Stop Wasting Your Software Budget: The Employee Training Gap

Most businesses spend heavily on software and almost nothing training their teams to actually use it. Employees use an average of just 40% of available features in the tools they are given,[1] while companies waste an average of $18 million annually on SaaS licenses that deliver little to no return.[2] The fix is not more software. It is better training on what you already own.

Why Are Businesses Paying for Software They Don't Actually Use?

It starts with a familiar story. A company invests in a new platform. IT configures it. Leadership announces it in an all-hands. Then nothing really changes. Six months later, half the team is still using workarounds, spreadsheets, and tribal knowledge to do the same jobs the software was supposed to simplify.

This is not a technology problem. It is a training problem.

According to Zylo's 2024 SaaS Management Index, the average company wastes $18 million per year on unused or underutilized SaaS licenses.[3] Let that land for a moment. That is not a startup that outgrew its tools too fast. That is the average organization, of any size, in any industry, hemorrhaging money because their software investment never made it past the login screen.

What's Really Behind the Employee Training Gap?

Here is the part most IT conversations skip: the adoption rate of core software features across all industries averages just 24.5%, with a median of 16.5%, according to Userpilot's 2024 benchmark report analyzing 181 companies.[4] That means for every dollar your organization spends on software, more than three-quarters of its capability is sitting idle.

Why? Because deployment and adoption are two completely different things. Deploying software is an IT event. Adopting software is a human process. And humans need context, practice, and reinforcement to actually change behavior.

Companies often roll out a tool, schedule a one-time lunch-and-learn, and call it done. But software does not change how people work. Habits do. And building new habits takes intentional, ongoing training. This is especially acute with platforms like Microsoft 365, where features like Teams automation, Power Automate workflows, or advanced Excel functions go entirely unused because no one ever showed employees they existed.

What Does Proper Training on Existing Tools Actually Return?

This is where the business case becomes impossible to ignore. Companies with comprehensive employee training programs report 218% higher revenue per employee than companies without them, and 24% higher profit margins.

Training is not a cost center. It is a revenue driver hiding in plain sight.

Consider what your organization has already paid for. Project management platforms. Communication suites. CRM systems. Accounting software. Cloud storage tools. If your team is using 40% of those features, you are effectively paying full price for a car and driving it in second gear.

The simplest ROI in your tech stack is not a new tool. It is training your team to actually use the tools you already have.

How Do You Close the Gap Without Adding to the Overwhelm?

Business owners and operations leaders are already stretched thin. So let's be practical. Closing the employee training gap does not require building a corporate university. It requires three things.

1. A skills audit. Where are the biggest gaps between what your software can do and what your employees actually know how to do? Start there, not everywhere.
2. Role-specific training. One-size-fits-all training rarely sticks. Your marketing team needs to know different things about your CRM than your sales team does. Targeted training delivers faster adoption and measurable results.
3. Ongoing reinforcement. A single training session changes awareness. A series of short, embedded touchpoints changes behavior. Look for tools and processes that put learning in the workflow, not outside it.

Where This Fits in Your Technology Maturity Journey

At Sentry Technology Solutions, we use a framework called the Technology Maturity Model (TMM) to help businesses understand where they are and where they need to go. It has four stages: Operate, Secure, Integrate, and Innovate.

"Operate" means your technology actually works for your people. Not just that it is installed and licensed. That it is adopted, understood, and actively used. Until a business can say with confidence that their team is operating at full capacity with their current stack, it does not make sense to pile on more tools.

If you are investing in software your team does not use, you are not operating. You are just spending.

Getting to Secure, Integrate, and Innovate all becomes more achievable once your foundation is solid. And that foundation is built on people who know how to use what they have got.

If you are not sure where your organization stands on the technology maturity curve, that is where we start. Sentry Technology Solutions works with businesses across 30+ states to help them get more from the technology they have already invested in. Let's find out what your team is leaving on the table. Start the conversation at sentryitsolutions.com.

Frequently Asked Questions

What percentage of software features do employees typically use?

Research from Userlane and PwC found that employees use an average of just 40% of the software features available in the tools required for their job. Userpilot's 2024 benchmark report puts core feature adoption even lower, at a median of 16.5% across 181 companies.

How much money do businesses waste on unused software?

According to Zylo's 2024 SaaS Management Index, the average company wastes $18 million per year on unused or underutilized SaaS licenses.

Is employee software training worth the investment?

Yes. Research shows that companies with comprehensive training programs see 218% higher revenue per employee and 24% higher profit margins than those without training on tools you already own is often the highest-ROI investment available to a growing business.

What is a SaaS license audit and why does it matter?

A SaaS license audit is a review of all software subscriptions your organization pays for, compared against actual usage data. It identifies tools that are paid for but underused so you can either cancel them, consolidate, or invest in training to increase adoption. Most businesses are surprised by what they find.

How does employee training relate to cybersecurity?

Untrained employees do not just underuse software. They often use it incorrectly, which creates security vulnerabilities. Phishing susceptibility, improper file sharing, and weak password practices are all training issues, not just technology ones. A well-trained team is a more secure team.

References

1. Zylo. (2024). 2024 SaaS Management Index. https://zylo.com/news/2024-saas-management-index/

2. Userpilot. (2024). Core Feature Adoption Rate: Benchmark Report 2024. https://userpilot.com/blog/core-feature-adoption-rate-benchmark-report-2024/

3. Bridge LMS. Prove the ROI of L&D With These 58 Stats. https://www.getbridge.com/blog/lms/proving-roi-learning-development-stats/

4. Userlane / PwC, via Computer Weekly. Millions wasted as staff only use 40% of new software features. https://www.computerweekly.com/news/365531552/...