6 Ways Your LMS Can Help You Evaluate Employee Training Costs
When you buy a car, you factor in insurance and monthly installments. But many people probably forget to account for fuel costs, car servicing, spare parts, and parking fees. This calculation error is replicated when you’re shopping for corporate training software. More so with LMS, where your focus is on the purchase price. What other forms of expenditure are involved in obtaining, managing, and LMS as a training tool? Here are some top tips to calculate the true cost of training employees with your new LMS.
1. Current Tools And Assets
Learning management systems do a lot more than creating training programs. They can be used for quality control, asset tracking, job scheduling, or even payroll. Each of these functionalities has a different cost implication. They seem like little things, but they pile up, and they cost money. You may also need to review any non-LMS software you’re already using. If your LMS can replace them all with a single platform, it could cut costs. But if the LMS is incompatible with existing software, and if you then have to buy replacements, costs go up.
2. Number Of Active Users
When you’re shopping for LMS, the user figure you have in mind probably encompasses all your staff. It’s a reasonable assumption, but can be an expensive one because many LMS have a per-user billing structure. You don’t want to pay for 500 users and create user accounts, only for 50 people to regularly use the platform. Do a detailed evaluation of who needs (or wants) constant access. Other employers can log into designated guest accounts. If security is an issue and you prefer every user to have their own account, consider graduated training. Employees can study in batches and have their trainee IDs terminated when they finish. Admin/HR/course instructors can then create new IDs for the next batch of learners.
3. Ongoing Maintenance
Whether it’s a training issue or regular office admin, employee training LMS data has to be backed up regularly. Your servers have to establish consistent up-time, and they may need de-cluttering. Even if you have an anti-virus and firewall, regular vulnerability checks are crucial. This routine maintenance might be done by in-house staff. Or you might have to hire hourly consultants. Either way, maintenance involves a direct cost in time and money, so factor that it. And if your choice of LMS requires a maintenance regime that’s more intense, you might have to hire a dedicated “web-master.” In which case, their salary falls under LMS costs. You also need to consider other ongoing maintenance expenses associated with the cost of training employees. Such as creating new content, software updates, and new authoring tools.
4. Potential Gadget Upgrades
LMS can be cloud-based, open-source, or somewhere between. Cloud-based ones can be used via a live web browser or installed as desktop/mobile apps. Installed apps are dictated by the brand of your device, as well as your chosen operating system. Older versions (of your brand of OS) may be unable to run your LMS. Older phones or computers might also have inadequate storage, processing speeds, or hardware features for the app. In such cases, you might have to buy new (more compatible) computers, phones, or tablets.
5. Price Of Plug-Ins And Add-Ons
At the other extreme, your LMS may need additional components in order to function. If you have offices abroad, you may need translation software. Or you may have to buy a foreign-language version of the same LMS. This could be a stand-alone or a manually-enabled feature. Some companies also opt for CRM, video conferencing, and PM platform integrations to improve functionality. These features could be things you requested. Or they could be ‘hidden’ keys required to work the LMS, but “sold separately.” A free trial can help you tell them apart and decide which ones you really need. Because the total cost of plug-ins might exceed the list price of the LMS itself.
6. LMS Acclimation
Even the most tech-savvy staff members need some time to get used to the new employee training software. They need to figure out how to customize the platform on the backend. While the front-end users must learn how to access the tool to get the training resources they require. There are actually two expenses to add to your cost of training employees expense sheet here. The first is the time it takes to acclimate to the new system. The second is the cost of support resources your employees will need to learn the platform. Such as developing tutorials and walkthroughs. Especially if the vendor does provide these for you. This is why it’s essential to find an employee training LMS that cuts the curve and features a user-friendly UI.
How much does an employee training LMS cost? It’s often much more than that figure listed in a bright red starburst. And if you don’t get clear about it, you could find yourself immensely out of pocket. So what factors should you consider when you’re confirming the cost? Existing software (for compatibility), and the number of active users (for per-user fees). Maintenance fees, and the possibility of having to buy new phones and computers. Finally, verify essential plug-ins and add their price to your budget. As well as how much time it will take your team to master the new tool. The sum of all these gives you the official cost of training employees online with an LMS.
Select the best employee training LMS for your team with the help of our online directory. Search by must-have features, read user reviews and compare your top 3 choices. You can also contact the vendor directly to get more info or sign up for a free trial or demo.
Starting a new job is all kinds of stressful, but fresh recruits keep the company young, vibrant, and relevant. How can you ease their transition into your workspace? Download the eBook Cut Onboarding Costs: How The Right Employee Training LMS Benefits Your Bottom Line.