How to Improve your Bottom Line Using Digital Learning
When strategising ways to increase profit, organisations typically focus on attracting customers or controlling costs. Controlling costs often include cutting the budget for employee training.
Many organisations opt out of investing in training programs for employees, citing that training will create heavy costs both directly and indirectly; however, employee training can improve margin.
A way to divert the heavy costs of training is to invest in digital learning. Having all training, webinars, performance management and user accounts on one platform improves efficiency and productivity for the organisation. A Learning Management System (LMS) offers a way to increase compliance and streamline performance management and record tracking, while also saving money for the organisation.
Digital learning platforms help reduce training costs. Studies estimate that savings reach up to 50% what training would normally cost.
Lowered costs include:
- Travel costs: for organisations with multiple offices, enlisting a trainer to deliver training programs can create a huge travel bill. This can also occur if employees must travel to receive the training. Digital learning eliminates the need for travel and saves the organisation money to develop a better performance management program.
- Venue costs: without digital learning, organisations would need to book venues. This can become costly, especially if the training lasts all day and catering is booked. Using an online training and compliance management software allows employees to access learning materials at their own convenience from their workstations or mobile phones.
- Instructor costs: on an LMS, organisations can create courses and learning programs that can eliminate the need for full-time trainers and instructors.
- Material costs: digital learning eliminates the need for investments in materials, such as stationary and print-outs.
Better performance management
Digital learning offers training on demand, where employees can access courses and learning resources at any time. This allows employees to build their skills and overcome training barriers at their own pace, with immediate feedback.
For HR managers, LMS can be used to identify areas that employees are excelling in. Skill sets may become repetitive in certain departments and LMS makes it easier to determine if downsizing is necessary for the organisation or if moving certain employees to separate roles would better suit abilities.
Studies show that for every dollar invested in online training results in a $30 increase in productivity. Companies that use digital learning technology see an 18% boost in employee engagement. Employees are more invested in their roles and become more productive and satisfied. This is directly linked to the success of the organisation and your bottom line.
Less time away from work
Learning in a traditional setting requires time away from work, booking venues and buying materials. For many organisations, monetary costs and the time needed for learning are not feasible investments.
Digital learning, however, requires 40-60% less time from employees than traditional learning methods. Participants in digital learning also learn nearly five times more material than traditional training, without increasing time spent for training.
Online learning platforms offer a streamlined approach to performance management and have been shown to increase the retention rate of material. Employees will be able to access the learning material at their own time, while also maintaining a solid work load.
Increase your competitive advantage
A study done for an elite organisation found that for every dollar the organisation invested in learning, the company received the dollar back plus an additional $3.53 in measurable value to the bottom line; this is a 353% return on investment in learning.
Increasing the skills and performance of current staff, develops a competitive advantage for the organisation. Employees become more equipped to perform well in their roles and help improve the organisation through innovation and up-skilling.
An LMS sets up your organisation to develop these skills and competitive advantages
Organisations can invest in digital learning to increase their overall bottom line. Finding the right LMS for compliance management and staff training, increase skills, revenue and competitive advantage. When developing strategies to increase the success of the organisation, consider the benefits of investing in an LMS for your staff training and performance management.
If you need any further assistance with your investment options and LMS decision, please contact us at Mediasphere to see if our award-winning LMS can help you increase your bottom line.
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