Employee retention is an essential focus for businesses of all sizes. As companies strive to maintain a steady workforce, they increasingly turn to learning management systems (LMS) to improve employee training and development. But can an LMS truly improve employee retention? We believe the answer is yes, and here’s why.
What’s the Role of an LMS in Employee Development?
An LMS software platform is designed to deliver, track and manage employee training and development programs. DigitalChalk, for example, offers a wide range of features, including eLearning courses and bundles, training modules, integrations with other HRIS or CRM systems, certification tracking and personalized learning paths, all aimed at boosting employee growth. Ultimately, the system helps organizations centralize learning processes, automate manual tasks, and ensure employees can easily access and complete their training programs.
The onboarding process is easier with an LMS because it offers new hires instant access to essential training and company resources. This helps them get up to speed quickly and lays the foundation for better engagement and long-term retention. An LMS also helps improve employee development by offering consistent opportunities for growth. When employees have access to relevant, on-demand training, they are more likely to feel valued and supported in their careers, which can improve retention rates. In fact, a study on training and retention in corporate America found that 94% of employees would consider quitting due to a lack of training. However, the majority would remain loyal if given access to new training and development opportunities.
Why is Employee Retention Important?
Employee retention is a company’s ability to keep its workforce long-term. High turnover is costly, leading to more recruitment, training, and lower team morale and productivity. For industries like manufacturing and construction, where skilled workers are in high demand, retaining top talent is even more critical. As demand for skilled labor continues to increase, due to infrastructure projects, real estate re-development, and the energy transition, finding and keeping qualified workers is becoming more challenging.
Labor force participation rates for older workers (55 and up) have decreased by about 2% since the pandemic, reducing the number of experienced professionals in the workforce. Meanwhile, participation and employment rates for younger workers (16-24) remain below pre-COVID levels, limiting the availability of new talent. As demand for skilled workers continues to rise, companies are left with an increasingly smaller labor pool to fill these essential roles.
Why Should Corporations Use an LMS?
An LMS helps reduce training costs, track compliance, and document completed training. It also centralizes and updates certifications for both companies and employees. These systems support employee development and allow companies to personalize learning paths based on individual needs. For more benefits and examples, check out our blog post, ‘5 Benefits of Using an LMS for Employee Training’.
Companies of all sizes use LMS platforms to improve employee engagement and development. For example, Walmart, one of the world’s largest retail corporations, launched Walmart Academy which has helped train over 400,000 associates worldwide. Their system uses in-person and online training to build job and leadership skills. Similarly, EvergreenHealth, a healthcare provider, uses an LMS to help staff complete certifications, skills training, and professional development through a centralized employee portal. An LMS provides scalable, adaptable solutions that meet the needs of any organization, large or small.
How Does an LMS Impact Employee Retention?
The connection between employee retention and an LMS is clear. Employees who feel valued and supported in their professional growth are more likely to stay with the company long-term. In fact, a 2022 report from HR Digest highlighted that companies that prioritized employee development experienced a 58% increase in retention, benefiting both employees and the company. An LMS ensures that training is available and encourages employee growth, helping individuals build skills, gain confidence, and excel in their roles. According to Gallup, development is one of the top drivers of employee engagement, making an LMS a powerful tool for retention.
Using an LMS can make a real impact across different industries from real estate to healthcare to manufacturing. For example, implementing a construction LMS can train workers to spot hazards and use equipment safely, reducing accidents. With improved skills, employees often become more efficient, helping projects stay on track, within budget, and on schedule. An LMS also helps cut costs by eliminating travel expenses for trainers and printing manuals. Since training is available online, employees can access lessons at any time while the system tracks completed training, ensuring compliance. Plus, the system tracks completed training, ensuring compliance with industry requirements. This commitment to employee development not only enhances performance but also strengthens employee loyalty and retention.
Best Practices for Using an LMS to Improve Retention
To get the most out of an LMS for employee retention, companies should follow a few best practices. Start by creating engaging content that is relevant to employees’ roles and interests to keep them motivated and involved. Offering incentives like certifications or rewards for completing courses can encourage participation. It’s also important to track the effectiveness of your LMS programs through employee feedback to ensure the system is meeting its goals. For more tips, check out our blog post on ‘10 Tips for Designing Interactive and Engaging Online Courses’.
To recap, a corporate LMS is not just a training tool; it’s also an investment in your workforce’s future. So, yes, implementing a corporate LMS can improve employee retention. By providing employees with the resources they need to develop their skills and advance their careers, companies can promote a positive work culture of growth and engagement, ultimately improving employee retention.
Are you in the market for an LMS for your company? Meet with us for a Learning Strategy Assessment to better understand your business needs.