How VR solves problems with compliance in the enterprise
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:
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.
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.
Moreover, no customer or client will ever be exposed to this “live” training, so the risk of damages is reduced to a non-existent level.
While investing in VR tech may seem costly in the short term (VR headsets, software, installation, etc.) the potential ROI in the long-term is huge. In 2019, the total spending on employee training globally reached $370.3 billion. Much of this expenditure can be attributed to educator fees, corporate retreats, disruption to business practices, the list goes on.
With VR training, however, employees can learn from anyone, anywhere, anytime. This means the reasons for not investing in compliance training are significantly reduced, so businesses can focus on making it a number one priority.
According to analysts, the global VR in Education Market size is expected to reach USD 13,098.2 million by 2026, with an increase of 42.9% during the forecast period. This means we can expect to see many more opportunities and innovation opening up in the education and training space as the market evolves.
Let’s take a look at some more interesting stats:
As the figures show, VR technology is already having a huge positive impact on the way employees learn within the enterprise space. The old way of doing things, while still active today, will undoubtedly be replaced by VR in the future, and it’s only a matter of time before we see these changes happen on a global scale.