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Effect of Learning Management System on Employee Performance


A Learning Management System (LMS) is a Graphical User Interface that helps an organization manage its employee training requirements entirely. It offers e-learning modules for employees and progress tracking and evaluation tools. 

Today,  organizations are investing millions of dollars in Learning Management Systems for the continued professional development of their employees. LMS analytics helps organizations in evaluating and monitoring the performance of their employees. It is easy to learn LMS as most LMS are designed keeping the end user in mind.  

Role of LMS in an organization

The primary purpose of an LMS in an organization is to offer, record and manage the online learning of employees. In addition to providing a common platform that offers online training content to the employees efficiently and systematically, an LMS is beneficial to the organization in the following ways:

  • Reduction in training costs per head: Research says that LMS can reduce training costs by up to 30-40%. 
  • Automated tracking, assessment, and management of training courses: LMS support features and tools enable L&D staff to invest their time and effort in enhancing training content rather than handling administrative tasks to manage the training of their employees. 
  • Ensure compliance with mandatory training: LMS can also generate reports, thus enabling the administrators to determine whether all employees have undertaken the required training.
  • Centralized platform for employee training: LMS allows centralization of training content, professional development goals, online training assessments, and performance. This enables the organization to provide a consistent training program to all employees. 
  • The cloud-based scalable and flexible learning environment: The e-learning modules will be available at all geographical locations of the organization and at all times. 

Effect of LMS on Employee Performance

LMS platform offers a variety of training options for the employees to choose from, based on their respective roles and levels in the organization. 

The employees can customize their development plans based on their professional aspirations and interests. The flexibility offered by LMS plays a significant role in shaping employee performance, as discussed below.

  • Easy Access to Training Material

The online training material and resources offered by an LMS are stored on the cloud-based platform, which means the employees can access the eLearning course from any location as long as they have an internet connection. 

Further, the responsive features of LMS allow the availability of the course from any device viz laptop, mobile phone, desktop, tab, etc. 

This means the employees are free to learn and develop their skills at their convenience, enabling them to improve their performance and be recognized in the organization. 

  • Continued Engagement, Participation, and Motivation

Offering the opportunity to the employees to design their professional development plan can reap unexpected benefits for the organization.

Whether the employees train to compete with their colleagues or for their personal growth within the organization, the online training course deployed using LMS will keep them engaged and eager to participate proactively in the training sessions. It will also motivate them to keep exploring new learning modules as and when they are available. LMS thus keeps the employees up-to-speed with the latest trends and skills, thus improving their overall performance in the organization.

  • Reduced Employee Turnover Rate

A good LMS provides user-friendly dashboards which are easy to access and navigate. The primary user groups, i.e., the administrators, the online instructors, and the learners can log in and get whatever they need (reports, training modules, online training content, etc.) within minutes. It plays a significant role in boosting their confidence and improving their performance. They develop a sense of belonging to the organization. This, in turn, results in increased employee retention rates.

  • Means to Evaluate and Monitor Training Outcomes

LMS provides actionable insight into employee performance by conducting automated data analytics and generating reports. The instant evaluation of employees allows them to alter their training program within stipulated timelines and get back on track. 

These tools are also helpful in determining redundant and ineffective training modules, thus enabling the administrators to strategize and develop fresh content to train the employees.

  • Streamlined Learning and Development Process

LMS provides an adaptable platform that enables the L&D team to streamline their workflow and effectively introduce new training modules on the system. 

As a result, they can address the employees’ concerns more efficiently. They can also provide the necessary support to resolve any problems that the employees may face during their learning. 

The standardized systems of retrieving training modules, assessment, and generating outcomes also enable the employees to streamline their learning and development process in less time than the traditional methods that tended to cause disruptions in their work assignments. 

  • Increased Productivity and Skill Development

In an organization, the LMS offers flexibility to the employees to access training modules at any time, location, and from any device. The employees do not feel forced to undertake a learning course, and willingly choose a convenient time to complete their training. 

Thus, the employees can effectively manage their time to complete their assignments without worrying about their professional development within the organization. This increases their productivity and performance to a great extent.  

Relationship between Employee Performance and Organizational Growth

The training options, flexibility, and adaptability offered by LMS help the employees to develop the relevant skills to help them stay engaged and productive. 

The right training is the one that is aligned with the role and professional goals of the employees.

It is a well-known fact that the employees who are enthusiastic about their work perform better and in the best interests of the organization. 

Further, high-performing employees result in increased client satisfaction. They are proactively engaged in the day-to-day activities of the organization and produce commendable outputs. A desirable work culture with a robust learning program will also help in employee retention, increased motivation, and ownership of the employees. 

An organization’s growth rate is directly related to the performance of its employees. The higher the performance, the higher the growth rate.


Investing in the right LMS system based on the training needs of the employees will help the organization in boosting the overall employee performance and create a positive impact on their productivity. 

It will provide an opportunity for the employees to use the platform for filling any gaps in their professional skills, grow within the organization, and stay up-to-speed with the latest market trends.

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