November 4, 2023
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Learning Management Systems: Measuring their Value

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Category: Gadgets

In the dynamic business world, it isn’t easy to overstate how important organisation training is. A company needs to invest in the training and development of its employees. Learning Management Systems play an important role in training and development as more organisations adopt online learning. The question that arises most often is what is the Return on investment (ROI) of implementing a LMS? In this article, you will learn about ROI related to Learning Management Systems. You will also discover how ROI can be calculated for online learning to be valued.

Understanding Learning Management Systems (LMS)

Before we get into the ROI of LMS, let’s first define what an LMS is and its purpose in training organisations. The Learning Management System software allows you to track and deliver educational programs and content. LMSs have many uses, including compliance training, employee onboarding, professional development, etc.

LMSs are used to:

  • Create online courses and other training materials.
  • Track and manage learner performance and progress.
  • Provide a centralized resource and content platform.
  • Enable self-paced training and assessment.
  • Report and monitor the effectiveness of training.

The Role of LMS Training in Organisations

LMSs are now a standard part of organisation training and for good reason.

  1. Scalability: An LMS allows an organisation to provide online training to many employees regardless of location. The scalability of LMS is especially useful for global businesses.
  2. Consistency: The Learning Management System (LMS) ensures consistency of delivery and assessments of training materials, reducing the risk of variations in learning outcomes.
  3. Flexible: Learners may access training material at their own pace. This provides flexibility for scheduling and allows them to accommodate different learning styles.
  4. Data & Analytics: e-learning provides data and analytics useful for improving programs and assessing training effectiveness.

Learning Management Systems – Measuring the ROI

Measuring Learning Management Systems ROI is critical to understanding the value and impact of Online Learning. Here are some ways to do so:

Cost Analysis vs. Benefits:

Start by determining the costs of implementing and maintaining your LMS. This includes costs for software and hardware, development of training, as well as ongoing support and maintenance. Benefits include increased productivity and reduced travel and accommodation expenses.

Learner productivity:

Analyze LMS’ impact on learner efficiency. Are employees able to complete training faster and more efficiently? Does this allow them to spend time on their core responsibilities instead of spending more time in the classroom? Calculate time savings and cost savings associated with an increase in productivity.

Training Effectiveness:

Determine whether LMS have improved training effectiveness. Are employees retaining information longer and learning more? Do they apply it effectively to their roles? Surveys, evaluations, and assessments can gauge this.


If you work in an industry with strict compliance or certification requirements, measure the decrease in compliance violations and errors following the implementation of LMS. This can lead both to cost savings and reduced regulatory and legal risks.

Feedback, Surveys and Comments:

Request feedback from the employees who have taken part in training using the LMS. Inquire about their learning experiences, quality of content, as well as the impact that it had on their jobs. Positive feedback indicates the effectiveness of your system.


Learning Management Systems (LMS) can offer a high return on investment. This is due to cost savings and productivity gains. To justify their investment, organisations must assess and measure their LMS. In today’s fast-paced business world, LMSs can give organisations a competitive advantage by enhancing employee skills and knowledge.

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