Why Cutting Training in a Lower-Margin Environment is a Costly Mistake

With the current market volatility and economic uncertainty, many oil & gas companies are looking to tighten their budgets and cut costs. Unfortunately, training programs are often among the first on the chopping block. On the surface, the training budget seems like an easy expense to reduce. In reality, cutting these programs is a short-sighted move that can cost far more in the long run—especially in the oil & gas industry.

Investing in training isn’t just about skill development; it directly impacts employee performance, job satisfaction, retention, and overall profitability. Here’s why training should remain a priority, even in a challenging economic environment.

Training Boosts Productivity and Performance

Well-trained employees are more efficient, make fewer mistakes, and contribute more effectively to the company’s bottom line. A study in the International Journal of Creative Research Thoughts found that strong training programs lead to improved job performance and job satisfaction. In a complex industry like refining, where technical expertise is crucial, keeping engineers up to date through continuous learning ensures operational efficiency and safety.

Skipping training can mean more errors, increased downtime, and costly inefficiencies—none of which help profitability.

Cutting Training Leads to Higher Turnover

One of the biggest drivers of employee retention is professional development. Employees want to feel valued, and they want to grow. According to the SHRM 2022 Workplace Learning and Development Trends report, 76% of employees are more likely to stay with a company for at least three years if they experience strong onboarding and continuous training programs.

When employees don’t see opportunities to develop their skills, they start looking elsewhere. High turnover is a huge hidden cost that companies don’t always account for when slashing training budgets.

The True Cost of Losing Employees

Replacing an experienced employee isn’t just a minor inconvenience—it’s expensive. Research from the Center for American Progress estimates that turnover can cost anywhere from 16% to 213% of an employee’s salary, depending on their role.

Engineering and technical roles fall toward the higher end of this range. Consider the recruitment process, the time and effort spent onboarding, and the loss of institutional knowledge when experienced employees walk out the door. Managing high rates of turnover is a financial drain that far outweighs the cost of keeping a robust training program in place.

Training is an Investment, Not an Expense

In a lower-margin environment, every decision must contribute to profitability. Training isn’t just a cost—it’s an investment in efficiency, safety, retention, and long-term financial health. A well-trained workforce is a stable, high-performing workforce.

Rather than focusing on saving a few dollars today, companies should view their training programs as a strategic tool to maintain competitiveness and avoid the much greater costs of turnover and inefficiency.

Bottom Line? Keep Training in the Budget

If the goal is to maximize profitability, cutting training is one of the worst moves an oil & gas company can make. It leads to a less skilled workforce, higher turnover, and, ultimately, more expenses. Instead of viewing training as expendable, companies should recognize it as a critical strategy for success—even when times are tough.

Explore Becht’s Training Solutions

Want to learn more about how training can improve your operations and bottom line? Explore Becht’s Learning & Development programs:

• Public Training – Open courses led by industry experts
• Private Training – Custom programs tailored to your company’s needs
• Skills & Competencies Development – Structured learning paths to upskill your team