Learning and development (L&D) have been playing an important part in every organization. Thus, investing in these learning activities helps individuals to grow along with improving the efficiency and productivity of the organization. The leadership tends to continuously spend a lot of cost and time on training and development activities and programs for their employees. However, have you ever given thought as to why so much cost is being spent on training and development? The reason is that organizations work towards providing a competitive learning environment to their employees to achieve growth, enhance skill sets, improve employee retention, and increase engagement among peers.
In the process of building a skillful workforce, these high training costs have always put the organizational leadership to get their thinking caps to adapt to alternative ways or strategies to reduce the overall efforts involved in training administration activities. As said, every penny saved is every penny gained – The learning management system here comes as a solution to make the overall training administration process simpler and more cost-effective.
The right decision for LMS implementation often gives a good ROI (Return on Investment), lowering training costs and reduction in time consumption to manage training administration activities. As per the reports, 41.7% of companies save huge training costs by implementing LMS. The investments made in employee training are like any other investment that gives returns with the time lapsed and these savings can be easily allocated to other required areas as per the organizational budget sheet.
How can the training costs be saved, and an increase in ROI be achieved with LMS implementation?
Lower corporate training costs – Infrastructure, travel, and others
The LMS implementation at the organizational level enables employees across different departments to fulfill their training needs online. This approach eliminates the logistics required for traditional classroom training, thus saving both cost and time. The platform allows employees to easily fit the training into their daily schedule by receiving notifications and alert messages for mandatory and general sessions. Timely completion of training sessions helps in saving non-compliance penalties costs.
Improved Employee Retention, Saves hiring costs
The digital mode of learning keeps the learners motivated, engaged, and confident with features such as gamification, social learning, and others. The employees tend to spend longer time in an organization as their need for continuous upskilling gets fulfilled by learning new concepts and processes. Thus, the organizations achieve their goal of retaining employees, reduction in administrative efforts, and saving them from the hassle of spending again and again on hiring new employees. Several factors can inspire an employee to resign, one of the major ones is the lack of engagement however LMS manages the requirements and provides growth opportunities.
Revenue impact at an organizational level
The revenue impact of training depends on the industry vertical and business function to which an employee belongs. This means training could make an impact on the revenue directly if the knowledge gained and skills set acquired help in generating revenue for the organization. The LMS is the best solution to provide a competitive learning environment to the employees and enable you to make a big impact in terms of profitability.
Savings on tracking training status and evaluation costs
Tracking training status plays an important role in preparing the growth path for employees. This includes keeping a check on employees’ training pending and completion status. LMS with the inbuilt reports and dashboards provides training session-related data in just a few clicks. The count of sessions completed and pending for each employee provides insights to the team managers to plan future learning requirements. LMS eliminates the manual time involved in the evaluation of the multiple-choice assessments as these are being done automatically by the system.
There are intangible benefits too offered by LMS to help to improve the return on investment, thus effective selection of the LMS is critical. The LMS provides smooth training administration and the savings with increased ROI offer the organizations the opportunity to utilize these savings in other areas as per the organizational budget sheet. Interested to know about our range of LMS products, we at G-Cube, have 20+ years of experience in handling multiple industry-specific learning requirements. Kindly contact us to connect with one of our experts.