Quick: When you think of employee training, what comes to mind?

Weeks of in-person meetings and workshops? Assessments and accountability? Everyone meeting at the same time and the same place?

Even before the pandemic, companies found value in transitioning to remote operations, onboarding, and training development. Training and working from home became doable because, as it turns out, the old way of doing things could be done virtually.

A Learning Management System (LMS) — or, software that delivers training — can help your company store, deliver, and track its onboarding and ongoing training processes whether it's done in-person or remote. 

And most companies are on board with that — it’s estimated that over 77% of all organizations in the U.S. alone use an LMS for professional development. 

Not sure if your small business needs an LMS or if the risk would be worth the potential rewards? Read on to discover the ins and outs of an LMS.

What is a Learning Management System (LMS)?

As the name implies, a Learning Management System (LMS) is a software application platform that allows you to build and execute employee training. They usually come equipped with multiple modalities such as video and audio content, interactive courses, and tests and evaluations.

Everything you and your employees will need to complete training and assess the outcomes exists within the LMS. 

Are there different types of LMSs?

You can find a bunch of different LMSs on the market, but there are two primary systems you’ll likely come across: open-source and closed-source.

Open-source LMS

An open-source LMS is one where anyone can access the source code and then use and redistribute it without paying royalties. 

Because of the community of “creators”/peers, an open-source LMS benefits from constant evolution, allowing those who use it to draw from that communal knowledge. 

At least, ideally. In practice, this depends on a couple of what-ifs, which we’ll lay out in a second.

Benefits of an open-source LMS

• Flexible (you can choose which features and specs you want).
• Can be user-friendly (because it was communally created).
• Customizable.
• Cost-effective (Note: they're not necessarily “free,” per se. While there aren’t any subscription fees or upgrade charges, there are other hidden costs.)
• Access to a community of experts.

The downsides

• Requires a high level of technical expertise to use (outsourcing this can prove expensive).
• You get what you pay for.
• You’ll likely rack up hosting costs.
• Customization can be costly, so you’ll need to have an expert on board or likely outsource this work. 

Closed-Source LMS

A closed-source LMS is a software platform that doesn't allow public access to its source code. It’s usually hosted in the cloud. You’ll need a valid and authenticated license to use a closed-source LMS.

Benefits of a closed-source LMS

• You can plug in your training materials and content, often with ease.
• You’re not responsible for hosting or updating the platform or for ongoing maintenance.
• It's usually far more flexible and user-friendly.
• The best closed-source LMS will offer a team of industry experts to help you navigate it.
• Higher levels of security. 

Disadvantages of a closed-source LMS

• You can’t change the source code directly.
• The initial cost can be higher. 

What are the costs associated with an LMS?

LMSs come in all shapes and sizes, which also means their price tags can differ drastically. As far as how much a typical LMS might cost? The short answer is: that depends.

On the surface, an open-source LMS might sound appealing — after all, most are “free.”

Which essentially means that you don’t have to purchase a license to use it. But that’s where the “free” part ends. 

As we mentioned, there are hidden costs around every turn, starting with how tech-savvy you are and if you need to outsource this expertise. It’s like buying a cheap airline flight for pennies on the dollar, only to discover that the real cost lies in the fees for bringing luggage on board. Or realizing there are no free pretzels or water. 

While there's an initial cost to purchase the license to a closed-source LMS, the benefits can be exponential. You’ll likely have an easier time uploading and updating your training modules and enjoy better team alignment, improved communication, and morale. 

Is an LMS right for my business?

Only you can answer this question. We recommend taking a close look at your onboarding and training development processes. What’s working? What can be improved? After you’ve reviewed these areas, ask yourself: could an LMS fix these issues while also saving time and money? 

The answer to that last question is most likely yes. 

Here are a few specific questions to consider before determining if an LMS is right for you:

• Do you need to disseminate training or other educational materials to your team?
• Do you need an easier, inclusive way to connect with your team when they can’t be in the office?
• Do your new hires need the convenience of virtual onboarding?
• Are you looking for a multi-modal approach to improving your team’s engagement and your company culture?
• Are you searching for an easier way to measure knowledge gains?
• Are you tired of sifting through piles of paperwork and would prefer an easier way to change or update your training materials?

If your answer is yes to any or all of the above, then an LMS would be an ideal solution for your company

How will an LMS benefit my business?

Streamline the virtual onboarding process

Let’s say your new hire is stuck in their apartment lease five states away, but you need to start their onboarding process by Monday. 

An LMS will enable them to hit the ground running and begin acclimating to your company’s culture right away. And the benefits of a positive company culture are endless.

Simplify ongoing learning and training development

You probably want to create a company culture where continuous learning is natural and welcome. An LMS will allow you to create personalized, ongoing learning and development modules that will create a consistent training experience for all of your employees.

With your training materials, resources, modules, quizzes, and assessments in one place, you can easily update them, meaning everyone will get the new knowledge they need when you need them to get it. 

And, crucially, that core knowledge will be the same for everyone. Offering easily accessible training development will allow you to level up your team and equip them for future challenges that may come their way.

Allows for easy accessibility of company processes

Ben Franklin was ahead of the LMS times when he said “A place for everything, everything in its place.”

When your company’s policies, standard operating procedures (SOPs), organizational charts, and training modules are all in a single LMS platform, your team can access them from anywhere.

With more and more employees opting for remote work, this makes their work life a lot simpler and more convenient. 

It’s also convenient for you.

For example, if you need to update a policy or codify an SOP, all you need to do is update it in your LMS. And your employees will see your changes — and when in doubt, you can always assess who has read the policy addendum and who hasn’t (via a mandatory quiz), and then hold them accountable.

Enables you to track compliance and keep your employees accountable

Say "so long" to mountains of paperwork when it comes to compliance and assessment tracking.

No need to cross your fingers either, hoping that most of your team will read the policies you need them to read (and understand) to perform their job well. Some LMSs will even offer easy-to-use ways to track employees’ compliance and understanding of those policies. 

Are there LMS issues to be mindful of?

Of course, every LMS offers different features and has its pros and cons. Here are a few general issues to keep in mind before you choose an LMS.

It may lack features your business needs

Remember, there are hundreds of LMSs on the market. First, be sure to determine how your company can use and benefit from an LMS (and yield a positive ROI). It can pay to do your homework before committing to a specific LMS. 

Case in point, if a user-friendly interface and an around-the-clock technical support team are a top priority for you, then read the reviews by existing and past clients for the LMSs you’re considering. 

Also, scope out which LMSs other companies in your sector are using. Sometimes you’ll be able to read through client testimonials on an LMS’s website itself to gain a more intimate understanding of how it can benefit your field.

Forget about a hands-off approach with an LMS

There's no such thing as a "hands-off" solution when it comes to employee training and development. You need to know how your employees are responding to their training, and if it’s effective (or not).

Regardless of whether you stick with classic face-to-face training or opt to dive into an open-source or closed-source LMS, your continued participation is essential if you want a knowledgeable, well-trained, and accountable team. With an emphasis on that last word — accountable.

You need a straightforward way to make sure your team is getting the most out of their training and future learning and development. Testing them on their process knowledge is an effective way to gauge their understanding of the material and pivot when necessary, if they’re falling short.

Ready to streamline your business with an LMS?

At its core, a learning management system can make your onboarding and training processes easier. Does your business absolutely need one? Well... it depends. Remember: traditional LMS systems can be costly — and clunky. Cost and time are less prohibitive factors for large organizations or corporations. In their case, the right LMS can help them save time on paperwork and in-person training sessions (not to mention the time and effort of sending staff off to a professional development weekend across the country).

But if you're a small- or medium-sized business with budget and time constraints, there are nimble and cost-effective alternatives that can help you achieve the same goals while saving your company money.

When your team can communicate and collaborate within a single, customizable training platform from anywhere in the world, that’s gold. From onboarding and training to employee development, you’re bound to scale faster with the right training platform on your side.