LMS pricing guide: cost of hiring and training a new employee

Learning management systems obtain their profits for the value of improving workforce quality. Let’s explore it further before making any conclusions regarding the LMS pricing.

You can find various LMS plans present in the market. Some of them provide a monthly subscription, others charge depending on the number of active users, and some for the actions you perform via the software. There are also free options with limited support and a lot of paid extensions. All of them have their benefits and flaws, which we’ll explore further.

Various LMS software pricing depends on their features, installation and support quality, and pricing approach. There are large, feature-rich services that have accordingly high prices and can be appropriate for large corporations. Others provide a smaller set of features but are more affordable and easier to install and manage, which makes them more beneficial for smaller enterprises and those who don’t want to bother themselves.

Various pricing approaches can also determine the total LMS cost: some of them require purchasing one of several subscription plans, others charge depending on your user number, and others ask you to contact them and negotiate for the end price.

So, the cost of a learning management system can be very different depending on all these factors. To understand what you need, it’s good to calculate the approximate costs of onboarding and training employees in your company. These numbers will show you what to expect from the learning management. Let’s start with them!

The average cost of onboarding a new employee, including their search, hire, and training, can vary heavily, from as little as $1,000 to more than $15,000. Instead of guessing what the final cost will be based on the “average temperature,” let’s see the factors that influence this cost.

So, the answer to the question of how much does it cost to onboard an employee depends on many factors, and to understand the final price, you should calculate them all together. Start from the considering your job position salary and see the average hiring time and turnover rate to approximate how much you should spend. Then, to clarify this, define from which country you want to hire an employee, whether it’s your home country or not, and add advertising prices and subscription costs. After that, you’ll obtain the final onboarding cost.

The cost of training new employees depends on the level of organization of training facilities in your company, and it is usually much cheaper than hiring new ones. In addition, while we all try to find the best candidates possible at once, further training is inevitable if you want them to become an integral and instrumental part of your company. Qualification increases, workflow adjustments, and knowledge exchange are important processes to maintain your company’s competitiveness and innovativeness.

So, let’s compare the hiring employees and training existing ones.

Employees training includes only training costs, and thus, it is much less compared to the whole onboarding process, which usually includes some training as well. While new talents may come with developed skills, you should still adapt them to your company and show specific workflows that are present in your workplace, so learning management is necessary.

Add to everything above the fact that you’ll obtain a loyal and competent talent who’ll usually be happy to work with you, especially if they are already motivated enough to stay with you and learn. In addition, they’ll be much more motivated and satisfied with their work if they have opportunities to grow and develop there, improving their skills.

Thus, it’s much better to train and improve the existing human capital and search for new people only if you actually need them. Sure, there are cases when you should fire an employee, or they are willing to go for various reasons. But in all other cases, it’s better to invest in their development.

All your company and each of them will thank you for that.

Let’s now proceed to various approaches adopted by different platforms. They depend on the company’s mission, vision, and target audience, and there are many pros and cons in each choice.

We believe, for example, that the user-based subscription is the best approach: it’s the most affordable, as you pay depending on your company’s size, for resources you actually need. As your company grows, you can accommodate growing LMS expenses easily with your increasing profits. Different vendors have different approaches, so let’s explore some of them.

Our tool’s pricing approach is intended to be as accessible as possible while preserving everything necessary for efficient learning and team management. That’s why we have three primary factors, defining our pricing approach.

So, we work to reduce the cost of recruiting and training a new employee while facilitating this process as much as possible.

Let’s wrap the article up by building the learning management system cost comparison table. Where possible, we also provide a bit of examples of software using this model.

The industrial & manufacturing LMS pricing is built on features to manage the learning while maintaining the workflow. As such areas require high competency and work intensity, it’s much better if employees can learn as they work without detachment from the process. That’s why mobile learning is so relevant today, as it enables employees to learn during their work using smartphones and integrate all learning tasks with the work schedule.

Therefore, LMS system pricing depends on the approach to pricing and the features available in it. The more features are there, and the larger the user number, the larger the price you should pay for it. With a white-label mobile application and a fully customizable interface, CleverLMS is the best choice for industries where employees have no time to spend at the computer and should learn during the work process. Examples are preparing teams in manufacturing, retail, banking, and hospitality fields: teaching industrial safety, sales, couriers, and bank advisors. Task scheduler and tracking options enable the company to increase its productivity without any drawbacks regarding work efficiency during learning.

BY ELIJAH OBI