Business simulations are a practical, engaging workplace learning method, consisting of a range of activities related to specific goals and KPIs.
Instead of traditional classroom-based learning, simulations imitate reality and stimulate collaborative working among employees, thus improving learning retention and boosting morale.
How are simulations beneficial for businesses?
There are several benefits that business simulations pose for corporations, including:
- Accelerated learning and development
- Learning in a risk-free setting
- Actively attempting situations
- A significant return on investment from workplace training
- An opportunity to implement new technology and innovation.
As opposed to traditional learning methods which rely heavily on delivering information in a linear, one-way fashion, business simulations encourage collaboration and allow businesses to assess the performance of their employees in a risk-free environment.
In terms of monitoring performance, a qualitative assessment is something that is typically difficult for businesses to do. While their employees will be qualified for their roles, it is less obvious to identify and assess specific qualities, attitudes and reactions to certain scenarios.
A business simulation, however, allows leaders to watch their employees perform tasks related to their actual roles, which in turn gives them a clearer qualitative assessment capability.
How are business simulations beneficial for employees?
Business simulations provide employees with a systematic learning experience while simultaneously allowing them to express their own opinions and showcase their methods when it comes to solving professional problems.
This way, individuals are able to achieve the perfect balance when it comes to retaining information and putting into practice specific skills learned.
With one in three employees in the modern workplace agreeing that uninspiring content is a barrier to their learning, investing in a bespoke business simulation could prove to be the difference between success and failure.
Why do leading businesses use them?
Leading businesses are so diverse in their talent pool. They have so many different types of employees who will excel in different areas, meaning that a basic training course using traditional methods simply won’t work in the modern day.
An effective business simulation will offer these companies a solution that can prepare an entire hierarchy of employees for the demands of their roles and more, in an environment where individuals are encouraged to express their capabilities and later reflect on where they could improve in the future.
How business simulations offer more than just forecasting
It is a common misconception that business simulations as part of a wider training programme are merely in place to ensure that leaders can accurately forecast long term figures based on historical data and employee performance.
In fact, simulations seek to move away from linearity and rooted metrics, adopting a butterfly effect approach to workplace learning. The benefit of this is that it can be highlighted to employees how one small disruption can have a significant effect on long term results.
How can business simulations integrate new technologies?
The flexible nature of a business simulation means it can be tailored to meet specific needs and focused on particular areas. This is especially the case when it comes to new technology.
In particular, virtual reality (VR) is now being used to improve business simulations and general workplace processes. It has even been reported that virtual reality has boomed during the COVID-19 pandemic as companies look to more innovative ways to train their staff.
Providing a virtual reality (VR) environment for employees as part of a business simulation allows them to be fully immersed within a learning experience related to their position at the business.
Our approach to business simulations
At MDA Training, we take an active approach to business simulations as part of our workplace training programmes. Our unique combination of an experiential simulation, supported by flexible learning initiatives, will help build and sustain key technical and interpersonal skills.
Our simulations are designed to be fun, engaging, competitive and ultimately effective at building applied knowledge and improving learning retention as participants form strong memory anchors and practical insights.
We specialise in creating and delivering business simulations for the following industries:
- Banking training
- Asset management training
- Insurance training
- Professional services training
- Manufacturing & engineering training.
Below is a visual representation of how we deliver business simulations here at MDA Training:
We take the time to learn specific goals, objectives and KPIs to provide participants with a real-time opportunity to practice and focus on the key skills, attitudes and behaviours they need to adopt to make an effective contribution to their team and the wider organisation.
Conclusion
A business simulation is not just an industry buzzword used to mask over traditional training methods. In contrast, they are an innovative, cutting-edge way of improving learning retention and promoting collaboration between employees at all levels, when implemented correctly.
When looking to develop the skills of employees through active and memorable learning, leaders should definitely consider the benefits that business simulations pose for organisations of all sizes.