Because DAPs enable employees to learn as they work, there is no need for extended periods away from their regular duties. This minimizes the productivity loss that often accompanies traditional training methods, where employees are taken away from their roles to attend sessions.
3. Customizing Training for Different Roles
With DAPs, training can be customized based on each employee’s role within the company. Sales teams, for instance, can receive specific guidance on how to use CRM systems, while HR teams can get help with human resource management software. This role-based approach ensures that training is relevant and efficient.
4. Supporting Continuous Learning
In rapidly evolving industries, software and processes frequently change. DAPs allow companies to keep their employees up-to-date with these changes by providing continuous, real-time updates and training. This eliminates the need for frequent retraining sessions and helps employees stay proficient without needing to attend new classes.
5. Improving Software Utilization
A major issue in many organizations is underutilized software. DAPs ensure that employees use all the features of the tools available to them, maximizing the ROI on software investments. As employees gain confidence in using the software, they become more productive, and the company sees greater returns on its digital tools.
Real-World Example: Cost Savings Through Digital Adoption
Many organizations that have adopted digital adoption platforms report significant cost savings. For example, Sentry Insurance saved over $1 million in training resources by implementing a DAP for both internal employees and customer-facing applications. The platform allowed the company to provide real-time guidance, reducing the need for extensive training programs and cutting down on customer support costs.
Similarly, DuPont reported a significant reduction in training times by using AI-generated training videos, cutting production time by 80% and saving over $10,000 per video compared to outsourcing training materials.
Conclusion
Training employees is a necessary expense, but it doesn’t have to break the bank. By leveraging digital adoption platforms, organizations can reduce the cost of training while ensuring that their employees are equipped with the skills they need to succeed. DAPs offer real-time guidance, reduce the need for formal training, and help employees get the most out of the company’s digital tools. By implementing these strategies, businesses can not only save on training costs but also improve productivity, employee satisfaction, and overall ROI.
To stay competitive in a digital-first world, adopting these innovative approaches to training is crucial for any forward-thinking organization.
Maximize Your Digital ROI
If your organization is implementing new digital tools and needs support to ensure a smooth transition, CBTW is here to help. Specializing in Change Management and Digital Adoption, we empower teams, departments or company to master their tools quickly and effectively, ensuring your digital transformation delivers results. Our proven strategies focus on enabling your team to achieve measurable ROI in a short timeframe.
Discover how we can help your organization succeed: Explore Our Digital Adoption Solutions.