One of the most advertised advantages of elearning and elearning tools is that they are more pocket friendly than traditional learning, especially in corporate training scenarios.
While it is not difficult to imagine how providing online training is more affordable, it is still important to keep track of the effectiveness and ROI of your employee training efforts.
Since a learning management system is usually the most pricey element of any company’s elearning arsenal, it is also important to calculate the ROI of your investment into the LMS. In fact, modern learning management systems offer a complete training solution loaded with content creation and blended learning capabilities.
A good example of this is Docebo LMS. The Docebo LMS Pricing not only includes all the standard LMS features, but also includes the cost of in-built content creation tool and the cost of the in-built video conferencing tool
Since a learning management system plays such a central role in the online training experience, calculating the ROI can be a complex task.
If you are struggling with calculating the ROI of your learning management system, try these tips:
Compare Manhours With Traditional Learning
From development of training material to the deployment and management of training experience, the time taken to complete different activities of the training process varies dramatically between traditional and virtual learning methods.
For instance, training content development usually takes longer for elearning content. On the other hand, virtual training is known to reduce the course completion times.
Therefore, calculating the man hours and the associated costs of completing various elearning tasks is a great way to gain some insight into the ROI of your LMS.
Factor In The Savings From Employee Retention
Better employee training has been known to be associated with improved retention rates.
In an economy where hiring a new employee is exponentially higher than retaining one, the savings from boosted employee retention with a learning management system is simply too significant to be ignored.
Calculate The Compatibility Costs
Chances are, when you first purchased your learning management system, it was not compatible with the other elearning tools you may have had at the time.
To solve this problem, you may have purchased new tools that are compatible with your LMS. if that is the case, it is advisable to address the cost of the other tools when calculating the ROI of your learning management tool.
Factor In The Running Cost Of Your LMS
The most popular learning management systems in the market are cloud based learning management systems. These LMS owe their popularity to the incredible ease of use and cost effectiveness they provide.
Since these LMS are based on the cloud, they can be accessed from anywhere and virtually zero cost of installation or special hardware is involved.
However, since cloud based LMS are subscription based, they may turn out to be more expensive than an installed or on-premise learning management system.
Therefore, it is important to factor in the running cost of your learning management system when calculating the ROI of your investment into a LMS.
Conclusion
While calculating the ROI of a LMS can seem daunting and confusing at first, choosing the right metrics can help you determine the viability of your LMS with incredible accuracy.
How do you calculate the ROI of your LMS? Share with us in the comment section below.