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Human Capital Investment: What to Consider for Online Learning

What is e-Learning? What is a Learning Management System (LMS)? Why do you need a LMS, and what questions should you be asking as you consider the many LMS offerings on the market? This is the time of year when many decision-makers are considering these issues, and this article will get you started!

The current economic landscape is still on unstable ground and the future continues to be difficult to predict. Many time-honored approaches to sustainable growth are beginning to seem outdated and irrelevant.

As companies adjust their operations to better navigate the current economic turmoil, they often lose sight of core competencies critical to long term effectiveness, such as succession planning, leadership development, and improved training regimes.

Ultimately, companies that continue to invest in human capital during times of crisis ensure future prosperity. They emerge with improved production capacities, which allow them to handle new market demands more effectively than their battle-worn competitors.

The million dollar question company executives ask is, “How do we invest in the future while minimizing expenses?” Many organizations turn to e-Learning and the use of a Learning Management System for solutions. If these are new ideas to you, here are some basic definitions and considerations.

E-Learning and Learning Management Systems (LMS)

Best described as Web-based education, e-Learning is a viable alternative to classroom-style instruction due to its high learner retention and cost-effectiveness. In fact, a report of online education conducted by SRI International for the Department of Education concluded that, on average, students in online learning conditions performed better than those receiving face-to-face instruction. (Please see the References listed at the end of this article.)

A LMS is a software application that automates the administration, documentation, tracking, and reporting of training events. Learning Management Systems are usually Web-based to facilitate access to learning content and administration. They range in sophistication from basic employee training-record management to advanced functionality, including certification, career path planning, and online customized training presented with a combination of video and motion graphics.

Why implement a LMS?

In the report Digital Media and Learning as an Emerging Area and “Worked Examples” as One Way Forward, James Paul Gee presents a solid case for the future of e-Learning and LMSs and how they can be used to revolutionize training. Three main criteria used in the marketing — speed, cost, and effectiveness are usable in the learning industry.

Speed

  • Provides the ability to train thousands of employees at geographically dispersed locations in a short period of time.
  • Provides access to real-time reporting on courses taken and on test results, which can be a requirement for compliance reasons.
  • Provides the ability to dictate the pace at which employees complete courses.

Cost

  • Repeatable nature of e-Learning provides economies of scale: the more employees you train, the lower the per-learner cost.
  • Eliminates the requirement to hire instructors and pay fees and accommodations every time a course needs to be delivered.

Effectiveness

  • New approach is well aligned with the technological inclinations of the new generations entering the workforce.
  • Combining video, motion, text, and voice strengthens the number of learning touch points and the way people learn.

Selecting a LMS

You must consider many factors to select the right LMS for your company. Starting with a solid understanding of your organization's training needs is important. Ask yourself the following questions:

  • What are the core competencies your staff must develop?
  • What training requirements can e-Learning and an effective LMS meet?
  • What are the current strengths and weaknesses of your current training regime?
  • What is your current training budget?
  • Which expenses could you eliminate with an e-Learning approach?

Once all factors have been taken into account, it is time to look for a LMS that best fits your training needs. It is important to investigate the company offering the LMS, as well as the benefits offered by the LMS itself. Following is a list of questions to assist in selecting the right LMS for your training needs.

The company offering the LMS

  • Are e-Learning and LMSs the company’s main focus?
  • Who are their existing clients, and what are they saying about their service?

Course development and availability

  • What courses do they have available?
  • Do they develop custom courses, and, if so, can they provide course hosting options?

Testing

  • Does the LMS provide the ability to test learners on the course material?
  • Can you set a passing grade and allow employees to retake tests?

Reporting

  • Does the LMS contain a "dashboard" to access real-time reports?
  • For growing companies, can you break reporting down by city, location, person, and course?
  • Does reporting meet requirements of any compliance regime mandated by government regulation?
  • Does the LMS solicit feedback from users on course material and LMS usability?

Administration

  • Does the system allow multiple user levels with customized privileges?
  • Can administrators add new users and change user privileges, or does this need to go through the provider?
  • Can administrators change the availability of courses by user or user level?
  • Can the system generate e-mail notifications for each course completion?
  • Can the system generate personalized Certificates of Completion for users who pass the course?

Cost

  • What is the cost structure of the LMS — does the vendor or host charge course completion fees, monthly user fees, hosting fees, or flat rate fees?

As e-Learning and LMSs are relatively new, finding an all-in-one, off-the-shelf LMS can be difficult. Only a few online training systems are fully integrated with reporting technology, rapid delivery systems, and survey technology. BISTrainer and InsightU (both based in Canada), Net G (based in the U.S.), and Cornerstone (located throughout the world) offer such systems. Each provider’s offering has a variety of strengths and limitations. In terms of flexibility, functionality, and user-friendliness, BISTrainer offers the most value, at least in my opinion. They also develop dynamic courses based on their clients’ needs in multiple languages. InsightU offers a more limited version of a similar online training system with the ability to develop basic courses. Net G has a host of less dynamic and more academic online training material. Cornerstone offers an online training system that you can integrate with other payroll systems, such as Ceridian.

The most important part of getting started is to get started

Educational institutions are starting to invest heavily in online learning. Governments are rapidly expanding the offerings of online learning for their employees. Businesses have been moving their current training library into the digital world for some time. As a result, e-Learning providers, those who offer off-the-shelf content, will continue to emerge in the coming years, using anything from Codebaby to Moodle to deliver information. The company that has the best material and digital media, and the most seamless, integrated system will lead the online revolution. The challenge for large organizations will be navigating through the various online companies to find the one that delivers custom digital media courses that focus on retention of information and comprehension of material. Education and training organizations are increasingly adopting online learning as mainstream, not merely as supplemental to classroom instruction. The time to begin investigating how e-Learning and a LMS can help your organization meet training and development needs is now.

References

Means, B., Toyama, Y., Murphy, R., Bakia, M., Jones, K. (2009). Evaluation of Evidence-Based Practices in Online Learning: A Meta-Analysis and Review of Online Learning Studies. U.S. Department of Education, Office of Planning, Evaluation, and Policy Development, Policy and Program Studies Service. Retrieved September 17, 2009 from the World Wide Web: http://www.ed.gov/rschstat/eval/tech/evidence-based-practices/finalreport.pdf


Gee, J. P. (2010). Digital Media and Learning as an Emerging Area and “Worked Examples” as One Way Forward. USA: MIT Press.



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