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Apr 2019
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The Cost of Not Training Your HVAC Employees

Most contractors would agree that training is important, yet whether onboarding new technicians or providing continuous training to their entire staff, too often training gets put on the backburner due to perceived costs, time constraints, and a lack of training support. However, as the below statistics reveal, the cost of not training your employees is staggering. 

Benefits of Training Your Employees

  1. Increased Productivity

Your technicians may be the best technically skilled you’ve ever seen, but if they don’t know how to effectively communicate with customers, then you’re likely missing out on a lot of sales opportunities. Just because an employee has learned the skills of the trade doesn’t mean they know how to put those skills to use in the most productive manner, which is why training your employees is so important. Research has shown that HVAC employees who are well-trained, skilled, and know exactly what to do in their job have increased productivity. Plus, they feel more valued and loyal to companies that invest in their ongoing development, and training has shown to boost employee confidence which, in turn, boosts their productivity. Implementing a comprehensive and continuous training program for your employees is one of the most effective things you can do as a business owner to increase productivity.

  • Training and Retaining Employees Is Less Costly than Hiring New Employees

The cost of recruiting, hiring, training new employees, and paying overtime work to current employees until someone new is hired can have a negative financial impact on your company. In fact, according to a recent study, the time and costs involved in hiring can reach upwards to 30% of that job’s salary. So, for an employee who makes $42,000 a year, the hiring cost could be as much as $12,600. If you’re experiencing a high turnover rate for a particular position, rather than burning through a revolving door of new applicants, consider re-evaluating that position’s training program. Training your employees is a mutually beneficial endeavor as it will help your HVAC company grow while enhancing your employees’ knowledge and skills at the same time.

  • Training Creates a Higher Employee Retention Rate

When your employees don’t receive the training necessary for them to thrive in their positions and achieve their full potential within the company, they can become frustrated and disengaged. Whereas, an employee who is fully engaged has an emotional commitment to their work, the company they work for, and the goals set for that business. Studies show that when a company offers continuous career training and development, it attracts a higher-caliber candidate – one who is more likely to stick around rather than jump ship. The belief some contractors have that once they train a technician, they’ll move on to somewhere else just isn’t true. Companies that are invested in their employees by providing ongoing training and development typically have a higher employee retention rate.

  • Increased Bottom Line

According to a 2016 report from the Association for Talent Development, companies offering comprehensive training programs have 218% higher income per employee than companies without formalizedtraining. And, companies that provide training have a 24% higher profit margin than those with little-to-no employee training. It makes sense; with a comprehensive training program, the time and money it takes to fix mistakes by poorly trained employees will be significantly reduced. Training your employees should be thought of not as an expense, but as an investment, and should be included in your annual budget, because employees who are educated, engaged, and possess the tools to perform their tasks properly the first time will only improve the success of your HVAC company. 

The impact of employee training on your HVAC business:

Call Service Center:

Calls answered daily                                             20

Service calls booked daily                                    6 (30%)                              

Post-training booking                                           7 (35%)

Average service ticket                                          $250

Value of increased booking rate:  5 additional service calls weekly = $1,250; annual value = $62,500

Service Techs – 4 calls daily:

Average service ticket                                          $250

Post-training average                                           $300

Value of increased average:  $200 additional daily revenue, weekly = $1,000; annual value = $50,000

Comfort Advisor – 2 leads daily:

Closing rate                                                             40% 

Average ticket                                                        $6,000 

Post-training close                                                50%

Post -training average ticket                              $6,500

Value of increase:  50 additionalsales annually @ new ticket ($6,500) = $450,000 annually

Total results from example:  Annual increase of $562,500

The continuoustraining and development of your employees has a significant impact on the success of your HVAC business. If you’re not sure where to turn for training, or don’t have the resources to implement a training program, seek out an educational organization that provides top-notch, world-class training by experts who actually have real-world HVAC and business experience. Make sure the training program you choose has a variety of classes (management, sales, technician, call center, etc.) with beginning, moderate, and advanced stages of learning so they fit the level needed by each employee. Also, to make it easier on you, select a training system that tracks the time an employee puts in and has a built-in testing and rewards system for when they complete a training module. Lastly, don’t forget the importance of live training in a class-room setting as it can produce high-impact training in the shortest amount of time. Whichever training system you do choose, just make sure you stick with it as providing ongoing training to your employees is the most affordable and efficient thing you can do today to immediately boost your profits*.

*For more information on world-class HVAC training, call us today at programs– 941.724.8655

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    Jim Abrams Success Story

    Jim Abram’s Track Record of Success


    • Manufacturing
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    For over four decades, Jim Abrams has been at the epicenter of every major change that has occurred in the HVAC industry… He’s known as the “Professor of Profits.” As a leading industry influencer and innovator, Jim has unprecedented experience throughout every inch of the world of contracting. He has taken his deep knowledge and understanding in contracting and business, and created a time-tested and proven 10-step formula for success. Now he has made this most closely guarded secret formula available to contractors everywhere seeking success via PRAXIS S-10™, the premier Success College for Contractors.

    JIM’S EXPERIENCE AND APPLICATIONS OF SUCCESS

    In the 70’s, Jim led Trane’s entry into the residential HVAC business and took Trane’s “Five Saluting Men” nationwide. Perfecting the “Add-on” business, created a prosperous model for residential contractors.

    His unending entrepreneurial spirit led to the opening of his own business in the 80’s. They called him “The King of Replacements,” as he rapidly built the largest residential service company in North America. His innovations continued. Using unorthodox methods such as telemarketing, foot canvassers and direct mail he was the first contractor with over 10,000 service agreements.

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