Flevy Management Insights Q&A

What are the emerging trends in using augmented reality (AR) for skills development in employee training?

     Joseph Robinson    |    Employee Training


This article provides a detailed response to: What are the emerging trends in using augmented reality (AR) for skills development in employee training? For a comprehensive understanding of Employee Training, we also include relevant case studies for further reading and links to Employee Training best practice resources.

TLDR Augmented Reality (AR) in employee training boosts learning retention, engagement, and operational efficiency, reduces costs, and offers scalable, personalized training solutions across industries.

Reading time: 4 minutes

Before we begin, let's review some important management concepts, as they relate to this question.

What does Immersive Learning Experiences mean?
What does Cost Efficiency in Training mean?
What does Scalability of Training Solutions mean?


Augmented Reality (AR) is revolutionizing the landscape of employee training and skills development across various industries. By overlaying digital information in the real world, AR provides immersive, interactive experiences that enhance learning outcomes and operational efficiency. This technology's adoption in training programs is not just a trend but a strategic imperative for organizations aiming to stay ahead in the rapidly evolving business environment.

Enhancing Learning Retention and Engagement

One of the most significant benefits of AR in skills development is its impact on learning retention and engagement. Traditional training methods often struggle to maintain learners' attention and to facilitate the long-term retention of information. AR, by contrast, creates an interactive learning environment that increases engagement through visual and practical experiences. According to PwC, employees trained with AR technology can be up to four times more focused than those learning through traditional methods. This heightened engagement not only accelerates the learning process but also improves the retention of information, thereby enhancing the overall effectiveness of training programs.

AR applications allow for the simulation of real-life scenarios in a controlled environment, enabling employees to practice and hone their skills without the risks associated with on-the-job training. For instance, in the healthcare sector, AR is used to simulate surgical procedures, allowing medical professionals to gain valuable experience without putting patients at risk. Similarly, in manufacturing, AR can demonstrate complex machinery operations, providing hands-on experience in a safe and controlled setting.

Furthermore, AR supports personalized learning paths, adapting to the individual's pace and learning style. This personalization ensures that each employee receives the most relevant and effective training, further improving learning outcomes and operational efficiency within the organization.

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Cost Reduction and Scalability

Implementing AR in training programs can lead to significant cost savings for organizations. Traditional training often involves considerable expenses, including travel, venue, equipment, and instructor fees. AR can dramatically reduce these costs by delivering high-quality, interactive training through digital devices. A report by Accenture highlights that AR can reduce training costs by up to 40% while increasing efficiency and scalability. This cost-effectiveness allows organizations to allocate resources more strategically, investing in other areas of Digital Transformation and Innovation.

AR also offers unparalleled scalability, enabling organizations to train a large number of employees simultaneously, regardless of their geographical locations. This global reach is particularly beneficial for multinational corporations seeking to standardize training and ensure consistent skills development across their workforce. Additionally, AR facilitates easy updates and modifications to training materials, allowing organizations to quickly adapt to new technologies, processes, or industry regulations without incurring significant additional costs.

The scalability of AR training solutions is exemplified by companies like Boeing, which has integrated AR into its training programs to instruct technicians on complex aircraft manufacturing processes. This approach has not only reduced training time but also improved the accuracy and quality of the work, demonstrating the dual benefits of cost efficiency and operational excellence.

Real-World Applications and Future Trends

Leading organizations across various sectors are already leveraging AR for skills development, with notable examples in healthcare, manufacturing, and retail. For instance, Walmart has implemented an AR training program to prepare employees for Black Friday, the busiest shopping day of the year. This program simulates the intense and chaotic environment employees will face, equipping them with the skills and confidence needed to manage the situation effectively.

In the automotive industry, Mercedes-Benz uses AR to provide technicians with real-time, overlay instructions for vehicle maintenance and repair. This not only speeds up the diagnostic and repair processes but also enhances the accuracy and quality of work, leading to higher customer satisfaction and loyalty.

Looking ahead, the integration of AR in employee training is expected to deepen, with advancements in technology making it even more immersive and interactive. The use of AR glasses and headsets is anticipated to become more widespread, providing hands-free, on-the-job training that further enhances learning outcomes and operational efficiency. Moreover, the convergence of AR with Artificial Intelligence (AI) and machine learning will enable more personalized and adaptive learning experiences, tailoring training programs to meet the unique needs of each employee.

In conclusion, the adoption of AR in skills development and employee training is not merely a passing trend but a strategic investment in the future of work. Organizations that embrace this technology can expect to see significant improvements in learning outcomes, cost efficiency, and operational excellence, positioning themselves as leaders in the competitive global market.

Best Practices in Employee Training

Here are best practices relevant to Employee Training from the Flevy Marketplace. View all our Employee Training materials here.

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Explore all of our best practices in: Employee Training

Employee Training Case Studies

For a practical understanding of Employee Training, take a look at these case studies.

Employee Training Enhancement in the Construction Industry

Scenario: The organization is a mid-sized construction company specializing in commercial real estate projects.

Read Full Case Study

Workforce Training Strategy for Boutique Hotel Chain in Leisure and Hospitality

Scenario: A boutique hotel chain, operating in the competitive leisure and hospitality sector, is facing significant challenges related to workforce training.

Read Full Case Study

Workforce Training Program for Retail Apparel Chain in Competitive Landscape

Scenario: The company in focus operates a retail apparel chain, which has recently expanded its footprint across multiple states.

Read Full Case Study

Workforce Training Enhancement in Live Events

Scenario: The company is a leader in the live events industry, specializing in large-scale conferences and exhibitions.

Read Full Case Study

Employee Training Strategy for Craft Brewery in North America

Scenario: A prominent craft brewery in North America, recognized for its innovative and diverse beer offerings, is facing challenges with employee training that are impacting its growth and product consistency.

Read Full Case Study

Transforming Workforce Training in Air Transportation: A Strategic Framework Approach

Scenario: An air transportation company implemented a strategic Workforce Training framework to address its talent development challenges.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How can companies integrate ethical considerations into their employee training programs, especially in sectors with high regulatory scrutiny?
Companies can integrate ethical considerations into employee training by aligning programs with Core Values and Strategic Objectives, incorporating Continuous Learning and Feedback Mechanisms, and ensuring Measurement of Impact and Accountability, fostering a culture of ethics and compliance for business success. [Read full explanation]
In what ways can organizations leverage data analytics to enhance the effectiveness of workforce training programs?
Organizations can improve Workforce Training Programs through Data Analytics by identifying skill gaps, personalizing training content, and measuring training effectiveness for targeted, engaging, and impactful outcomes. [Read full explanation]
What role does leadership play in the success of employee training programs, and how can leaders be more effectively involved?
Leadership is crucial in employee training success, emphasizing the creation of a Learning Culture, Strategic Planning, Resource Allocation, and continuous Monitoring and Evaluation to align development with organizational goals. [Read full explanation]
What role does leadership play in fostering a culture that values continuous learning and development?
Leadership is crucial in creating a culture that values Continuous Learning and Development, through strategic support, role modeling, and aligning learning with business goals, exemplified by Google and AT&T. [Read full explanation]
How can organizations tailor their training programs to better prepare employees for leadership roles?
Organizations can prepare employees for leadership roles through a strategic, multifaceted approach that includes identifying leadership potential early, emphasizing experiential learning, mentorship, personalized development plans, and integrating technology for a personalized, experiential, and technology-enabled learning experience. [Read full explanation]
What strategies can companies implement to measure the ROI of their employee training programs effectively?
Effective ROI measurement of employee training programs involves Strategic Alignment with business goals, leveraging Advanced Analytics, and employing a Multi-faceted Evaluation Strategy, as demonstrated by Google, Amazon, Siemens, and IBM. [Read full explanation]

 
Joseph Robinson, New York

Operational Excellence, Management Consulting

This Q&A article was reviewed by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

To cite this article, please use:

Source: "What are the emerging trends in using augmented reality (AR) for skills development in employee training?," Flevy Management Insights, Joseph Robinson, 2025




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