How Can an LMS Improve My Bottom Line? Top 5 Benefits

Did you know: In 2014, organizations were spending an average of $1,229 and 32.4 hours per employee on learning?

That’s according to the Association of Talent Development’s State of the Industry report.

It’s well known that training employees and providing professional development is expensive. But short changing your employees’ development can hurt your company in the long run. In fact, we found in our recent Professional Development survey that companies that offer professional development opportunities have 34% higher retention and their employees are 15% more engaged.

LMS Benefits

However, many training and professional development programs fail due to complicated processes, incomplete or outdated materials, or unengaging teaching methods.

Learning management systems (LMS) are valuable tools that help organizations avoid the pitfalls of training.

Key Benefits

Although LMS solutions are popular in education, they have many benefits for all types of organizations – health care, retail and professional services/consulting to name a few.

We’ve listed the top five benefits of an LMS below.

1.) Saves time & money

Training employees is an extensive process, from taking the time to research new techniques or compliance laws, to creating or purchasing training courses, to setting up a classroom and presenting the material.

Learning management systems contain many features that streamline course development and administrative tasks. Being able to store, edit and assign courses allows companies to easily update them and shorten the training cycle. Also, LMS is typically an online tool, eliminating the need for a physical classroom.

If you don’t have the time to create customized training materials or don’t know where to begin, LMS solutions typically include a general course catalogue, saving the time and expense of hiring an instructor.

2.) Centralizes course management

More than an educational tool, an LMS is an administration tool, too.

LMS solutions allow administrators to easily create training schedules, set prerequisite courses, manage course enrollment and distribute training materials.

An LMS also stores all training materials in one central location, rather than having physical or digital copies scattered throughout the company. This makes them easier to access for both administrators and trainees.

3.) Improves onboarding & retention

According to eLearning Industry, nearly one-third of new hires leave their company (both voluntarily and involuntarily) within the first year.

Some of the reasons for this include:

  • A lack of coaching and mentoring for new hires
  • Training not included in onboarding
  • No clear expectations established at the beginning of employment

Learning management software has features that blend onboarding processes with training materials to give new hires a clear sense of the company’s culture and their responsibilities. The features also allow administrators to track each trainee’s performance, giving them an opportunity to check-in if needed.

After the onboarding process, organizations can easily provide employees with training materials to increase their skillsets and professional development.

4.) Flexible learning & increased engagement

With its online functionality, an LMS is accessible from any location. Some solutions even have mobile features and apps so trainees can access courses on the go. But this isn’t the only flexible feature an LMS offers.

Learning management systems are built to harness the benefits of social learning to improve engagement with the material. The top five features that do this are:

  1. Live video seminars
  2. Discussion-based forums
  3. Gamification tools
  4. Classroom-based preparation
  5. Centralized record skills

These tools increase collaboration between trainees and instructors by giving them a more dynamic platform to engage with the content and ask questions.

5.) Ensures up-to-date compliance

Many LMS solutions now include features to let administrators know which employees must renew certifications or need additional training for compliance purposes. This way, no one falls behind on training in industries that require certifications and continuing education credits, or have regulatory compliance standards.


Learning management systems have many benefits for industries all across the board. With LMS, administrators can onboard new hires or empower employees to improve their skillset without falling into the common pitfalls of the training process.

7 Critical Questions To Ask A Potential LMS Vendor

Choosing a LMS vendor is all about finding the right fit. Download our free whitepaper to make sure you're asking the right questions.Download Now

Speak Your Mind