Compliance errors are costing businesses millions if not billions every year, and until a new solution like virtual reality training is adopted on a global scale, it’s only going to get worse…
According to reports, compliance could cost companies $55 billion initially and as much as an additional $16 billion over the course of the next 10 years (opens pdf). These losses are often due to fines, business disruption, productivity loss, and revenue loss. Yet, aside from the immediate financial losses on the bottom line, non-compliance also creates long-term, often irreparable damage to both brand reputation and customer experience.
The problem is that correcting these errors has always been both a costly and slow process for enterprises. It takes time to weed out the problems, and then more time to train employees on how to avoid them. In addition to this, compliance training in real-time also poses a huge risk for businesses as it’s very difficult for them to undo the damage once it’s been done.
However, VR is changing the landscape forever. Developers moving into the education and training spaces with their revolutionary technologies are opening doors to new worlds that never even existed before. From a compliance training standpoint, VR has the potential to solve many problems businesses currently face and could help protect organizations from suffering huge financial losses in the future.
Let’s take a look at how VR Tech can improve compliance in the enterprise:
Immersive Training Environments
Poor engagement from employees during compliance training is one of the main reasons why businesses fail in this area. If the employee is bored, distracted, or unmotivated to participate fully in dry, mechanical compliance training procedures, then they’re far less likely to absorb the information being taught to them.
With virtual reality training, however, students are much happier to participate and engage with the subject at hand. According to research, 97% of students would like to study a VR course. Why? Because of the fully immersive learning environment stimulates the student and encourages them to interact, engage, and show genuine, personal interest in the information being taught to them. Distractions from the outside world are removed, and the employee is both mentally and emotionally involved in the training experience.
Greater Damage Control
One thing we can be certain about with non-compliance is that it’s very difficult to correct the damage once it’s been done. Exposing sensitive data or displaying poor conduct in any way, shape, or form can lead to long, expensive legal disputes which companies want to avoid at all costs.
Therefore, training employees in an immersive “almost-real-world” virtual environment is an effective approach when solving the compliance issue. Employees can experience first-hand what it’s like to face situations where their compliance skills and knowledge will be tested, and trainers can accurately gauge their actions and responses.
