Why Companies Are Making VR/AR Job Training Central to 2025 Strategy

Introduction

This article covers the future of workplace training and employee development. Earlier this year, WorkplaceTech Pulse published a three-part series that explored the fundamentals of employee well-being. In Part 1, we took a holistic approach to understanding employee well-being. Part 2 focused on how to implement these strategies within your organization. Part 3 discussed calculating the return on investment (ROI) from your wellness programs. Think of this article as a continuation—almost like a Part 4 of that series. We will dive into the exciting world of virtual reality (VR) job training.

VR job training offers an innovative approach to employee development, one that promises to reduce costs, enhance productivity, and boost employee retention. It’s an intersection of technology and well-being, providing immersive, personalized training experiences that can be tailored to meet the unique needs of each employee.

Our WorkplaceTech team is thrilled to reintroduce this edition’s contributor, Quentin Gause. Quentin is a former NFL player with the Eagles, Patriots, and Broncos who has transitioned into a tech innovator. Earlier this year, Quentin and his company, Rizewell, led the charge in our series on employee well-being. Quentin’s journey from professional sports to the tech industry began with a keen observation of the challenges HR professionals face in enhancing employee well-being and engagement. Determined to make a difference, Quentin co-founded Rizewell to provide comprehensive artificial-intelligence-driven solutions that bridge the gap between wellness and technology.

Quentin, over to you!

Thanks Nell. Hi, I’m Quentin Gause, a former-NFL-player-turned-tech-entrepreneur with a fire for revolutionizing workplace wellness and training. My journey has taken me from the NFL, where I played with the Eagles, Patriots, and Broncos, to the heart of innovation in Atlanta. My rich Afro-Latino heritage, with roots stretching from Panama to Miami to Rochester, N.Y., has shaped my worldview and sparked my entrepreneurial spirit.

At Rizewell, which I co-founded, we’re on a mission to transform employee well-being and training. Drawing from a wealth of knowledge gained alongside some of the top health professionals, our team is pioneering artificial intelligence and VR job training solutions to foster employee well-being, engagement, and retention for organizations worldwide. We’re proud to collaborate with leading names across various sectors, including tech giants such as Amazon, Google, and Cisco, and health organizations such as the U.S. Department of Health, to create healthier, more engaged workplaces.

I’m excited to lead this change with you. Now that you have gotten to know me, let’s dive into the world of VR job training and how it can transform your organization.

The Power of VR in Job Training

The term known as Mixed reality represents Virtual reality (VR) and augmented reality (AR), these are not just buzzwords; they are transformative technologies with the potential to revolutionize the way we train employees. In today’s fast-paced business environment, the need for effective, efficient, and scalable training solutions has never been greater. VR offers an immersive training experience that is far more engaging and effective than traditional methods.

As organizations continue to explore the benefits of VR in job training, understanding how to implement these strategies effectively becomes crucial. This article, the latest in our series on innovative workplace solutions, will guide you through the transformative power of VR training. To help you get started, the comprehensive e-book How to Create a VR Job Training Strategy outlines key steps and phases to ensure a successful implementation. This resource is designed to equip you with the insights and tools needed to make VR training a cornerstone of your organization’s growth strategy. Beyond the strategic advantages, let's look at the financial impact of implementing VR.

Financial Impact of VR Training

Implementing VR training can significantly impact various aspects of the employee life cycle, leading to substantial cost savings and enhanced productivity. Below, we break down the key financial factors influenced by adopting VR training in your organization.

Hiring Process

The average cost of hiring a new employee is $4,000. This includes expenses for recruitment, interviews, background checks, and administrative processes. For specialized roles, these costs can escalate to $7,000 or more. Given the frequency of hiring due to turnover, these costs quickly add up, placing a substantial financial burden on organizations.

Onboarding

Effective onboarding is critical to the long-term success and retention of new hires. Onboarding costs, which include orientation, initial training, and the time investment of HR personnel and managers, typically range from $1,000 to $3,000 per employee. Proper onboarding ensures that new employees are well integrated into the company culture and processes, significantly reducing the risk of early turnover.

Training

Traditional training costs can be substantial, ranging from $1,500 to $5,000 per employee annually. These expenses cover training materials, instructor time, and sometimes travel costs. For roles requiring technical expertise, training costs can be even higher. VR training presents a cost-effective alternative by reducing the need for physical materials and enabling scalable, repeatable training sessions. This scalability ensures that training can be consistently delivered to employees across various locations, maintaining high standards and reducing long-term costs.

Turnover

Employee turnover is a significant financial drain on organizations. The average cost of replacing an employee can range from 150% to 200% of their annual salary. For instance, replacing an employee with a $50,000 salary might cost the company between $75,000 and $100,000. These costs include not just the hiring and onboarding expenses, but also the loss of productivity and the time required to get a new hire up to full speed.

Severance Plan

Severance packages add another layer of financial complexity. Depending on the employee’s tenure and position, severance can range from a few weeks to several months of pay. For senior employees or those in highly specialized roles, these packages can be substantial, further increasing the financial impact of turnover on the organization.

Reducing Cost

Traditional training methods are often costly, requiring significant expenses for travel, accommodations, and training materials. VR training, on the other hand, can significantly reduce these costs. A study by PwC showed that VR training can be up to four times faster than traditional classroom training, leading to lower costs and quicker onboarding for employees. Moreover, the scalability of VR allows organizations to train large numbers of employees simultaneously without the need for physical spaces or trainers.

Enhancing Employee Retention

Employee retention is a critical issue for many organizations, and effective training plays a key role in addressing this challenge. VR training programs can lead to between a 30% and a 50% increase in employee retention rates. This is because VR provides a highly engaging and interactive learning experience that makes employees feel more connected and valued by their employers. When employees feel supported in their learning and development, they are more likely to stay with the organization.

Boosting Productivity

VR training allows employees to practice and refine their skills in a controlled, risk-free environment. This hands-on experience leads to improved performance and productivity once they transition to real-world tasks. Companies that have implemented VR training have reported a 275% increase in employee confidence, a significant improvement in task execution speed, accuracy, and overall confidence among employees

Expanding Industries for VR Training

VR and AR training are not confined to a single industry. They have broad applications across various sectors:

• Health care. VR is used to simulate surgeries and medical procedures, allowing health care professionals to practice in a risk-free environment, thereby reducing errors and enhancing patient care quality​.
• Construction. VR simulations can train workers on safety protocols and complex construction processes, reducing accidents and improving overall site safety.
• Retail. Companies such as Walmart use VR to train employees on customer service skills and operational procedures, resulting in better service delivery and operational efficiency​.
• Manufacturing. VR can simulate assembly lines and machinery operations, enabling workers to practice and perfect their skills without disrupting actual production​.
• Police training. VR solutions also include police de-escalation training, in which law enforcement officers can engage in immersive scenarios that teach effective communication and conflict resolution skills. This training emphasizes reducing the need for force, improving officer decision-making, and enhancing public safety by allowing officers to practice in realistic, high-pressure environments.
• Utility companies. Utility companies are also leveraging VR training to enhance their operations. VR is used to train employees on the maintenance and repair of electrical grids, water systems, and other critical infrastructure. This technology allows utility workers to gain experience in dealing with emergencies, such as power outages or water main breaks, in a controlled environment. The realistic simulations help reduce on-the-job risks and prepare workers to handle real-world situations with greater confidence and competence.

Case Studies: Real-World Applications of VR Training

Walmart: Retail Training Excellence

Walmart has successfully integrated VR into its training programs to train employees on operating high-tech equipment and handling customer interactions. This approach has enhanced training efficiency and improved knowledge retention among employees, leading to faster and more effective onboarding processes​

Intel: Electrical Safety Training

Intel uses VR for electrical safety training, which has proven effective in reducing training costs and enhancing employee performance. By simulating real-world scenarios, employees can safely learn to handle hazardous situations, improving safety and efficiency in the workplace​

Amazon: Employee Engagement

Amazon implemented a VR wellness training program, after which 100% of the participants reported they would use VR training again. This high engagement level suggests VR training can significantly enhance employee satisfaction and training effectiveness​

Hilton Hotels: Building Empathy Through VR

Hilton introduced VR training to help corporate employees understand the daily challenges faced by housekeeping staff. This initiative aimed to foster empathy and improve internal communication. By simulating housekeeping tasks, corporate employees gained a deeper appreciation for the work, leading to a more cohesive and supportive workplace environment.

As we explore the profound financial benefits that VR training offers throughout the employee life cycle, it’s crucial to translate these advantages into a compelling case for your executive leadership. By demonstrating how VR training not only cuts costs but also drives productivity and retention, you can effectively present it as a strategic investment.

Building Your Case to the C-Suite and Stakeholders

When presenting the case for VR training to the C-suite, it’s essential to highlight not only the direct benefits of VR for training but also its broader applications within the workplace. VR headsets are versatile tools that can enhance employee productivity, well-being, and engagement, making them a valuable investment beyond traditional training.

The Power of VR Training

Immersive learning experience: VR training offers a highly immersive learning experience that allows employees to engage with realistic simulations and scenarios. This hands-on approach helps employees acquire and refine skills more effectively than traditional training methods. Whether it’s simulating complex machinery operations, practicing safety protocols, or navigating customer service interactions, VR training enables employees to practice in a risk-free environment, boosting their confidence and performance.

Accelerated learning: One of the key advantages of VR training is its ability to accelerate the learning process. Employees can undergo intensive, focused training sessions that are more interactive and engaging, leading to quicker mastery of skills. This not only reduces the time needed for onboarding but also minimizes the disruption to regular work activities.

Scalable and consistent training: VR training can be easily scaled across an organization, ensuring that all employees receive the same high-quality training regardless of location. This consistency is particularly valuable for global teams, for which maintaining uniform training standards can be challenging. With VR, training content can be updated and deployed swiftly, keeping pace with industry changes and organizational needs.

Extending Laptop Functionality with VR Headsets

Virtual workspaces: Beyond training, VR headsets can serve as an extension of an employee’s laptop, offering a virtual workspace where users can create multiple screens within a single immersive environment. This setup eliminates the need for physical monitors and allows employees to manage multiple tasks simultaneously in a streamlined manner. VR workspaces can increase productivity by providing an expansive digital workspace that is customizable to individual needs.

Enhanced collaboration: VR headsets also enable collaboration in shared virtual environments. This capability is particularly beneficial for remote teams because it creates a sense of presence and facilitates more interactive and effective meetings. Employees can brainstorm, review projects, and solve problems together in a virtual setting, much like they would in a physical office.

VR for Employee Well-Being, Engagement, and Social Connectivity

Well-Being and engagement: VR headsets offer more than just training and work productivity—they also serve as powerful tools for employee well-being and engagement. Through multiplayer functionality, VR headsets enable employees to participate in social well-being activities that are gamified, such as virtual team-building exercises, mindfulness sessions, and fitness challenges. These activities foster camaraderie, team resilience, and loyalty to the company while also contributing to overall employee well-being.

Social connectivity and recognition: VR also facilitates social connectivity by allowing employees to interact in virtual spaces that mimic real-world environments. Companies can organize virtual social events, recognition ceremonies, or informal meetups in a virtual setting. Additionally, companies can integrate VR headsets into their total rewards strategy by offering a wide range of wellness classes, social gaming activities like virtual cornhole or bowling, and team-building exercises—all within one platform. This consolidated approach not only saves costs but also enhances employee participation and engagement, building stronger teams and a more cohesive company culture.

Cost Comparison: VR Headsets vs. Laptops

VR Headset Costs: The average cost of a high-quality VR headset, such as the Oculus Quest 2, is around $400, with more advanced models like the HTC Vive Pro costing up to $1,400. While the initial investment in VR headsets might seem significant, the multifaceted benefits—including training, productivity, well-being, and social connectivity—make it a valuable tool that delivers long-term ROI.

Laptop Costs: On the other hand, a business-grade laptop typically costs between $800 and $2,000, depending on specifications. While laptops are indispensable for everyday work tasks, they do not offer the immersive, interactive experiences that VR headsets provide. However, when used in conjunction with VR headsets, laptops can be transformed into powerful tools for both work and play. This combination maximizes the utility of both devices, enhancing overall employee performance and satisfaction.

Cost Efficiency of Integration: When comparing these costs, it’s important to consider the broader value that VR headsets bring to the workplace. A laptop is essential for many tasks, and the addition of a VR headset can significantly enhance how employees learn, collaborate, and engage with their work and colleagues. This combination offers a comprehensive solution that addresses multiple aspects of the employee experience, making it a smart investment for forward-thinking organizations.

VR Training: A Strategic Investment for the Future

Reducing turnover and enhancing engagement: By investing in VR training and well-being programs, companies can significantly reduce turnover rates. Employees who receive high-quality, engaging training and feel supported in their well-being are more likely to stay with their company. This leads to lower turnover costs and a more stable, engaged workforce.

Maximizing employee potential: The integration of VR headsets with laptops offers a holistic approach to employee development. It provides a platform for employees to learn, collaborate, and engage in ways that traditional tools cannot. This combination of training, productivity, and well-being support helps employees reach their full potential, resulting in a more productive and satisfied workforce.

Long-term ROI: The initial investment in VR headsets, when compared to the costs of employee turnover and severance, offers a compelling ROI. By reducing turnover, enhancing productivity, and improving employee engagement and well-being, VR headsets can deliver substantial long-term value to the organization.

Conclusion

A Future-Ready Training Solution

In conclusion, VR headsets are not just tools for training—they are versatile assets that can enhance various aspects of the employee experience. From extending laptop functionality to supporting employee well-being and fostering social connectivity, VR headsets offer a comprehensive solution that aligns with the goals of modern organizations. By making a strategic investment in VR technology, companies can not only reduce costs but also create a more engaged, productive, and resilient workforce, setting the stage for long-term success.

VR and AR technologies are revolutionizing job training across industries. They provide cost-effective, efficient, and engaging training solutions that enhance employee performance and organizational productivity. By leveraging these technologies, companies can not only improve their training programs but also create a more skilled, confident, and engaged workforce. As we look to the future, it's clear that VR and AR will play a pivotal role in shaping the training landscape, driving innovation, and fostering growth.

To help you harness the full potential of these technologies, we provide a comprehensive e-book titled How to Create a VR Job Training Strategy. This resource will guide you through the steps needed to integrate VR and AR into your training programs, ensuring your organization stays ahead of the curve and your workforce is well prepared to meet the challenges of tomorrow.

References and Further Reading

Thanks for joining us for this edition of the SHRMLabs Newsletter! Thanks again to Quentin Gause for his incredible insight on the topic of VR job training, and thanks to Rizewell for collaborating on this fantastic newsletter. We’ll see you next time!