What is a Learning Management System (LMS) & Everything You Need to Know About It

In 2024, jobs aren't just the means to a financial end for employees. While money is an important consideration, most new-age workers seek career development beyond their paychecks.
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According to statistics, 94% of employees are more likely to stay around with a company if it was invested in their professional growth – and companies that do so are likely to see 53% lower churn in their workforce. 

If you're a business dedicated to helping employees upskill, a learning management system (LMS) allows you to carefully curate learning paths for the development of your employees. . 

In this article, we will discuss what an LMS software is, its benefits, and everything else you need to know in order to set up an LMS for your team. Ready to deep-dive? Let’s go.

Understanding Learning Management Systems (LMS) 

A learning management system is a cloud-based software application that lets you create learning paths and organise skill-related training for your employees. It also makes it easier for you to create, manage and update course material and other resources for employees within the organization

An LMS provides resources for employees to learn at their own pace or use guided learning to achieve specific professional outcomes. 

For example: Companies can use an LMS to guide their sales team on product training modules, helping them close more deals, faster. On the other hand, managers can create courses around specific topics or areas of work, leveraging insights through an AI-powered coach or “assistant course maker.”

That’s not all, since employees can also access compliance training to stay updated with industry trends and regulations - while ensuring the organization’s standards are also being met.

‍Fun Fact: The first LMS was developed in 1924 when Sidney Pressey invented the first ‘teaching machine’. This resembled a typewriter with a window that could administer questions and one window was used to show the question and the other one to fill in the answer.

Key Features of an LMS Platform

Some key features found in most learning management systems are as follows: 

• Content hosting & management: This is the most important feature of any top LMS software.You should be able to easily drag and drop and manage course material onto the platform. In addition, you should be able to deliver the course material to employees using different content formats (such as PDFs, videos, PPTs, SCORM etc.)

• Interactive learning tools: You should be able to create interactive assessments and quizzes that not only engage employees but also help them understand concepts better. Interactive elements like gamification and leaderboards within the course material can make learning a more engaging experience

• Mobile learning: Given that more than 74% of learners access courses on mobile, the LMS software should be easily accessible on smartphones as well
  
  
• White-labeling: Sometimes, a company wants complete control over its employees' learning experience. In such a scenario, white-labeling the learning management system could help

• Video conferencing capabilities: The LMS software should have video conferencing capabilities so that learners and instructors can connect easily while also keeping the instructor engaged 

• Integrations: The LMS training software should also help you automate mundane or time-consuming admin tasks by connecting with third-party tools like CRMs, webinar tools, and HR systems
  
  
• Artificial intelligence: With features like virtual coaching, content tagging, and recommendations - AI is fast becoming a crucial feature for learning management systems. It not only allows learners to become more self-reliant but also personalizes the learning experience with AI assistants that answer queries instantly

Now that we’ve explored the key features of an LMS platform, let’s explore the different types of learning management systems. 

Types of Learning Management Systems (LMS)

With a wide variety of options, you can opt for an LMS that fits your requirements. Some of the most common learning management systems  available are as follows: 

1. Cloud-based LMS  vs. On-premise LMS

Cloud-based or SaaS learning management systems are third-party, cloud-based applications that allow users to create, manage, and distribute educational training programs via the Internet. They don't need to be installed locally and are comparatively cheaper.

One of the most prominent examples of cloud-based learning systems is the Thriving Springs LMS solution. Through our web-based employee learning platform, companies can easily create and manage upskilling initiatives without having to install any application on their local servers. 

Alternatively, an on-premise LMS is often purchased from a vendor and then deployed within the organization. Unlike SaaS LMS  tools, this one requires employees to be on the same network as the rest of the organization. ‍

2. Open-source vs. Commercial LMS

An open-source LMS is usually based on a publicly accessible license, which allows companies to tweak the platform and customize it according to their needs. Like a traditional LMS, companies can create, update, and distribute courses and learning material to their organization's employees. 

Alternately, commercial LMSs are paid solutions that come with customizable modules, technical support, and a slew of essential features. While it might seem contrary, an open-source LMS can often be more costly than a commercial LMS.

The above section covered the difference between different types of LMS solutions available in the market. Over the next few paragraphs, we’ll also explore the benefits of using an LMS platform. 

Now that we've figured out the difference between the different types of LMS in the market, it's crucial to explore the benefits and limitations of using an LMS platform.

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💡Did you know?

Online learning consumes 90% less energy and reduces carbon dioxide emissions by up to 85% compared to traditional, in-person courses.

Benefits of Using an LMS 

Using a learning management system offers a slew of benefits. These include: 

1. Enhance Learning Experience

A powerful learning management system improves the learning experience, helping employees access high-quality learning material on the go without being tied to a specific location. Interactive quizzes, assessments and gamified content further keep things fun, helping them retain information and understand how it applies in the real world. 

‍2. Streamlined administration and reporting‍

A  cloud-based learning management system  lets you track employee progress and performance on a single platform rather than juggling between spreadsheets or work trackers. You get all your training material in one place, and can send automated reminders and monitor progress along with engagement levels. This empowers decision-making, helping you create more engaging content.

3. Scalability and flexibility

Whether you're onboarding new employees or rolling out a large-scale, company-wide learning initiative, an LMS can easily scale up according to your needs. Unlike traditional LMSs, a cloud-based learning management system can scale according to your business growth while also costing significantly less than a customized LMS.

4. Regularly updated compliance regulations

An LMS is ideal for businesses that need to update their compliance regulations regularly. Rather than updating a traditional course, a commercial LMS lets you update the content as per new laws directly in just a few minutes. Doing this helps employees stay informed about new developments in their field of work, while also helping avoid penalties and mishaps, if any.

Now that you’ve understood its benefits, you must obviously be curious about how an LMS really works? To that end, the next section covers a deeper dive into how an LMS actually works.

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How Does An LMS Work?

While you know what an LMS is and the various benefits it offers, it's important to know how such a platform works.

At its core, a learning management system is a centralized hub for companies to manage their training material, assign courses, and analyze employee engagement and performance.

Most cloud-based SaaS LMS tools have an intuitive, web-based interface (accessible through desktop or mobile devices) that aids learning on the go. The architecture behind an LMS involves various modules, each dedicated to specific tasks like content management, course delivery, user management, or reporting. It is a layered infrastructure with a client-side (or front-end) component for learners and instructors and a back-end for administrators to manage the technical aspects of the platform. A key aspect of an LMS’s functionality is the role-based structure, which organizes how different users interact with the system.

Here’s a quick overview of what they are:

User Roles: Admins, Instructors and Learners

User roles are critical to the working of any learning management system. In an LMS, 3 main user roles define the system’s working like admins, instructors, and learners. 

Here's a quick overview of what each of them entails: 

🕹️Admins

They're usually responsible for managing the whole system, handling configurations, and assigning other user roles. They also manage access to content. As an admin, you're tasked with ensuring that the right people have the right access to the platform and its contents. 

In addition to handling the LMS portal login for other users, they can also create course workflows, edit the branding, and customize the user experience.

🧑‍🏫 Instructors

This user role is focused on creating and managing course content, uploading study material, and assessing learner performance. If you're assigned an 'instructor' role in your company's LMS, it's easy for you to manage courses and receive assignments from the students. 

You can also schedule classes or doubt-clearing sessions, providing a more well-rounded learning experience for the end users.

🧑‍🎓 Learners

This is the end-user or the employees of an organization who might be looking at upskilling themselves. As a learner, you get access to a dashboard with the courses enrolled alongside your individual progress in each. In addition to these, you also get a lot of video content, quizzes and other learning material to test your knowledge through practical application. 

While there might be other specific roles (based on your organizational needs), the above 3 constitute 99% of all learning management systems globally.

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Boosting Employee Engagement & Skills With Thriving Springs

Based on the above roles and components, Thriving Springs offers a robust, AI-powered employee learning platform for modern teams and businesses. It is a learning management system (LMS) designed to offer personalized learning experiences, focused on combining intuitive technology with advanced learning features. 

Unlike other solutions, Thriving Spring’s platform focuses on delivering courses that help employees develop their emotional quotient (EQ), a crucial skill in today's customer-first business landscape. 

Thriving Springs does this by combining two key components: a learning platform and the content library. 

While the learning platform lets you manage the learning experience through a plug-and-play solution, the content library hosts over 150 self-paced and guided courses on upskilling and promoting emotional intelligence in the workplace.

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With robust features like AI-powered learning coaches, automated workflows, and a powerful 'Content Studio', Thriving Springs can quickly scale as per the needs of your organization, helping you match your workforce's diverse learning requirements. 

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Given below are some of the standout features of their platform:

📺 Content Library (and Available Customizations)

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Thriving Springs’ Content Library hosts more than 150 pre-built courses on a variety of topics focused on developing your employees' EQ (emotional quotient). Imagine being a sales leader who’s looking to improve their sales team’s performance. With Thriving Springs, you could simply enroll them in a course on ‘Effective Listening’ on the platform, helping them get hands-on learning about the topic. That’s not all, since you can also update the courses as per industry trends, or create a new one from scratch. In addition, you can also create branded URLs and shareable assets that reinforce your values and culture through each module.

🧩 Personalized Learning Paths

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Thriving Springs takes personalization seriously with its 'Personalized Learning Paths' feature which allows companies to tailor their learning journey based on individual roles, skills, and departments. Imagine being able to create custom training for your marketing team that's different from the material for your sales team. Thanks to AI, the system seamlessly adapts to the learner's preferences, suggesting courses based on their performance and goals. This feature ensures that each user gets exactly what they want at the right time.

📈Analytics Dashboard and Reporting

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The analytics dashboard and reporting features give you a 360-degree view of your team's progress. You can track key metrics like course completion, time spent on courses alongside individual test scores, and learner engagement. The dashboard further allows reporting for both individuals and teams, which is critical for identifying areas where additional support is needed. These reports also help HR teams and managers make data-driven decisions, ensuring that their upskilling initiatives meet the company's long-term goals.

The dashboard further allows reporting for both individuals and teams, which is critical for identifying areas where additional support is needed. These reports also help HR teams and managers make data-driven decisions, ensuring that their upskilling initiatives meet the company's long-term goals.

🪄AI Content Studio

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One of the standout features of Thriving Springs' learning management system is its 'AI Content Studio', which uses generative AI to automate course creation - helping you generate courses, modules, and assessments from scratch or even by repurposing existing material. 

Generative AI speeds up learning without sacrificing quality. It also personalizes the content based on individual behavior and preferences. This feature not only saves time but also ensures that your course creation process remains dynamic and responsive to evolving user requirements. 

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💡Did you know?

Around 81% of employees believe AI enhances their work performance, with many reporting improved productivity and satisfaction

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How to Choose the Right LMS for Your Needs?

When it comes to selecting the right learning management system (LMS), there are several vital factors you need to consider. Some of these include:

1. Budget

Budget is often the most crucial consideration while choosing an LMS. Apart from the up-front cost, you also need to think about additional expenses around maintenance, support, and feature upgrades. While open-source LMSs are considered cheaper, they usually have additional costs around custom development, IT support, and hosting.This is where opting for a SaaS-based LMS like Thriving Springs is better – since it allows all these features at a fraction of the cost.

2. Interactive Elements

When comparing LMS options, it’s essential to think about interactive features that can engage employees. Do you need personalized learning paths, mobile access or integrations with other tools you already use? Components like generative AI, gamification, and social learning can be game-changers, especially when your workforce is young and tech-savvy. These features make learning more engaging and keep employees motivated to complete the course.

3. Analytics

 Analytics is another key area to consider. A good LMS should offer detailed reporting to help you measure learning outcomes and track employee progress. With the right data, you can easily spot areas for improvement or adjust courses to better meet your team's needs. It’s also smart to choose a system that can grow with you, offering flexible options for future upgrades as your business evolves

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4. Scalability

Whether you're onboarding 10 employees or rolling out training for 1000, the LMS should be able to handle it without hiccups. Scalability is essential for companies that are expanding rapidly or have fluctuating training needs. You don't want to outgrow your LMS after just a year or two. Look for a system that offers flexible licensing options—like per-user or unlimited-user models—and can scale both in terms of the number of users and the amount of content you'll be managing.

Amp Up Employee Learning with Thriving Springs!

An LMS is more than just a training tool; it can effectively streamline your processes to keep your workforce engaged and productive. Apart from helping you track progress in real-time, it also enables you to provide your workforce with the tools they need to improve their work. Whether you're scaling up, training a small team, or launching a company-wide initiative, the right LMS ensures your learning programs are efficient, effective, and future-proof. If you're considering ways to streamline employee training programs, now is the perfect time to explore an LMS. A tool like Thriving Springs can make things easier. 

What are you waiting for? Sign up for free today, and transform your learning needs!

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