Say goodbye to the high cost of Sexual Harassment Prevention Training
California – Connecticut – Delaware – New York - Maine
Five states currently mandate sexual harassment prevention training for every employee. Additionally, another eleven states have introduced legislation to follow suit. The EEOC has confirmed that sexual harassment lawsuits are significantly on the rise for the first time since sexual assault allegations against Hollywood mogul Harvey Weinstein sparked the #MeToo movement. The tolerance of sexual harassment in the workplace is zero. State-mandated Sexual Harassment Prevention Training is not going away any time soon.
For most employers the cost of complying with these new regulations is insignificant. However, nothing could be further from the truth for companies operating in the industries that are reliant upon a predominantly low-wage, high-turnover hourly workforce.
Recent changes in California, New York, Delaware, and Maine’s sexual harassment prevention training laws now require employers to provide training to every employee, not just managers and supervisors. Just in case you lost count, that means 30,504,791 additional employees must complete one hour of documented sexual harassment prevention training in 2019 — in these four states alone.
For companies operating in industries where low-wage labor is their product, and annual employee turnover rates of 300% are the norm, the cost of this newly mandated training can be devastating to the company’s bottom line.
Almost all employers (except the largest nationals and publicly traded companies) turn to third-party vendors to deliver effective and compliant training solutions to comply with these new state regulations. To provide these training solutions to you, vendors rely on a myriad of learning management system (LMS) platforms. These LMS platforms have advanced features and functionality when it comes to the administration and documentation of training large employee populations. Advanced LMS platforms are inexpensive and scalable, and in and of themselves do not drive the high cost of employee training. However, training content to run on these LMS platforms is an entirely different story.
The cost of professionally produced content that meets each state’s specific requirements and will integrate with modern LMS platforms is exorbitant. So instead of investing vast amounts of capital in developing original content, most training vendors choose to license content that already exists. That licensed content is paid for on a “per view” or per “active user” basis. Professionally produced content that has been created to be compliant with a state’s sexual harassment prevention training law will cost the third-party training vendor anywhere from $5.00 to $12.00 for each employee who views it. This high-cost variable expense to the training vendor is what drives the retail cost to the employer (you) of $15.00 to $25.00 for every employee that you must train.
Consider a hypothetical California based security guard firm with 500 employees and 300% annual employee turnover - “ABC Security.” Because of their turnover, ABC Security will have to train 1,500 security guards in 2019 alone. If the average cost to train each security guard is $20.00, ABC just added a $30,000 to their annual operating cost. In an industry where net income is 3- 5% of top-line revenue, that additional operating expense is anything but incidental.
Corporate Benefits Alliance is a uniquely focused company with a single mission. Dramatically improve the bottom-line financial results for companies that operate in the industries that rely on a predominantly low wage, high turnover hourly workforce. With that mission in mind, we are proud to be the only third-party sexual harassment prevention training vendor (that we know of) offering “Flat Rate” annual sexual harassment prevention training contracts. Our yearly training contracts could not be simpler or more affordable. We charge $10.00 for each current employee irrespective of how high your annual employee turnover is. So, “ABC Security” would pay $5,000 for one year of complete training (all 1500 guards and managers) with Corporate Benefits Alliance, not the $30,000 they would pay our competitors.
Why on earth would you want to pay for all your employees when you only have to pay for your current employees? Click here to see what our clients are saying