LMS Software: 5 Training Ideas That Go Easy on the Budget

According to survey data by Talent LMS and SHRM, 76% of employees said that they’re more likely to stay with a company that offers continuous training.

And these educational perks don’t just result in more loyal employees. An impressive 85% of HR leaders agree that employee training is beneficial for the growth of their business.

Employee training rapidly shifted from in-person to online as organizations adapted to remote work requirements during the pandemic. This transition accelerated the adoption of e-learning platforms, emphasizing the need for digital skills (as well as soft skills, such as communication and adaptability).

In the post-COVID world of hybrid work models, cloud-based virtual training has become a normal part of employee development.

While many companies are discovering a growing need for modern, intuitive learning and development tools, such as Learning management systems (LMS), the associated costs can still be a hard pill to swallow.

What is a Learning Management System?

A learning management system delivers and tracks educational and training content online. An LMS is essential for companies to onboard and train employees, and it can improve engagement and retention.

Here are five cost-friendly training ideas involving LMS software.

1. On-Demand Training and Professional Development

Employees are more likely to stay with a company when they’re offered professional development opportunities, such as management skills or sales training.

The cost, however, of hiring instructors, renting a physical classroom and coordinating times when employees can attend classes can often be too high. LMS software provides on-demand classes that employees can access online or through mobile devices.

Vendors often use a software-as-a-service pricing model, so customers pay a subscription fee instead of a large upfront cost. This can include per-learner, per-month plans, which can be more cost-effective for organizations with fluctuating training needs.

LMS software can help employees learn efficiently and effectively because they’re designed with AI and machine learning, microlearning, gamification (such as badges and leaderboards), adaptive learning, multimedia, pre- and post-training assessments and personalized learning paths.

2. Onboarding New Employees

Gallup employee retention and attraction data revealed that of all the reasons American workers gave for changing jobs in 2023, the majority were related to engagement and culture (41%).

Engaged employees are more likely to stay and engagement begins with a structured onboarding program.

LMS software can provide educational materials to help new hires get acclimated to your company’s culture and the responsibilities of their role.

Because some solutions include more features than you would ever possibly need, it pays to find a vendor with a per-learner, per-use pricing plan. This allows clients to opt out of certain parts of the software and pay only for what they put to use.

Also, because of how competitive the LMS market is some vendors offer tiered subscription plans that allow customers to select and pay for only the modules or features they need, enhancing budget control.

Companies that don’t need to train employees regularly or only need an LMS platform to onboard new hires should ask about these options.

3. Provide Online Industry Certifications

Some industries or jobs, such as HR, health care and safety, require certifications or continuing education credits.

In the past, this meant employees had to travel and miss work to attend days-long seminars and classes. Now, an LMS solution can help businesses with these industry-specific requirements either by providing on-demand content available in its internal library or by partnering with third parties to deliver lessons.

Many LMS solutions offer comprehensive features at lower costs than traditional training, making it essential to evaluate the total cost of ownership rather than relying solely on per-course pricing.

Additionally, modern LMS software offers real-time analytics to help administrators track which employees need additional credits and when certification must be renewed.

4. Try Open-Source Or Free Versions of LMS Software

Many companies want the ability to deliver training and education but don’t need all the bells and whistles that come with advanced software. In this case, open-source or free versions of LMS solutions may be a good option, as they generally include basic functionality and provide access for a limited number of users.

Open-source LMS software has source code that’s publicly available. Companies can download, install and modify the software based on their needs — all for free. This flexibility can make them a cost-effective solution compared to proprietary LMS options.

Some popular open-source LMS options are Moodle and Open edX.

While open-source LMS software platforms often have online communities that provide support, share resources and contribute to ongoing development, installing and customizing open-source software can be complicated for companies that haven’t used an LMS before. And there’s no customer support if something goes wrong.

If you lacking the necessary in-house tech expertise, it may be necessary to hire external consultants or IT professionals to ensure successful deployment and operation.

Some LMS vendors also offer trial or free versions of their software. Some examples are Chamilo and ProProfs.

Potential limitations of these platforms include user caps, feature restrictions and the need for technical expertise. It’s essential to evaluate the specific needs of your organization and consider whether a free LMS can adequately meet those requirements.

5. Use a Premade Course Library or Build Custom Content

One of the difficulties of training employees is finding relevant content to your business.

Many LMS vendors offer course libraries with premade lessons for a variety of industries, from safety to workplace ethics to sales.

However, depending on your industry you may want to consider an LMS solution that allows for easy content customization and integration of diverse learning materials to cater to specific training needs and regulatory requirements.

LMS software provides course authoring tools that can help organizations create course content using templates or from scratch. And it’s not generic content either. The software can handle a range of content from site-specific videos to PowerPoint slides and also make interactive quizzes and games.

If your company doesn’t have the resources to create this content, some vendors can also create custom training courses. This service may be charged per hour or as a one-time fee. But the benefit of using an LMS content creator versus a third party is that the content will be designed to be used in their specific software.

Bottom Line

Investing in an LMS solution shouldn’t be taken lightly. You should make sure to talk with potential users who’ll receive training and figure out which key performance indicators will be affected. If implemented correctly, however, the software can significantly reduce your overall training costs.

If you’re in the market for a solution, check out these reviews of the best learning management systems.