First, you must identify what is important for your organization:
- Do you want to decrease overall training costs?
- Do you need to effectively communicate critical job tasks?
- Do you have employee certification requirements?
- Are you looking to provide a better way to communicate and collaborate with employees, members, vendors, partners, etc?
These questions and others may apply to what you are looking for that will define the return you need from you training program investment. Not all returns can be measured by the costs associated, but that is an important factor that must be considered.
It is the most effective way to empower a workforce with the tools they need to do their jobs well. However, the thought of investing in a learning management system can cause some companies to cling to inefficient and antiquated training techniques. This can lead to poor results and an underappreciated valuation of proper employee training.
This may be because the costs of implementing an LMS are not all related to money. Some companies consider lost time from work and possible technical difficulties costs as well. This makes the term “investment” even more appropriate.
It is no secret that acquiring an LMS is an investment.
Aside from money, investments take time and planning. If low on one or more of these resources, a company may find it challenging to implement a learning management system.
This is why it is important for trainers and leaders in operations to know the types of return on investment an LMS can yield.
Benefits of Using an LMS
It is valuable to also know the many types of returns an LMS offers.
Utilizing a learning management system…
- Help to manage learning content, certification programs, and more.
- Lowers or eliminates the need for training travel expenses.
- Increases employee job proficiency.
- Expedites individual training time.
- Raises engagement and collaboration levels.
- Reduces turnover costs through career development and support.
- Reduces total costs of training material
- Improves availability of job task information
How to Easily Calculate Return on Investment
It is also possible to calculate the financial return on investment (simple calculator) you may receive from using a learning management system. In addition to cutting costs and improving profits, there are other measurable ways to prove an LMS’s return on investment with numbers and figures.
Leverage Social Learning and Informal Knowledge
Issuing training material through communication channels that compliment different learning styles allows employees to absorb content in a way that proves personally effective. Also, users can interact and share informal information relative to their experience that can be stored and easily applied to similar situations. By monitoring these learning channels, it can become clear how many people interact with eLearning material outside the online classroom.
Gauge Trainee Satisfaction
Encourage employees to offer feedback about their training experience in the form of surveys. Asking simple questions can help gauge the level of employee morale post training. When a workforce feels confident in their job roles, it affects how they approach business. Receiving positive reviews from an eLearning training program may also precede higher customer service ratings.
Calculate Return on Training Investment
To prove the financial benefits of acquiring an LMS, use this LMS ROI Calculator. This calculator reflects how much you may save when using TOPYX® social LMS, the award-winning social learning management system.
TOPYX is one of the best value LMS software option available since there are no per user fees and no bandwidth fees. That way, you can get everyone involved without increasing costs. Plus, with TOPYX, all of the costs associated with their learning management solution are detailed up-front at http://interactyx.com/lms-pricing/ so there are no hidden costs or surprises. That helps in forecasting and planning for your learning program
Request a free LMS demo of TOPYX and discover how this software can become your best investment to get the most out of your training efforts and achieve you business goals.
Vice President, Business Development