Regardless of company size, employee training is critical for a business to thrive and succeed. While larger corporations often have the resources to invest in comprehensive training programs, small and medium-sized businesses may face budget constraints. However, many savvy business owners recognize the importance of investing in their employees’ growth. An affordable solution is to utilize a Learning Management System (LMS) for employee training. This approach is gaining popularity among many organizations and can provide cost-effective training options.
In today’s rapidly changing business environment, training is no longer a mere luxury but a necessity for organizations that aspire to grow and evolve. It has a direct impact on employee productivity, engagement, compliance expenses, and retention, ultimately affecting a business’s profitability. Investing in employee training should be a top priority for organizations that wish to succeed in the long run.
While larger organizations have ample provisions and budgets for training, smaller businesses must be more cautious with their limited resources. The smaller companies need to carefully plan their training expenditures in their yearly budgets as compared to bigger organizations, who have higher cash flow, advanced financial planning, structured budgeting processes, and robust financial reserves.
Smaller businesses may face difficulties in engaging an external training provider every time they bring on a new employee, due to the lack of financial flexibility.
Small businesses need to ensure that their training budgets align with their business requirements and have a balanced cost-effectiveness ratio, making sure that their investment brings maximum results.
Implementing an LMS for Small to Medium-Sized Businesses on a Tight Budget
Another cost-effective solution is to choose a cloud based LMS, which eliminates the need for expensive hardware and IT support. Many LMS providers offer various pricing options, including flexible payment plans that enable you to adjust the number of users and features as your business grows. Moreover, small, and medium businesses can take advantage of the many free and open-source LMS solutions that are readily available and can be tailored to their specific needs. However, these options are usually only suitable for businesses with extremely tight budgets.
Employee Training on a Budget – Strategies for Small and Medium Businesses Utilizing a Learning Management System (LMS)
Choosing between live online training sessions or webinars versus traditional in-person training sessions:
During the pandemic instead of relying on in-person Instructor-Led Training (ILT), which can be costly due to logistics and trainer expenses, small and medium businesses can opt for live Virtual Classroom Training (VILT) or Webinars. The shift towards remote work during the pandemic has shown that VILT is a more cost-effective solution for budget employee training as it eliminates travel expenses and reduces the need for in-person trainers. Additionally, VILT is flexible and can be easily scaled to meet the changing training needs of the organization. By using a learning management system (LMS), companies can also benefit from the ability to reuse and repurpose their online training content, further maximizing their investment.
Signing up for an LMS that is budget-friendly:
Instead of investing in costly hardware and IT infrastructure, a small training company can subscribe to a cloud-based, Software as a Service (SaaS) LMS. This type of LMS has become more accessible and affordable, with many providers offering monthly or annual subscription plans and even trial options for evaluation. A training manager can easily explore different SaaS LMS options, take a trial, request a demo, and start using the LMS to automate the internal training process.
Many of these LMS subscriptions offer features such as:
- The LMS subscriptions often include integration with virtual classroom systems such as WebEx and Zoom.
- Built-in course authoring tools and content publishing capabilities to convert your presentations and PDFs into digital format.
- Some subscriptions may come with video upload capabilities.
- Access to content libraries, making it easier to record virtual training sessions and re-use them as self-paced learning material.
Organizing and utilizing existing training materials that are readily accessible:
Many learning management systems (LMS) have the capability to upload internal content, such as documents, links, external sources, and recorded virtual instructor-led training (VILT) sessions. Additionally, they can incorporate already existing resources, such as videos, PDFs, and user guides/procedures, into new or pre-existing courses.
Maximize the use of social and peer-to-peer learning:
An organization is comprised of employees who have accumulated expertise through their job responsibilities and past positions. An eLearning platform can leverage this collective experience by incorporating social learning and peer-to-peer training opportunities for other employees. This can be done through expert Q&A sessions, asynchronous forums within the platform, or virtual training sessions where participants can interact and exchange knowledge. By doing so, the organization can reduce the costs associated with instructor-led training.
Targeted training based on specific needs:
When a new employee joins a company, an LMS (Learning Management System) can be used to familiarize them with the company’s goals and to provide them with mandatory compliance training using pre-existing, standardized online resources and materials. If a specific, targeted training is required, a customized micro-learning course can be created for a specific group, allowing for targeted training rather than having the new employee spend time on general training.
Learning Management System for remote workers:
One of the primary benefits of using an LMS for employee training is its flexibility. With an LMS, training programs can be created and delivered online, providing employees with the ability to access the materials from any location and at any time.
For smaller businesses, it can be challenging and costly to bring employees together for in-person training, especially if they are working from home, at customer sites, or in different locations. The COVID-19 pandemic and remote work have further complicated in-person training and made it a safety concern.
However, with an LMS, organizations can train their employees remotely and on an ongoing basis, regardless of where the employees are located. The content can be delivered via multiple devices, such as laptops, tablets, and smartphones.
Additionally, the LMS administrator can easily add new content, reducing the need for hiring content creators every time there is a change or update. This can save the company time and resources.
Training for external partners:
A business often has a network of partners, contractors, and vendors who play a crucial role in its operations. These partners are in different places, making it difficult for a small company to bring everyone together for training whenever there is a change or update to their products or services. This can result in additional expenses and may not be practical due to travel and scheduling constraints.
By utilizing eLearning through an LMS, a company can easily provide on-demand communication, retraining, and product updates to its partners. The LMS administrator can update the existing training content and distribute it to both existing and new partners, making it a cost-effective and convenient solution.
Monitoring and evaluating training results:
Another benefit of using an LMS for employee training is the capacity to monitor employee development and evaluate their performance. The LMS allows you to create quizzes and assessments to assess employees’ understanding and retention of the training materials. This enables you to identify areas where they need additional training and track their progress. Furthermore, the LMS can be used to keep track of employee completion of the training and produce reports on their progress.
Conclusion
Using an LMS for employee training is an economical solution for small and medium-sized businesses. It offers flexibility, tracks employee progress, and can be implemented with limited resources. Utilizing an LMS enables businesses to provide their employees with the necessary training to enhance their skills and advance in their careers, all while keeping expenses low.
Inadequately trained employees can potentially result in more costs for a business than the cost of training. This is especially true for smaller organizations. Not only are untrained employees less productive, but training helps reduce turnover, costs associated with rehiring and retraining, by upskilling current employees. It also promotes employee engagement and meets their professional development needs, leading to a smooth onboarding experience for new hires.
A small business can also use an LMS to train not only employees but also external partners, resulting in increased productivity levels and uniform knowledge and skills, ultimately impacting the business’ profitability.
An LMS is a software application that provides a centralized platform for business owners to create, manage, and deliver online training programs. It allows you to store and organize all training materials, track employee progress, and assess employee performance. With an LMS, businesses can provide their employees with the necessary training to improve their skills and advance in their careers, all while keeping expenses low.
We offer a risk-free demonstration to show how an LMS can complement traditional training methods and be a differentiating factor in your business growth strategy, thus improving your overall productivity levels.
To learn how LMS can positively impact and help grow your small business, Book a free consultation.
