Investments tend to fall into two categories: “safe” and “unsafe.” There are certain things most business owners consider to be safe investments, including:
- Web space
- Professional accounting
Although employers typically see the value in maintaining a strong online presence and being well marketed, some fail to see the importance of launching remote employee training. Or they may see the value of remote training but are committed to conserving funds in the post-COVID business economy.
In today’s business economy, remote training is more important than ever. Any form of employee training software that reliably delivers, tracks, and reports on remote training should be considered a safe and necessary investment. An example of this is a social learning management system.
Why an LMS is the Best Platform for Delivering Remote Employee Training
Learning management systems are designed to deliver remote employee training, as well as in-person and blended training. TOPYX LMS, for example, helps companies create and manage training programs that improve employee productivity, no matter where learners are stationed. Features such as content support, file repositories, secure email, chat, and online communities help organizations create and support engaging remote training experiences.
TOPYX LMS employee training software:
- Helps businesses manage extensive training material and course repositories
- Includes learning paths that can be tailored for different departments and seniority levels
- Tracks employee progress through onboarding, skills development, and elective courses
Also, TOPYX LMS enables organizations to both standardize and personalize training for any number of employees. It allows companies to easily manage and reuse content to train employees across departments. TOPYX clients can leverage LMS content management and create employee onboarding courses that every worker can access and work through at their own pace.
TOPYX, along with many other LMSs, makes remote employee training possible and simple. With TOPYX, companies can create, deliver, track, and report on remote learning. TOPYX LMS also supports in-person and hybrid learning.
All of these benefits combine to make learning management systems like TOPYX a safe investment for companies. But they aren’t the only reasons why learning management systems are wise business investments.
3 Reasons Why an LMS is a Safe Investment for Businesses
The right learning management system has the capacity to deliver an exceptional ROI. But without knowledge of how an LMS pays off, a learning management system may appear to some to fall into the “unsafe” investment category.
Social learning management systems are solid business investments. Here are a few reasons why:
1) An LMS reduces turnover - Companies that invest in their workers, keep their workers. By training staff, business leaders often retain more employees and prevent some of the costs of turnover. Mission Digital Growth1 cited employee training as a strategy for reducing staff attrition, stating,
“...companies need to integrate continuous learning, training, and development opportunities into regular work schedules (to retain employees). It is even better if these opportunities are tailored to bridge skills gaps and meet professional standards on the job. Employees may leave after, but they're less likely to do so if they're gainfully engaged. Responsible employees will always give back to companies that help them grow.”
Wondering what the direct costs related to turnover are? An article by PeopleKeep2 said some studies have indicated that it costs companies 6 to 9 months’ worth of a lost employee’s salary to replace that employee. “For a manager making $60,000 a year, that's $30,000 to $45,000 in recruiting and training expenses,” the article explained.
An LMS helps companies reduce turnover and prevent overspending by delivering consistent remote employee training. With an LMS, you can offer a thorough onboarding program, as well as top-notch ongoing training. This will increase employee retention.
Investing in your employees through training has the added benefit of promoting better productivity, which can improve the bottom line. This is because well trained workers get more done to help organizations meet their financial goals. The Harvard Business Review said organizations that are 40% more productive have operating margins that are 30% to 50% higher than those of their competitors, according to Bamboo HR.3
2) An LMS can save companies money - Another reason why an LMS is a safe business investment is because it can save companies money. Besides reducing costs related to turnover and low productivity, an LMS allows companies to replace expensive in-person training with remote training.
In-person training is costly because it is led by instructors, and they must be paid a salary. Companies must also absorb costs related to their travel. “For online learning, you don't need to pay for the instructor's accommodations,” stated an article by Lorman.4 “The cost of virtual instructor-led training is much lower.”
Also, in-person learning calls for a physical meeting space, as well as resources like paper and printing. An LMS eliminates these needs by enabling remote training. And because learners are participating in training online with remote learning, no travel is required for them to get to the training site.
The Lorman article also said studies prove organizations that implement online/remote employee training save up to 60% in overall training time. This further improves productivity and reduces training costs.
Additionally, an LMS can save organizations money by speeding up the onboarding process. “Automating the employee onboarding process is yet another area where the value of online training is indisputable,” stated Designing Digitally.5 “This action will free up managers’ time to take care of the truly important tasks and only give feedback when absolutely necessary. A solid automated onboarding program will save your organization time and money as well as lower HR stress levels when dealing with new hires.”
LMS features such as online learning paths make role-based training (onboarding falls under this heading) simple for administrators to deliver and workers to engage in. TOPYX LMS online learning path functionality allows administrators to create a sequential order of delivery for courses and materials. With TOPYX LMS learning path functionality:
- The course/material sequence can be allocated to select users or user groups
- Administrators can set eligibility requirements for more advanced courses
- Advanced courses become available only after users finish previous courses or materials
- Users can only access content assigned to their online learning path
All of this helps administrators improve onboarding while shaping employees’ learning experiences and outcomes.
3) The eLearning market is thriving and stable – The security of the eLearning/remote training market is excellent, making it even more clear that an LMS is a safe investment for businesses to make. In 2021, the eLearning market was valued at over $315 billion, according to Global Market Insights (GMI).6 GMI also said the compound annual growth rate for eLearning from 2022 to 2028 is 20%, and that the market will be valued at over $1 trillion by 2028.
GMI explained that the pandemic has positively affected the eLearning industry by forcing individuals to work remotely. “This has created barriers for companies in terms of training, communication, monitoring progress, and upskilling, supporting the demand for e-learning platforms among large enterprises and SMEs,” GMI stated.
The pandemic has forever changed the way employees work and learn. Working and training from home, for many employees, is here to stay. This will ensure a continued demand for eLearning in the business space and help the online corporate learning market remain stable.
A Flat-Fee LMS is the Best Business Investment
Not every LMS is a sound investment. Some can cause financial strain for companies. A red flag that indicates an LMS is going to strain the company budget is a pricing model that is not flat-rate. Flat-rate learning management systems like TOPYX never charge per-user fees. With flat-rate LMSs, there are no surprise costs to threaten the training budget.
One of the reasons why TOPYX is a safe investment is because it is economical. Our flat-rate LMS is loaded with features that ensure remote training is a success. Some of these features include mobile learning, social learning, and LMS reporting.
Quality, reasonably priced learning management systems are secure business investments. They are also necessary for organizations that want to provide continued training to a dispersed workforce. The sooner an employer launches an eLearning platform, the sooner their business will thrive.
Post-COVID, many businesses are suffering financially and do not have funds to gamble. Organizational leaders want to properly steward business income by only investing in what they know will pay them back in the long run. They can expect a good ROI from TOPYX LMS. Request a free LMS demo of TOPYX today.
1) Mission Digital Growth. https://www.themissionhr.com/post/7-strategies-to-reduce-employee-turnover-in-2021.
2) People Keep. https://www.peoplekeep.com/blog/employee-retention-the-real-cost-of-losing-an-employee#:~:text=The%20cost%20of%20employee%20turnover%20is%20high&text=Some%20studies%20predict%20that%20every,wage%20and%20role%20of%20employee.
3) Bamboo HR. https://www.bamboohr.com/blog/hack-your-productivity-for-small-business-success#:~:text=The%20Importance%20of%20Productivity%20in%20Small%20Business&text=Increased%20revenue%3A%20When%20you%20and,than%20others%20in%20their%20industry.
6) Global Market Insights. https://www.gminsights.com/industry-analysis/elearning-market-size.