The Hidden Cost of Poor Corporate Training
- LMSPortals
- Jun 5
- 5 min read
Training isn't optional. It’s mission-critical. But not all training is created equal. Many companies unknowingly burn through budgets and wear down their teams with programs that look good on paper but fail in practice.
This article pulls back the curtain on how poor training strategies quietly sabotage organizations — and how effective eLearning can turn that around.
Why Training Fails More Often Than You Think
Corporate training should boost productivity, improve retention, and drive performance. But when it misses the mark, it does the opposite. Gallup reports that only 12% of employees strongly agree their organization does a great job of onboarding new hires. That’s not a fluke — it’s a sign of a systemic issue.
The Illusion of Activity
Just because training is happening doesn’t mean it’s working. Many companies fall into the trap of equating activity with impact. They check boxes instead of building capability.
Common pitfalls:
Generic content: One-size-fits-all training fails to engage or relate to real job roles.
Poor instructional design: Endless slides, outdated videos, or clunky interfaces tank engagement.
Lack of follow-through: Training is treated as a one-time event instead of an ongoing process.
The result? Wasted time, low retention, and frustrated employees.
The Quiet Budget Killer: Hidden Costs of Ineffective Training
Bad training doesn’t just waste time — it eats into budgets in subtle, compounding ways.
1. High Turnover and Low Morale
When employees don’t feel supported or equipped to do their jobs, they leave. According to LinkedIn’s Workplace Learning Report, companies that fail to offer strong learning opportunities see significantly higher attrition rates. Replacing a single employee can cost up to twice their annual salary when you factor in hiring, onboarding, and lost productivity.
2. Productivity Slumps
Poor training leads to inconsistent workflows and more mistakes. Employees have to figure things out on their own, which slows everything down. Meanwhile, high performers burn out picking up the slack.
3. Manager Time Drain
When frontline training fails, the burden falls on managers. They spend hours repeating instructions or fixing avoidable errors. That’s time that should go toward coaching, strategy, and leadership.
4. Compliance Risks
In regulated industries, training is the front line of compliance. If it’s not up to par, you’re exposing your business to legal and financial risks. Bad training is a liability.
Effective eLearning: A Smart Fix for a Broken System
eLearning isn’t a silver bullet — but when done right, it’s a scalable, cost-effective way to deliver meaningful training. It solves many of the core issues traditional training struggles with.
What Effective eLearning Looks Like
1. Job-Relevant and Role-Specific
Effective eLearning is tightly aligned with what people actually do. It focuses on real tasks and problems, not generic theories. Great eLearning answers two questions clearly:
What do I need to know?
What should I do next?
2. Bite-Sized and On-Demand
Nobody wants to sit through an hour-long video when they only need a two-minute answer. Microlearning — short, focused lessons — meets learners where they are. And it respects their time.
3. Interactive and Engaging
Passive learning doesn’t stick. Good eLearning uses interactivity: quizzes, branching scenarios, decision-making exercises. These elements drive real comprehension and keep people involved.
4. Data-Driven
Smart eLearning platforms track engagement, completion, and performance. That means training teams can spot what’s working and adjust what’s not — in real time.
How to Spot a Failing Training Strategy
Sometimes bad training hides in plain sight. Here’s how to tell if your current approach needs a serious overhaul.
Symptoms of a Broken Training System
New hires struggle past their onboarding window
Teams rely on tribal knowledge, not training
High-performers train others informally
Managers complain about repeating instructions
Compliance violations or near-misses increase
Employees complete training but still make the same mistakes
If any of these sound familiar, it’s time to rethink how you’re training.
Case in Point: Real Costs of Ineffective Training
Let’s break this down with a simple example.
Company A uses a traditional onboarding program: 3 days of lectures and manuals. New hires retain maybe 10% of what they learned. Managers spend the next two weeks retraining them on the job.
Company B switches to a modular eLearning platform. Onboarding is spread over 30 days with task-based modules. New hires can revisit lessons, and managers track progress live.
The result?
Company B sees 30% faster ramp-up time.
Manager time spent retraining drops by 40%.
Employee engagement and retention rise.
That’s not magic. It’s just smart design backed by strategy and tech.
Building a Better Training Program
Fixing training doesn’t mean starting from scratch. It means identifying what’s broken, and replacing ineffective pieces with scalable, learner-focused alternatives.
Step 1: Audit What You’ve Got
What training is being offered?
Who is it for?
Is it aligned with business goals?
How do you measure effectiveness?
Don’t assume your current training is working just because it’s there.
Step 2: Talk to Learners
Get direct feedback from employees. Ask:
What training helped you most?
What did you ignore or forget?
What would you change?
Employees know where training fails — if you’re willing to ask.
Step 3: Invest in Design
Great training isn’t accidental. It’s built by people who understand learning science, not just subject matter. Work with instructional designers who can translate content into clear, engaging, job-relevant lessons.
Step 4: Embrace eLearning — But Do It Right
Pick a platform that supports:
Modular learning
Interactivity
Analytics
Easy updates
Avoid platforms that feel like digital filing cabinets. Your content should live, breathe, and evolve.
Culture Matters: Training Is a Signal
Training isn’t just about information transfer. It’s a message.
Good training says:
We invest in our people.
We value your time.
We want you to succeed.
Bad training says:
Figure it out.
Your development doesn’t matter.
You’re on your own.
People listen to what training tells them — even if it’s unspoken.
Summary: Stop Wasting Time and Money on Training That Doesn’t Work
Training is supposed to be a driver of growth. When it’s broken, it becomes a silent drain — bleeding money, eroding morale, and burning out your team.
But the fix isn’t more training. It’s better training.
Effective eLearning, designed with intention and focused on the real needs of your workforce, is one of the smartest investments you can make. Not just to save money — but to unlock the full potential of your people.
Don’t let poor training quietly sabotage your business. Fix it. Make it count.
About LMS Portals
At LMS Portals, we provide our clients and partners with a mobile-responsive, SaaS-based, multi-tenant learning management system that allows you to launch a dedicated training environment (a portal) for each of your unique audiences.
The system includes built-in, SCORM-compliant rapid course development software that provides a drag and drop engine to enable most anyone to build engaging courses quickly and easily.
We also offer a complete library of ready-made courses, covering most every aspect of corporate training and employee development.
If you choose to, you can create Learning Paths to deliver courses in a logical progression and add structure to your training program. The system also supports Virtual Instructor-Led Training (VILT) and provides tools for social learning.
Together, these features make LMS Portals the ideal SaaS-based eLearning platform for our clients and our Reseller partners.
Contact us today to get started or visit our Partner Program pages
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