7 Reasons Your Business Needs a Learning Management System

Written by SeekLMS Correspondent on 24 August 2021

The future of learning is online. According to the LinkedIn Workplace Learning Report of 2020, 57% of L&D departments plan to invest more time and money in e-learning in the months to come. In Training Magazine's 2019 Training Industry Report study, 44% of companies anticipate investing in online learning tools and systems.

In these days of remote or semi-remote work, an effective online training system is more important than ever. E-learning is not just for small businesses. Almost every company can benefit from asynchronous learning.


It is not as simple as enrolling in online courses. Before enrolling, you'll have to answer lots of questions.

  • What's the process for building a module?
  • Where will you place them?
  • What kind of metrics do you use?


Learning management systems underpin online learning. LMS allows you to manage and create courses as well as distribute them. In this article, we will explain everything you need to know about learning management systems and how to choose the best approach for your company.


What is the purpose of LMS?

With an LMS, companies can manage the whole learning cycle from start to finish. A learning management system is an essential tool for companies that wish to offer a comprehensive online training program.

LMSs are used by businesses to create online courses for their employees that educate and train them. For course creation, some LMS requires a separate authoring tool while others allow you to build directly on their platform.

LMSs are used by learning management teams to organize, store, and distribute course materials to employees. Through the interface, employees can take courses and give feedback. Admins can monitor employees' progress, view analytics, and calibrate their learning programs to maximize their effectiveness.


Learning managers also use LMSs to manage company-wide training programs. Different users are assigned permissions and roles in order to aid learners and teachers. The administrator can create a tracker for employees (e.g., a track for onboarding new product managers or a track for sales training). Each employee's progress can be tracked, and feedback can be provided.


What are the benefits of an LMS implementation?

An LMS can streamline a company's processes and boost efficiency. To sustain growth, businesses must integrate an LMS into their business processes. In order for an LMS to deliver positive results for businesses, let's examine the main reasons.



Often, onboarding and training require multiple employees. Among other things, a hiring manager must train each employee on the company's software. An LMS allows such pieces of exercise to be tailored.

Training online is also a great way to save time and money. A single location can be used to train employees. This eliminates the need to print excessive paperwork because the data can be reused.


Enhanced productivity and profitability

An ASTD (American Society For Training And Development) study conducted on 2500 firms found that the organizations who invested in training achieved a margin of 24% higher than the rest. According to the study, these firms also had 218% higher income per employee.

LMS provides employees with a comprehensive training program that will help them be productive and efficient. The LMS allows multiple users to be trained simultaneously. Employees who are productive become more profitable.

Using data and analytics tracking, an LMS can provide employees with quality training. Training can be tracked and monitored, as well as its content, duration, and effectiveness. By enhancing the quality and productivity of training, an LMS's central training database helps to substantially increase profitability and productivity.


Get Employee Onboarding Right 

Orientation and onboarding of new employees can be challenging for many companies. By using a modern LMS platform, the employee onboarding process can be significantly accelerated. In turn, this increases employee productivity.

LMS platforms make it easier to distribute content from third parties. Businesses can manage, track, and hire new employees with the help of LMS platforms. Course creators can set test questions, assign assignments, and automate the onboarding process, among other things.

LMS Onboarding Environments ensure that training and onboarding are efficient and effective.


Measuring Return on Investment

Various analysts predict that the LMS market will grow from $2.06 billion to more than $7 billion by 2023. A Learning Management System can boost ROI for businesses in a variety of ways.

One-on-one training is no longer the most effective method. With an effective Learning Management System, you will realize the greatest return on investment. The cost savings are substantial. LMSs can handle a large number of training courses and other types of content. In addition to reducing travel costs for employees sent to training outside the company, LMS can also improve employee productivity.

LMSs allocate resources and identify inefficiencies in training. With the LMS, employees can also focus on their core tasks. Additionally, it increases the turnover quite significantly.


A centralized learning management system enables knowledge retention

Employees in an organization must be empowered with analytical capabilities to drive innovation. Employee productivity is enhanced by technical know-how. An LMS can provide intellectual capital as one of its key benefits.


LMS ensures that all information is accessible to all and does not stay in one place. It is easy to track employee performance with an LMS. If an employee performs poorly, he or she can receive additional training.


Training consistency 

Centralized training delivery is provided by an LMS. Trainer-led training may vary depending on the instructor's ability to engage students (and his or her knowledge base). However, employee training (e-learning and instructor-led) via a Learning Management System provides a consistent level in training quality by providing one source of content, related materials, and instructions.


Reporting and tracking 

An LMS lets you create training reports at the individual or organizational level. With a good LMS, you can track usage, goals, knowledge gains, and ROI. It's easy for the organization to show savings on training programs and strategies.


Administration Automation

Learning management systems can be utilized to automate registrations, payments, student record maintenance, and enrolments to reduce costs substantially.


Additionally, Learn Management Systems can track employee satisfaction and knowledge differentials. You can use these measures to identify opportunities to improve your course content.

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