7 Budgeting Factors To Consider When Implementing Compliance Online Training

Essential Budgeting Factors To Consider When Implementing Compliance Online Training

Some people shop by setting a higher price limit and forcing their needs into it. Others find what they like first, then convince their stakeholders it’s worth the money. When you’re shopping for your office LMS, you could take either approach. But the smartest option is a mix of both. Start with a ballpark price, see what’s available in that range. Then persuade your finance team to go higher if needed. But your budget shouldn’t just cover the list price. What other factors go into your expected expenses when implementing compliance online training?

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Compliance Training LMS Buyer's Guide
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1. Up-Front Costs

There’s a reason pricing something at $.99 works. Psychologically, we see it as a really low price. Somehow, that 1-cent discount feels totally worth it. When it comes to training software though, the list price is just the beginning. No matter how many 99s it has in it. In fact, for this type of product, the price you might see is $.99*. And that’s where you need to sit and read more carefully. Because that * holds a whole host of costs and conditions. Consider all the upfront costs involved. From paying an IT expert to install and set up the Learning Management System to training your team on how to use it.

2. Per-User Fees

This is the first tier of *. In the fine print, it might say ‘*for the first 50 users. $9.99 for every additional user. It’s a reasonable model, and the pricing may even be fair. But you need to measure it against your own organizational needs. If you have 100 active employee training participants, for example, then this package ends up being far more expensive. It may be smarter to pay more for a product that has no user cap. At the other end, you’ll still have to pay the base price even if your users drop back down to 50. Also, some compliance training LMS vendors only charge for ‘active’ users. So, figure out their criteria before signing any contracts.

3. Content Development

What’s your compliance online training strategy? If your purchase is based on a change in industrial regulation, then it’s probably universal within your industry. Meaning ‘canned’ software can cover it adequately since the same rules apply to everyone. You don’t need much customization. But if it’s a more generalized decision based on corporate efficiency, you may intend to design your own course. In that case, you'll want Subject Matter Experts, coders, and designers. If you have them in-house, you have to account for their time. If not, you have to pay external contractors. All that needs to be tagged onto the implementation budget.

4. Potential Hardware Prices

Similarly, it matters whether the software you’re looking to buy is compatible with existing devices. Compliance training driven by shifts in technology and regulation is likely to be specific. So, a session inspired by advanced tech may not work on your old in-house computers and smartphones. It’s not just about features, it’s also about processing power. Your existing devices might be too slow and basic to run this new software. You might have to update their OS or buy new devices altogether. As such, you have to factor the expense of purchasing new training devices when calculating compliance training costs.

5. Annual Licensing

Some LMS vendors opt for annual licensing fees instead of per-user costs. This means that you will have to pay upfront for the software but avoid monthly subscriptions. If this is the case, meet with the vendor to discuss what’s involved and if there are any other costs you need to consider. For example, the annual licensing doesn’t include their support services or asset repository.

6. Bandwidth Usage

This is one almost nobody considers. Your current office LAN has an allotted bandwidth volume. You need to be clear how much of it your compliance training software will soak up. Some products are really heavy. In which case you’ll have to move to a higher internet tier. For users that will do their compliance training on their phones, the company might have to buy them data bundles. And that can get quite pricy if you’re loading data plans on everybody’s phone.

7. Upgrades And Plug-Ins

Content-wise, compliance online training courses have to be updated any time there’s a change in regulation. And in terms of tools and features, new ones come up every day. So, any kind of software, even if it’s not for compliance training, requires routine upgrades. Their purpose is to incorporate new options and seal off any vulnerabilities. Find out the pricing policy for updates for your compliance training LMS, and for any partner apps and plug-ins needed to make your software functional. Because sometimes, upgrading the primary app will need add-on scripts, code, or sub-software to make it work. This is an even bigger deal if one of your preferred features has been phased out. You need a plug-in if you want to retain and/or restore that particular functionality.

They say compliance training is expensive, but non-compliance fines cost even more. As you plan to persuade your accounts team to invest in a new compliance training LMS, what factors should you include in your budget? Up-front compliance training costs, per-user fees, content development, hardware prices, annual licensing, bandwidth packages, and plug-ins. You might also want to factor in training time because every moment they study at work dips into billable corporate payroll. Not to mention, the time it will take to train them on the new Learning Management System.

Have you ever wondered what compliance training is and how you can implement a compliance training LMS in your workplace without going over your budget? Download our eBook Compliance Training LMS Buyer's Guide: Tips To Implement Compliance Training Online With Limited Resources and discover how to cut costs, mitigate risks, train your employees, monitor their performance, and maintain your company’s high standards.

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