Training employees on a limited budget is a common problem many small businesses face. It can cost a lot of money to hire a trainer and it can take a lot of time away from owners and managers. But there is a better alternative: small businesses can set up a Learning Management System (LMS). An LMS is an application that can handle everything, from administration, training, and tracking to reporting employees’ performance. Here are five reasons why you should invest in an LMS if you’re a small business owner.
1. It allows owners and managers to focus on their core competencies.
Training can take a lot of time away from all parties involved. This is particularly the case for business owners and managers. It can be extremely difficult to balance the workload that setting up a training program requires, not to mention the negative impacts on the company when leadership cannot give its entire focus to the organization’s main mission. An LMS is especially effective when training multiple employees non-simultaneously. It prevents the need to schedule and coordinate multiple training sessions, which can get in the way of the business workflow and productivity.
2. It scales with growth and change.
An LMS is an investment for the future. As your business expands, you will need to adapt to the growth and new changes. One of the best features of LMS is that you can easily create and edit content. You can load pre-existing training content into the system to quickly build a training program for both current and new employees. The fact that you can modify the content means that it will be easy to provide your employees with important updates, changes, and features that are critical to your business.
3. It helps track employee progress and development.
As a small business owner, making sure that your employees are up to speed with training is essential to making your business run efficiently and effectively. That’s why it is important to know exactly what knowledge and skills employees have and which skills they need to develop. A well-designed LMS can help you keep track of the progress your employees are making. It can also give you valuable insight into the knowledge and skills they need and it will give you the opportunity to provide personalized training or guidance if necessary. You’ll be able to get reports on specific groups of employees (e.g. sales, customer support, marketing, etc.) to get an idea of performance on a team or department level.
4. It helps centralize and standardize training while offering employee flexibility.
When it comes to traditional training methods like classes, coaching, mentoring, or on-the-job training, you have to accept the fact that your employees will take in information differently or receive training at varying degrees of quality. You need to understand that traditional training methods come with variation in implementation that may miss important points, not put enough focus on a certain aspect of the job, or overemphasize unnecessary aspects of the job. Having a centralized and standardized LMS eliminates these variations. An LMS also makes it easy for employees to work through the training since they can go back to check information as many time as they want and move forward at their own pace.
5. It’s more cost effective.
According to Fastrak Consulting, Dow Chemical reduced their training costs from $95 USD per student to $11 USD, by using an LMS. IBM saved $200 million USD in training costs by integrating a mostly online system into their training. These savings will be vital to small businesses, as many do not have HR managers or the budget for traditional training programs. The great thing about implementing an LMS is that small businesses do not need to build their own platforms as there are several learning companies they can easily afford to work with.
It’s clear why businesses of all sizes are integrating an LMS into their training programs. It not only saves time and money, it also automates and customizes employee training so that small business owners can focus more on building their businesses and less on managing it.