Why do you need to use an LMS for employee onboarding?

Why do you need to use an LMS for employee onboarding?
Implementing a learning management system in your company work process gets benefits to various stages of the employees’ growth. But the initial step for it is an onboarding process that must be smooth and clear for every newcomer in your company. What can you do to make this a reality? Find or create an appropriate learning management system that will automate the onboarding process in your organization and help you to save money in the future.

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According to research, $37 billion was spent by UK and US companies in 2018 on keeping unproductive employees who don’t understand their jobs on staff. This figure is a solid reason to think about the importance of employee onboarding since the experience and its quality directly affect the employee’s contribution to the development of the business, their retention, as well as sharing and promoting the company's mission and values.

There are a lot of best onboarding practices, however, using the learning management system (LMS) is usually an integral part of any onboarding approach. In this article, we will explain why using an LMS is important for turning your new hires into effective team members.

What companies have the best onboarding practices?

There are a lot of approaches to onboarding new employees, and a lot of them are quite creative.

For example, PepsiCo invites their new hires to try their products and gifts them a fitness bracelet showing that the company is concerned with employee health.

Salesforce has quite a creative and personalized approach to employee onboarding. Depending on the department, the company comes up with different items for a welcome bag, but a toy gun is a staple for all. It is used to have some fun with colleagues and compete with other departments.

NetPeak uses a more formal and effective approach to employee onboarding. They use a corporate learning management system that allows for the automatic sharing of important information divided into courses. Using learning management systems for businesses may save up to 200 hours per month while allowing the company to track the progress and success of employees, and match their results with business goals.

What is the main purpose of an LMS?

The main goal of learning management system software is to provide new and current employees with an interactive environment where educational content is stored and shared. The use of this application is equally effective for training and improving the qualifications of your team members, as well as for new hires onboarding since they get an opportunity to stay in the never-ending learning mode, track and share their progress, and even compete with each other for better results.

What’s more, using a customized online learning management system allows for even greater flexibility with goal setting for new employees.

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How to use a learning management system to onboard users

Benefits of learning management systems for onboarding practices

The use of employee learning management systems isn’t limited to onboarding employees. This is only one of the ways to use it for human resource development. However, when talking about the onboarding process, the use of enterprise LMSs can be beneficial in the following ways as well.

  • Provide initial knowledge. Landing a new job is always stressful. Plus, there is always tons of information to find out before getting down to work. An enterprise learning management system is a holistic place where all the essential information like the company’s mission, values, job instructions, and ways to use the company’s software is stored and shared.
  • Build a corporate culture. According to statistics, 69% of employees are likely to work in the company for three years or more if they got a high-end onboarding experience. What’s more, the company’s approach to onboarding is always part of the corporate culture, and it can offer the opportunity to make a positive first impression on a new team member.
  • A quick assessment of new hires. The earlier the company finds out that the decision to hire a particular person might have been the wrong one, the less it costs to replace him or her. The opportunity for quick assessments of new employees’ performance, progress, and overall potential allows for better strategic decisions in human resource management.
  • Tracking and reporting features. These are essential LMS features that overlap slightly with the previous point, however, with advanced reporting and analytics, the company can always stay updated on their employees’ learning potential and their ability to deal with new information, and then HR can use that knowledge in practice.
  • Targeted learning. The use of a learning management system in the education of new and experienced employees allows for the creation of specific and targeted courses, each of which contains the information needed for employee upskilling.
  • Save money and time. The experience of NetPeak is evidence of how much time can be saved with the help of a well-developed employee onboarding program and the use of an LMS system. As for the money-saving opportunities, this approach to employee onboarding significantly reduces the need for employee replacement which is estimated to cost $4,000 per employee on average.

What features should your LMS for employee onboarding have?

If you are thinking about using a learning management system (LMS) software for employee onboarding and training, you are on the right path. Having the following features as a part of your LMS for new hires will make their experience enjoyable and effective, allowing you to strengthen your team with employees that are promising for the company's development.

  • Intuitive user interface (UI) and navigation. Learning a lot of information in a relatively short amount of time is challenging, especially for those new to your industry. To make this easier, the design of your learning management app needs to be clear, intuitive, and forward-looking for a good user experience.
  • Customizable learning paths. Since the customized education LMS may be used effectively for new and current employee training, this feature for creating customized learning paths is very effective. In this case, it is possible to consider the experience, education, and even possibly the specific learning habits of each staff member (i.e., someone may like to read instead of watch videos or vice versa).
  • Support various content types. The learning content management system should support different content types and information formats. This is essential to make employee learning really effective. For example, the job instructions may be better to have in a written format, while the way to use a specific business app might make more sense when visualized in a video.
  • Built-in custom course and assessments creation tool. Since each company has specific goals its employees should achieve, creating a customized LMS course and developing specific assessment methodologies makes sense.
  • Testing and survey tools. The features for testing and checking employee knowledge, are an important part of the overall assessment, while the surveys may be used for further LMS improvement taking your employees’ experience and feedback into account.

What does the onboarding process look like?

There are a lot of opportunities that top learning management systems provide a business with when it comes to employee training and onboarding. So what would this process look like in your company? According to statistics, 35% of companies don’t have an onboarding program which often results in a high level of employee turnover, as well as time and money lost hiring and training.

In contrast, organizations with a well-developed employee onboarding strategy that is backed up by the right LMS use enhance the new hire’s productivity by 50%. Thus, the use of this system for further human resources development is clear.

The next step

The last step toward implementing this innovation into your business processes is setting the right goals for your company and staff, as well as partnering with an experienced software development vendor with strong business analysis skills. Archer Software’s team is here to help you with your learning management systems creation and its integration into your HR operations. Get in touch with us at info@archer-soft.com to get your business-specific consultation!

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