Online corporate training has become the norm since the COVID-19 pandemic pushed companies to improve network capabilities. Companies realized that training their employees remotely was much more efficient and cost-effective than having them travel to a physical location. This shift to online training has allowed companies to offer their employees more diverse and specialized courses. This, in turn, creates a more knowledgeable workforce. Additionally, digital learning allows companies to reach a broader range of employees, as everyone with an internet connection can take courses online. As a result, companies can now provide employees with more targeted training, enabling them to acquire the specialized skills necessary to remain competitive in the ever-evolving global economy.
A corporate learning management system may require a significant investment, but its benefits will be felt immediately. An LMS allows companies to track employees' progress, identify areas where they need more training, and tailor training programs to each individual's needs. An LMS helps companies save time and money by streamlining the training process. This creates a standardized approach to training that can be applied across the entire organization, resulting in enhanced employee performance. For instance, an LMS can quickly assign and track compliance training for new hires and provide refresher courses for existing employees.
Plus, the savings for organizations who've traditionally paid travel and lodging expenses for employees to take live instructor-led training can't be understated.
Retention and Productivity is Key for Corporate LMS
Numerous studies reveal that users retain information from online training at much higher rates than information consumed from traditional learning techniques. For example, in a study conducted by the Research Institute of America, eLearning increased retention rates by 25% to 60%. In comparison, face-to-face training had a low retention rate of 8% to 10%. This is because LMS-based training can provide a more individualized and targeted approach to learning. In addition, the platform's interactive nature helps engage learners and makes them more likely to retain the material they are learning.
But learning smarter isn't the only benefit of e-training. According to a Brandon-Hall study, e-learning generally involves a 40% to 60% reduction in employee time compared to traditional classroom instruction. Due to its asynchronous nature, employees can take training at any time; thus, there is no interruption to their workflow. It is essential to note that saving time does not affect the quality of learning; on the contrary, it improves it. Here's an example.
An eLearning program implemented at IBM resulted in participants learning nearly five times more material without increasing training time. With more material taught in a shorter duration, companies can reduce the time employees spend on training, allowing them to get back to work faster, which reduces costs.
IBM's study also found that every dollar invested in online training generates $30 in productivity, mainly because employees can resume work faster and apply their skills immediately. This is because online training is typically self-paced and tailored to the individual employee's needs. This allows them to learn at their own pace and apply their skills as soon as they finish the training. This is particularly relevant for sales teams where time spent in the field directly impacts revenue.
IBM isn't alone. According to The Ambient Insight 2012-2017 Worldwide Mobile Learning Market - Executive Report, 42% of companies surveyed said eLearning has increased revenue and productivity.
To achieve organizational growth, employers must ensure that their training programs are both practical and profitable for the company and beneficial to their employees.