Different ways to measure the ROI of your LMS

Even if you already use an LMS for staff training, it may not be the best for your needs.

You may track your eLearning ROI and enjoy instant cost savings by implementing a learning management system (LMS) into your training program.

One common saying in the software industry is that “the return on investment (ROI) of any product is a crucial metric for firms.” Even when dealing with robust learning management systems, measuring the returns on your investment may get challenging. In this article, we’ll go over a few ways you may use to evaluate your LMS’s ROI.

Analyze participation and completion rates in programs, and track employee responses:

The success of a corporate LMS platform can be measured by the level of engagement and number of courses taken by employees. You can determine the rates by comparing the number of employees who were required to take the training to the number of employees who completed it successfully. Increased course completion rates show that your staff members are engaged and driven by the training options.

Lower rates indicate a lack of motivation to learn on the part of the workforce. If that’s the case, you’ll want to conduct an assessment of your staff’s educational requirements before developing a training plan.

Maintaining a compliant and secure environment:

All firms need to raise their employees’ understanding of compliance and security issues, which is essential for those in highly regulated industries. Data breaches and policy penalties are just two examples of how much it may cost to have staff who aren’t informed or who don’t follow company procedures. 

Employees can receive up-to-the-minute guidance on compliance and regulations via a learning management system, ensuring they are well-versed in security best practices and compliant with all relevant laws and policies. The platform helps businesses combat these elevated risks by ensuring that employees operate legally. 

Therefore, your company’s cyber hygiene can be measured in various ways, including the number of employees who have completed data security courses, the number of employees who have acquired compliance certificates, and so on.

Plan out your training objectives:

Before offering a corporate training platform, a company should have a training plan and defined objectives. As a company, you must be clear on the reasons for the training, the outcomes you anticipate, and the measures you want to use to evaluate its success. 

Your employees’ training program should be developed and delivered to your organizational objectives. If at the end of the training, you and your staff have accomplished what you set out to do, then the training program you provided was productive and contributed to the growth of your business.

Reducing expenditures:

LMS primarily focuses on reducing the multiple costs associated with corporate learning initiatives. The use of a cloud-based LMS reduces the amount of equipment and software that is required –

Because most LMSs are cloud-based nowadays, providers store and update customer information. Any company using an on-premise LMS solution may choose to switch to a cloud-based one at any moment. Furthermore, it will be necessary to allocate time, money, and workforce to keep this upgrade operational. Organizations can save much money by switching to a cloud-based LMS solution; the return on investment in the LMS’s outputs is easy to calculate.

Less money spent on employee training –

Learning management systems (LMS) are the best option for businesses looking for a way to train their employees without sending them to classes. To get the same education in a digital context, you need to upgrade your current LMS to the Learning Experience Platform. 

A good training program is essential for providing workers with the knowledge and abilities they need to do their jobs. Like most IT companies, companies that reward employees for obtaining Microsoft certifications should rethink the practice. Offering courses on an internal LMS can drastically cut training costs while giving you access to a large learner pool within the company.

Gaining and maintaining the trust of your employees to maximize their productivity:

The training process may be streamlined and made more accessible to employees through a learning management system, which provides them with quick and easy access to training courses for personal growth.

Learning can also be offered in the context of regular job activities so that employees have ready access to relevant materials in a setting to which they are already accustomed.  

Workers’ self-assurance and output rise when they have ready access to the resources they need to do their jobs well. Monitoring employee performance on the job and conducting surveys to gauge employees’ perceptions of their competence in the workplace are two ways businesses can begin to evaluate the efficacy of their learning systems.


The total investment in a learning management system can change significantly according to the size of the institution’s learners. The broader your pool of learners, the greater your return on investment will be since you won’t have to pay for as many costly off-site training excursions and because you’ll have a larger proportion of engaged, committed workers who are less likely to quit. Several metrics can be tracked with the correct LMS solution to provide an exact ROI. Your administrative team can use attendance and custom scoring to enhance training programs.


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