Each time you employ an employee for your small business, you must train him; the scope of training varies by employee and position. The success of your business depends on how well your employees perform and how your customers relate to them. Lack of employee training spells trouble for any company because it unfavorably impacts the company, internally and externally.


When a company offers education to its employees, it expects them to perform at optimum level after it’s completed. While developing a training program, consider longevity, relevance, payment options, specificity and location. Even if training is given onsite by an existing employee, you must delegate her tasks to another employee while training is being conducted — this requires thoughtful decision-making. Training can be used to teach employees both subject-matter knowledge and information about the company’s culture so they know how the company operates and what’s expected of them.


Because training teaches new employees how to meet company expectations and gives existing employees a platform for improving current knowledge, it can provide the company a sense of stability. In the absence of training, employees become unsure of what’s expected of them and may end up doing their work tasks inefficiently. Misunderstandings may ensue because employees aren’t clear about the requirements. With confusion comes frustration, as employees become increasingly uncertain about their role in the company. And with frustration comes conflict, as employees can argue with each other or defy management because of improper training.


As employees leave, you must replace them. Too many departures reflect negatively on the company and indicate the inability to retain workers. Further, each time someone leaves, it puts you back at square one. If the root of the problem, which is lack of training, is not fixed, the cycle keeps repeating itself. High turnover costs the company money. Each time an employee is terminated, you must spend money to hire someone else. This includes the time and money spent processing termination paperwork, advertising for someone new, interviewing job applicants, processing new-hire paperwork, and allowing existing employees and the new worker time to adjust to each other. If these adjustments happen too frequently, existing employees may grow tired of it.

Physical Disasters/Noncompliance

In an environment that requires employees to perform physical duties, such as a plant foreperson or a warehouse forklift operator, lack of training is hazardous to an employee’s health and violates federal health and safety laws. The Occupational Safety and Health Administration requires employers to communicate safety procedures to ensure that employees comply with health and safety policies.

Relationships and Income Loss

Solid business relationships are built on trust and understanding. The absence of employee training may result in inept communications that ruin those relationships. Further, the company suffers a loss of revenue if projects are improperly designed due to lack of employee training. For example, a manufacturing product that is poorly designed and created results in loss of income because the product must be redesigned and remade satisfactorily.


A well-trained and committed employee is likely to remain with the company. Because you took the time to ensure that she receives proper training, she’s more motivated to give back to the company. An employee who lacks proper training is unmotivated because she lacks the knowledge needed to serve your customers. This results in low productivity and inaccurate work, which hurts the company’s bottom line.