Evaluating LMS Pricing Models

Learning technologies for businesses can be cost-prohibitive. For example, a learning management system (LMS) can be quite costly, even damaging to a company’s bottom line, depending on the pricing model the provider uses. Unfortunately, this can keep organizations from implementing helpful learning technologies like LMSs that allow them to deliver, track, and report on employee training. And without employee training, companies cannot succeed.

The Cost of Not Training Workers

Post-pandemic, employee training is no longer optional. Many companies have lost a lot of money and are in the financial rebuilding phase. Investing in employee training is a vital aspect of financial recovery.

There is an incredibly high cost to not training employees. An article by LinkedIn1 explained,

“Employees that are not trained become disengaged from their jobs because they do not feel that companies care about them. There is $500 billion lost yearly due to disengaged employees and this comes from turnover, rework, and many other costs that most companies don't see on the front end of accounting.”

This indicates organizational leaders that don’t offer continuous training to workers may think they are saving money, but they are actually losing it. More and more companies are attempting to cut costs after the financial devastation the pandemic caused. But, it’s important that employee training doesn’t get cut.

What does it cost to skip particular types of training? The HSI Blog2 provided some interesting stats on what it costs companies to skip over various types of employee training, such as:

Soft skills training - $555,174
Sales training - $640,000+
Safety training - $39,780 to $1,190,000+
Productivity training - $4,750,000
Cybersecurity training - $7,220,930 to $14,441,860
Customer service training - $28,000,000
Compliance training - $750,000 to $150,000,000
“Good training does not bring in dollars directly, but it prevents money from going out the window,” the article stated. “Even if training your employees is expensive, the cost of not training your employees will be even higher.”

To train employees, modern companies must use learning technology. This is because most organizations have workforces that are at least partially dispersed. Many employees are still working from home and will remain so for the foreseeable future. By implementing corporate learning tech, such as an LMS, these companies can effectively train their entire workforce.

Offer Employees On-Demand, Remote Training With an LMS

There are multiple learning technologies your organization could use to deliver training remotely to employees. Online learning platforms are tried-and-true technologies that help companies overcome barriers to training employees. It’s crucial to be aware of LMS pricing models, though, before choosing a system.

An LMS is the ideal tool for training workers post-pandemic. Here’s why: