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How to Create LMS for Employee Training + Case Studies Inside

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Businesses lose tons of money when employees leave and must be replaced. Low engagement is often the reason for employee departures, and businesses typically decide to hire a new employee hoping they will do better.

Table of contents:

Use Сases of LMS for Сorporate Learning

Сustom LMS vs. LXP vs. SaaS

Useful Integrations with LMS

Cost of Creating Custom LMS for Corporate Learning

HQSoftware’s Experience in E-learning Software Development  

According to Glassdoor, it costs around $4,000 to hire a new employee for the average company in the US.

Turns out, it’s not easy to just replace an employee.1 How much it costs to hire a new employee - How to Create LMS for Employee Training + Case Studies Inside

How much it costs to hire a new employee

One thing that might help you enhance retention and relieve the burden of bringing on new employees is a corporate e-learning solution.

Let’s take a look at how implementing a corporate e-learning platform can solve a variety of business problems across different domains, from healthcare e-learning to industrial production.

Use Cases of LMS for Corporate Learning

 There are a number of applications where a well-thought-out LMS system can save money and stress.

Easy new employee onboarding

Providing mentors to new employees as they learn all the details of their new job can be extremely expensive.

Yes, a mentor’s job is very important and helps new employees adapt and gain the knowledge they need to perform well. But it means the trainer or mentor needs to take time out from their primary responsibilities, which represents a loss of valuable time and money for the business.

2 LMS use case new employee onboarding - How to Create LMS for Employee Training + Case Studies Inside
LMS use case: new employee onboarding

LMS software allows you to put the majority of new-employee education tasks on autopilot.

With a custom LMS solution, an HR or other specialist can prepare a core training program once, and then just let new employees use it. 

The educational program can be easily altered within minutes when changes are required.

Information for custom LMS development is often provided by Human Resources managers, typically covering the following topics:

  • The history and development of the business; 
  • Company mission and values;
  • Internal policies and rules;
  • Management members, organizational structure;
  • The company’s main products or services, and key clients.

Julia Tuskal blog - How to Create LMS for Employee Training + Case Studies Inside

We will build an LMS solutions of any type

We know how to meet the requirements of businesses and industries – just drom up a line for a personal proposal!

Julia Tuskal
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Custom LMS software simplifies new employee onboarding and education, with minimal wasted resources.

Training on better product or service knowledge

This type of training may be used for new employees or others who need to refresh their knowledge on the company’s services or products.

Having a solid knowledge of the business’s products or services is essential for employees who promote them or work directly with customers, e.g. sales managers, marketing department workers, and so on.

3 LMS use case better service or product knowledge - How to Create LMS for Employee Training + Case Studies Inside
LMS use case better service or product knowledge.

The software can be equipped with a tool that allows for checking whether the employees have understood and absorbed the knowledge, e.g. a quiz.

A typical corporate e-learning platform will allow you to add new data on product and service features, benefits, user guides, and so on.

When new products or services are developed but not yet released to customers, you can upload data on them to the system and conduct training before their release.

Training on new or job-specific skills, customer support skills

Sometimes employees have no opportunity to gain skills they will need for their future job; some skills aren’t taught in colleges or universities.

The only way to gain those skills is with practical experience.

One more component of successful skill training is timely employee education in constantly changing fields, e.g. technical roles. Even experienced employees need to periodically refresh and update their knowledge and skills while working in a tech field.

4 LMS use case job specific skills training - How to Create LMS for Employee Training + Case Studies Inside
LMS use case: job-specific skills training.

With the help of a custom corporate LMS, it is easy and much cheaper to help your staff learn required skills. You just need to build a course with the required knowledge and introduce staff to it.

Another potential use of an LMS is to train staff to sell products and services and work with customers appropriately.

A corporate LMS will:

  • Incorporate information on products and services
  • Store sales scripts and marketing data
  • Provide learners with SCORM-compliant courses
  • Develop better communication skills

Training for channel partners

If you have channel partners across the globe, an LMS system is a must for you.

With such software, it is easy to:

  • Share insights into products and services with your partners
  • Show the development pipeline
  • Provide timely information about new features
  • Share user guides, product manuals, how-tos

You can also use an LMS to provide channel partners with compliance training and help them with sales, marketing, and customer support routines.

5 LMS use case channel partner training - How to Create LMS for Employee Training + Case Studies Inside
LMS use case: channel partner training.

Now that we’ve established that an e-learning solution can boost retention rates and spare the company a costly cycle of losing and hiring employees, let’s talk about LMS types and their benefits.

Сustom LMS vs. LXP vs. SaaS

There are three ways to get an LMS built: a custom one, an LXP, and a SaaS LMS. We will discuss all three in detail.

Custom LMS Development

A custom LMS is a corporate training and education system developed from scratch to meet all requirements as to training types, content format, delivery methods, data security and encryption requirements, and so on.

6 Types of LMS software - How to Create LMS for Employee Training + Case Studies Inside
Types of LMS software.

For large caps and companies that value quality and security, building a custom LMS is the best option.

This is the only way a company can achieve these benefits:

  • Know-how is secure and safe from violations;
  • Intellectual property rights are respected;
  • Courses and educational data are not exposed to any risks;
  • The whole LMS and all educational materials can be built and created to meet the company’s requirements and current educational purposes.

Even though building a custom LMS will cost more than using a SaaS LMS, it is worth every dollar invested. 

7 Custom LMS development - How to Create LMS for Employee Training + Case Studies Inside
Custom LMS development benefits.

Custom LMS development will suit businesses such as:

  • Healthcare facilities that have patient-sensitive data and unique business processes;
  • Finance and banking companies who value the ability to customize courses on-the-go as well as automate employee education;
  • Entertainment industry companies who need to stay up-to-date with trends in their field and teach employees accordingly;
  • Companies in various industries that have very specific processes and need an individualized approach to LMS development. 

LXP, or Learning Experience Platform

A Learning Experience Platform is a type of educational software that can adapt to the learner’s needs.

A step up from a traditional LMS, LXP focuses not only on managing training programs but also on improving the learning experience for students.

What an LXP does:

  • Aggregates and curates content
  • Provides AI-driven recommendations
  • Allows for using a variety of content forms, from PDF files to webinars
  • Automatically creates learning pathways according to the learner’s previous activity
  • Provides networking
  • Enhances skill development
  • Tracks all learning activities, even if delivered via different channels
  • Assess learning results
8 LXP - How to Create LMS for Employee Training + Case Studies Inside
LXP benefits.

This is a very cool type of software that can take corporate education to the next level, but sometimes it’s more than you need.

Small businesses or companies with a well-defined educational pipeline will find a simple custom LMS works perfectly for them.

 LXP will suit businesses such as:

  • Companies that focus on educating their staff on a professional level and want to constantly upgrade their educational plans;
  • Businesses that value employee feedback and know how to gain important insights from it;
  • Large caps that have a variety of educational programs that are hard to manage manually and that need to take into account personal traits of various students to enhance their experience with the system.

SaaS LMS, or Software as a Service LMS

A SaaS LMS is a type of corporate e-learning solution that is located on a cloud server instead of a physical one.

Users typically don’t have to install anything on their PC or laptop to access the LMS — it is available via the Internet. All that’s needed is a browser.

9 SaaS LMS - How to Create LMS for Employee Training + Case Studies Inside
SaaS LMS benefits.

The benefits of using a SaaS LMS are that:

  • It does not take space on your local hardware.
  • It provides unlimited access to its content, allowing for advanced flexibility — any student can access an LMS from any device anytime.
  • It relieves employees of the need to ask the tech team to administer the process of installing new software on the corporate hardware.
  • It always stays up-to-date and optimized.

SaaS LMS will suit businesses such as:

  • Small businesses that plan to scale up in the near future and need their LMS to seamlessly meet new requirements;
  • Businesses with no inside technical specialists who can perform support and maintenance if there’s a system failure — with SaaS LMS, all maintenance is performed on the cloud;
  • Businesses that need to streamline online collaboration faster.

Yet building an LMS of a preferred type is not the end of the development pipeline — there are important integrations to do.

Useful Integrations With LMS

You can make your LMS software even better by integrating it with other useful systems, plugins, services, and so on.

10 useful integrations with LMS - How to Create LMS for Employee Training + Case Studies Inside
Useful integrations with LMS.

Let’s take a look at some options that will enhance the LMS system and make it an even more important asset to your business.

CRM integration

A CRM, or Customer Relationship Management, solution helps to manage interactions between the business and customers. It is a vital solution for the majority of businesses.

Integration between CRM and LMS systems can bring tons of benefits. It:

  • Synchronizes course data with the customer data.
  • Optimizes training processes, taking into account customer data.
  • Opens up new insights into customer behavior that could be used in the training process.

Integration options: Salesforce CRM, SugarCRM.

11 crm integration - How to Create LMS for Employee Training + Case Studies Inside
CRM integration with LMS.

Collaboration tools integration

Since we’re talking about employee training, integrated collaboration tools are a must.

These can provide online meeting experiences, create virtual classrooms, facilitate web conferencing, and so on.

What your employees get if you integrate collaboration tools:

  • Easy meeting setups.
  • Rich web experiences with simple tools.
  • Faster training in groups.
  • Easy-to-conduct distance learning.
  • Knowledge-sharing between new and experienced users.

Examples: Webex, Adobe Connect.

12 collaboration tools integration - How to Create LMS for Employee Training + Case Studies Inside
Collaboration tools integration with LMS.

ERP integration

Enterprise Resource Planning software is a type of solution that covers nearly every aspect of managing a large business, from asset tracking to employee management.

Integrating a corporate learning management system with an ERP gives the following benefits:

  • All data is manageable in one place.
  • Easy access to information about employee progress in training.
  • Ability to manage courses and their contents right from the ERP.
  • Training activities tracking.

Examples: SAP, Sage.

15 erp integration - How to Create LMS for Employee Training + Case Studies Inside
ERP integration with LMS.

HRM integration

Integrating your corporate LMS with HRM software makes life a lot easier for HR managers. With an integrated system, they can assess an employee’s education progress, develop new programs, decide on probation periods based on performance metrics, and so on.

This integration is vital for HR managers, team leaders, and managers of all kinds when they want to decide on:

  • Employee promotion
  • Assignment of new responsibilities
  • Pay increases
  • Spotting weaknesses, strength development, and so on

Examples: PeopleForce, Calamari.

13 HRM integration - How to Create LMS for Employee Training + Case Studies Inside
HRM integration with LMS.

AR/VR integration

There is a reason that AR/VR technologies are so popular today — they enhance software and make it more interactive. The industry where AR/VR shines the brightest is education.

What will integration of AR/VR and LMS software give you?

  • Students grasp information faster and with less stress.
  • Students are attracted to the education process more.
  • Some data can be presented in a more interactive and entertaining way, ensuring better engagement with the material.
  • Field workers can use AR devices to get interactive instructions on the go.

Examples: custom solutions mostly.

14 ar vr integration - How to Create LMS for Employee Training + Case Studies Inside
AR/VR integration with LMS.

Once you have decided which LMS type suits you and what integrations you need to include, it’s time to calculate the cost of developing custom corporate e-learning software.

Cost of Creating Custom LMS for Corporate Learning

The cost of running a custom LMS development process relates to two main factors: the number and complexity of desired features, and the composition of the development team.

Andrey Kazakevich - How to Create LMS for Employee Training + Case Studies Inside

Andrei Kazakevich
Head of Production
at HQSoftware

If you are not ready to choose which features you want, you can turn to our LMS consulting services for help — we can assist you in determining your needs and build a technical specification.

What about the development team?

It usually consists of the following specialists:

  • developers, 
  • testers, 
  • a project manager, 
  • UX/UI designers, 
  • a business analyst,
  • a content creator for the course — usually an HR or a technical specialist, or even an invited coach.
16 how much does it cost to create a custom lms - How to Create LMS for Employee Training + Case Studies Inside
How much does it cost to create a custom LMS?

We will give you a very rough time estimate and say that the custom LMS development process will take up to 2000 hours. This is enough to build a course catalog, learning path management, a student performance tracking module, and a reporting feature.

The average hourly rate paid to team members is around $35, so we’ll use that  number in our example.

So, an LMS system will cost around $70,000 before the educational content is added — this varies too much to estimate. Also note that the type of e-learning app and built-in monetization methods chosen can affect the price, too. 

At HQSoftware, we can help you build any type of e-learning management software needed. Read on to learn more about our experience in this field.

HQSoftware’s Experience in E-learning Software Development

We have completed numerous e-learning projects. We’ll describe a couple of them.

Corporate e-learning and performance management system

This system is a cloud-based Software as a Service LMS with more than 50,000 users across over 40 countries.

This system combines both corporate e-learning features and a performance management system, to achieve better results at the human resources level.

One of the customer’s main issues, which HQSoftware solved, was how to organize employee education to meet business needs.

Non-technical specialists, such as HR managers, were not able to create learning content quickly because the majority of out-of-the-box LMS systems were hard to operate.

17 case study LMS and performance tracking system - How to Create LMS for Employee Training + Case Studies Inside
Case study: LMS and performance tracking system.

Developers from HQSoftware eliminated these issues by building a solution that covers both education and performance management and allows for easy content creation even by non-tech-savvy specialists.

Aviation Training LMS

This solution was built to train ground handling agents.

All trainees can practice working with Ground Service Equipment — all the equipment responsible for managing deck loaders, belt conveyor loaders, passenger stairs, air starter and ground power units, and so on.

The LMS system includes 4 interactive training modules:

  • Airside Safety Awareness
  • Airside Driving
  • Security Awareness Training
  • Emergency Response Planning

All modules are compliant with GACAR Part 151, Sub Part E, and ISAGO requirements.

18 aviation training lms - How to Create LMS for Employee Training + Case Studies Inside
Case study: aviation training LMS.

Don’t hesitate to contact us on our LMS development services. Feel free to drop a line and we will be happy to help you!

Olga Garina

Technology Researcher

Experienced author with HQSoftware. Keen on writing about education, healthcare, and technology progress in general.

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Frequently Asked Questions

What is the LMS format?

How do you build an LMS system?

What are some examples of LMS?

Read also

Custom E-learning Apps for Healthcare: Types, Benefits, Development Costs

How Much It Costs to Build an E-learning App – Project Types and Estimation

How to Build an E-Learning Solution: Platforms and Apps + Insights from Coursera

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