How Neglecting Training is Costing You Big Time

Hey Amplifiers everywhere!

I got a bit mad this week. Visited a store in a hurry cos my new PC only had 1 x HDMI output, and I have a 2 monitor set up. So the other screen could only go live with HDMI to Display Port Adaptor. Didn’t know THAT was a thing (it is 11 years since I changed my desktop PC mind you!).

So I hopped on over to my local Currys / PC World / Carphone Warehouse, or whatever they are called this week. Bear in mind this is a 25,000 sq ft monster of an consumer electronics store - think Best Buy or Media Markt or Suning or GOME if you go a bit further afield.

Big mistake.

I happened upon a newbie. Now I was once myself, I not an A-hole, and I sure have trained a battalion of them. Not this one.

No clue where cables were. No clue what a Display Port Adaptor was. All she knew was where Dave was, so she shouted him over and just stood there. Silent.

All the while my eyes are rolling into the back of my head, and I’m resisting the urge to tell her out loud “So I’ll explain what I’m looking for AGAIN then shall I”.

Which I did, without protesting - after all I AM British - and I come from the land where the ONLY acceptable answer to “How is everything with your meal?” is to tell the server “Fine, yes, fine thanks.” Only it’s not fine, you’ve already complained about it to your significant other 10 times, and you’ve already decided not to go back……….

I see this every time I visit telecoms stores – which is a lot.

Let’s dive into why prioritizing employee training isn’t just a nice-to-have - it’s a survival strategy in today’s hyper-competitive retail landscape.

The Invisible Drain: What Poor Training is Costing You

Let’s get straight to it. An untrained workforce doesn’t just underperform - it actively costs you money. Here’s how:

• Revenue Loss: Companies with robust training programs see 218% higher income per employee, according to ATD Research. Those without? They’re bleeding potential profits.

• Turnover Tsunami: 40% of employees are likely to leave their current job if they feel unsupported, costing you up to 30-50% of their annual salary to replace them. Multiply that by your churn rate, and it’s a horrifying hit to your bottom line.

• Customer Exodus: Poorly trained staff lead to bad service, and bad service equals lost customers. A single negative experience can send 33% of customers straight to your competitor. And thanks to social media, that bad experience is likely to reach hundreds more.

The Ripple Effect of Weak Training Programs

Neglecting training doesn’t just hurt your bottom line - it wreaks havoc across your organization. Low morale? Check. High turnover? Double check. A disengaged workforce isn’t just bad for your employees, it’s also a nightmare for your customers.

The stats speak for themselves:

• According to RAIN Group, only 35% of retail employees rate their training as “very effective.”

• Disengaged employees cost companies 34% of their annual salary in lost productivity, says ActivTrak.

• A Gallup study found 87% of Millennials say professional development is crucial to their job satisfaction. Pretty important, given Millennials are the demographic that’s dominating the workforce.

The takeaway? If you’re not investing in training, you’re investing in your competition’s success.

Your Secret Weapon: A Training Culture That Sticks

So, what’s the solution? You need a training program that’s as dynamic and engaging as your best marketing campaign. Forget stale onboarding videos and PowerPoint decks. Here’s what works:

• Microlearning Modules: Bite-sized lessons keep attention spans intact and make retention easier.

• Interactive Training: Role-playing and gamification engage employees and boost long-term skills.

• Continuous Development: Training isn’t one-and-done. Monthly refreshers and new skill modules keep your team sharp.

• Data-Driven Insights: Use KPIs like turnover rates and customer satisfaction scores to measure training effectiveness and tweak as needed.

The ROI of Training: Show Me the Money

Now you may think, “Will, you’ve definitely drunk the training Kool-Aid, of course you’re a big fan of training programs”. And while that’s definitely true, the numbers don’t lie:

• Adding $1,500 per employee to training budgets can yield a 24% increase in profit.

• A mere $680 investment per employee boosts shareholder returns by 6%.

• Effective training programs reduce turnover rates by up to 50%.

Translation: Training isn’t an expense; it’s an investment – and one that delivers some pretty exception results.

Real Talk: Bad Training is a Brand Killer

Imagine this scenario: A customer walks into your store, asks a basic question, and gets a shrug in response. No sale. Worse, they’re telling everyone from their friends to their X followers about the lousy experience. Bad training doesn’t just lose you one customer - it erodes trust in your brand.

On the flip side, a well-trained associate can:

• Turn a casual browser into a loyal buyer.

• Upsell and cross-sell effectively, increasing basket size.

• Deliver the kind of standout service that turns customers into brand evangelists.

4 Steps to Get Started

Ready to plug the profit leak? Here’s how to overhaul your training strategy:

1. Audit Your Current Program: Identify gaps in knowledge and skills. Look at customer feedback and performance metrics for clues.

2. Invest in Cutting-Edge Tools: Think virtual reality simulations for sales training or AI-powered learning platforms that personalize lessons for each employee.

3. Involve Your Team: Ask your employees what they need to succeed. Their insights will guide you to create a more effective program.

4. Measure and Adjust: Training isn’t static. Track your program’s effectiveness and be ready to pivot based on results.

Wrap Up

In retail, training isn’t just about onboarding. It’s about building a culture of excellence that resonates from your employees to your customers. A well-trained team is your competitive edge, your brand’s best ambassador, and your biggest profit driver. So, stop bleeding money and start INVESTING in your people. Trust me, your bottom line will thank you!

Save me from having to endure the bad handover to “Dave” please. Please.

As always, I love to chat and I’m here to help! Drop me a message or a comment.