How to Improve Your Chances of Success in Corporate Training

Many companies invest heavily in employee training, yet studies show that only about 10% of that training is retained, raising the question—why does corporate training so often fail? Despite the poor return on investment, skipping training altogether can lead to even greater costs, from decreased productivity to higher turnover. The key isn’t avoiding training but making it more effective through reinforcement, clear objectives, and relevant content. This article explores why traditional training methods fall short and how companies can ensure their investment leads to real, lasting improvements.​

Would you willingly spend $3,000.00 for a 10% chance your ‘investment’ would produce a good return?
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While many of you reading this instinctively thought “absolutely not”, there inevitably was a select few who thought to themselves, “depends on what the return is”.  A 10% chance your initial investment produces a positive upside is not a favorable proposition to say the least yet businesses do this all the time, in fact multiple times, if not dozens of times, a year.  I welcome you to the flunky world of ‘corporate training’.

Skillademia, an online training and stats organization, indicates US companies spend upwards of $200 billion a year on training and said training carries about a 10% effectiveness outcome.  The average company spends $3,000 per employee on annual training with dismal results to show for it.

Why is it then companies consistently spend so much money on training for such a poor return.  Answer – companies are missing the connection between information retention and positive reinforcement.

In today’s fast-paced and ever-evolving business landscape, employee training is vital, yet just as important is the methodology and mindset of those involved (trainers, company management and the participants.  This article seeks to shed some light on why training fails more than it helps, and how you can ensure the next time you invest in training you’re getting more of a return on your investment.
 
THE FAILURE OF CORPORATE TRAINING
There seems to be a never-ending list which offers insights into the reasons corporate training fails to meet the mark, therefore improving employee performance. 

The #1 reason corporate training fails is due to a lack of reinforcement:  Hermann Ebbinghaus, a 19th Century German Psychologist, was a pioneer in the experimental study of memory and discovered ‘The Forgetting Curve’ which correlates a learners ability to retain information over a given time span.  Ebbinghaus suggests people forget a large portion of what they learn if there is no reinforcement, as follows:

• Immediate Retention: right after a training session, individuals might retain around 50-60% of the information
• After One Day: without reinforcement, retention can drop to around 30-40%
• After One Week: retention might further decrease to approximately 20-25%
• After One Month: retention rates can fall to about 10-20% if no efforts are made to reinforce the learning

Other reasons training programs fail, include:

• Lack of Clear Objectives:

If the training goals are not clearly defined, participants may not understand what they are supposed to achieve, leading to disengagement and ineffective learning

• Irrelevant Content:

Training that does not address the specific needs and challenges of the employees or the organization can lead to disinterest and low retention

• Poor Delivery Methods:

Using inappropriate or ineffective training methods, such as monotonous lectures or poorly designed online modules, can result in disengagement and low participation.

• Inadequate Trainer Skills:

Trainers who lack the necessary skills, experience, or engagement techniques can fail to effectively communicate the material and motivate participants.

• Insufficient Practice and Application:

Without opportunities to practice and apply new skills in real-world scenarios, employees are less likely to retain and use what they've learned.

• Lack of Management Support:

If leadership does not actively support and participate in the training process, employees may not see the value in it and be less motivated to engage.

• No Follow-Up or Reinforcement:

Training is not a one-time event. Without follow-up sessions, reinforcement activities, or continuous learning opportunities, the initial training can quickly become irrelevant.

• Resistance to Change:

Employees who are resistant to change may not fully engage with the training or implement new skills and knowledge.
 
WHAT HAPPENS IF WE DON’T TRAIN
After reading the above it could be easy for someone to say “why even make the investment in the first place” as it relates to corporate and employee training.  While on face value that may make sense, the reality of the situation is far worse than most of us may realize.  Electing to bypass training for your employees can have disastrous results for the company, its ability to operate successfully and its employees. 

​Below are the common pitfalls, and associated consequences of not training employees:

• Decreased Productivity and Efficiency

Employees who lack proper training may struggle to perform their tasks efficiently and effectively. This can lead to mistakes, wasted time, and a general decrease in productivity. When employees do not have the skills or knowledge to complete their work proficiently, the overall output of the organization suffers.

• Higher Turnover Rates

Lack of training can result in job dissatisfaction and disengagement. Employees who feel unsupported and unprepared are more likely to seek opportunities elsewhere. High turnover rates not only disrupt operations but also incur significant costs related to recruiting, hiring, and onboarding new employees.

• Increased Errors and Quality Issues

Untrained employees are more likely to make errors that can compromise the quality of products or services. These mistakes can damage the company’s reputation, lead to customer dissatisfaction, and result in costly rework or refunds. Consistent quality issues can erode customer trust and loyalty.

• Reduced Innovation and Adaptability

Training fosters creativity and innovation by encouraging employees to think critically and embrace new ideas. Without training, employees may become stagnant and resistant to change. This lack of innovation can prevent the company from staying competitive in a rapidly evolving market.

• Compliance and Legal Risks

Many industries have stringent regulatory requirements that employees must adhere to. Without regular training, employees may not be aware of these requirements, leading to non-compliance and potential legal issues. Non-compliance can result in hefty fines, legal battles, and damage to the company’s reputation.

• Lower Employee Morale and Engagement

Employees who do not receive adequate training may feel undervalued and unsupported. This can lead to low morale and disengagement, negatively impacting team dynamics and overall workplace culture. Disengaged employees are less likely to go above and beyond in their roles, which can stifle growth and innovation.

• Inability to Meet Customer Expectations

Customer expectations are continually evolving, and businesses must adapt to meet these demands. Without training, employees may lack the skills to provide high-quality customer service or adapt to new customer preferences. This can lead to customer dissatisfaction and loss of business to competitors who are better equipped to meet these expectations.

• Increased Operational Costs

Inefficiencies, errors, and high turnover rates caused by lack of training can lead to increased operational costs. The costs associated with correcting mistakes, handling customer complaints, and replacing employees can add up quickly. Investing in training can mitigate these costs by enhancing employee performance and retention.

IMPROVE YOUR CHANCES OF CORPORATE TRAINING SUCCESS
So what you’re saying is “I’m damned if I do, and damned if I don’t”.  While it may seem that way on first blush, there is a silver lining that is well within our reach.  The bottom line is, if you aren’t training your employees you simply aren’t a competitive employer.  So rather than avoid training all together, the better approach is to be smart about how you engage in the practice of corporate employee training.

Below is a quick rundown of the three most important factors to implement to ensure your training dollars are well spent and well received:

1. Build into your company culture a consistent process for information reinforcement.  While Ebbinghaus’  ‘The Forgetting Curve’ identifies the rates at which people lose their ability to retain information without reinforcement, Ebbinghaus also smartly identified how to turn that around in our favor.  It’s all about repetition (the employee going through training) and consistent reinforcement (positive reinforcement by company management).  The graph below, compliments of www.howdoi.com, takes Hermann Ebbinghaus’ theory and puts it into practice showcasing the value of repetition.  After a period of four (4) weeks, with consistent repetition, the learner is able to increase their retention of the newly learned knowledge close to 75%.  That’s huge, considering without repetition and reinforcement, the average person will only retain 10-20% of the learning.

1. Once you’ve incorporated repetition and reinforcement, the next two things we need to do to ensure our training investment and aftermath is successful is to focus on setting clear objectives for training and what relevant content will be discussed.
   1. Setting clear objectives is more than just telling your employees they need to learn and explaining the WHY behind it.  Setting clear objectives needs to happen across the entire organization, top down.  Management must be involved every step of the way, working with the training organization while eliciting feedback from the employees before training actually occurs.  With solid information in hand a steering committee can be better positioned to make good, informed decisions which are based in fact and substance.  These training objectives must tie into the company’s large mission and vision and have a clear statement outlining the expectation for everyone involved, including what will come of the training experience for employees and managers alike.
   2. Once clear objectives for training are established, we need to ensure the trainers, regardless if they are internal or external, are utilizing real world and timely information and examples to amend the training course and its content to the learner audience.  The more your training programs are curtailed to the audience bringing in actual examples of the work they perform the more involved the learners will be and the better their ability to apply said learning after the fact will be.  If your company is in the healthcare industry developing medical products, your training should be focused to that particular technology, regulations and processes/ procedures.  Using case studies and examples from the automotive or consumer products industry is both irrelevant and misguided.  Spend the time dialing in your training content up front so its customized to the learners daily job experiences – you won’t regret it.

 
TRAINING DONE WELL HAS A HUGE UPSIDE
The verdict is in – most of us know training is a good idea, it’s our delivery that needs help.  In fact, about 85% of companies with more than 50 employees provide formal training to their employees, and around 95.8% report offering some form of informal training.  (InDemand Designer)​

If you follow the steps above in IMPROVE YOUR CHANCES OF CORPORATE TRAINING SUCCESS, many companies will find training, when done well, has a big upside, including:

• Boosting Employee Morale and Job Satisfaction

Training programs demonstrate a company’s commitment to its employees’ professional growth. When employees feel valued and see that their employer is investing in their future, their morale and job satisfaction increase. This, in turn, leads to higher retention rates, as employees are less likely to leave an organization that supports their personal and professional development.

• Enhancing Skill Sets and Knowledge

Continuous training ensures that employees stay up-to-date with the latest industry trends, technologies, and methodologies. This is particularly crucial in industries that are constantly evolving, such as technology, healthcare, and finance. By providing regular training, companies can ensure that their employees have the necessary skills and knowledge to perform their jobs effectively and efficiently.

• Improving Performance and Productivity

Well-trained employees are more competent and confident in their roles. Training equips them with the tools and techniques they need to perform their tasks more efficiently, leading to improved performance and productivity. This directly impacts the company’s bottom line, as higher productivity often translates to increased profitability.

• Fostering Innovation and Adaptability

Training encourages employees to think creatively and approach problems from different angles. It fosters a culture of continuous improvement and innovation, where employees are not afraid to suggest new ideas or improvements. Additionally, in today’s rapidly changing business environment, training helps employees adapt to new challenges and technologies more quickly, ensuring the organization remains competitive.

• Ensuring Compliance and Reducing Risks

Many industries are subject to strict regulations and compliance requirements. Regular training ensures that employees are aware of the latest laws, regulations, and best practices, reducing the risk of non-compliance and the potential for costly legal issues. This is particularly important in sectors such as healthcare, finance, and manufacturing, where compliance is critical.

• Promoting a Positive Company Culture

Training can be used to reinforce the company’s values, mission, and culture. It provides an opportunity to align employees with the organization’s goals and objectives, fostering a sense of unity and purpose. A strong company culture not only enhances employee engagement but also attracts top talent, as potential employees are often drawn to organizations with a positive and supportive work environment.
 
Investing in employee training is not just a strategic move, it is a necessity for any organization which aims to thrive in today’s competitive environment. By enhancing skills, boosting morale, improving productivity, fostering innovation, ensuring compliance, promoting a positive culture, and preparing for the future, training provides a myriad of benefits that contribute to the long-term success and sustainability of the organization. Companies that prioritize and continually invest in training will undoubtedly reap the rewards of a skilled, motivated, and forward-thinking workforce.
 

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NEED TRAINING SUPPORT?
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