10 Reasons Why an LMS is Necessary for Business
Every business wants to use its resources wisely. While many are willing to dive right into new technology, others are reluctant. There’s always a cost associated with buying new hardware and software. Every company should weigh their options, but also keep an eye on trends and updates. Many larger companies are already on the LMS bandwagon, including powerhouses like Google, which enrolled 80,000 of its employees in a web-based LMS course. Why should you consider moving to an LMS in your business?
- An LMS Can Improve Knowledge Retention
One of the most notable benefits of using an LMS in business training is knowledge retention. The more workers know, the better equipped they will be to provide services or make a product. Modern LMS platforms provide a variety of tools that are designed to make it easier to remember as much information as possible.
A common approach used is microlearning. Rather than present a large chunk of information to a learner, many LMSs turn courses into bite-sized pieces focused on a single topic. They are usually three to seven minutes long per session. A microlearning course takes 300% less time to produce and half the cost of a traditional course.
- Course Authoring Tools Allow You to Formalize Training
Having a trainer talk to a class about a subject can work, but there may be variations in the material. An LMS allows companies to build a formalized curriculum with courses that deliver the same content to each learner. There’s no variation, so everyone receives the same level of quality and knowledge.
Formalization makes training simple and allows trainers to easily improve the course content as needed. Simply edit or add resources or courses to keep everything up-to-date for employees.
- Convenient for Compliance Purposes
Formalization also goes hand-in-hand with compliance. Many businesses are required to provide certain types of training to employees. This could range from general safety and conduct training to specific education related to their profession or specialization. An LMS allows you to deliver exactly what the law requires, so you stay compliant.
The LMS can also create a record of completed courses and certificates, so you have evidence of compliance. This information can be easily accessed and printed if needed or sent to government organizations for verification.
- Analytics Provides Valuable Insight into What’s Working
Today’s business world moves a lot faster than it did 20 or 30 years ago. The internet has closed geographic gaps and compressed the time it takes for change to happen. Companies can identify and react to trends in a matter of seconds rather than hours or days. Training is essential to producing the best workers in your industry. And you need information to provide training that will get the job done, especially in a changing market.
An LMS will supply the insight you need to make changes or decisions through analytics. Reporting tools can instantly compile real-time data and delivery it in spreadsheets or graphs. Figure out what’s working and change what isn’t for faster results. Most also provide employee performance data to identify rising stars among your workforce.
- Users Report Significant Time Saved Using an LMS
The old saying “time is money” really rings true today. The less time wasted on back-end tasks, the better. An LMS is a good way to cut down on hours invested in your training courses. The right system will reduce the time required to retrieve information and make connections between data points. It will also be capable of completing everyday tasks with a few clicks of the mouse. Every minute saved is one that could be invested elsewhere in your business.
- Reduces or Eliminates the Need for Advanced Technical Expertise
Years ago, you would need at least one tech expert on hand to build anything computer-related. Today, the LMS world is much more user-friendly. Many off-the-shelf products are designed to give the user full control to build and share courses without coding. Tasks that once had to go to the programmers and designers can now be done by the average employee.
- Works as a Powerful Onboarding Platform
Onboarding has proven to be a key tool for saving money and retaining employees. Around 60% of companies do not set goals for new hires, which can leave workers feeling unmotivated and uncertain. Virginia-based consulting firm The Wynhurst Group reported that new hires who went through structured onboarding were 58% more likely to remain with the company for at least three years.
An LMS can provide all the tools needed to establish a solid onboarding program for every new hire to join your company. Users can build a course or set of courses that cover policies, compliance, job basics, or whatever topics are needed. Many also provide communication tools that allow employees to connect with mentors, trainers, supervisors, and others. When done correctly, this process can produce dedicated workers with a high level of job satisfaction.
- Today’s LMSs Grow with Your Business
Most LMS platforms offer scalability. They will expand with your business, so you never outgrow the system. This is especially important for companies that plan to increase their workforce and customer base in the coming years.
Scalability ensures that you always have access to the same features and don’t have to spend time or money training employees to use a new system. You can focus on company growth, and your onboarding and training tools will always be ready to meet the increased demand.
- Makes Employee Training More Accessible
People can learn anywhere thanks to mobile devices like smartphones and tablets. Modern LMS platforms have harnessed the power of this portable technology. Many have responsive interfaces that will adapt to the size and shape of any screen. Others may provide an additional mobile app that can be downloaded with full or limited functionality.
Flexibility makes it easier for employees to work through training material. They can bring their classes with them, no matter how far away they travel. This feature also creates opportunities to brush up on knowledge during short breaks throughout the day.
Some companies get even more benefit by building a set of resources through their LMS. When an employee has a question or needs information, they can search a knowledgebase or wiki to find what they need faster and without interrupting a coworker.
- Reduces Overall Training Costs
Training costs money, just like any other aspect of a business. A Gallup State of the American Workplace report revealed that ineffective training costs businesses $13.5 million annually per 1,000 employees. A company can easily reduce their wasted investment by implementing an LMS. Through time-saving tools, more effective training methods, and improved accessibility, the right platform will become a necessary part of a successful business.