Cost of Low Tech Literacy

August 7, 2024 by
Lighthouse IT Solutions, Mark Nash

New technology for your business can be an exciting prospect with the promises of increased efficiency, happier employees, and a competitive edge. But those promises can turn out to be empty and potentially even a financial drain if you neglect two crucial things: employee training and change management. You can end up losing money from wasted time and resources if employees aren't able to use their new technology.

Lack of Technology Training

Even if you invest in a top-of-the-line CRM system to help make your sales team's jobs easier, you might still find them struggling with data entry and missing deadlines. Scenarios like that are common if the staff hasn't been properly trained on the new software and can lead to unexpected costs due to events such as:

Lost Productivity

If your employees don't understand how to use their new tech, they will lose valuable time struggling to get it to perform the desired actions. Issues such as that can potentially even lead to lost sales opportunities if your team can't process orders or generate reports.

Costly Errors

Confusion and frustration caused by unfamiliar technology can frequently lead to sloppy work and costly mistakes. Perhaps the most common mistake is inaccurate data entry, which demands time and money to fix and can potentially damage relationships with clients.

Demotivation and Resistance

People often struggle with change, and being forced to start using a new system can be demoralizing, especially if training isn't provided. Employees might resist using new systems altogether if they don't feel properly supported, preferring to continue using outdated but familiar tools, hindering the adoption and benefits of the new tech.

Failing to Manage the Change

In order to avoid new technology disrupting workflows, it is important to use proper change management to help employees avoid feeling overwhelmed while adapting to the changes.Β Change management is about considering the "human" side of change, helping employees understand why things are changing, and providing training and support to help them transition successfully. Some research has found that organizations that employ change management areΒ 67% more likely to achieve desired project outcomes. On the flip side, when companies neglect change management, they can run into issues such as:

Low Morale

Change can be stressful and leave employees feeling lost and undervalued, especially if there is a lack of clear communication and support during the transition, leading to low morale and a negative work environment.

Shadow IT

Employees may feel the new system isn't meeting their needs and resort to using unauthorized tools, also known as shadow IT. Shadow IT poses serious security risks and undermines your investment in the new technology.

Resistance to Future Improvements

First impressions are important, and a negative experience with a tech rollout can make employees wary of future changes or give them "change fatigue." Employees being preemptively hostile toward change hinders innovation and makes it difficult for the company to adapt to evolving market trends.

Building a Bridge to Success

The key to unlocking the true value of new technology lies in effective training and change management.

Invest in Comprehensive Training

Training cannot be just an afterthought. Even if you find the new tools easy to pick up and use, you also can't account for all the different tech literacy levels your employees might have. There is no replacement for targeted training as an introduction to a business application. Develop a tailored training program that includes all the important features that your employees will need to know how to use. Include video tutorials, hands-on workshops, and ongoing support resources to ensure everyone feels comfortable using the new tools.

Focus on User Adoption, Not Just Features

While it is critical that training explain how the software works, it should also focus on how the new system will benefit employees in their daily tasks and be integrated into their workflow. Employees need to adopt the tech well in order to see its full benefits.

Embrace Change Management

Perhaps one of the most underappreciated yet essential components of a successful change is communicating the "why" behind the change. Explain the need for the new technology and how it will make everyone's jobs easier and ultimately benefit the company as a whole. Additionally, encourage open communication from your employees and address their concerns throughout the transition.

The Takeaway

New technology can be a powerful tool, but it's only ever going to be as valuable as its users enable it to be. So, in order to see a maximum return on investment and make everyone's lives easier, prioritize employee training and change management. Happy, well-trained employees using the right tools help you maximize efficiency, boost morale, and stay ahead of the curve.