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ATD Blog

The Cost of Training Versus the Cost of Staff Turnover

Friday, September 3, 2021

Training is one area in which companies (especially in high-turnover industries) are sometimes loath to make significant monetary investments. They may think, “Why put that much time and effort into an employee who may be gone within 12 months?”

That mindset focuses on the cost of training but fails to recognize its benefits; namely, that effective training can patch a leaky employee pipeline. The key to productivity isn’t spending less money on the employees who leave; it’s spending the right amount of time and money on training that keeps them from leaving. Over time, training more than pays for itself in terms of both money and duration.

Why Virtual Training Is the Best Solution

Before we discuss the cost of training versus the cost of staff turnover, let’s explore why virtual training may be the best solution for your business.

Firstly, it’s more affordable. Studies suggest that employers can save up to 40 percent on expenses when they choose virtual learning options. Without question, it is the most cost-effective training method.

Secondly, it’s more effective. The American Institute for Research claims that e-learning boosts retention rates by 25 to 60 percent.


Lastly, employees prefer it. The statistics around virtual work are telling and can be projected to virtual training:

  • Fifty-four percent of adults want to work remotely most of the time even after the pandemic.
  • Remote work can increase productivity and engagement up to 13 percent.
  • Remote work can cut attrition rates by up to 50 percent.

Training Saves Money

According to the Center for American Progress, it costs businesses about one-fifth of a worker’s salary to replace that worker. The costs are usually incurred in relation to recruiting, hiring, and training new team members. Then there’s the cost of lost productivity, which we will further discuss. That’s a costly percentage, especially for companies that typically experience high turnover or that have to replace high-paid, high-level executives.


Proper training influences employee retention by instilling a sense of belonging and worth in team members, as well as imbuing them with the confidence to do their jobs. Employees who feel like they’ve been left to work out their responsibilities and the company’s policies and procedures for themselves often become frustrated and unwilling to invest their time and effort into a company that didn’t invest in them.

Training Saves Time

Staff turnover always results in productivity losses as well, due to the unavoidable work gap that occurs between the time a team member leaves and their replacement is hired. Also, every new hire takes some time to get up to speed in their new job. Some companies suggest that it takes at least one year, possibly up to two years, for an employee to be fully productive.

Imagine how much time you can save in that acclimation process through thorough training. And as we all know, time really is money.

To learn how to incorporate effective virtual training and reduce the monetary and productivity costs of high turnover, please contact Jigsaw Interactive.

About the Author

Vice President of Sales and Marketing, Jigsaw Ginger has more than 25 years’ experience in the healthcare technology sales industry. She has worked in both profit and nonprofit organizations, with experience in sales, marketing, business development, administration, and operations. Ginger’s interactive management style has led sales teams to consistently exceed their sales goals. Her primary focus and sales technique is to ensure quality customer service while identifying customer needs and matching them to specific solutions. Ginger’s experience ranges from working with smaller organizations to leading multiple sales and marketing teams for large companies such as Caremark International, NDCHealth, RPM, and CareMedic. She is also an entrepreneur; she helped start several companies and led the growth of those companies through sales and marketing. 

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