The cost savings from purchasing a learning management system (LMS) for your firm are measurable and favorable to their bottom line.
That is an important consideration when considering such a system. Besides providing providing quality and consistency of training, it brings immediate cost savings. No longer do companies have to move either employees or trainers around to numerous locations. Additionally, once training materials are developed and delivered through your LMS, your future costs are minimal and linked to upgrading and adding new materials as needed.
Human resources departments are often asked to provide measurable areas of savings through the acquisition of an LMS so the return on investment (ROI) can be calculated by the accounting department. There are nine specific areas that can be measured as significant areas of cost savings. These include:
1. Reduced costs of maintaining in-house software systems. Most LMS use a cloud-based system for storing information and making it accessible to your employees 24/7 in different time zones and geographic locations, you can reduce information technology hardware and support costs. You do not need to have an internal software system anymore.
2. Reduced costs of fines and risk for failing to be compliant with federal and state regulations. By ensuring the delivery of consistent training programs that comply with government regulations for your industry, you reduce the risk that one of your facilities may be slipshod on training and compliance observance.
3. Reduced cost for administering training sessions. Gone are the days when you have to rent a facility, provide muffins and coffee and maybe lunch, and transport employees to the classroom (mileage costs and/or air fare). Using your LMS, you can establish a virtual classroom and e-learning options that bring the training right to the employees’ workplace or even their own home or mobile devices.
4. Reduced costs for administering training programs. Maintaining a staff whose sole purpose is to travel to different corporate branches and deliver training sessions is a thing of the past. Airfare, accommodations and food are no longer needed. The entire training program can be administered by the in-house training or human resources department.
5. Reduced costly delays in unveiling new corporate initiatives. Even in large companies spread across many states and countries, corporate initiatives can be initiated on time and budget because thousands of employee can all be trained simultaneously via e-learning programs delivered on LMS.
6. Reduced costs associated with employee turnover since training can be delivered to meet individual employee needs and provide them with growth opportunities.
7. Reduced costs in make-goods and refunds as a staff consistently training in giving quality customer service moves into place.
8. Reduced delays in getting new products to market. As new techniques are unveiled and new prototypes built, everyone on the production team in the company can come on board simultaneously with the advent of e-learning and cloud-based access to information.
9. Reduced training costs as new employees are brought up to speed faster through their ability to access training materials on their mobile devices and even from the comfort of their homes.
The cost savings that a company can expect from a LMS is substantial. But a problem that many big companies are now facing is whether to create their own in-house LMS or to use an outside vendor.
The key to finding the LMS that you can expect the highest ROI on, is to find the system that has the functionalities best suited for your training needs. If you’re a manufacturing company for example, and compliance is an issue, you want a LMS that has assessment, feedback and grading capabilities to see that employees are actually understanding the material.
If your company needs an LMS solely for their onboarding, finding a LMS that allows them to create intuitive courses and gives you analytics on whose seen what and for how long is important.
When you find the LMS that’s perfect for your company’s needs, that is when you will see the highest ROI.