We’re obviously big believers in the value of a learning management system (LMS) here at eLeaP. There are reasons for that, however. All businesses, large and small, can benefit from a learning management system.
We put together 10 of the top reasons every business needs a learning management system.
Save Money on Training
According to research compiled by ATD, it takes companies an average of $1,888 per employee for direct learning in one year. This is for companies with fewer than 500 employees. For midsize companies that have anywhere from 500 to 9,999 employees, the average spending is around $838 per employee. However, with a learning management system, employers have been able to reduce that cost to less than $100 per employee. The cost difference is staggering, and that alone can make it well worth it to small and mid-sized companies to utilize a learning management system.
Avoid Issues of Outsourced Training
When a business isn’t using a learning management system for training, they often have to outsource training. For example, they may send employees out for training, or they may bring in outside professionals or companies to handle training. This means that the training is not only costly and time-consuming, but it also lacks customization. Basically, when training is outsourced, employees are getting canned information, and it’s not tailored to their needs. There’s no specific relevance to the organization, and that means employees aren’t likely to retain or use the information they get from outsourced training.
This is touched on a bit above but is important on its own as well. Personalized training is essential for effectiveness, and it’s something that most small businesses can’t manage to deliver without a learning management system. With a learning management system, small businesses can create completely original training content from scratch, and it’s not time-consuming. Learning management systems and e-Learning finally gave small businesses the opportunity to take advantage of personalized training and development in ways they hadn’t been able to previously.
Noncompliance can be costly and extremely damaging for businesses of all sizes, including small businesses. Noncompliance can cause legal and financial issues, and can quickly become a PR nightmare, especially in the era of social media. A learning management system lets employers thoroughly train employees on issues related to compliance. It’s not just the initial training that’s available through an LMS, however. Employers can keep the content related to compliance stored within the learning management system so employees can access it during the times they need it most. It’s also easy to update that content as needed, so everyone stays ahead of the curve when it comes to changes in compliance and regulations.
Training Remote Employees
An increasing number of employers are hiring remote employees, who could work elsewhere in the U.S. or the world. Hiring remote workers is more accessible than ever before thanks to communication technology, but there’s a problem when it comes to training these employees. Remote employees might not have access to the same level of detailed training, development, and onboarding since they’re not physically in the office. Learning management systems eliminate this hurdle because everyone can access the same quality training from anywhere. Learning management systems pave the way for consistency in how employees receive information, which is important.
Individualized Learning Paths
Adult learning theory is based on the idea that everyone learns differently. Employees are going to have varying skill levels, different levels of comfort with technology, and they’re going to want to learn at different speeds. E-Learning and learning management systems let employees guide their own training and development path in the way that’s going to work best for them, and help them best retain information.
Different Group Training
Even in relatively small businesses, different groups need to be trained in different ways. For example, your customer service employees will need a different kind of training as compared to your human resources professionals. With a learning management system, it’s possible to easily create and deliver training to different groups with different objectives.
Measuring Employee Performance
Employee performance is something that before the widespread implementation of learning management systems was difficult to really measure. With an LMS, businesses can not only see how their employees are developing, but they can track it using centralized data. This helps employers who might be underperforming, and then track how they do when measures are put in place to improve their performance. It’s not just overall trends of employee performance that can be viewed using a learning management system. It’s also possible to evaluate how well employees grasp information right after they complete a training module. Sometimes, it’s not the employees who are the problem when there are issues with performance management and assessments. Data obtained in a learning management system can also show where changes could be made to the training approach and materials to improve effectiveness.
With a learning management system, businesses can not only measure specific employee performance, but they can also see the overall ROI for all of their training initiatives. It’s so important that training is linked to business objectives and outcomes, but if you don’t have a way to measure the success of training and development, you’re not going to be able to make that connection. Luckily, data from a learning management system will help determine a very specific ROI.
Create a Centralized Knowledge Hub
Intellectual capital is one of the key assets of any business that can be leveraged to drive innovation. A learning management system offers a central, streamlined place for knowledge to be kept and maintained. It can grow and be shared easily through a learning management system, and it can create new opportunities for a culture of innovation. If information isn’t consolidated in one location, it can be unused or lost. That worry is alleviated with the implementation of a learning management system. All of the resources are in one place, and they can be accessed anytime someone needs them.