How Investing In A New Learning Management System Can Boost User Satisfaction
Learning and Development managers have a difficult task. They have to make sure they have a positive ROI on their eLearning technology, they have to track key performance indicators (KPIs), and they have to make sure their Learning Management System (LMS) bolsters user experience (UX). A new study from the Brandon Hall Group found Learning and Development trends are changing in 2016. Nearly half of the companies surveyed by the Brandon Hall Group are exploring new Learning and Development technologies and many of them think about investing in a new Learning Management System.
Companies are switching Learning Management Systems for two reasons: To improve learners’ key performance indicators (KPI) and because organizations are overwhelmingly dissatisfied among themselves and their users.
Investing Trend’s Impact On KPI
A key performance indicator is a measurable value that demonstrates how effectively a company is at achieving business objectives.
Despite its challenges, technology is key to delivering effective learning, and its role will only continue to grow. We asked organizations if there was any change in key performance indicators after implementing their learning technology, and the results are promising.
Recognizing the importance of the new online training platform trend, companies are shaking things up. Very few of the companies surveyed said they had no plans to implement a new learning technology and a little more than 40% said they are setting aside more money for Learning and Development for 2017, thus improving their UX, KPI, and bottom lines.
Just 3% of companies say they have no plans to implement learning technology. And those that are or have implemented solutions are putting their money where their mouth is. Nearly half of companies say learning technology typically accounts for 1% to 5% of the overall HR budget, 25% say it’s 6% to 10%, and the other 30% say it is even more. 42% of companies expect their allocation to increase next year.
Topping their list of priorities, companies want a training platform that utilizes social and mobile technologies, improves their UX, and integrates with other enterprise systems and Learning Content Management Systems (LCMS).
KPI And Impact On The Bottom Line
Improved training leads to a better user experience, positive key performance indicators, and a stronger bottom line. In their study, Brandon Hall Group found after organizations implemented a new Learning Management System, they saw an improvement in the overall success in their business.
In Brandon Hall Group’s study, many organizations reported 10% or more in improvements to their key performance indicators (KPIs) after implementing new learning technology: 40% of companies saw an increase in revenue, 53% saw an increase in productivity and engagement, 26% saw a decrease in cost, and 16% of companies saw a decrease in turnover rate. Organizations that did not report an improvement indicated their KPIs remained the same, while only 1% report a decrease in productivity.
This does not necessarily represent causation in that the technology is responsible for the improvements, but rather a correlation. Organizations report improvements after implementing the technology. Keep in mind that the vast majority of companies that did not report any improvement, indicated that their KPIs remained the same. For example, only 1% of companies reported that productivity had decreased.
If you're among the other half of organizations not planning to invest in learning technology, the odds are that you are at risk of being blown away by your competitors who are investing in a new Learning Management System. Not only are you possibly being left behind, but both your learners and your bottom line are feeling the pains.
New Research Conundrum
The most confounding aspect of the 2016 Brandon Hall Group study is that more than half of the companies are not planning to spend money on their Learning Management System, but the the highest satisfaction grade they have to their current Learning Management System is a C-.
Breakdown Of Dissatisfaction With Current Learning Technology
Breaking down satisfaction rating on a 100 point scale for formal, informal, and experiential learning, the Brandon Hall Group found the highest average user satisfaction rating were:
- For formal learning, companies gave eLearning course management 71 points.
- For informal learning, companies rated their collaboration platform at 58 points.
- For experiential learning, users gave electronic job aids 57 points.
Investing In Learners Is An Investment In Your Company
The new Brandon Hall Group study was a game changer because it revealed that investing in learning technology is not only an investment in your learners, but also an investment in your organization’s future. Companies that have invested in their learning technology have seen a positive impact on both their bottom lines and their KPIs. This coupled with the low satisfaction rating among companies with their current Learning Management System should be driving the charge of searching for an alternative Learning Management System.
Download the full Brandon Hall Group study to discover how revisiting your learning technology and investing in a new Learning Management System will have a positive impact on your bottom line.
