Return on Investment
If you’re still unsure of why you should invest in a learning management system, let’s discuss the numbers. Here is a simple example:
Let’s look at a Training scenario where we need to train 150 people in a business. A Hundred employees are based in Gauteng, and the remaining 50 are based equally in KZN and Western Cape.
In-Class
There is a maximum class size of 25 people. Training takes a full day, and venues need to be hired and catering provided.
- 8 x Training days to cover 150 people in classes of 25
- 8 x Training Facilitator Days required.
- Travel and accommodation are required for the facilitators
Venue Hire – 25 people for 8 days
R 250,00 x 150
Totals: R 37 500,00
Catering per person for full-day
R400,00 x 150
Totals: R60 000,00
Travel costs for Facilitators
Totals: R 40 000,00
Travel costs for Learners
R 200,00 X 150
Totals: R 30 000,00
Cost of time outside the office for the day
R1 000,00 x 150
Totals: R 150 000,00
Cost per employee for the day: R2116,67
With an LMS and eLearning, this same training can be completed in half a day with a cost savings as follows:
- Total cost for an online learner for 1 year of access: R500
Total savings per leaner R1616.67
Total Savings: R242 500.50
Investment pays off in only one day!
The above is a simplified example, but there are many ways to figure out the return on investment of a learning management system. Some of these are:
- Lower administrative costs,
- Reduced travel and facility costs,
- Faster time-to-proficiency,
- The less financial risk associated with compliance and decreased employee turnover.
Get in touch with New Leaf Technologies to discuss how we can assist in providing your business with an eLearning management system.
