What Is a Learning Management System?

A learning management system (LMS) is a platform that makes it easy to organize, manage, and administer a business’ training content. Also commonly referred to as a training management system or learning experience platform, an LMS software simplifies the administration of employee-specific and companywide training while also tracking employee progress, performance, and satisfaction. This makes it an excellent solution for businesses in highly regulated industries and companies that prioritize employee training and growth.

How Learning Management Systems Work

LMSes can be cloud-based or software-based, and they enable business owners to organize and assign training and development resources. Cloud-based LMSes are hosted on the internet and are accessed by logging into a web portal that houses all of a business’ training materials. No software is required, so this is an excellent format for businesses that rely on remote training sessions. Software options, on the other hand, require employees to download the system onto their work devices, making that more cumbersome.

Once logged in to an LMS, system administrators—like a business’ HR team—can upload educational resources, create and administer quizzes and other assessments, and track the progress of individual learners or the team as a whole. Individual employees can be assigned personal login credentials to access unique training materials. Many LMSes streamline this process through automated notifications to keep employees on track.

When training is underway, administrators have the option of monitoring employee completion rates, progress through training requirements, and performance through online assessments. This data can be analyzed within the LMS but can also be synced with a human resources information system (HRIS) or other talent management tools to draw correlations between training and employee satisfaction, advancement, and attrition.

How to Use an LMS With an HRIS

If your business relies on an HRIS to manage its HR needs, integrating it with an LMS can improve data syncing and streamline reporting. Not only can an LMS-HRIS integration make it easier to track employee progress, but it can also simplify the onboarding process and reduce discrepancies and the amount of time spent entering data.

Having all of your business’ HR and training data in one place can also help your team spot relationships between training and other important metrics like employee productivity, turnover, and satisfaction.

If you already have an HRIS, contact your account manager to find out what kind of LMS options are available. Some platforms, like BambooHR, include built-in training tracking that can take the place of a full LMS; others require a third-party integration.

Who Learning Management Systems Are Right For

In the business context, LMSes are generally aimed at simplifying training, but there are certain businesses that will benefit more from the technology than others. Your business is likely to benefit from an LMS if it:

• Is in a highly regulated industry that requires regular training and certification renewal
• Requires employees to participate in corporate training videos during onboarding and beyond
• Relies on a large remote workforce that can benefit from having an LMS with scheduling and tracking tools
• Provides training products to customers, especially via client-specific login credentials

That said, every business is unique, and your company may benefit from an LMS even if it doesn’t fit into one of the categories above. LMSes can help businesses in a number of ways, so take time to understand available features before deciding whether an LMS is a right fit for your small business.

Learning Management System Features

The best LMS for your business depends on a number of factors, like budget, number of employees, and whether you’re in a highly regulated industry. However, there are several more common LMS features to look for when choosing a platform. Some of the most helpful LMS features include the ones listed below.

Integrations

If you use an HRIS, talent management software, payroll service, or other platform to manage and administer your business’ HR strategy, look for an LMS that can integrate with those tools. Integrations make it easier to sync employee data and can significantly reduce the time spent entering and analyzing that information. Large companies with the infrastructure to develop their own proprietary LMS can design custom LMS tools to integrate with current systems.

Automations

Automations and notifications can help both HR leadership and employees meet their training goals. By setting up course completion deadlines and training timelines, your business’ HR department can ensure employees are getting automated reminders when it’s time to meet specific training requirements.

These automations and notifications also make it easier for HR to monitor where each individual learner is in the training process—and identify who is falling behind or failing to meet compliance requirements. For training beyond your company’s minimum requirements, many LMS options can use algorithms to make additional course recommendations based on the user’s interests, role, and performance.

User-Friendly Learning Hub

Having an easy-to-use centralized learning hub means your business’ HR team and other employees can quickly and conveniently access training materials. Not only does this improve the learning process, but it can also cut down on the frustration that often comes with training and certification requirements. Look for an LMS that offers an enjoyable user experience for learners and a streamlined interface for those managing and tracking employee training.

Tailored User Experience

If you’re offering training to team members in different departments—like engineering, marketing, and sales—you may want to provide a different learning environment for each. In this case, look for an LMS that lets you personalize the user experience by curating relevant coursework for each employee or department.

Depending on the type of training you plan to offer, you may want an LMS that features adaptive assessments and quizzes that automatically adjust based on a learner’s mastery of the materials.

Data and Compliance Tracking

One benefit of LMSes in business is that they let HR professionals track an employee’s progress through available training materials. Not only does this let businesses better understand the status and effectiveness of their training strategy, but it also makes it easy to spot patterns in employee behavior.

For example, using data available through an LMS may reveal that more highly trained employees are more engaged and have a lower attrition rate. Likewise, you may find that employees who are not required to complete periodic training are less engaged and, therefore, more likely to leave the company.

If your business is in a regulated industry, look for an LMS that offers compliance tracking tools. These features make it easier to track individual knowledge and performance—and gaps—while creating a compliance record that can be referenced in an audit.

Reporting and Analytics

For many business owners, reporting and analytics are one of the most important features of an outstanding LMS. While your HR team may be able to administer training courses without too much effort, tracking who has completed and passed each training requirement can be more daunting.

Common reporting features include progress and completion rates, assessment results, participation and engagement, and time logs. That said, many businesses can also benefit from analytics that track learner satisfaction and course ratings. Consider how you plan to utilize an LMS and choose the most beneficial reporting tools based on those needs.

Assessment Tools and Test-Out Options

In addition to using adaptive assessments to tailor the user experience, many HR departments find value in advanced assessment tools for tracking employee progress. This can help your team measure everything from learner engagement to comprehension and, ultimately, retention. If assessments are an important element of your business’ training strategy, look for an LMS with options like quizzes, exams, simulations, and feedback mechanisms to help learners improve over time.

Where appropriate, assessments can also be used to help employees test out of lessons. Ultimately, this may reduce the time employees spend in unnecessary courses—thereby improving productivity and reducing burnout or frustration stemming from excessive training.

Smart Scheduling

For businesses that rely on synchronous learning—rather than just asynchronous content like slides or pre-recorded video—choose an LMS that offers smart scheduling. These tools make it easier to find times that work for large training groups and offer more flexible scheduling options that don’t interfere with employee productivity.

Security Protocols

Security may not be the first thing that comes to mind when choosing an LMS, but it’s important to choose an option that will protect employee data and your business’ valuable proprietary information. For example, you can increase security by choosing a single-tenant LMS that can only be accessed by your team, rather than a multi-tenant option that hosts multiple clients.

How an LMS Can Help Your Business

Generally speaking, LMSes can help businesses better organize their training materials while keeping a close eye on employee progress and performance. They may be a good option for business owners who want to:

• Streamline administration of companywide training and certification requirements
• Provide a more consistent training experience across all employees
• Track employee-specific training progress and generate reports to illustrate educational milestones
• Meet training requirements imposed by law or industry-specific regulations
• Reduce employee education-related expenses by limiting travel, optimizing efficiency, and eliminating expensive overlap that can stem from disorganized training

Choosing an LMS

If you think your company may benefit from an LMS, take the time to find a platform that can be tailored to your industry and training needs. Follow these steps when choosing a platform:

1. Evaluate your business’ needs. Before shopping for an LMS, identify how your business plans to use the platform. Will you administer and track monthly training requirements or just onboarding materials? Do you plan to integrate the LMS with another HR platform? What kind of data do you want to gather from the LMS? Do you need a cloud-based LMS that employees can access from home or in the field? What is your budget?
2. Identify must-have LMS features. The ideal LMS varies by industry and individual business. If you’re in a highly regulated industry, focus on tools that will let you track requirements and generate reports in case of an audit. If you handle large amounts of sensitive information, choose an LMS that offers robust security features.
3. Research LMS vendors. Once you identify your non-negotiables, start researching LMS vendors to determine which options are in your budget. Of those, compare available features and identify anywhere from three to five top contenders to evaluate more closely.
4. Demo top providers. Ease of use is one of the most important things to consider when shopping for an LMS, so take the time to demo each platform you’re considering. Many companies offer a live chat option or demo request form through their websites, but if that isn’t available, reach out via phone or email to request more information.

When you find an LMS that appears to meet your business’ training needs, work with a sales representative or sign up online. Some platforms even offer a free trial period so that you can experiment with the tools and user dashboard before committing.

Bottom Line

Whether you’re a small, heavily regulated business or a large company with extensive onboarding materials, an LMS can help you organize and administer the resources necessary to meet your goals. Beyond just training your employees, you’ll also gain insight into how education requirements can impact performance, well-being, and overall job satisfaction. If you’re considering an LMS, take time to consider your needs and research providers before signing up for a paid platform.