How to choose a learning management system (LMS): 6 steps for businesses

Learning Management Systems (LMS) transform corporate educational programs, becoming essential tools for businesses of any size. Companies that prioritize learning and development gain a significant competitive advantage. A LinkedIn study found that 94% of employees would stay longer at an organization that invested in their career growth. 

Choosing the right LMS system requires thoughtful consideration of your organizational needs, target audience (learners), and goals. An effective learning platform automates time-consuming training tasks for your HR teams while ensuring consistent, high-quality education delivery across your workforce. This technology optimizes the onboarding process and ongoing professional development and offers valuable insights into training effectiveness through comprehensive reporting and analytics. 

In this article, we’ll explore what an LMS is, discuss its benefits, highlight key features to consider, and provide guidance on selecting the right system for your business. 

What is an LMS?

A learning management system is a software platform designed to enhance the delivery, tracking, and management of online educational content for organizations. It acts as a central hub for creating, organizing, and administering training programs, courses, and learning materials. LMS platforms play a crucial role in both corporate and educational environments by automating many aspects of the learning process.

An LMS's primary functions include course creation and management, learner enrollment and progress tracking, assessment and certification, and reporting and analytics. These systems empower HR teams to efficiently assign courses, monitor completion rates, and ensure compliance with mandatory training requirements. 

Advanced LMS platforms offer features such as automated course assignments based on employee roles or departments, customizable content creation tools, and integration with other HR and IT systems, enabling customization for learners across departments. This allows organizations to seamlessly link training to onboarding processes, career development, and compliance management, making it indispensable for HR managers who aim to enhance employee skills and uphold regulatory standards.

4 benefits of a learning management system

An LMS enhances training and development within organizations. These are some key benefits:

Increased employee engagement and learning retention

Many LMS platforms drive engagement through interactive gamification features, including quizzes, badges, and leaderboards, catering to learners’ preferences. These elements make the learning experience feel less like a chore and foster friendly employee competition. This approach boosts engagement among learners and improves knowledge retention. The ability to customize content and create personalized learning paths ensures that training is relevant and aligned with employees' specific roles and their development needs.

Easy scalability and tracking of employee progress

An LMS eliminates the administrative burden of manual training management by automating course assignments and progress tracking. HR teams can easily monitor completion rates, identify skill gaps, and measure training ROI through comprehensive reporting capabilities. Advanced systems automatically enroll new employees in required courses during the onboarding process and trigger additional training when employees are promoted, providing seamless scalability as organizations grow.

Enhanced compliance training

Modern LMS platforms improve compliance management by providing pre-built courses on essential topics like sexual harassment prevention across all jurisdictions. The system automatically assigns mandatory training based on roles and locations, tracks certification expiration dates, and maintains detailed completion records for audit purposes. Some advanced systems even integrate with time and attendance features to prevent employees from clocking in if they haven't completed the required certifications.

Centralized knowledge repository

A learning management system serves as a comprehensive digital library of your organization’s best practices and institutional knowledge. By capturing and storing expertise from skilled employees in elearning training modules, you preserve critical know-how even when key personnel leave the company. This centralized knowledge base ensures continuity of operations and enables departments to share valuable insights across the business, fostering a collaborative learning experience that extends beyond individual training sessions.

8 key features of learning management systems

When evaluating different LMS systems, it's easy to feel overwhelmed by all the different options and their features. While there are plenty of options to consider, here are key features that will give you a better idea of what to look for in a learning management system.

• Mobile capabilities enable your employees to access training content on smartphones and tablets, allowing learners to use the LMS almost anywhere and anytime. On-the-go features are particularly beneficial for your remote workers and staff who travel.
• Content management lets you create, organize, and deliver training materials more efficiently using course creation templates, customization options, and structured learning paths. This ensures consistent training delivery across your company, regardless of employee location.
• Reporting and analytics tools give you the ability to generate detailed insights on employee progress, program completion rates, and training results to measure ROI and highlight improvement opportunities.
• Gamification features combine assessment tools with interactive elements, such as quizzes, that allow learners to test their knowledge recall while maintaining enthusiasm throughout the training process.
• Scalability enables LMS software solutions to grow with your company, supporting multiple departments and increasing user numbers as needed.
• Security features ensure you protect sensitive training data and maintain compliance with privacy and labor regulations through strong security features and access controls.
• Integration capabilities let you connect your LMS with existing HR systems (think: the onboarding process), payroll, and CRM software, offering customization to reduce manual busywork while maintaining data accuracy across platforms.
• Automated notifications keep your training programs on track by sending automatic reminders about upcoming deadlines, course completions, and certification renewals. This reduces the need for manual follow-ups.

How to choose an LMS: 6 steps

Choosing the right learning management system software for your organization is an important decision that impacts your company’s training and staff development effectiveness. Using a structured approach to this task will help you pick a solution that matches your business's organizational needs, supports your training goals, and provides long-term benefits for the company. 

Step 1. Identify your objectives and audience

The first step is to clearly define your goals for implementing a learning management system. Do you need to offer compliance training? Or are you more interested in professional development programs and courses? Perhaps you need to deliver both. Consider the size of your organization, use cases, and the amount of training required annually. 

Next, identify your audience. How many employees do you have, and what are their learning experience preferences? How your workforce responds to training depends on the training style they prefer. You must also consider where your employees work. Whether at head office, remotely, or at multiple locations, this can impact which LMS software is best for you. Drill down into more specific areas like your workforce's age and skill level. It is critical you examine all these factors when choosing the right LMS system. 

Step 2. Understand requirements based on existing training materials

The next step is to evaluate your current training materials and determine the best delivery method. Do you need an LMS that can handle pre-built materials, or will you need to create custom content? The platform will need to accommodate your existing content while providing flexibility for any new content you develop, offering further customization. 

If your company's training requirements include compliance courses, job-specific instructional manuals, or industry-specific content, you’ll want to look for an LMS that can effectively deliver these types of materials while ensuring consistency in training effectiveness throughout the organization. 

Step 3. Define desired features

Look for essential features that sync with your training objectives. Important attributes to consider include pre-built courses, smart course assignment, and automated progress tracking. The system should also provide automated course reminders and expired certification alerts to ensure the completion of required training programs for learners.

Consider other LMS capabilities, such as reporting and analytics to measure training success, customization options for different departments, automated user management tools to ensure timely course completion, gamification elements (like quizzes and leaderboards), social elearning tools for peer collaboration, and white-labeling options to maintain brand consistency.

Step 4. Assess your technical requirements

Your organization’s technical capabilities are important to consider when selecting a learning platform. Depending on your infrastructure, a cloud-based LMS might be better suited than an installed system. The strengths of cloud-based solutions is that they offer the advantage of accessibility and customization from multiple devices regardless of location. On the other hand, an installed LMS might be better matched if your organization has specific network criteria or an in-house IT department. 

Step 5. Consider long-term costs and scalability

Evaluate the total cost of ownership, factoring in initial setup, maintenance, and any potential upgrade expenses. Be sure to consider different pricing models. Although open-source LMS solutions may appear more affordable initially, they often require extra resources. Commercial solutions tend to offer better long-term value as they usually include support and upgrades.

Step 6. Explore potential vendors

The next step is to evaluate vendors using a thorough research process. Consider vendor track records in your industry and the vendor's level of customer support. After thorough research, create a shortlist of vendors offering scalable and customizable learning platforms that can grow with your organization. Compare the different types of LMS platforms, including open-source, commercial, installation-based, and cloud-based options (more on that below).

It’s also a good idea to ask industry peers about their user experiences with different vendors and implementations. Crowdsourced review platforms like G2, Capterra, and TrustRadius can provide reliability, customer support, user management features, and real-world performance feedback.

A comprehensive evaluation process will help you select a compatible vendor that meets your needs now and in the future.

5 tips for choosing an LMS

The following best practices will help you identify the best LMS platform for your company’s needs: 

1. Request a demo first

Before you commit to an LMS, request a demonstration from the vendor so you can thoroughly test out the platform. This lets you evaluate the user management interface, feature set, and overall functionality in actual practice. A demo helps you choose the best LMS vendor for your specific training needs and your company's workflows.

2. Consider integration capabilities

Select a solution that can integrate with your existing HR platforms, onboarding processes, and tools. The LMS system should work in concert with your current software ecosystem to improve efficiency and avoid data silos. Integration capability ensures the efficient management of employee training records and certifications.

3. Look for a user-friendly interface

The LMS should be intuitive and easy to navigate. A user-friendly interface increases adoption rates and reduces the time spent training administrators and learners on the platform. Look for systems that offer clear navigation, simple course access, and straightforward progress tracking.

4. Know the different LMS types

Understand the distinctions between various LMS types: open-source, commercial, installation-based, and cloud-based (SaaS) solutions. Each type has its advantages and limitations. Open-source platforms offer flexibility but require more maintenance, while commercial solutions provide comprehensive support but may be more expensive. Cloud-based systems offer accessibility and automatic updates, while installation-based options provide more control over data.

5. Evaluate reporting capabilities

Look for an LMS system that offers comprehensive reporting and analytics features. The LMS system should provide detailed insights into training completion rates, certification status, and learning results. Access to in-depth data helps track compliance, identify training gaps, and measure the effectiveness of your elearning programs.

Streamline your employees’ learning with Rippling 

Rippling's learning management system stands out from the competition by offering a comprehensive suite of features that make employee training and compliance easier to manage. With automated compliance tracking, streamlined content management, and seamless integration with Rippling’s broader HR platform, HR managers can save time while ensuring efficient and effective training programs. Rippling’s LMS is designed to be user-friendly, saving you time and improving training efficiency across your organization.

FAQs on how to choose an LMS

What is the average cost of an LMS for businesses?

Employee training software costs vary based on the features, number of learners, licensing, and pricing model. Many LMS providers charge a monthly fee based on the number of users, typically ranging from $2-$10 per learner, with some offering volume discounts. Other vendors charge a flat annual rate for a set number of learners, often starting around $500-$1000 for 50-100 learners, with additional user packs available for purchase.

Which type of LMS is best?

There are various types of learning management systems designed to meet different needs. 

• Cloud-based LMS platforms are easy to set up, scale, and maintain, offering flexibility and lower upfront costs. 
• Self-hosted LMS platforms provide more control and customization but require dedicated IT support. 
• Enterprise LMS platforms cater to large organizations with complex needs, offering advanced features and scalability, while small and medium-sized business (SMB) LMS solutions are simpler, cost-effective, and easier to implement. 
• Open-source LMS platforms are free and customizable but require substantial technical expertise, while commercial LMS options are paid, include licensing, are easier to use, and offer support and updates.

Can an LMS be integrated with existing HRIS or other HR tools?

Most modern LMS platforms can integrate with your existing business systems and software. Integration reduces the need for manual data entry, ensures consistency across platforms, and optimizes workflows. By connecting your LMS with other HR tools, it becomes a central hub for employee development and compliance management. 

For companies seeking comprehensive workforce management, an all-in-one platform like Rippling is particularly effective by eliminating data silos and connecting all HR functions in a single system.

What is the role of mobile learning in an LMS?

Mobile support is an essential part of learning management systems. A mobile-friendly LMS enhances the user experience by letting learners do their training on smartphones and other connected devices, giving them the ability to learn from almost anywhere at any time. This is a particularly valuable benefit for remote workers and employees who are often on the road.

What is SCORM, and why is it important for eLearning?

The Sharable Content Object Reference Model (SCORM) is a widely adopted technical standard in eLearning that ensures that content is compatible with any LMS. By adhering to SCORM, organizations can easily share, track, and manage their eLearning materials across multiple platforms. SCORM compliance is crucial when selecting an LMS, as it allows for seamless integration, scalability, and reusability of content, enhancing learners' overall learning experience. When evaluating the best LMS for your needs, SCORM ensures flexibility and functionality, helping deliver consistent training across diverse systems.

This blog is based on information available to Rippling as of January 6, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.