The initial investment for training new hires in today’s workforce can be costly. According to Training Magazine, organizations spend around 13% of their budget on training—amounting to nearly $775 per learner in 2024.
Those training expenses can add up quickly for owners of HVAC-R businesses, particularly those who are growing their teams, making it tempting to either rush or skimp on training and adopt a “learn as you go strategy.” However, the hidden costs—and risks—associated with sending inadequately trained technicians into the field can surpass the initial investment.
For example, one job site injury costs companies an average of $44,000 in workers’ compensation, and warranty claims for subpar work quickly eat into profits. To avoid the hidden costs associated with untrained team members, HVAC-R businesses need an engaging training system that prepares new hires to excel on the job and helps experienced technicians grow their skills and cross-train.
How Untrained Technicians Affect Your Bottom Line
Robust training systems prevent companies from costly mistakes that hurt their reputation and diminish their bottom line. Without these systems in place, employee missteps could lose potential business and, in worst-case scenarios, result in a potential shutdown. Undertrained employees can impact your bottom line through:
Inefficiencies and on-the-job errors. Technicians with minimal training are more likely to make mistakes when planning for upcoming jobs, like leaving behind necessary equipment. And when they make it to the job site, they may not remember how to set up or use the equipment. These mistakes add up over time, resulting in lost labor hours, repurchasing materials, or callbacks from improper repairs.
Equipment damage and downtime. Skilled trades positions involve working with specialized, and often expensive, equipment or machinery. Without a thorough understanding of their equipment, undertrained technicians may be more likely to break or damage equipment. This lack of knowledge can result in job delays and a shortened lifespan of specialty equipment.
Workplace injuries and workers’ compensation costs. Working in the skilled trades comes with inherent risks, and improperly trained technicians may take more risks that lead to injury. Recent National Safety Council (NSC) data shows that preventable work injuries cost employers $167 billion—or $1,040 per worker—in 2022. While a lack of training isn’t the cause of all workplace incidents, it plays a significant role.
The Long-Term Effects Of Missed Technical Training
Businesses may notice inefficiencies, damaged equipment, or workplace injuries right away, but the long-lasting effects of minimal training may stay hidden and negatively impact the company over time. Common issues caused by inefficient training methods include:
Higher employee turnover. Untrained individuals often feel lost at work and struggle with efficiency throughout the day. Over time, this feeling builds up and causes employees to leave, creating more turnover. Losing these team members can amplify inefficiencies by spreading out a larger workload over a smaller crew. Additionally, hiring more employees without a comprehensive training system will result in a cycle of turnover until better training is adopted.
Non-compliance. Working in the trades requires compliance from safety organizations, like the Occupational Safety and Health Administration (OSHA). If repeat injuries or fatalities occur on a job site, or if employees report the business, the chance for inspections from OSHA is more likely and can lead to costly penalties of up to $16,550 per violation.
Damaged reputation. Word-of-mouth plays a powerful role in business success. The more efficient and professional field technicians are, the better chance a business has of building long-term relationships with customers. Inefficient team members can hurt a business’s reputation, leading to lower customer satisfaction and less work over time.
The Solution: Virtual Training And Professional Development Programs
Businesses can prevent the hidden costs of minimal technical training by adding robust virtual learning environments to their current training. Blending traditional classrooms and on-the-job shadowing with interactive virtual simulations saves businesses time and money:
- Lower training costs—virtual reality and simulations reduce the need to buy one-time-use training materials or send employees to costly classroom training
- Improved confidence and retention—learners who use virtual training retain information and are ready to work four times faster
- Increased on-the-job problem-solving skills—virtual learners have the freedom to fail until they understand the situation
By embracing technology and using it to drive progress forward, HVAC-R business owners can improve training outcomes and avoid the potential hidden costs of sending undertrained technicians into the field. As a result, businesses can develop more efficient, loyal teams who provide outstanding service to their customers.