eLearning has become ubiquitous part of organization training, which is why learning management systems are so essential in our contemporary world. Online training programs have skyrocketed the popularity of learning management systems, and almost every company has to invest in an LMS in order to train efficiently and remain relevant. But learning management systems are a big investment, so you want to make sure your organization is getting its moneys worth. To do so, here’s some tips for calculating ROI for your LMS.
Implement a Training Strategy That Saves Time
Technology is continuously and consistently evolving, meaning more and more people are drawn to learning online. This, in itself, will save money over time, as it allows learners to have access to updated study materials, and it also reduces transportation and materials costs.
An LMS considers employee time a valuable asset and has it high on its list of priorities. Online training modules can be accessed by employees based on their availability and the amount of time it takes to complete eLearning courses or modules can be reduced. Furthermore, it minimizes the amount of paperwork associated with every training module completed.
As well as managing the efficiency of data resources, online training schedules allow users to determine which training is appropriate for their employees based on their skills. This streamlines training, making it possible to assign only relevant training courses to each employee, rather than training in a group or using pre-packaged training materials that aren’t relevant to everyone.
Employee Turnover Rates
A good learning management system has the power to drastically reduce turnover rates and improve employee retention. Since well-executed eLearning content can have a hugely beneficial effect on employees, such as improved performance, better engagement, and the ability to grow within a company, your LMS may have saved you money by reducing turnover. What’s more, when new employees are hired, their training will be more efficient. This means less time spent in costly training, and the ability for new employees to feel sufficiently prepared for their new position, which is invaluable during their first few weeks working for a new company.
A work culture of high performance helps to cultivate a positive attitude and motivation in the workplace. In addition, a learning management can generate certificates of achievement in recognition of hard work and dedication by its employees. This will further motivate them to develop new skills and perform to the best of their abilities.
Think About Compatibility
Unfortunately, not all learning management systems are a good fit for every organization. They sometimes fail to support existing tools or features due to new models not fitting with existing ones. Integration and collection of valuable resources are some other points of concern. To determine ROI, you must assess how much time is required to migrate all of the older model’s databases and useful resources to the new system.
Does your LMS require more than one tool or specialist team members to be installed properly? If your organization is wasting time trying to integrate the LMS with current systems and third-party tools, it’s just money that you’re spending on activities that aren’t necessary with an LMS that integrates seamlessly. To get a good return on investment, your LMS needs to be compatible with your organization and the systems you already use.
Review Past Expenses
In order to determine if your LMS was a good investment, it’s necessary to evaluate expenses associated with training in the past, such as the cost of training centers, instructors or trainers, and printed materials. Think outside of the box here too. An LMS can improve compliance efficiency, which may have saved your organization money by ensuring employees don’t fail to keep in compliance and cause fines or penalizations by doing so. Essentially, has your LMS reduced the risk of noncompliance penalties?
Consider the Learning Curve
To be successful in the field of eLearning, you must keep up with the current trends in the learning structure. A good learning and development team should have easy access to the newest technologies and know how to use them. To take advantage of the optimal performance of new features, does your team need to go through a steep learning curve in order to utilize them properly? If team members need to be trained extensively to use online tutorials or LMS features, your organization’s ROI will be affected. The LMS you choose shouldn’t have a steep learning curve, it should be easy and straightforward to navigate, and new features or functions should be straightforward to train.
Assess the Costs
When determining the return on an LMS, the choice of learning management system itself is one of the most important things to consider. The return on your investment is largely determined by how costly the system actually is. Nowadays, there are various Learning Management Systems available on the market, each with their own set of pros and cons. Cloud-based learning management systems can be tempting because they’re cost-effective. There are no installation costs and little maintenance involved with cloud-based systems. Because they have built-in data storage, they reduce upfront expenses. But cloud based LMS’s also have their disadvantages and may drive up costs in other areas. It’s critical that you calculate the cost of setting up and running your LMS in order to determine whether it was worth the expense.
All in all, implementing a Learning Management System is an effort that requires a lot of expenditures. In order to serve the purpose of efficient online training whilst also being worth the expense, an LMS needs to provide a cost-effective and productive learning model.
eLearning is the way forward, and a good LMS can transform the way your team learns and retains information. While they’re pricey to set up initially, most organizations find that their learning management systems saved them money in the long-run, and a lot of it.