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The Hidden Cost of Untrained Promoters

By Aseem Nath Tripathi
India’s retail industry employs over 40 million people, making it the second-largest employment generator after agriculture, yet despite this massive workforce, the industry faces a critical skills gap that is costing businesses significantly.

According to the Retailers Association’s Skill Council of India (RASCI), the retail sector has the potential to generate over 3 million additional jobs by 2026. However, this growth is hampered by persistent skill shortages and inadequate training infrastructure, creating a paradox where employment opportunities exist but skilled candidates remain scarce.

While most companies have a clear idea of what it costs to train an employee, they often ignore the real question.

The Question Every Business Leader Must Ask

While most companies meticulously calculate training costs—venue rentals, trainer fees, lost productivity hours—they rarely quantify the flip side: What does it cost to NOT train an employee? 

The Domino Effect of Inadequate Training

1. Immediate Revenue Losses
2. Untrained retail staff create immediate sales challenges that directly impact the bottom line. Without proper product knowledge training, employees struggle to:
  • Answer customer questions accurately, leading to lost sales opportunities
  • Recommend suitable products or provide effective upselling
  • Handle customer objections professionally
  • Process transactions efficiently, creating long wait times

The Myth of the "Experienced" Associate

Just because someone has been on your sales floor for years doesn’t mean they’re selling effectively. In fact, without proper training, they might be reinforcing bad habits or outdated techniques. Or they may have learned on the job with catch-as-catch can – that’s not creating amazing customer service.

The Hidden Costs That Compound Over Time

Brand Reputation Damage

Untrained staff don’t just lose individual sales—they systematically damage brand reputation. The consequences include:
  • Product knowledge deficiency that frustrates customers and erodes trust in brand expertise
  • Inconsistent customer experiences that create uncertainty about service quality
  • Miscommunication and misrepresentation leading to false expectations and damaged credibility
  • Poor complaint handling that escalates minor issues into major disputes
These hidden costs add up fast, bleeding your profits dry.
Proper training has a ripple effect throughout your entire operation

Training Creates Engaged, Invested Employees.

Quality training gives each new-hire investment a chance to become a far more valuable member of the team.
Training employees create engaged, problem-solving team members who are often eager to learn new skills and routines to get the job done. Most employees today expect to train and consider internal development to be a high priority.
Lack of training leads to employees who feel unappreciated in their job and a general sense their job not really mattering. The training and recruitment costs of new hires are far more than what it would take to train an existing employee as well, when you factor in the time and money it takes to hire along with time spent as a new employee acclimates to the company.
Organizations that recognize training as a strategic investment rather than a cost centre will be best positioned to capitalize on India’s retail boom while avoiding the substantial hidden costs associated with untrained staff.
As India’s retail market continues its remarkable growth trajectory, the competitive advantage will belong to organizations that view training as strategic investment, not operational expense.

The choice is ours: invest in training today or continue paying the hidden costs of untrained staff tomorrow.