Relay, a cloud-based communications platform designed for frontline teams, has unveiled the findings of a study on the hidden costs of language barriers in the industrial sector. While the tangible costs of managing multilingual teams are well-known, Relay’s research focuses on the often-overlooked labor costs stemming from inefficiencies and human resource underutilization.
Key Findings: The Hidden Costs of Language Barriers
- Labor Costs of Language Barriers
The study reveals that U.S. businesses in the industrial sector lose an average of $486,078 annually due to language barriers. These costs primarily arise from bilingual employees being pulled away from their primary roles to serve as impromptu translators, leading to underutilization, inefficiencies, and reduced output. - Misallocated Labor Hours
Bilingual frontline workers spend, on average, 4 hours per week assisting their coworkers with translation, amounting to $7,500 in misallocated labor costs per employee each year. Additionally, limited English proficiency (LEP) workers who require regular translation support spend an average of 6.5 hours per week communicating via translation tools, leading to over $4,900 in lost labor costs annually for each LEP employee. - Increased Demand for Technology Solutions
The overwhelming majority (83%) of frontline workers surveyed expressed a desire for increased investment in technology-driven translation solutions to reduce language barriers. This indicates a strong industry demand for better tools to streamline communication and enhance productivity.
Broader Impact of Language Barriers
- Workplace Safety
Language barriers not only reduce productivity but can also compromise employee safety. According to OSHA, language barriers contribute to 25% of all on-the-job accidents. Clear and effective communication is critical for ensuring worker safety, especially in high-risk environments like factories and construction sites. - Training and Productivity
Beyond safety, language barriers can hinder effective training and overall team performance. Employees who struggle to communicate may not receive or retain critical information, further impacting operational efficiency.
The Need for Innovative Solutions
- Traditional Translation Methods
Despite the high costs of language barriers, 77% of respondents reported that their workplaces still rely on bilingual employees to serve as impromptu interpreters. This practice leads to significant inefficiencies and underutilization of talent. - Relay’s TeamTranslate Solution
Relay aims to change this trend with the introduction of TeamTranslate, a cutting-edge, AI-powered translation tool that allows frontline workers to communicate in over 33 languages in real time. This breakthrough technology ensures seamless communication without requiring employees to leave their primary roles, thus improving productivity and reducing labor costs.
Relay’s research highlights the hidden costs of language barriers in the industrial sector, demonstrating the need for smarter, technology-driven solutions. By adopting tools like TeamTranslate, companies can enhance productivity, reduce labor costs, and improve safety for their frontline teams. As the workforce continues to diversify, businesses must invest in innovative solutions to bridge communication gaps and empower their teams to work more efficiently and safely.
