Francesca De Cozar from the BVRLA’s Learning and Development team explores the often-overlooked impact of training on business performance. From productivity and profitability to employee retention and risk reduction, she highlights why learning and development is frequently underutilised, and what organisations stand to gain - or lose - depending on how they approach it.
Training is often labelled a ‘nice to have,’ but there’s evidence to show it is one of the most commercially impactful investments a business can make.
On average, effective training programmes increase productivity by 6 - 12%, with around 75% of organisations reporting a positive return on investment (ROI), and many targeted initiatives, particularly in sales or technical areas delivering 200 – 400% ROI. In some cases, organisations that prioritise learning and development report up to 24% higher profit margins, driven by stronger performance and efficiency across teams.
These returns don’t come from one dramatic change, but from multiple small improvements that compound over time: employees complete tasks faster, make fewer costly mistakes, require less supervision, and engage more confidently with customers. Even a modest 5% increase in sales conversion rates or a slight reduction in operational errors can have a measurable impact on annual revenue and margin.
Retention is another major financial driver, employees are more likely to stay with companies that invest in their development, with studies suggesting up to 94% higher likelihood of retention, which is critical when employee turnover costs range from 33% to 200% of an annual salary (depending on role and salary).
However, one of the most overlooked challenges is that employees rarely ask for training themselves.
New starters often avoid requesting support because they don’t want to appear inexperienced, choosing instead to ‘figure things out’ quietly, which can slow their development and introduce errors. At the same time, experienced employees frequently feel they should already know new systems, technologies, or regulatory changes, particularly in fast-moving areas like EVs or compliance, so they work around gaps in knowledge rather than addressing them directly. Compounding this is the issue of time, employees who are already stretched tend to deprioritise training, despite the fact that the right course could make them significantly more efficient. Research also shows that without reinforcement, people forget up to 70% of what they learn within 24 hours, which highlights that the real value of training comes when it is applied and embedded into daily roles, not treated as a one-off event.
The cost of not investing in training is often less visible: longer onboarding periods for new starters, missed sales opportunities due to lack of confidence or product knowledge, increased compliance risks, and higher staff turnover. For example, if a new employee takes an additional two to three months to reach full productivity due to lack of structured training, the hidden cost can quickly exceed the investment required to support them properly from the outset. Similarly, in customer-facing roles, uncertainty around newer technologies, such as EVs can lead to avoided conversations, lower conversion rates, and reduced customer trust.
By contrast, even a relatively small investment in training can generate more value over a 12-month period through improved efficiency, stronger sales performance, and better retention. Training is not simply about knowledge transfer, it underpins performance, reduces risk, and enables teams to adapt to industry change with confidence.
The data is clear: most training delivers a positive ROI, often significantly so, and the greatest risk is not the investment itself, but failing to address the skills gaps that already exist within a business.
Whether a comprehensive sales development programme used by OEMs, funders, and manufacturers is needed, or introductory sessions for smaller teams, a range of options is available. The BVRLA’s Learning and Development team can accommodate specific requirements, programmes can be tailored to reflect your organisation’s needs and priorities.
Email: [email protected]
Call: 07905 292317
