Learning management systems are one of the most common software options for businesses today. With practical and functional applications that span a variety of industries, companies need to use LMS software to stay ahead of the game. The Ultimate LMS Buyer’s Guide helps you learn what an LMS is, how it functions, what the important features are, and how your company can benefit from it.
Read on to determine if an LMS is right for your business and get practical information to help you choose software that is the right fit.
Table of Contents
- What Is a Learning Management System?
- Why Use a Learning Management System?
- Track Learner Progress
- Meet Regulatory Compliance
- Deliver Consistent Training
- Save on Training Costs
- What Are Common Features of Learning Management Systems?
- Automated Testing and Performance Management
- Live Classrooms and Webinars for Remote Instructors
- The Ability to Prove One’s Knowledge
- A Central User Portal
- Course Development Support
- What Makes a Good Learning Management System?
- Easy to Use
- Mobile Learning
- Regular Testing
- Reporting Capabilities
- System Integrations
- Regular Updates
- How to Choose a Learning Management System
- Who Is Being Trained?
- Where Will Employees Study?
- How Tech-Savvy Are the Staff?
- What Are Your Goals?
- Who Uses Learning Management Systems?
- HR Departments
- Colleges and Universities
- Self-Learners
- Entrepreneurs
- Hobbyists
- What Are the Different Types of Learning Management Systems?
- Free vs. Paid (Commercial)
- Installed vs. SaaS
- Allowing for Course Correction
- What Are the Different LMS Licensing Types?
- Annual License
- One-Time Purchase License
- Pay-As-You-Go License
- How Much Does a Learning Management System Cost?
- Per Learner, Per Month
- Per Learner, Per Use
- Per Course
- Licensing Fee
- What Tasks Does an LMS Automate?
- How to Best Organize Learning With an LMS?
- Upload Training Courses
- Add Active Users
- Deliver Concise Knowledge
- Evaluate Your Results
- What Are the Best Learning Management Systems?
- What Is the Future of Learning Management Systems?
- Need Help Choosing the Best LMS for Your Business?
What Is a Learning Management System?
A learning management system (LMS) is a digital learning platform for companies, and corporations. It’s used to teach and train employees on a variety of information.
Why Use a Learning Management System?
The goal of LMS solutions is to make learning and training easier for companies. You can teach and train your employees faster, more effectively, and more thoroughly when everything is combined in one easy-to-use and easy-to-update system. You can also monitor progress, maintain compliance, save money, and more.
Track Learner Progress
A good LMS tracks the activity and progress of all learners using the platform. You can see which courses have been completed and which ones still need to be done, view course scores, monitor course time, and track course attempts.
All of this information helps you see how well your employees are learning, which courses may need to be dropped (if they are unengaging), and where courses may need to be revised (if people are taking it multiple times to pass).
Meet Regulatory Compliance
If your company is required to maintain current compliance regulations, an LMS can help. Since compliance laws change and update regularly, manually updating the training information and hosting in-person training sessions are time-consuming and costly ventures. With a learning management system in place, compliance training can be updated quickly and your employees can take the course on their own.
Additionally, having compliance courses that are easy to update and housed in the LMS ensures all of your employees have the latest compliance rules. Companies that fail to maintain compliance regulations may be subject to fines and penalties, and an LMS helps you avoid this situation.
Deliver Consistent Training
When a training course is added to an LMS, it remains the same unless you change or update it. This means that every person who accesses that course is going to get the same, consistent information and the same training. In-person training sessions can get off track and information can get missed. You won’t have this problem when using a learning management system.
Save on Training Costs
LMS courses are all done online. This means you won’t have to pay for an outside trainer, travel time for your employees to get to a training session, or for a place to host the training if your business is not big enough. Using a learning management system helps your company save money on training costs while getting better results.
What Are Common Features of Learning Management Systems?
An LMS system should have basic common features that make them functional and efficient for a company. Some programs may have more advanced features, but a standard LMS can serve all of your company’s needs as long as it includes these common features.
Automated Testing
A learning management system can automate its own testing. It’s almost as if you can set it and forget it! Automated testing ensures that your system is more consistent and accurate while offering additional benefits, including:
- Quick reporting
- Thorough documentation
- Re-usability for future system projects
- Minimal human errors
Upgrading your LMS software this way also saves you time and money since you won’t have to manually test and update the system.
Live Classrooms and Webinars for Remote Instructors
With LMS software, you can host live classrooms and webinars with remote instructors. Your company can virtually connect with a teacher or trainer miles away, receiving current and up-to-date training and information from industry experts.
The Ability to Prove One’s Knowledge
You can add comprehension tests to training courses and compliance materials to allow employees to prove their knowledge of the information they are learning. This is also a great way to determine which courses are effective since people are passing the tests. On the other hand, if many employees are failing the test or having to retake the course multiple times to get a passing score, you may want to rework the training to present the information better.
A Central User Portal
An LMS system is set up so that each user has their own profile as part of a central user portal. Courses can be assigned to specific employees so that they appear on an internal dashboard upon login. From there, employees know which courses they need to do and can complete the tasks on their own time.
Course Development Support
Developing online training courses can be a daunting task if you haven’t done it before. If moving your physical information into a completed course isn’t going well, your LMS software provider can offer development support to help you get the training course you’re looking for.
What Makes a Good Learning Management System?
First and foremost, a good learning management system is one that fits the needs of your company. However, certain features take an LMS from good to great and make it better suited for your business.
Easy to Use
A complicated learning management system prohibits growth and efficiency, ensuring your employees won’t want anything to do with it. The best learning management systems are easy to use, straightforward, and uncomplicated. To make an LMS work for you, make sure it works easily for your employees.
Mobile Learning
Technology is constantly changing and now more than ever, companies need to take advantage of mobile features for their employees. LMS software should be accessible from anywhere, including:
- Desktop
- Laptop
- Smartphone
- Tablet
Your employees can take training courses or complete compliance requirements on their own time with mobile options.
Regular Testing
You need to ensure that your employees are understanding the training material and courses, so you need the ability to test their knowledge. Look for an LMS that gives you a variety of ways to test users, including pre- and post-tests and multiple question types for each test.
Reporting Capabilities
When you invest in a learning management system, you want to ensure it is a worthwhile investment. An LMS system should provide detailed reports on how well learners are performing and which courses may be too difficult in their current design.
System Integrations
As you search for the right LMS system for your company, you want to look for one that easily integrates with the other programs that you use. A good LMS software should be able to connect with a variety of other applications, including:
- HR/HRIS software
- CRM programs
- ERP software
- Online storage programs
Choose an LMS that makes company processes easier by integrating into programs you already use.
Regular Updates
Like any other software, LMS solutions need to be regularly updated to maintain peak performance. A good learning management system can automatically update itself at regular intervals.
How to Choose a Learning Management System?
As you search for the right LMS for your company, make sure the software fits your business needs. Here are some questions to ask yourself when looking for the best learning management system.
Who Is Being Trained?
Are most of your employees being hired into entry-level positions? Does your team span a large age range? How many employees need to be trained? These are questions you should consider when deciding if an LMS is right for you.
Where Will Employees Use the System?
Do you want your team to complete these training courses on a computer or mobile device? Make sure you’re choosing an LMS that can support either option so your employees can complete their training courses from anywhere.
How Tech Savvy Is the Staff?
In general, an LMS system should be easy and straightforward to use. This should also be a big consideration if your employees aren’t as tech savvy or might struggle to use/navigate the LMS. Look for software that is accessible for everyone.
What Are Your Goals?
Most companies use LMS software to make multiple processes easier. Whether you want to streamline onboarding, automate compliance training, or make training more efficient, an LMS system can help you meet those goals.
Who Uses Learning Management Systems?
Anyone, in any industry, can take advantage of the teaching, training, and learning opportunities that learning management systems provide. While anyone can use LMS software, HR departments are the main users of LMS programs.
HR departments use learning management systems to teach and train employees on company standards, job skills, and compliance regulations.
What Are the Different Types of Learning Management Systems?
There are four different types of LMS solutions: free, paid, installed, and SaaS. There are benefits to each option, and which one you choose depends on your company’s needs. You can read about these options below.
Free vs. Paid (Commercial)
When choosing between an LMS solution that is free and open-source, or one that is a paid platform, it may seem like the free option is the obvious choice. However, while an open-source LMS may not have a licensing fee, you still have to pay for a variety of things, including a host server, site branding, and system upgrades.
If you or a member of your team aren’t technically inclined and can’t — or don’t want to — customize an entire system, you’re better off with a paid LMS. Paid options are easier to use and operate, provide tech support, and don’t have additional costs.
Installed vs. SaaS
Installed, also known as hosted, LMS software stores all system information on your own servers. Since you control the system, you’re responsible for every aspect of the LMS, including all server specifications, upkeep, and security.
A SaaS (software as a service) LMS is located in the cloud and your LMS company is responsible for all aspects of the system. When looking at a SaaS LMS, ensure that the vendor uses strong encryption protocols to back up and protect your information.
If your company doesn’t employ an IT staff that can manage an LMS system, the SaaS LMS options would be the best choice for you. If you want to manage the LMS yourself, including support, customization, and usability factors, an installed system is what you’re looking for.
Allowing for Course Creation
An important feature of LMS software is the ability to create your own content. This includes training materials and company-specific information. Some LMS programs only distribute pre-made content, meaning you would need to create training courses in a different program such as a learning content management system (LCMS) that requires additional costs.
The best LMS systems allow for internal content creation as well as third-party content implementation. However, if you plan on using third-party materials, the LMS software needs to meet SCORM standards. This makes the material viewable and usable across different platforms.
What Are the Different LMS Licensing Types?
Just as there are different types of learning management systems, there are different types of LMS licensing options. All LMS software can be broken down into three licensing types: an annual license, a one-time purchase license, and a pay-as-you-go license.
Annual License
An annual LMS license can be set up for one year or up to five years, depending on the LMS software you choose. This licensing option is the most popular, and preferred, way to pay for LMS software as it is usually an all-inclusive option that covers the software, technical support, maintenance, and hosting.
Benefits of an annual license include:
- Low up-front costs
- LMS vendor is responsible for the entire system
- System payments can usually be spread out over the life of the contract
As long as you use annual licensing for your LMS software, expect to pay for it every year that you use it.
One-Time Purchase License
Unlike an annual license that you have to pay for every year, a one-time purchase license means you pay once and own the LMS forever. When learning management systems were created, this was the preferred payment style. With a one-time purchase license, you need to buy a license for every employee in your company; however, the purchase price decreases for every license you need. So, usually buying more is better.
Benefits of a one-time purchase license include:
- The best ROI of all license types
- The only option with a large-scale discount price
While a one-time purchase, or perpetual, license only requires one payment for the software, there are also annual support and maintenance fees for updating, upgrading, and fixing the software as needed.
Pay-As-You-Go License
A pay-as-you-go license, also known as a consumption license, charges companies based on how much of the system they use. As with an annual license, the company continues to pay for the LMS software for as long as they use it. However, if the LMS isn’t working for your company’s needs, it’s easier to walk away without problems.
Benefits of a pay-as-you-go license include:
- Low up-front implementation costs
- Only pay for what you use
- Low risk of failure
- LMS provider maintains responsibility for the system
Most established companies choose to go with an annual or one-time payment license over the pay-as-you-go license, but you can determine which LMS license is best for your business.
How Much Does a Learning Management System Cost?
Just as there are different LMS licensing options, there are also different LMS pricing options. Learning management systems have four pricing methods:
- Per learner, per month
- Per learner, per use
- Per course
- Licensing fee
Per Learner, Per Month
This is the most common payment option, where businesses pay a subscription fee based on the number of users or active users in the system. This option typically costs less than $5 a month per user and is best-suited for small- to mid-sized businesses.
Per Learner, Per Use
This is similar to the pay-as-you-go license where businesses only pay for what they use. With the per learner, per use method, a company can be charged for the modules they use, the number of active accounts, or the content they access. This payment method ranges from $1 to $10 per learner, per use, and is best suited for companies that don’t need to do training as often.
Per Course
Companies that use the per course payment method are typically looking for specialized training in one or two areas such as industry-specific certifications. The per course payment method is similar to the per learner, per use option, but it will cost more due to the specialization of the material.
Licensing Fee
No matter if you’re choosing an annual license, one-time purchase license, or a pay-as-you-go license, you’re looking at a big investment for a learning management system. Licensing fees can range anywhere from $500 to $20,000 per year or as a one-time purchase. Additionally, initial setup costs can run upward of $25,000, which is something to consider when looking to purchase an LMS system.
What Tasks Does an LMS Automate?
A learning management system has many benefits for every business. Here are some ways an LMS streamlines business operations and helps your company run more efficiently and effectively.
- Onboarding — You can design your company’s training program and set it to automatically send to any new employees added to the system.
- Compliance training — Easily maintain compliance requirements and keep them updated with automated LMS features.
- Product knowledge training — Educate your employees on new or updated products and services with consistent, accurate courses.
- Sales training — If you have sales employees in multiple locations, an LMS can help you provide the same training courses throughout every area.
- Knowledge base — When all of your training materials are contained in one place, it is quicker, easier, and more efficient to automate your training system and knowledge base.
How to Best Organize Learning With an LMS
It is fairly easy to get your LMS system organized. Follow the steps below to set up your software in the best way possible.
Upload Training Courses
Whether you are using your company’s created content or third-party content, you need to add the training courses to the LMS system before you do anything else. Now is a great time to group training courses by topic or create specific learning flows to help users know which courses to take in what order.
Add Active Users
Next, add all of the users who will be accessing the LMS software. Every employee in your company should be added to the system, but they may have different roles within the LMS.
- Users — This option is for anyone who needs to take the training courses.
- Authors — This option is for anyone who is creating, editing, updating, or removing training courses.
- Administrators — This option is for anyone who is in charge of adding users to the system, grouping employees by team, and adding third-party content into the LMS.
In some cases, a person can hold multiple roles in the LMS software.
Deliver Concise Knowledge
With your training courses and users in place, you can open the program to the rest of the company. This means you’ve put unique training programs out to your employees and delivered the knowledge that they contain.
Evaluate Your Results
As users navigate through the LMS and take their training courses, you can monitor their progress with real-time data reports. View the effectiveness of each course, how employees are moving through learning paths, and where the courses could use some improvement.
What Are the Best Learning Management Systems?
The best learning management system is the one the best meets your company’s needs. However, Matchr has compiled some LMS options that we think can work for any business.
Docebo
- Train anytime, anywhere, and to anyone
- Unparalleled configuration options
- 30+ integration options
- Easy to use
- Affordable
TalentLMS
- Easy to use without a manual
- Has a free trial
- Accessible anywhere via the cloud
- Cost-effective upgrades
LearnUpon LMS
- Easy to use
- Quick setup
- World-class system support
- Product strategies
Inquisiq LMS
- Full mobile compatibility
- Automated learning paths
- Easy social learning
- Blended learning options
iSpring Learn
- Easy to use
- Comprehensive author tool
- Fits multiple training goals
- Mobile learning options
Chamilo LMS
- Free, open-source software
- Potential options to sell courses
- Advanced engagement features
What Is the Future of Learning Management Systems?
The current popularity of learning management systems indicates that they’ll be around for many years to come. However, as technology continues to advance, the future of LMS software will change.
Some learning management system changes may include:
- More collaborative applications
- AI integrations
- Full mobile optimization
- More in-depth data reporting
- Adding user-generated content
Learning management systems are here for the long haul, and their future looks bright.
Need Help Choosing the Best LMS for Your Business?
There are many learning management systems available on the market today, and choosing one can feel like a daunting task. At Matchr, we cut down the guesswork of choosing the best LMS for your business by delivering customized, hand-picked software recommendations that best suit your company’s needs.
If you are ready to invest in a learning management system for your business, trust Matchr to match you with the right one.
