WEBVTT 00:00:00.000 --> 00:00:03.419 Welcome to the deep dive. Alright, so you, our 00:00:03.419 --> 00:00:05.299 listener, you're likely deep in it right now, 00:00:05.540 --> 00:00:08.720 heading smack into the critical 2026 budget season. 00:00:09.099 --> 00:00:11.560 We know, we know, your mind's probably on the 00:00:11.560 --> 00:00:15.650 big unavoidable stuff, inventory risk, supply 00:00:15.650 --> 00:00:18.410 chain headaches, figuring out those huge marketing 00:00:18.410 --> 00:00:20.670 spends. Absolutely. Those are the giants in the 00:00:20.670 --> 00:00:22.690 room. But today, we want to shift your focus 00:00:22.690 --> 00:00:24.089 a bit. We're going to talk about an investment 00:00:24.089 --> 00:00:27.309 area that, well, it consistently delivers really 00:00:27.309 --> 00:00:30.410 strong, measurable ROI. But somehow, it often 00:00:30.410 --> 00:00:33.350 gets pushed back right left until the last minute. 00:00:33.710 --> 00:00:35.469 We're talking about strategic frontline training 00:00:35.469 --> 00:00:38.340 and communication. And pushing it back is a huge 00:00:38.340 --> 00:00:40.899 mistake. Our goal today really is to arm you 00:00:40.899 --> 00:00:43.060 with the data. We've gathered insights from, 00:00:43.060 --> 00:00:45.259 you know, finance journals, retail ops reports, 00:00:45.780 --> 00:00:47.759 a whole stack of sources. We want to help you 00:00:47.759 --> 00:00:50.079 build that rock solid business case to prioritize 00:00:50.079 --> 00:00:52.539 this spend now to show that investing in your 00:00:52.539 --> 00:00:54.719 people, your associates, it's genuinely a profit 00:00:54.719 --> 00:00:57.340 driver, not just another line item expense. OK, 00:00:57.380 --> 00:01:00.799 so let's just jump right into it. Maybe start 00:01:00.799 --> 00:01:03.500 with a bit of a cold shower of reality. Our sources 00:01:03.500 --> 00:01:05.900 are pretty clear. Thinking of training is some 00:01:05.900 --> 00:01:08.579 kind of checkbox exercise. Yeah, a one -off event. 00:01:08.680 --> 00:01:10.819 That's completely outdated thinking now. Oh, 00:01:10.900 --> 00:01:12.719 absolutely. Absolutely. Especially in retail 00:01:12.719 --> 00:01:16.099 today. Modern training, it has to be continuous. 00:01:16.180 --> 00:01:18.319 It's about constantly delivering knowledge, deploying 00:01:18.319 --> 00:01:20.980 the right tools. The second your company stops 00:01:20.980 --> 00:01:23.280 that investment in learning, well your frontline 00:01:23.280 --> 00:01:26.420 teams, they start becoming less effective, less 00:01:26.420 --> 00:01:28.980 engaged. Which leads right into the retention 00:01:28.980 --> 00:01:31.659 problem, doesn't it? Directly. It's a core reason 00:01:31.659 --> 00:01:34.299 that retention crisis is just, well, spiraling. 00:01:34.599 --> 00:01:36.780 Look at the numbers the employee quit rate in 00:01:36.780 --> 00:01:39.060 U .S. retail and hospitality. It's staggering. 00:01:39.519 --> 00:01:42.200 Over 70 % higher than the overall U .S. average. 00:01:42.260 --> 00:01:44.920 Just 70 % higher. Wow. That's the real cost of 00:01:44.920 --> 00:01:47.569 just standing still. of not investing. OK, let's 00:01:47.569 --> 00:01:49.450 dig into that turnover problem then for section 00:01:49.450 --> 00:01:52.609 one. Can we quantify it? Just how bad is it on 00:01:52.609 --> 00:01:54.930 the floor? We can. Looking at recent benchmarks, 00:01:55.090 --> 00:01:57.250 the average retail employee turnover rate in 00:01:57.250 --> 00:02:01.109 2023, it was sitting around 60 percent, 60 percent 00:02:01.109 --> 00:02:04.049 overall. 60. That's already tough to manage. 00:02:04.150 --> 00:02:07.709 It is. But then you drill down into those hourly 00:02:07.709 --> 00:02:11.009 part -time frontline roles. That's where it really 00:02:11.009 --> 00:02:15.090 jumps. The rate hits 76%. 76%. Just pause on 00:02:15.090 --> 00:02:18.150 that for a second. As an executive, you're basically 00:02:18.150 --> 00:02:20.849 replacing three out of every four people on your 00:02:20.849 --> 00:02:24.340 store floor. every single year. That's not a 00:02:24.340 --> 00:02:26.699 stable business. It's a revolving door, makes 00:02:26.699 --> 00:02:29.699 consistency almost impossible. Exactly. It's 00:02:29.699 --> 00:02:31.900 precisely that dynamic that people are calling 00:02:31.900 --> 00:02:35.060 the great attrition. You know, employee priorities, 00:02:35.199 --> 00:02:37.639 they've shifted since COVID. People are just 00:02:37.639 --> 00:02:41.460 less willing to put up with friction or misalignment 00:02:41.460 --> 00:02:43.659 in their jobs. They expect more. They demand 00:02:43.659 --> 00:02:45.919 more, yeah. And employers who treat training 00:02:45.919 --> 00:02:47.840 like it's optional, they're losing that battle 00:02:47.840 --> 00:02:49.719 from the get -go. And it's not just the brand 00:02:49.719 --> 00:02:52.069 new hires leaving, right? Yeah. The source is 00:02:52.069 --> 00:02:54.330 pointed to a risk higher up, too. That's a critical 00:02:54.330 --> 00:02:56.469 point. It's the managers. One of the biggest 00:02:56.469 --> 00:02:58.889 risks we see in the data is among middle management. 00:02:59.430 --> 00:03:01.870 A really concerning 63 % of frontline retail 00:03:01.870 --> 00:03:04.030 managers are actively thinking about quitting. 00:03:04.530 --> 00:03:07.430 63 % of managers. OK, if you're a leadership 00:03:07.430 --> 00:03:09.650 player, the people running the shift, controlling 00:03:09.650 --> 00:03:12.069 operations day to day, if they're looking to 00:03:12.069 --> 00:03:16.240 jump ship. How can you possibly maintain a reliable, 00:03:16.240 --> 00:03:19.039 decent customer experience? You really can't. 00:03:19.039 --> 00:03:21.439 It becomes incredibly difficult. And that managerial 00:03:21.439 --> 00:03:23.219 attrition, that's where the financial damage 00:03:23.219 --> 00:03:25.659 starts getting, well, catastrophic. Right. Let's 00:03:25.659 --> 00:03:27.599 talk dollars and cents then, the price tag of 00:03:27.599 --> 00:03:30.840 losing people. For the executive listening, crunching 00:03:30.840 --> 00:03:34.659 those budget numbers, these figures really make 00:03:34.659 --> 00:03:38.400 retention a matter of fiscal survival, basically. 00:03:38.699 --> 00:03:41.319 What does this churn actually cost? It costs 00:03:41.319 --> 00:03:44.550 way more than just placing an ad. far more. When 00:03:44.550 --> 00:03:46.509 you look at the industry benchmarks, losing an 00:03:46.509 --> 00:03:48.370 entry level associate, someone on the front line, 00:03:48.629 --> 00:03:51.650 that typically costs between 30 % and 50 % of 00:03:51.650 --> 00:03:54.250 their annual salary to replace. OK, 30 % to 50 00:03:54.250 --> 00:03:56.729 % for entry level. But then when you lose a mid 00:03:56.729 --> 00:03:59.169 -level employee, like a store manager, that number 00:03:59.169 --> 00:04:02.110 just explodes. We're talking 150 % of their annual 00:04:02.110 --> 00:04:06.770 salary, 150. Wow. And if you lose senior staff, 00:04:07.150 --> 00:04:09.330 specialists, you'd be looking at 400 % of their 00:04:09.330 --> 00:04:12.560 salary. OK, wait. Let's just unpack that 150 00:04:12.560 --> 00:04:15.300 % figure for a manager. That number should really 00:04:15.300 --> 00:04:18.079 make the CFO sit up. Is that just recruitment 00:04:18.079 --> 00:04:20.680 fees? What's driving such a massive cost? No. 00:04:20.779 --> 00:04:22.519 No, it's much broader than just recruitment. 00:04:22.959 --> 00:04:26.000 That 150 % includes the obvious things. Sure, 00:04:26.180 --> 00:04:28.220 exit interviews, advertising, background checks. 00:04:28.560 --> 00:04:31.740 But the real cost, the real pain comes from all 00:04:31.740 --> 00:04:34.519 the hidden stuff. Like what? Like management 00:04:34.519 --> 00:04:37.639 time sunk into recruiting. lost productivity 00:04:37.639 --> 00:04:40.220 while that position sits empty, the hit to team 00:04:40.220 --> 00:04:43.160 morale when a manager leaves, all the costs tied 00:04:43.160 --> 00:04:45.420 to getting the new hire up to speed, that slow 00:04:45.420 --> 00:04:48.300 ramp up period, and maybe most critically, the 00:04:48.300 --> 00:04:50.439 loss of institutional knowledge. You know, all 00:04:50.439 --> 00:04:52.620 the specific things that manager knew about how 00:04:52.620 --> 00:04:55.519 your store runs. Inventory flow, scheduling quirks, 00:04:55.680 --> 00:04:57.699 who the key local customers are. To stuff that 00:04:57.699 --> 00:05:00.220 isn't written down anywhere. Exactly. So losing 00:05:00.220 --> 00:05:03.579 just, say, 20 mid -level managers across a medium 00:05:03.579 --> 00:05:06.110 -sized chain, that could easily wipe out... a 00:05:06.110 --> 00:05:08.310 million dollars just in those non -productive 00:05:08.310 --> 00:05:12.250 churn costs alone. A million dollars. That really 00:05:12.250 --> 00:05:15.129 puts the cost of doing nothing into sharp focus. 00:05:16.129 --> 00:05:18.069 But the source has also suggested it's not always 00:05:18.069 --> 00:05:20.290 about the money, right? That's not the main reason 00:05:20.290 --> 00:05:23.709 people leave. Correct. It's often something more 00:05:23.709 --> 00:05:27.170 subtle, more corrosive. Which is? The unspoken 00:05:27.170 --> 00:05:30.949 obstacle. A toxic culture. Our research shows 00:05:30.949 --> 00:05:33.750 that over 60 % of negative workplace outcomes, 00:05:33.810 --> 00:05:35.970 and that includes the intention to leave, are 00:05:35.970 --> 00:05:38.350 directly linked to toxic workplace behavior. 00:05:38.430 --> 00:05:41.170 So it's driven by bad management, essentially? 00:05:41.350 --> 00:05:43.709 Ineffective leadership, yes. It shows that culture 00:05:43.709 --> 00:05:46.930 isn't some soft, fuzzy HR thing. It's arguably 00:05:46.930 --> 00:05:49.930 the main driver behind that 76 % frontline turnover 00:05:49.930 --> 00:05:52.370 we talked about. Makes sense. And interestingly, 00:05:52.610 --> 00:05:54.709 the reasons people give for leaving because of 00:05:54.709 --> 00:05:57.100 culture can vary. For women, the most common 00:05:57.100 --> 00:06:00.060 reason cited is often a lack of inspiring leadership. 00:06:00.600 --> 00:06:02.879 That ties directly back to the quality of manager 00:06:02.879 --> 00:06:05.660 training or lack thereof. And for men? For men, 00:06:05.899 --> 00:06:08.699 it's frequently poor career development, which 00:06:08.699 --> 00:06:11.199 again speaks to a lack of structured ongoing 00:06:11.199 --> 00:06:13.660 training pathways. They don't see a future. And 00:06:13.660 --> 00:06:16.430 even if people don't actually quit? There's another 00:06:16.430 --> 00:06:19.629 hidden cost, right? Yes, the quiet quitting phenomenon. 00:06:20.370 --> 00:06:22.730 The data suggests more than one in four employees 00:06:22.730 --> 00:06:24.829 are basically just doing the bare minimum to 00:06:24.829 --> 00:06:27.509 get by. So you're paying a full salary for maybe 00:06:27.509 --> 00:06:29.509 half the effort. Pretty much. You're paying 100 00:06:29.509 --> 00:06:33.589 % for maybe 50 % performance. And comprehensive, 00:06:33.930 --> 00:06:36.529 continuous training. It's one of the few levers 00:06:36.529 --> 00:06:39.329 you can pull to tackle both actual quitting and 00:06:39.329 --> 00:06:41.250 this kind of performance attrition at the same 00:06:41.250 --> 00:06:43.310 time. OK. So we've established the pain points. 00:06:43.870 --> 00:06:46.730 High turnover, massive replacement costs, especially 00:06:46.730 --> 00:06:50.129 for managers, 150 % of salary gone if one walks. 00:06:50.700 --> 00:06:53.660 toxic culture driving people away. Now let's 00:06:53.660 --> 00:06:55.480 pivot. Let's talk about the positive side. What's 00:06:55.480 --> 00:06:58.439 the direct ROI? How does investing proactively 00:06:58.439 --> 00:07:00.839 in training and leadership look when you frame 00:07:00.839 --> 00:07:03.259 it for that budget proposal? It looks really, 00:07:03.259 --> 00:07:05.360 really good for the bottom line. The data we 00:07:05.360 --> 00:07:07.459 found, especially from research compiled by the 00:07:07.459 --> 00:07:09.300 American Society for Training and Development, 00:07:09.620 --> 00:07:12.279 ASTD, it's incredibly compelling. Companies that 00:07:12.279 --> 00:07:14.420 make a comprehensive investment in training. 00:07:14.680 --> 00:07:16.579 They don't just have happier employees. They 00:07:16.579 --> 00:07:19.879 see tangible results, like a 24 % higher profit 00:07:19.879 --> 00:07:22.000 margin compared to companies that spend less. 00:07:22.410 --> 00:07:25.629 24 % higher profit margin. That's huge. How does 00:07:25.629 --> 00:07:27.889 training actually do that? Is it just about teaching 00:07:27.889 --> 00:07:30.209 better sales techniques? That's part of it, but 00:07:30.209 --> 00:07:33.449 it's much more holistic. Think about faster onboarding 00:07:33.449 --> 00:07:36.470 new hires become productive sooner. Fewer errors 00:07:36.470 --> 00:07:39.949 mean less waste. Fewer safety incidents. Better 00:07:39.949 --> 00:07:42.449 inventory handling reduces shrinkage. All of 00:07:42.449 --> 00:07:44.709 that lowers operating costs. OK, cost reduction. 00:07:44.990 --> 00:07:47.589 Plus, you see big gains on the revenue side too, 00:07:47.889 --> 00:07:51.250 these same companies. They also enjoy a staggering 00:07:51.250 --> 00:07:56.410 218%. higher income per employee. 218%. Yeah. 00:07:56.790 --> 00:07:59.410 And they generate a 6 % higher shareholder return 00:07:59.410 --> 00:08:01.730 on average. So when you're pitching this to the 00:08:01.730 --> 00:08:04.629 board to finance, those are the profit drivers 00:08:04.629 --> 00:08:06.750 you need to hammer home. One of the sources mentioned 00:08:06.750 --> 00:08:09.350 a really wide range for potential ROI though. 00:08:09.610 --> 00:08:11.930 Something like 30 % on the low end up to what, 00:08:12.110 --> 00:08:15.170 7 ,000%. That's an enormous difference. How do 00:08:15.170 --> 00:08:17.029 you make sure your training investment gets closer 00:08:17.029 --> 00:08:20.050 to that 7 ,000 % mark, not just the 30 %? What 00:08:20.050 --> 00:08:22.509 makes training truly strategic? Great question. 00:08:22.720 --> 00:08:25.459 The key difference is alignment. You have to 00:08:25.459 --> 00:08:28.000 align the training investment directly with clear, 00:08:28.459 --> 00:08:30.860 measurable business outcomes. It can't just be 00:08:30.860 --> 00:08:33.860 training for training's sake. So for that 2026 00:08:33.860 --> 00:08:36.259 budget discussion, you need to structure your 00:08:36.259 --> 00:08:39.100 proposal around, let's say, four strategic pillars. 00:08:39.620 --> 00:08:41.759 OK, four pillars. What's the first one? Pillar 00:08:41.759 --> 00:08:44.940 one is revenue impact. Your strategic training 00:08:44.940 --> 00:08:47.360 has to focus on skills that directly move the 00:08:47.360 --> 00:08:49.940 needle on sales. That means making sure your 00:08:49.940 --> 00:08:52.039 teams can convert customers effectively, yes, 00:08:52.220 --> 00:08:55.059 but also mastering things like upselling, cross 00:08:55.059 --> 00:08:57.799 -selling, and really importantly delivering those 00:08:57.799 --> 00:09:00.340 positive interactions that build loyalty that 00:09:00.340 --> 00:09:02.500 create repeat customers who drive long -term 00:09:02.500 --> 00:09:04.460 revenue. Okay, makes sense. Direct link to sales. 00:09:04.539 --> 00:09:06.620 What's pillar two? Sounds like it addresses the 00:09:06.620 --> 00:09:09.200 pain points we discussed earlier. Exactly. Pillar 00:09:09.200 --> 00:09:11.899 two is cost savings. This is where you directly 00:09:11.899 --> 00:09:14.610 attack that percent average turnover rate we 00:09:14.610 --> 00:09:18.070 mentioned and the 76 percent for frontline strategic 00:09:18.070 --> 00:09:20.330 training here means efficient modern onboarding 00:09:20.330 --> 00:09:23.750 so new hires get productive faster it means fewer 00:09:23.750 --> 00:09:25.929 costly mistakes happening on the floor pricing 00:09:25.929 --> 00:09:29.490 errors damaged goods and crucially by boosting 00:09:29.490 --> 00:09:32.370 engagement and showing career paths it means 00:09:32.370 --> 00:09:35.009 significantly lower attrition rates so every 00:09:35.009 --> 00:09:37.549 percentage point reduction in turnover drops 00:09:37.549 --> 00:09:39.909 straight to the bottom line precisely it's a 00:09:39.909 --> 00:09:42.840 direct cost saving all right pillar three This 00:09:42.840 --> 00:09:45.580 sounds like it's about brand. Pillar 3 is consistent 00:09:45.580 --> 00:09:49.139 execution. This is absolutely vital for any retail 00:09:49.139 --> 00:09:51.139 executive managing multiple locations. Doesn't 00:09:51.139 --> 00:09:54.100 matter if you have 10 stores or N ,000. Training 00:09:54.100 --> 00:09:56.500 is the engine that ensures every single associate 00:09:56.500 --> 00:09:58.679 represents your brand the same way, delivers 00:09:58.679 --> 00:10:01.200 the same service level, uses the same messaging. 00:10:01.440 --> 00:10:04.139 Driving predictable customer satisfaction. Exactly. 00:10:04.200 --> 00:10:06.639 It minimizes those negative online reviews, protects 00:10:06.639 --> 00:10:08.940 your brand's value, and ensures the story you 00:10:08.940 --> 00:10:10.419 want to tell about your products and service 00:10:10.419 --> 00:10:13.399 is consistent everywhere. Okay, revenue impact, 00:10:13.620 --> 00:10:16.500 cost savings, consistent execution. What's the 00:10:16.500 --> 00:10:19.320 fourth pillar? Sounds like measurement. It is. 00:10:19.519 --> 00:10:22.899 Pillar four is real visibility because you can't 00:10:22.899 --> 00:10:25.559 manage... or justify what you don't measure. 00:10:25.980 --> 00:10:28.399 The right training platform, the right system, 00:10:28.500 --> 00:10:30.779 has to provide tracking. You need dashboards. 00:10:31.039 --> 00:10:33.059 You need to see engagement rates, who's actually 00:10:33.059 --> 00:10:35.419 doing the training. You need to assess performance 00:10:35.419 --> 00:10:37.620 outcomes. Is it making a difference? So you can 00:10:37.620 --> 00:10:39.940 show the finance team the actual value? Yes. 00:10:40.019 --> 00:10:42.259 You need to be able to say, look, Store A has 00:10:42.259 --> 00:10:45.440 90 % training completion, and their average order 00:10:45.440 --> 00:10:48.080 value is 10 % higher than Store B, which only 00:10:48.080 --> 00:10:51.179 has 50 % completion. Without that kind of data, 00:10:51.340 --> 00:10:53.240 your training program will always look like just 00:10:53.240 --> 00:10:55.919 another cost center, easy to cut. And this whole 00:10:55.919 --> 00:10:58.259 framework, these four pillars, it seems like 00:10:58.259 --> 00:11:00.360 they directly tackle that toxic culture issue 00:11:00.360 --> 00:11:02.659 we talked about earlier. They do. Remember when 00:11:02.659 --> 00:11:04.580 employees were polled about what could have fixed 00:11:04.580 --> 00:11:07.080 their negative workplace? The number one answer 00:11:07.080 --> 00:11:10.559 by a wide margin, 43%, was leadership and management 00:11:10.559 --> 00:11:12.500 training. Followed by accountability, right? 00:11:12.820 --> 00:11:15.960 Followed by accountability at 33%. It proves 00:11:15.960 --> 00:11:18.460 the solution really has to start at the top with 00:11:18.460 --> 00:11:21.110 leadership. So better trained managers create 00:11:21.110 --> 00:11:24.070 a better culture. Absolutely. The models for 00:11:24.070 --> 00:11:26.629 high performance are already out there. We know 00:11:26.629 --> 00:11:29.029 that frontline employees at the retailers who 00:11:29.029 --> 00:11:31.149 really invest in this stuff, they are literally 00:11:31.149 --> 00:11:33.470 twice as motivated day to day. Twice as motivated. 00:11:33.750 --> 00:11:36.330 And they leave half as often. But achieving that 00:11:36.330 --> 00:11:39.519 kind of culture... It requires serious ongoing 00:11:39.519 --> 00:11:42.860 investment in management training and just as 00:11:42.860 --> 00:11:45.179 importantly, a commitment to humility from the 00:11:45.179 --> 00:11:48.980 top down. Those old school, rigid, untrained 00:11:48.980 --> 00:11:51.600 manager styles, they're just not cutting it anymore. 00:11:51.860 --> 00:11:54.440 Okay. So we've built the why invest case, strong 00:11:54.440 --> 00:11:57.419 ROI, tackling turnover, fixing culture. Now let's 00:11:57.419 --> 00:11:59.740 shift to the how for 2026 planning. There's always 00:11:59.740 --> 00:12:02.639 that temptation in retail, right? Can't this 00:12:02.639 --> 00:12:04.320 training stuff just wait until after the holidays? 00:12:04.460 --> 00:12:06.919 Yeah, that's the classic delay tactic. But based 00:12:06.919 --> 00:12:08.740 on what's needed for effective implementation, 00:12:09.179 --> 00:12:11.820 the answer seems to be a firm no. You can't wait. 00:12:12.240 --> 00:12:14.440 Definitely not. Planning this investment needs 00:12:14.440 --> 00:12:17.039 to happen now as you're finalizing that 2026 00:12:17.039 --> 00:12:20.269 budget. Why? Because you need runway. Ideally, 00:12:20.309 --> 00:12:23.269 you need Q1 and Q2 of next year to pilot any 00:12:23.269 --> 00:12:25.690 new training tools or platforms, to get real 00:12:25.690 --> 00:12:28.169 feedback from the actual store teams, to give 00:12:28.169 --> 00:12:30.889 managers time to build new habits to refine the 00:12:30.889 --> 00:12:33.750 approach. Before the chaos of Q4 hits. Exactly. 00:12:34.090 --> 00:12:37.110 Trying to roll out some rushed maybe buggy training 00:12:37.110 --> 00:12:39.649 program in November, that's a guaranteed recipe 00:12:39.649 --> 00:12:42.809 for hitting that disappointing 30 % ROI, not 00:12:42.809 --> 00:12:45.649 the 7 ,000 % potential we talked about. You need 00:12:45.649 --> 00:12:48.570 to build momentum early. OK, so assuming we need 00:12:48.570 --> 00:12:51.090 to get pilot running early next year. What should 00:12:51.090 --> 00:12:53.429 executives look for? What are the key criteria 00:12:53.429 --> 00:12:55.450 when they're choosing a modern training solution? 00:12:55.730 --> 00:12:58.009 Simplicity and integration. Those are the watchwords. 00:12:58.309 --> 00:13:00.230 The system has to feel natural for someone working 00:13:00.230 --> 00:13:03.210 on a busy store floor. So first, look for mobile 00:13:03.210 --> 00:13:05.009 -first delivery. Meaning it works seamlessly 00:13:05.009 --> 00:13:07.669 on phones or tablets. Right. With short, easily 00:13:07.669 --> 00:13:10.389 digestible content. Think micro -learning. Stuff 00:13:10.389 --> 00:13:12.149 that fits into a quick five -minute break or 00:13:12.149 --> 00:13:14.169 at the start of a shift. It absolutely cannot 00:13:14.169 --> 00:13:15.970 feel like homework they have to do after hours. 00:13:16.330 --> 00:13:19.139 And you mentioned integration. That seems critical. 00:13:19.720 --> 00:13:21.779 We can't just add another system or app that 00:13:21.779 --> 00:13:24.220 managers end up ignoring, right? Precisely. That 00:13:24.220 --> 00:13:26.860 creates data silos and kills adoption. So look 00:13:26.860 --> 00:13:29.519 for integrated tasks and messaging. The training 00:13:29.519 --> 00:13:31.679 needs to connect directly to their daily jobs. 00:13:32.080 --> 00:13:34.100 Okay, you learned about this new product. Now 00:13:34.100 --> 00:13:36.179 here's a task to check the display. makes it 00:13:36.179 --> 00:13:39.340 practical. Very. You also need real -time updates 00:13:39.340 --> 00:13:41.620 so managers can easily track who's done what. 00:13:41.820 --> 00:13:44.679 And you need robust, easy -to -understand reporting 00:13:44.679 --> 00:13:46.940 for the corporate teams to see the bigger picture, 00:13:47.320 --> 00:13:49.860 track progress against those KPIs. And what about 00:13:49.860 --> 00:13:52.399 the backend for the people actually creating 00:13:52.399 --> 00:13:55.190 the training content? Crucial point, it has to 00:13:55.190 --> 00:13:57.629 have ease of back -end management. Your L &D 00:13:57.629 --> 00:14:00.169 teams, or maybe even regional managers, need 00:14:00.169 --> 00:14:02.470 to be able to create, publish, and importantly, 00:14:02.830 --> 00:14:05.289 update content quickly and easily. Retail moves 00:14:05.289 --> 00:14:08.490 fast, promotions change, products update, the 00:14:08.490 --> 00:14:10.429 training has to keep pace, otherwise it becomes 00:14:10.429 --> 00:14:13.330 irrelevant. Okay, mobile first, integrated tasks, 00:14:13.830 --> 00:14:16.210 real -time reporting, easy updates. That makes 00:14:16.210 --> 00:14:18.909 sense. This idea of integration brings us to 00:14:18.909 --> 00:14:22.039 maybe the final... big ROI multiplier you mentioned, 00:14:22.779 --> 00:14:25.340 breaking down data silos across the whole organization. 00:14:25.840 --> 00:14:28.159 This is where training's impact really gets amplified, 00:14:28.340 --> 00:14:30.409 right? Absolutely. Training is a vital piece, 00:14:30.409 --> 00:14:34.169 but for truly maximum impact, maximum efficiency, 00:14:34.669 --> 00:14:37.429 your core operational tech systems need to talk 00:14:37.429 --> 00:14:39.029 to each other. We're talking about things like 00:14:39.029 --> 00:14:42.090 CRM. Yeah, your CRM customer relationship management, 00:14:42.629 --> 00:14:45.830 your PM product information management, and your 00:14:45.830 --> 00:14:48.649 PLM product lifecycle management. OK, let's just 00:14:48.649 --> 00:14:50.789 quickly clarify PM and PLM again for everyone. 00:14:51.070 --> 00:14:53.629 PM is all the product details, specs, descriptions. 00:14:54.070 --> 00:14:56.710 PLM tracks the product from idea to end of life. 00:14:56.830 --> 00:14:58.919 Why are those so critical for them? the frontline 00:14:58.919 --> 00:15:01.200 associates training and performance. Because 00:15:01.200 --> 00:15:03.700 together they create what's often called a single 00:15:03.700 --> 00:15:06.539 source of truth. Think about it. If your PM system 00:15:06.539 --> 00:15:09.179 is disconnected from your training app or POS, 00:15:09.639 --> 00:15:11.919 your associate might not have the latest accurate 00:15:11.919 --> 00:15:14.120 product details they need to answer a customer 00:15:14.120 --> 00:15:16.740 question confidently or suggest the right add 00:15:16.740 --> 00:15:19.879 -on. Leading to lost sales or frustration. Exactly. 00:15:20.340 --> 00:15:23.299 Or if the PLM is siloed, they might not know 00:15:23.299 --> 00:15:25.899 about upcoming product launches they should be 00:15:25.899 --> 00:15:28.580 hyping, or understand current stock availability 00:15:28.580 --> 00:15:32.210 accurately. So when these systems, CRM, PIM, 00:15:32.309 --> 00:15:35.710 PLM, are unified and integrated with the training 00:15:35.710 --> 00:15:38.169 platform? The results can be phenomenal. We're 00:15:38.169 --> 00:15:41.269 talking potentially up to 150 % more revenue 00:15:41.269 --> 00:15:44.590 per employee. That's a huge lift. Wow. And things 00:15:44.590 --> 00:15:47.370 like a 40 % shorter product development cycle 00:15:47.370 --> 00:15:50.110 can happen too because that valuable feedback 00:15:50.110 --> 00:15:52.570 from trained associates on the floor actually 00:15:52.570 --> 00:15:55.309 gets captured and fed back into the system efficiently. 00:15:55.649 --> 00:15:58.250 So when associates are fully trained? And they 00:15:58.250 --> 00:16:00.549 have instant access to unified, accurate product 00:16:00.549 --> 00:16:02.649 and customer data right there on their device. 00:16:03.370 --> 00:16:05.669 Profitability doesn't just nudge up, it compounds. 00:16:05.830 --> 00:16:07.889 It really does. Exponentially, in some cases. 00:16:08.269 --> 00:16:10.409 This deep dive, I think, has really crystallized 00:16:10.409 --> 00:16:12.610 the argument training. It's not just some mandatory 00:16:12.610 --> 00:16:15.070 cost center pushed by HR. It's a core strategic 00:16:15.070 --> 00:16:17.029 investment. An investment in your people, yes, 00:16:17.190 --> 00:16:18.870 but also directly in your brand and your bottom 00:16:18.870 --> 00:16:21.730 line. It drives measurable performance, but only 00:16:21.730 --> 00:16:23.429 if it's aligned with those strategic business 00:16:23.429 --> 00:16:26.340 goals we outlined. That alignment is key. So 00:16:26.340 --> 00:16:28.820 as you, our listener, move towards finalizing 00:16:28.820 --> 00:16:31.299 those budgets, remember the key action steps 00:16:31.299 --> 00:16:34.440 we discussed. First, explicitly link your training 00:16:34.440 --> 00:16:37.899 goals to tangible outcomes. Revenue lift, cost 00:16:37.899 --> 00:16:40.559 savings, turnover reduction. Make it measurable. 00:16:41.220 --> 00:16:44.759 Second, start early. Plan for a Q1 pilot program. 00:16:44.879 --> 00:16:47.039 Get that feedback loose going. Build those habits 00:16:47.039 --> 00:16:49.340 before peak season. Don't wait. Please don't 00:16:49.340 --> 00:16:52.200 wait. And third, Make sure you involve your cross 00:16:52.200 --> 00:16:54.860 -functional partners, HR, absolutely, but also 00:16:54.860 --> 00:16:56.960 operations and marketing. You need their buy 00:16:56.960 --> 00:16:59.340 -in and input to ensure the brand message, the 00:16:59.340 --> 00:17:01.519 product info, and the operational execution are 00:17:01.519 --> 00:17:03.600 all perfectly consistent. Absolutely. It takes 00:17:03.600 --> 00:17:06.240 a village, as they say. And maybe just one final 00:17:06.240 --> 00:17:08.859 thought, a provocative one perhaps, for you to 00:17:08.859 --> 00:17:12.180 chew on as you finalize those crucial 2026 budget 00:17:12.180 --> 00:17:15.130 numbers. We know the financial hit of losing 00:17:15.130 --> 00:17:17.769 a mid -level manager is about 150 % of their 00:17:17.769 --> 00:17:20.529 annual salary. That's a penalty you pay after 00:17:20.529 --> 00:17:22.730 they've already walked out the door. So the question 00:17:22.730 --> 00:17:25.970 is, how much less expensive and how infinitely 00:17:25.970 --> 00:17:28.609 more impactful would it be to make a comprehensive 00:17:28.609 --> 00:17:31.250 preventative investment in that manager's leadership 00:17:31.250 --> 00:17:33.650 training right now before they even think about 00:17:33.650 --> 00:17:35.869 leaving? Prevention versus penalty. Exactly. 00:17:36.309 --> 00:17:38.069 Your budget decision today really determines 00:17:38.069 --> 00:17:39.630 which one of those fees you're going to end up 00:17:39.630 --> 00:17:40.230 paying next year.