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The Hidden Costs of the Untrained Workforce


With the challenge of finding skilled workers, budget cuts and companies running leaner than ever, many businesses may be experiencing the hidden costs of an untrained workforce – without even knowing it! Some of the hidden costs to having an untrained and/or unskilled workforce can include lost production time, inefficiencies, missed deadlines, poor customer retention, rework and injuries.

Employee turnover and retirements can play a role in the changing demographic of the workforce. Many companies are reporting that it’s increasingly challenging to replace workers who retire with qualified employees.

As a result, the overall demographic of workers is changing, along with the internal corporate IQ. Additionally, budget cuts have forced companies to cut costs. On the surface, it may seem easier to cut indirect labor as opposed to the direct “front-line” labor, as the impact on productivity isn’t felt immediately. However, there may be an impact on morale and productivity at the direct labor level.

By investing in training for all workers, companies can reap benefits which can include saving time and money, improving productivity and workplace safety.