LMS Adoption And Growth In Startups
Have you ever thought about how startups manage their employee learning and development (L&D)?
Starting up a business is not a child’s play. There’s a lot of hard work and passion involved in making your business successful. Today, the Learning Management System (LMS) has changed the corporate training landscape completely. As more companies and corporate firms are placing their money on employee training programs, the global online learning market is growing along with it.
But do only big companies use LMS? Or are there LMS for startups as well? Although LMS and startups don’t go well together, a startup company, however small it may be requires employee training just like any other big company. That’s why in today’s article, we will discuss how LMS can help startups to grow bigger.
Do startups use LMS?
A learning management system refers to a software application that enables companies to administrate, document, keep track, report, and deliver educational courses or corporate training programs. With LMS, employees can train and learn courses via different LMS features like videos, interactive courses, quizzes, and feedback services. Employees can also frame at their own pace without having any geographical boundaries.
Do startups use LMS? We think that’s the biggest question every small business asks before investing in LMS. Usually, startups are those companies that are in the early stages or are commonly known as ‘young companies’. This means that it’s a group of few employees working together to create and sell a product or certain services in an exposed or untapped market. However, LMS is usually used by large companies to help them with their certification, reporting, and training of their huge workforce. But just like any other big company, employee training in startups is also crucial. Startups also require the learning and development (L&D)of their employees. L&D in startups aim to deliver startup training sessions for their few staff. Mostly in small tech businesses, the need for learning management systems can be seen very clearly.
Already the Indian LMS market is estimated to progress with a CAGR of 20.58% over the forecasting years. Whereas, in the US, the market is triple in size. 77% of the American companies use LMS for their employee training. So if you’re a startup company, then it’s worth reading ahead.
L&D in Startups
Nowadays, companies are expected to offer more to their employees. Not only a good wage and a fun work environment, a majority of employees expect that their company will help them to develop more work-based skills. And whether it’s in startups or in big businesses, developing professional skills is one of the key functions of the L&D departments for younger employees.
Robert Half, a recruiting agency, found that 91% of Gen Z employees believe that professional development is among one of the most important factors for choosing where they want to work. On the other hand, Millennials give more value to L&D after salary when selecting an employer.
There is just not one benefit of L&D both in Big businesses and startup companies. Following are some of the benefits:
- However, small your business may be, the learning and development will help to boost your employee’s performance and productivity
- An L&D in a startup company will help to improve employee satisfaction and will reduce the risk of losing employees (attrition rate).
- Just like large enterprises, startups can also increase their revenue and marginal profit by investing in employee training.
- Cloud-based LMS solutions can help startups to reduce training costs.
Challenges of launching L&D in Startups
While it’s true that learning in startups is also an important factor, sometimes startups have to face many challenges when installing L&D. Following are a few challenges faced by startups:
- Startups are technically small businesses at their early stages. So generally, they have a tight budget since most of the budget goes to product development and sales & marketing departments, which leaves small space for employee training.
- Big companies have huge human resource departments with dozens of people working under them. Startup companies, however, have only a handful of employees. So managing L&D and evaluating LMS can be very difficult.
- Startup employees are always busy. Whether developing new innovative ideas or dealing with customers and suppliers, there is just no pay for employees to learn and focus on their work skills.
Are LMSs efficient for Startups?
To answer this question, we first have to know how LMSs can help a startup. Here are some of the ways a startup company can use LMS to train its employees:
1. Prompt Answers:
Startups employees are usually short of time to go through an hour-long training lesson. So instead of offering lengthy training sessions, LMS can cut them into small chunks and make them available for everyone, using its microlearning feature. For example, if your developer is having trouble with a certain piece of code, then he or she doesn’t have to search every coding document to find the answer.
2. Client Training and Retention:
Not only employees but, you can also train your customers with LMS. There are many startup companies that require customer training for their products. In that case, you can make different training courses specially designed for your clients so that they can understand your product better. This also gives you an edge over your competitors. According to Salesforce, the clients who buy their training program are four times as likely to remain clients.
3. Interactive Employee Training:
Learning in startups is also necessary. Your newly hired employees may take some time to adapt to your company’s culture, responsibilities, and duties. With the help of LMS, adopting a new workplace seems like a breeze. Because learning is no longer a boring thing to do. Employees can watch a series of videos, play quizzes, and games, and develop professional skills through interactive training sessions.
4. Compliance Training:
Employees in startup companies also need compliance training and maybe repeatedly. LMS can automatically repeat the whole learning and development process at all stages. From the moment a new recruit comes in, the software automatically gives him an online course based on his position. And after completing that course, he is given a certificate.
5. Reporting and Analytics:
The best feature of LMS is that it can keep track of all the progress of the learners and evaluate their overall performance. In addition, technologies like xAPI have also enabled companies to monitor the users’ interaction with learning content that isn’t included in the LMS. The data collected by the software can later be used to improve the training process.
6. Scalability:
Once your startup starts to grow, there will be a lot of new employees joining your team. LMS is the best option when you are planning to scale up your training quickly and efficiently. There is no need to hire extra coaches and training materials. Just ask your new employees to log in and start the course immediately.
Advantages of using LMS in a Startup
As we have already said before, LMS in a startup has a lot of advantages. Following are some of the advantages of using LMS in a startup:
1. Easy To Start:
When you are running a startup, you are always on a tight schedule and a budget. You want something that is affordable and easy for everyone to use. LMS, with its various features, is the easiest way to train your employees at their own pace from anywhere and anytime.
2. Interactive:
All the startup companies nowadays are basically a group of Gen Z employees. They already know everything. And so if the training sessions are not interactive enough or interesting enough, they will not take part in it. LMS enables startups to create interactive courses and fun activities with its features like Microlearning, gamification, and on-the-job training.
3. Social Learning:
Social learning is an essential part of any startup company. It enables people to learn together. LMS offers features like a dashboard and rankings, so employees can be competitive with each other and improve their skills. Classroom social learning also helps to create a better work environment and enhance morale and employee orientation.
4. Continuous Development:
LMSs enable your company and employees to grow continuously as they work with you. LMS features like multimedia support, connectivity, and analytics make sure that your employees will surely improve their CPD skills.
Conclusion
Employee training and development are crucial for big companies and startups. The future of training and employee retention is entirely based online. Thus the future scope of LMS in both big & small businesses is much wider. As listed above, startups can gain a lot of benefits from adopting LMS in their business. Startup companies should invest in LMSs for a tech-driven future and grow a profitable as well as a sustainable business.
Did you find this article worth it? We have expertise in EdTech and keep updating with the latest learning trends.
Follow us on medium : https://medium.com/@manaable_blog-en
