The Cost of Poor Training – How Lack of Structured Development Leads to High Turnover
· 2 min read · Resources quadrant
Why Poor Training is One of the Most Expensive Mistakes Businesses Make
Hiring a new employee is an investment. But what happens when that investment walks out the door within a few months?
Without structured employee development, businesses face:
❌ High turnover rates
❌ Wasted time and money on hiring & retraining
❌ Lower productivity and morale
The RISE Business Framework teaches that Talent Development —one of the four pillars of the Resources Quadrant —is essential to retaining employees and ensuring long-term success.
Let’s explore why lack of structured training costs businesses thousands and how you can fix it with a strong development plan.
The True Cost of Poor Employee Training
Companies often underestimate how much bad training is costing them. Here’s a breakdown:
1. High Turnover Costs Businesses Thousands
- Hiring a new employee costs on average 6-9 months of their salary.
- Up to 80% of turnover is due to poor onboarding and training.
2. Lower Productivity & Poor Performance
- Untrained employees take longer to ramp up and make more mistakes.
- Inefficiencies increase as employees struggle without clear guidance.
3. Employee Frustration & Burnout
- Without structured development, employees feel lost and unsupported.
- They leave for companies that offer better training and career growth.
A bad training program isn’t just an inconvenience—it’s a profit killer.
How to Fix Employee Training & Reduce Turnover
The RISE Business Framework recommends structured training programs that guide employees from day one.
Step 1: Implement a 30-60-90-Day Training Plan
✔ First 30 Days – Learning & Observation
✔ Days 31-60 – Application & Contribution
✔ Days 61-90 – Ownership & Independence
Step 2: Assign Mentors & Coaches
✔ New hires need ongoing support, not just a training manual.
✔ Weekly check-ins improve engagement & retention.
Step 3: Use Stoplight Reports to Track Progress
✔ Green = On Track, Yellow = Needs Support, Red = At Risk
✔ Helps identify struggling employees early and provide help before they quit.
Frequently Asked Questions (FAQs)
FAQs About the Cost of Poor Training
1. How does poor training cause high turnover?
Employees who don’t feel supported or confident in their role are more likely to leave.
2. What is the best way to improve employee retention?
Invest in structured onboarding, ongoing development, and mentorship programs.
3. How do I measure if my training program is working?
✔ Track employee performance & engagement metrics
✔ Use Stoplight Reports to monitor progress
✔ Conduct exit interviews to identify training gaps
FAQs About the RISE Business Framework
1. How does RISE help businesses improve training?
By implementing structured development plans, accountability tools, and performance tracking.
2. Is RISE only for large businesses?
No! Small businesses need structured training even more to maximize resources.
3. How do I start using RISE?
- Take the RISE Business Assessment
- Implement a structured training program
- Use accountability charts & Stoplight Reports
Final Thoughts
If your business struggles with high turnover, low productivity, or disengaged employees, lack of structured training may be the problem.
By implementing a strong employee development plan, you can reduce hiring costs, increase retention, and build a stronger team.
