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How can an LMS benefit your business?

Learning management systems (LMS) are gaining popularity in the corporate world as a cost-effective training solution. In this article, we’ll explore a few of the many benefits that implementing an LMS can have on your company. But first, it’s important to understand what an LMS is and how it can be used.

What is an LMS?

A Learning Management System, or LMS, is a software application that helps organizations manage, deliver and track training and educational programming. These platforms can be used to deliver on-demand, engaging multi-media courses that include interactive elements, downloadable materials, quizzes and assessments.

Some common uses of LMS include:

  • Employee onboarding
  • Crosstraining
  • Compliance
  • Customer Service
  • Product knowledge
  • Sales
  • Required certifications

Why consider this approach to training? Well…

LMS can reduce training costs and productivity loss

In today’s competitive business environment, learning management systems offer a cost-effective solution for improving employee productivity and ensuring that employees have the skills and knowledge necessary to succeed. A study by Cryptex found that 41% of companies reported a significant reduction in training costs after implementing an LMS system.

Because of their virtual existence, there is no need to coordinate multiple schedules or plan for periods of reduced productivity because of on-site training. In fact, Dashe & Thomson found that compared to instructor-led training, e-learning uses 40-60% less employee time. Additionally, IBM discovered that following the implementation of an e-learning program, their employees learned nearly five times as much without increasing the amount of training time. This meant more informed employees and less downtime.

In addition to reduced training costs, investing in an LMS can help increase profits. A survey shared in Forbes found that of 2500 companies, those with “comprehensive training programs” have a 218% higher revenue per employee as well as a 24% higher profit margin.

Overall, learning innovation results in a more than 9% improvement in organizational growth, transformation, profit and productivity, according to research from Emerald Works.

LMS has what learners want

More than half of employees (58%) prefer to learn at their own pace, according to Docebo. This is impossible to do in a traditional learning environment but can be done easily through the on-demand approach offered by an LMS. These systems also offer the ability to customize programs for individuals, allowing them to learn at their point of need – something desired by 49% of employees.

In addition to flexibility, LMS courses offer features that employees desire, such as multimedia elements and gamification. According to Training Industry, 70% of employees would rather learn through video than written materials. Additionally, Matrix found that using gamification, simulations and learning scenarios can increase employee engagement by up to 92%.

As a result, online training programs are highly effective. According to the Research Institute of America, employees are more likely to retain information that is delivered digitally – with retention rates averaging between 25-60%, compared to 8-10% with face-to-face training.

In conclusion

A learning management system can be an extremely valuable asset for your company. Not only is it a cost-effective solution, but employees also prefer e-learning to traditional methods. If you’re looking for a way to improve training and development within your organization, an LMS may be the perfect answer.

Are you looking to implement or update LMS content? We can help! Get in touch with us at service@artemia.com or give us a call at 415-351-2227 to set up a time to discuss how we can support your training efforts through platform agnostic curriculum development.


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