The LMS is now like an online training resource for companies. But what mistakes do small companies make while getting a robust LMS?

• Correct estimation of the number of users:

The first is that they are not sure about their number of users. This becomes a problem later when new employees enter the company. The companies have to incur a base fee for a certain number of users, but extra charges for every new user (employee) who is enrolled. However, if a certain number of users are not enrolled, then the company still has to pay the base fee as agreed in the package. So, a company should not overestimate the number of users at the time of getting the LMS.

Be sure that you select the correct number of users, when you negotiate on the robust LMS package.

There are only a certain number of users who are active as regular users. Some just create an account and never log in unless the manager asks them to. It’s better that such users log in through a guest account rather than getting the user credentials for them. Also, make sure that the LMS vendor does not charge you any extra costs for users who don’t log in, but are just enrolled on an LMS. The vendor should only charge per-user costs for those learners who are enrolled and logged in to LMS regularly to view content.

• Ask the IT department:

The people who make the decisions about getting an LMS may not be aware of its usability. They buy an LMS when it’s not priced too high or too low, i.e. It’s priced averagely. This strategy can cost a company so much when the LMS does not function as intended. Then there have to be extra costs incurred in the problematic form of plug-ins. So, make sure that the IT department is consulted before getting a robust LMS so that they approve all the features.

• Assess the LMS needs:

You should have a clear purpose in mind while getting the LMS. It should not be a demonstration effect in your mind while getting an LMS. Just because all the big brands have an LMS, you also get one. They might have a lot of staff, so that teaching them in an offline class is tough. But your staff strength might not be too much to provide classroom training.

LMSs also come with the capability of issuing automatic certifications, but you don’t need such documents for employees. You might need an LMS with features such as attendance management, payroll calculation, and autoresponder emails, etc. So, it’s better to consult the human resources staff about what kind of robust LMS features are required.

• Cost-benefit analysis:

The companies often get confused about how to meet compliance penalties. It’s because some companies ignore the cost of noncompliance. But you can’t buy an expensive LMS so that you get the compliance certification in time. So, you have to do some cost-benefit assessment as to what are the benefits of getting an LMS versus the costs. When you have a robust LMS with you, you can show how many employees attended the course and completed assessments, essential for compliance adherence.

This is how small and medium businesses can avoid overspending on an LMS.