Posted On: November 16, 2023

Benefits of a Learning Management System for Small Businesses

Small businesses face many disadvantages compared to larger companies, including restricted budgets, small staff, and limited skillsets. One such disadvantage is inadequate employee training. It’s no secret that small businesses have trouble attracting and retaining top employees. Job seekers prefer companies with a strong digital presence, making them safer and more attractive. This often leads to investing in existing employees as an alternative to recruiting.

A Learning Management System can be extremely helpful for small organizations, as it simplifies assigning, tracking, and capitalizing on employee training. This technology simplifies employee training and helps companies maximize their resources. In this article, we will discuss what an LMS is and how it can benefit your small business.

What Is a Learning Management System (LMS)?

A Learning Management System, or LMS, is an e-Teaching software that offers a virtual environment for employees to enroll in courses assigned to them. This value attracts small businesses since it reduces the need to spend on physical infrastructure, experts, and course content to conduct effective staff training.

Employers also enjoy the ability to assign courses, track employee progress, and take corrective action all from one centralized, online solution, as opposed to simply ‘taking their word for it.’ Employers can also select pre-created courses or create content of their own and start training their employees right away. A Learning Management System for small enterprises has numerous advantages. We look at a couple of them in depth here.

The Different Types of LMSs

There are a variety of LMSs available on the market, but the two most common types are open-source and closed-source.

Open-source LMS

An open-source LMS is one where anybody can access the source code, use it, and redistribute it without having to pay any royalties. Open-source LMS offers flexibility in features and specifications, making it user-friendly, customizable, and cost-effective. It is not necessarily free, but it does not include subscription or upgrade fees. Users also have access to a community of experts.

Of course, open-source LMS has its disadvantages, too, such as high technical skill requirements, potentially costly outsourcing, limited functionality, hosting fees, and potentially high customization costs. Experts or outsourcing may be necessary for customization.

Closed-Source LMS

A closed-source LMS is a software platform that does not make its source code available to the public. It is usually hosted in the cloud. You must have a valid and authorized license to use a closed-source LMS.

A closed-source LMS offers advantages such as easy integration of training materials and no hosting, upgrading, or maintenance. A closed-source LMS is adaptable and user-friendly, with industry-specific assistance and increased security. Top LMS providers provide industry specialists for guidance and support. Closed-source LMS has limitations like direct code changes and higher initial costs.

train your employees



Top 6 Benefits of a Learning Management System


This is one of the most straightforward benefits of an LMS. Traditional training requires hiring teaching professionals, scheduling courses, and reserving and setting up a physical site for training sessions.

Training through an LMS, however, can be carried out from anywhere at any time, even from an employee's cell phone. Additionally, there is no need to hire HR managers to oversee the training process since an LMS has a built-in system to keep track of progress and the entire training procedure.

Tracking Control Over Training Progress

An LMS provides complete control over a trainee's progress, eliminating the need for multiple emails and follow-ups. Within a learning management system, the updated information will be available at a centralized place in your system and can be easily managed by just one person.

This eliminates the need to chase after employees for accountability and ensure they are working on their assigned courses.

Personalized Training

A Learning Management System for small businesses will also enable employers to design a more customized training module - something that suits the requirements and structure of their business. Managers can assign training courses to new hires based on their position’s compliance requirements. Instead of creating modules from scratch, an LMS can provide business owners with accredited courses necessary for compliance.

A Variety of Materials

An LMS offers a broader range of courses from global experts, professors, and professionals, allowing trainees to learn from best practices and lessons. The virtual nature of LMS ensures content remains up-to-date, keeping employees informed on developing trends and adapting to fast-changing global scenarios. This ensures employees are more adaptable to meet global challenges.

Improved Customer Service

Complete, responsive, full-circle customer service is no longer only available to large businesses with high-paying accounts. Many LMS vendors have dedicated teams of customer service representatives whose sole job is to help their users overcome their challenges.

If a small business ever runs into an issue with a course, training module, tracking feature, or other components of their LMS, they can be assured that they will be attended to by a knowledgeable customer service team.

Understanding Current Compliance Laws

A small business can't afford frequent non-compliance fines and penalties within its limited resources. An LMS provides an excellent solution for preventing such scenarios by ensuring that all employees are properly trained and able to perform their job in accordance with the law. An updated training module on an LMS will guarantee that your employees are kept up to date with the latest changes in laws, policies, and best practices in the market.

Is an LMS Right for Your Business?

Only you can answer if LMS is right for your business. Start by examining your onboarding and training procedures. Ask yourself if they are effective and, if not, how they can be improved. After you've evaluated, consider whether an LMS could solve these problems while saving you time and money. Before deciding whether an LMS is a good fit, examine the following questions:

  • Do you need to provide your employees with training or other instructional materials?
  • Do you need a simpler, more inclusive approach to communicating with your employees when they are unable to come into the office?
  • Are you seeking a multi-faceted approach to increasing team engagement and corporate culture?
  • Would you prefer a more convenient method of changing or updating your training materials?

If you answered yes to any or all of the questions above, a Learning Management System would be an excellent choice for your business. The implementation of such a system would not only make the company more competitive but will also provide an industry-leading workforce.

Our user-friendly Learning Management System (LMS) platform is designed to simplify your training procedures, from swift enrollment to comprehensive monitoring of progress and performance. Discover how 360training’s LMS could be the catalyst for your business's success by requesting a demo today!

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