Companies looking for growth spend billions on learning and development initiatives every year. All are well aware that corporate training is crucial to unlocking the workforce’s true potential. To maintain a competitive edge in the market, delivering high-quality learning and development opportunities to employees is necessary.
Most organisations are clear about the objective behind using the corporate LMS platform. In a nutshell, it simplifies the process of providing training for new employees who require training to understand their new roles. It also helps existing employees upgrade their skills and knowledge to adhere to the changes in the organisation and market.
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When you invest your resources in corporate training software to develop your business by training your employees, it is important to measure the outcome. In order to ensure that the corporate LMS software platform is providing the desired results, it is essential for organisations to measure the Return Of Investment (ROI) of their LMS.
ROI calculations of training aim to understand if trainees are gaining new knowledge and skills, which help increase efficiency and reduce costs in the company plus measure the cost of training against the benefits to individuals and the organisation. ROI can be used to compare different training programmes, justify the expense of a training course and help establish training within an organisation. It is a simple way to track the effectiveness of corporate LMS platform training and measure what value the learning helped create.
How to measure the ROI of corporate training LMS?
In the past few years, online corporate training platforms have become a more convenient option for professional development. It provides the flexibility to learn new skills or upgrade them whenever and wherever one prefers.
But for an employer, it is important to know whether the training programme provided by you was successful. For this, you need to measure the ROI of the corporate training platform you created for your employees.
Here are 6 ways to measure the ROI of your corporate training LMS:
- Set goals for your training : Every organisation must have a training strategy and clear goals before providing a corporate training platform. It is essential as an organisation to understand the training goals, what you want to achieve from the training, and what metrics should be measured. The training programme for your employees will be designed and delivered according to your goals and strategy. After the training, if you have achieved all your pre-set goals and your employees can achieve the aim, the training programme you provide is effective and can help develop your company.
- Track employee response and analyse programme completion rates : Employee response and course completion are other critical indicators of the effectiveness of a corporate LMS platform. To calculate the rates, you can compare the number of employees who were asked to undergo the training with the number of employees who successfully completed it. Higher course completion rates indicate that your employees are motivated and interested in the training opportunities. Lower rates show that the employees lack interest in training. If that’s the case, you need to evaluate the needs of your employees and design a training programme that aligns with their needs and the organisation’s requirements.
- Assess employee progress : Most corporate LMS software provides insight into the time learners take to complete a module, how they perform, and so on. This gives you the ability to evaluate the difficulty level of module or assessment questions and modify them accordingly. This data can help you measure the overall effectiveness of your training. The insight you gain will also be helpful to provide more attention to employees who are finding it challenging and improve overall performance.
- Evaluate the costs and outcomes : One of the direct and simplest methods to measure the ROI is to evaluate the costs and outcomes of corporate learning management systems. To calculate the ROI, consider the costs and outcomes. Costs include LMS hosting costs, design, development, implementation, and so on. Outcomes include an increase in the number of projects, growth in revenue and sales, reduced number of complaints and more. Now, consider the items that can be expressed in monetary terms. This helps evaluate the costs against outcomes to get metrics that tell you whether your online training was effective or if it requires updating.
- Evaluate employee retention rates and productivity : If done right, corporate training can help improve employee retention rates and boost productivity. Employees with access to professional development opportunities are more likely to stay because employees feel empowered by upskilling. When employees are provided proper training, this will reflect in their work. A boost in employee retention rate and productivity means the training programme is effective.
- Assess the time used : Learning management system platforms can reduce time spent on training. Corporate training LMS is a useful tool for prioritising employees’ time. It provides the flexibility to access their LMS platform anytime and anywhere as per their convenience. This enables employees to manage time effectively. They can use their time for meaningful work or their personal time. To calculate the time saved after using a corporate training LMS, you have to compare the time it takes employees to finish a programme now with the time it took them before. If the time has significantly decreased, it means the training programme is suitable and effective for your employees.
Not every benefit of a corporate LMS platform can be measured, but with the right LMS solution, many metrics can be tracked to attain an accurate ROI.
Mykademy encompasses all necessary features and more to give you the smoothest and most effortless solution and support in keeping your employees trained and upskilled. With the best LMS for corporate training, you can provide a great training experience to your employees and grow your business to greater heights. Mykademy can be your all-in-one guide in upgrading your existing corporate LMS platform or help you set up a new one. Start your 14-day free trial today.