2020-21 saw a massive transformation for eLearning worldwide, with people and organizations reassessing the way they grow and learn in a post-pandemic world.
In 2022, 72% of learning and development specialists will focus on upskilling/reskilling employees and digital transformation.
As self-paced, flexible corporate training is gradually becoming the norm; companies are looking for new-age strategies to train their employees for growth.
In a world where employees expect opportunities to advance and learn, you need a fast, powerful, and scalable solution.
A corporate LMS is essential.
But what is a corporate Learning Management System (LMS)? What does it include? And most importantly, how can it help your employees and business growth? Let’s find out.
What is a Corporate LMS?
A corporate learning management system, or a corporate LMS, is software developed to deliver online training and learning content to the employees of a company.
Unlike a platform designed for school or college students, a corporate LMS is specifically used to train employees and help them acquire the knowledge and skills required for their roles, ultimately improving employee productivity and driving business growth.
According to a study of 2,500 firms by the Association for Talent Development, companies engaging in comprehensive and regular corporate training reported 281% higher income per employee than companies that did not offer any training to their employees.
What can make this possible? Simple.
A good corporate learning management system. Like, a perfect one.
Not your K12-platform-adopted-for-employee-training, with basic gamification and learner engagement capabilities. We are talking about a sleek, scalable, tailored-to-corporate-needs LMS that has the capabilities to woo your corporate audience.
If your inner skeptic is like, is that so important, though? After all, how many people need corporate LMS software?
Who Uses Corporate Learning Management Systems?
A corporate LMS is used by small and medium businesses (SMBs), large enterprises, and non-profit and governmental organizations.
In other words, everyone!
And we are not just talking about IT companies. We’re talking about all types of professionals - vets, insurance agents, sales reps, healthcare specialists, lawyers, social workers, travel agents, etc.
Statistics show that as of 2021/2022, there are 73.8 million LMS users globally, of which 65% are corporate-level executives and 35% are managers.
That’s not to say that every industry uses the same type of LMS, though. For some, an open-source LMS is a perfect solution. For others, a cloud-based LMS does the job.
Alright, alright. We won’t jump the gun.
Let us first discuss the different types of corporate LMS systems, and then we can see some concrete examples of where they have been put to good use.
P.S. For those of you who are familiar with the types of LMSs, feel free to jump to the next section: Main Features of a Corporate LMS.
Types of Corporate Learning Management Systems
LMS is typically classified into four types - open-source, cloud-based, commercial, and self-hosted.
Let’s look at each of these in detail.
1. Open-source LMS
An open-source LMS for corporate learning is a license-free solution. It has an open code that can be tweaked and customized to meet your needs. The most famous examples of this type of platform in the eLearning space are:
- Open edX, and
- Canvas LMS.
Many open source LMSs work on a core-and-plugin principle. Here, you have a standard core offering essential features, and you can add as many add-ons as you choose, like event calendars, gamification modules, etc.
Think of it as a generic recipe for cooking rice. Your basic dish will be rice, but you can have incredible flavors and embellishments depending on your mood and palette.
Note that choosing an open-source LMS may require hiring an IT team to manage the platform and scale it if you do not have the technical expertise yourself.
2. Commercial LMS
Commercial LMS is proprietary software with license fees. These are generally created and managed by professional LMS vendors with years of experience and expertise. These vendors are responsible for providing tech support to their customers and taking care of their sustainable operation.
Commercial LMS can also be installed as a cloud-based Software-as-a-Service solution.
The apparent upside here is that you don’t have to worry about the tech side of things. However, commercial LMSs are typically built for large-scale eLearning applications, like universities, so they cost proportionately high.
3. Locally-hosted LMS
This type of LMS is the one that you host and maintain in-house. It is built and maintained exclusively on your company’s infrastructure and can be tailored to your specific needs.
This requires high setup fees and has a particular duration of the license. You will also need a dedicated IT team to take care of the operations and security.
The downside of this type of LMS is that your employees can access their courses only on company-authorized devices and networks. In an age of work-from-where-you-will, this can be somewhat restrictive.
4. Cloud-based LMS
A cloud-based LMS combines the flexibility of a commercial LMS with the functionality of an open-source LMS.
It can be hosted on the web by vendors and is accessible anywhere, on any device. It does not require heavy IT infrastructure on the company's part. The vendor delivers access to the service, maintains the system, and safeguards your data with encryption protocols.
The best of both worlds, eh?
Cloud-based LMS platforms are ubiquitous because of these benefits:
- Easy to use
- Take a lot of responsibility off your shoulders.
Let’s look at what an ideal corporate LMS system should look like.
Main Features of a Corporate Training Management System:
Every company has different training needs and requires an LMS platform to fulfill those needs efficiently. However, there are some common elements that are must-haves for every corporate learning platform.
As essential as flour is to bread. Or the mind is to the body. Or the Avengers are to Marvel.
You get the idea.
These are what we call, in tech-speak, core functionalities. They include:
- User Management: add, edit, and organize the users in different departments and assign them various roles
- Course Management: upload, manage and deliver learning materials
- Progress Tracking: assess the performance of a particular learner or a group of learners at regular intervals and provide constructive feedback
- Learning Path: the sequence of courses allows the learner to systematically and linearly access your learning material. You can also use evaluation criteria and deadlines within the learning path to understand if the employee is learning from the course.
- Event Management: schedule in-class activities and webinars and monitor training events with the help of the event calendar in your LMS. It also does the job of notifying the learners about upcoming events.
- Certification: where you create rewards or validations that celebrate the employee’s achievement of completing a course or training program. Your corporate learning platform should enable you to design and award such certificates and facilitate overall professional certification in the company.
- Mobile Readiness: the LMS platform is responsive and available for learners anywhere and anytime. With more than 25% of learners accessing courses on mobile devices, your corporate LMS software must be mobile-ready and accessible 24/7 as an app.
- Social Media Integration: the platform connects with popular social platforms and supports social validation in likes, shares, discussions, and user feedback. This helps in improving engagement and providing a collaborative learning experience.
- Gamification: the LMS enables gamification features to drive learner engagement and motivation, like merit badges, in-course games, leaderboards, and so on. Employees can engage in healthy competition while completing their training modules.
That covers our list of the main features. Beyond this, the playing field is yours. Need a performance reporting feature? Go ahead. Perhaps a learner-feedback module? Sure! Maybe design some custom learning paths for your exceptional learners? Go wild!
The bottom line is that your corporate learning platform should nurture your company's vibe and vision in employee training.
It should make it super easy for your L&D team to design and execute learning modules that will blow the minds of your employees and make them love these training sessions.
How Can a Corporate LMS Help Your Business Become Successful?
By leveraging your most significant assets — your employees.
79% of L&D pros agree that it’s less expensive to reskill a current employee than hire a new one. So, you can become unstoppable with the top corporate LMS on your side.
And here are the ten ways an LMS helps your business succeed:
1. Fast and easy new employee orientation
A LMS for corporate training enables the company to automate its employee induction training. You have to create a training program once and then share it with the newbies. The orientation can include the company's history, mission, values, vision, policies, and everything a new hire needs to know!
This helps streamline and simplify the induction process, increase their retention, and empower them to work in line with the company vision from day one.
2. Simplified product training cycle for better sales and customer support
One of the most common and practical uses of corporate learning software includes product knowledge training. It is used to introduce the products and services of the company to the new employees and educate the staff on new launches.
A typical product training program includes the new product or service's information, features, benefits, and applications. It ends with a quiz to test how knowledgeable the employee is now about the product.
When your employees have an in-depth knowledge of all the products you sell, they can understand their roles better and boost your sales and customer satisfaction metrics.
3. Personal development opportunities
Alongside job-related hard skills, it is always beneficial for the company to invest in their employees’ soft skills. Soft skills like leadership management and public speaking are instrumental in a job as they benefit the employee during and beyond their career.
A company can also use the corporate LMS software to deliver personal development programs such as mental health, which can be helpful for the employees and convey that the company is genuinely invested in their employees' well-being.
This can help the employees balance their work life and personal life and positively affect their performance.
For instance, Concentrix found that with regular investment in career development sessions, webinars, stretch assignments, and internal networking for their employees, they could fill 80% of their promotions internally.
4. Reduction in training cost
Having an LMS for corporate training significantly reduces the time, effort, and cost incurred by a company training its employees, as the need to host an expert or send the employees for conferences is entirely ruled out.
Think of how much you can save on travel expenses alone when employees can get all the training they need from the comfort of their couch.
Plus, factor in the cost you save on:
- printed materials,
- the flexibility of reusing your content at any required time, and
- online learning increases retention rate by 25% to 60%.
That’s a lot of green saved!
5. Easy interdisciplinary training:
An expert only in your field is not enough, and your employees know it.
They are hungry to expand their knowledge and learn skills across departments. This is where online interdisciplinary training is worth its weight in virtual gold.
This training makes them more aware of the different aspects that affect the company's performance, and they are more inclined to increase their proficiency to enhance overall experience and satisfaction among customers.
6. Consistency in training
As a corporate learning system is a centralized system, it enables consistency in training. In the case of an instructor-led training program, the quality can vary based on the instructor's knowledge and the connection and engagement with the employees or trainees.
A corporate learning platform provides the employees with a single source of content, related materials, and instructions to deliver a consistent training quality.
7. Enables adoption of updated training methods
How would you feel if you eagerly jumped aboard a train, only to find it still standing stock?
With no intention of ever moving.
You’d probably get off right away.
And we wouldn’t blame you.
The world is turning at an unimaginable speed. To stay still is to fall behind.
Unfortunately, conventional training methods do not let you easily update your knowledge.
Fortunately, an LMS enables you to easily change or update your training material and methods at any time. Whether it is a new product launch or a new software masterclass, your employees can go through the new material at their pace, from anywhere.
8. Ability to track learner progress
A solid LMS platform has extensive reporting tools that can help HRs and C-level management track their employees’ progress throughout training.
With the help of assessment data, grading, timesheets, and attendance, the company can:
- gain insights into the level of interest their employee has in that training
- understand how well they have absorbed the material
- use these insights to improve their training content,
- fast-track well-performing employees, and
- give more attention to learners who are facing difficulties.
9. Increased productivity and performance
76% of employees say that a company would be more appealing if it offered additional training to its staff.
Trained, motivated, and knowledge-ready employees are confident and committed to the company. This leads to seamless, efficient work across the entire organization, increasing productivity and performance. And the better the performance of the employees, the higher the company's revenue.
10. Improved employee retention rate
The thought and effort that a company puts into its employees' training shows how much the organization cares about its employees. Well-designed training modules that encourage the employees to focus on their professional and personal development are instrumental in fostering a bond between the company and its people.
Companies that excel at internal mobility can retain their employees for nearly 2x as long as companies who struggle with it.
Those are just some of the many benefits of corporate learning management software. We could go on, but by now, you are probably like, enough already! So, let’s get to the meaty part.
You know what a corporate LMS is. You know how it can help your business grow. Now, you are ready to choose one.
What’s that? You’ve shortlisted a few but aren’t sure which one you should pick?
Tovuti LMS? Docebo? Absorb? SAP Litmos?
Good picks! You may have heard of these mentioned frequently as the best corporate LMS software for online corporate training.
They are unique because they offer many features to make learning fun and engaging for your employees.
They have all the essential functionalities of a corporate learning management software, but they are proven to increase employee engagement and retention in spades!
As Kurt from Capterra puts it, Tovuti is an A-Z solution. It has everything from housing content, a knowledge base library, course and content creation, live learning, reporting and analytics, and the ability to integrate and monetize.
So, without further ado, let’s get down to it. Mission “Find the best corporate LMS” is on!!!
Top LMS Systems for Business
The choice of the best corporate LMS systems generally depends on the number of users and the capabilities required by the company.
For instance, let’s say, on the one hand, we have an IT solutions company employing 200 people, and on the other, we have a veterinary hospital employing 25.
As their industries, scale, size, and learning goals are fundamentally different, their choice of LMS will be different.
Here’s a side by side comparison of some of the best corporate training systems:
How to Choose the Best Corporate LMS
Choosing a suitable LMS for your company can be a challenge.
So, here are the three main questions you need to ask yourself:
- Does the LMS solve my existing problems?
- Does it have the features I may need in the future?
- Does it fit my budget?
Here’s a handy guide to help you decide more easily:
Once you have the answers to all of these questions, selecting the suitable LMS becomes a piece of cake.
And, of course, you could always take our advice and choose Tovuti LMS. ;)
Any company, big or small, needs an LMS. It helps you achieve your training goals, create a comfortable and engaging learning environment, and scale your business in leaps and bounds.
That a corporate LMS is essential in today’s world is a given. The only question now is, how soon will you start using one?
Don’t let your business fall behind. Level up your eLearning game. Check out a demo of Tovuti LMS today!