Food manufacturing companies are losing millions in preventable operational costs due to inadequate employee training practices, according to new research from workforce development platform WorkForge.
The report, “The Hidden Costs of Inconsistent Employee Development in Food Manufacturing,” analyzed operational data and conducted interviews with mid-sized and enterprise food manufacturers to identify financial impacts of unstructured training programs.
With industry turnover rates approaching 40% and replacement costs exceeding $10,000 per frontline worker, manufacturers face significant financial pressure from training gaps, the report found.
“The findings are clear: reactive, check-the-box training programs are costing manufacturers millions in preventable losses,” said Nathan Walts, Chief Executive Officer of WorkForge. “When companies fail to invest in scalable, structured development from day one, they open themselves up to increased rework, safety incidents, compliance violations, and employee churn.”
Financial impacts
The research identified ten areas where inconsistent training directly affects operational costs:
Workplace injuries average $40,000 per incident, while equipment downtime can cost companies up to $30,000 per hour, according to the report. Additional impacts include waste from errors, regulatory violations resulting in fines, and missed innovation opportunities.
Food manufacturers with high turnover also face compounding costs as new employees repeat mistakes that proper training could prevent, the analysis showed.
Strategic approach
WorkForge’s report suggests that manufacturers should view learning and development not merely as a human resources function but as a strategic business initiative.
“When people are better prepared, they make fewer mistakes, work more safely, stay longer, and perform at higher levels for more overall productivity,” said Walts. “That’s how WorkForge helps reduce operational risk and protect the bottom line.”
The full report, which includes a calculator for companies to estimate their own hidden training costs, is available on the company’s website.
