As the business landscape constantly reinvents itself, companies are seeking innovative solutions to stay ahead of competitors. I’ve had the privilege of witnessing firsthand the transformative power of immersive technologies like virtual reality (VR) and augmented reality (AR) in training and development. But beyond the wow factor, what truly matters to businesses is the return on investment (ROI). How do these technologies impact the bottom line? Here’s what I’m seeing in the market.
Offsite, Onsite, Insight: Boosting Training, Learning and Savings
Finding effective ways to train and upskill employees is a pain point for every blue-chip company down to any local small-medium business (SMB). Traditional training methods often come up short. We’ve all sat through the endless slideshows, read dry manuals, and watched outdated videos. None of which reliably capture people’s attention in a meaningful way.
For greater employee engagement, training must be engaging.
Growing evidence shows that people retain significantly more information when they experience something firsthand. Immersive learning technologies like AR and VR training are problem-solving in real-time and creating learning experiences that meet important success criteria: They “land” with the learner and the information is retained.
Holistic ROI: Two Examples from Virtual Reality Training
Let’s consider manufacturing. Instead of reading about how to operate complex machinery or perform an essential process, employees can practice these tasks in a realistic, VR training environment. They can make mistakes, learn from them, and try again, all without the risks or costs associated with traditional hands-on training. It’s learning by doing, and it’s incredibly effective.
Shop and trade careers are making a comeback. So, manufacturing is one place we find a pathway to greater ROI from AR/VR skills training. Let’s look at a more detailed example of holistic ROI by way of manufacturing.
Consider just two expenses in training an employee on a large machine: reduced output for the trainer and downtime (or reduced capacity) for the given machine. For nationwide and global companies with multiple sites, those costs are multiplied. However, advances in AR and VR training can now simulate complex mechanical and manufacturing processes, meaning any employee can learn a new machine and glide into place on the shop floor when they’re ready. Virtual learning gives the concept and content with zero shop hours lost.
Now, with wearables and multiple external sensors, learners can practice kinetic tasks as delicate as tightening a bolt.
Another useful example is introducing VR and AR in the hiring process. Companies are showing potential candidates what a “day in the life” of their future role looks like with VR. This immersive job preview lets them get a genuine understanding of the job, ensuring a better fit from the outset. We’ve seen this lead to lower turnover rates that can save your bottom line anywhere from $7,000-$15,000 per employee.
When employees train using VR or AR, they not only understand the material better, but also they’re more confident when applying it in real-world scenarios. This isn’t just about making training more engaging — though it certainly achieves that — it’s about making it more efficient and effective.
Scalability of Learning Solutions Reduces Training Program Costs
Training is a cost-heavy investment. It’s an up-front expense for any company, and that training almost always involves an employee being on the clock. These expenses are magnified for companies with large or widely dispersed workforces. The older traditional training methods can include accommodation, instructor fees, and the added expense of lost productivity when employees are away from their jobs. But 21st-century immersive learning technologies like VR and AR offer a game-changing, cost-effective alternative.
Once certain VR or AR training programs are developed, they can be deployed to thousands of employees simultaneously, anywhere in the world, without incurring additional costs. This scalability is particularly beneficial for companies dealing with high turnover rates or rapid expansion. By reducing the need for physical training resources, companies can cut expenses while still delivering consistent, high-quality training to all employees.
Creative and Customizable: Blending Training Modalities
Blended learning, which combines immersive learning with other training methods, is a smart investment for organizations that aim to save money long-term. By integrating various training modalities, blended learning ensures that employees are well-prepared for real-world scenarios. This preparation helps reduce safety incidents and user errors involving expensive equipment and company resources. Such a comprehensive approach to training minimizes accidents and operational disruptions, and this smoothness can quickly add up to significant savings.
Modern blended learning models effectively reduce the costs associated with traditional in-person training by offering scalable learning solutions that mix interactive, experiential, and digital learning. These programs are particularly effective for teaching varying-priority topic areas: safety protocols, soft skills and technical skills. Yet, because blended learning programs are customized to meet both learner and organizational needs, they’re versatile enough to work. They can incorporate gamification, microlearning, and various other strategies that help ensure that learning objectives are met in the most effective possible way.
And the key to a successful blended learning program is matching your learning objectives with the right modality or modalities. To get the most out of immersive technologies like AR and VR, avoid overloading these platforms with heavy content or text, which are better suited for more traditional methods. By applying strong instructional design principles that focus on the user experience (UX), companies and organizations can maximize the effectiveness of training programs.
Boosting Employee Engagement and Satisfaction
Employee engagement is indispensable for organizational success. It is the baseline metric that directly impacts productivity, retention, and overall morale. Traditional training, such as lectures and PowerPoint presentations, when used as stand-alone, often fails to engage today’s workforce. Such one-dimensional content and delivery lead to low retention rates and diminished learning outcomes.
Immersive learning, on the other hand, offers an engaging, interactive and novel experience. By employing game-like elements and realistic simulations, VR and AR can transform mundane training sessions into exciting learning experiences. This not only boosts employee engagement but also encourages a culture of continuous learning and development. Engaged employees are more likely to feel valued, leading to higher job satisfaction and retention rates.
Investing in immersive technologies like XR is more than just a smart business decision — it’s about building a skilled, engaged and future-focused workforce. Today’s employees, including those with a lot of their careers still ahead, crave interactive, hands-on learning experiences. They want to work for companies that offer continuous learning opportunities, and which also embrace new technology. By integrating immersive learning into your training and onboarding strategies, you’re not just keeping up with the times but equipping your team for long-term success.
ROD: Return on Data; Real-Time Feedback and Data-Driven Insights
One of the most powerful aspects of immersive learning technologies is their ability to provide real-time feedback and highly detailed data points. VR and AR platforms can track every action a learner takes, offering detailed analytics on performance, behavior, and decision-making processes. This data is invaluable for both learners and organizations.
For learners, immediate feedback allows for quick adjustments and personalized learning paths, enhancing skill development and confidence. For organizations, this data provides insights into employee performance, identifies knowledge gaps, and informs the plans for ongoing training. The ability to granularly measure and analyze training effectiveness — both qualitatively and quantitatively — ensuring that every dollar invested in training delivers maximum value.
The Future of Learning is Immersive
Consider the overall compelling business case for immersive training like AR and VR. By accelerating learning, reducing costs, enhancing engagement, providing real-time feedback, and supporting workforce development initiatives, these technologies deliver a tangible ROI that goes beyond the initial investment. As companies continue to navigate the challenges of a rapidly changing world, those who embrace immersive learning will be better positioned to thrive in the future.
Holistic ROI.
Ultimately, holistic ROI is about people — helping them learn, grow and stay motivated. And when you invest in your people, the ROI naturally follows. Immersive learning isn’t just a tool; it’s a powerful catalyst for creating a more dynamic and capable workforce. The company and its bottom line will see returns. But so will the employees.
The future of learning is here, and it’s immersive.
