Tips for choosing the Idea pricing model for your employee training LMS
There are a few things that organizations take for granted when implementing a new one employee training LMS. They assume it will be easy for their team to use. That the price on the “ticket” is the one they will pay. However, there are extenuating circumstances at play. For example, some LMS solutions are free but require high maintenance and customization costs, while others may not be accessible on mobile devices or have a steep learning curve. This guide can help you select the right pricing model and implementation type for your employee training management software (and avoid trial and error).
Which deployment type is right for your employee training program?
SAAS (cloud-based)
Software as a service (SAAS) platforms are typically hosted in the cloud. Your back-end team can develop and deploy assets remotely, while your front-end users can access support tools on the go. This makes it ideal for geographically dispersed organizations, as well as those training external partners. Some of the top concerns companies have about SAAS options are data vulnerability and lack of customization. For this reason, you should check whether the supplier has advanced data security measures in place and whether you can personalize the platform to some extent, for example by integrating your branding.
Self hosted
A self-hosted LMS for employee training is installed locally. You are responsible for setting up and maintaining the platform. This usually offers more customization options (if you have an experienced IT team or vendor support). You can also tailor the security protocols to protect sensitive data, as well as include your brand name and scale the system based on your changing needs. The downside is usually accessibility. It must be installed on your servers and your team may not have remote access to content.
LMS app
Another deployment option to consider is an LMS app that is mobile or desktop based. Students can participate in online training activities even when they are offline. The system automatically updates their progress when they reconnect. In the case of mobile LMS apps, employees have the opportunity to upskill their skills and bridge knowledge gaps at work. For example, when they meet a customer and need to refresh their product knowledge.
Which pricing model best fits your L&D budget?
One-time license
You pay a one-time fee to download the software and obtain the license from the LMS supplier. Then you can use it forever. This also means that you are responsible for upgrades, updates and other maintenance costs. For example, in five years you may need to purchase a replacement or newer version of the software to improve functionality. The advantage is that you do not have to pay a monthly fee (which can fluctuate over time) and you own the platform completely. Depending on the vendor’s policy, you may also have full creative control over the software. For example, you can customize the coding to scale the system and make it your own.
Subscription-based employee training management software incurs a monthly or annual fee. As long as you keep your account current, you can access the system. Typically, cloud-based solutions follow the subscription payment model. The supplier usually takes care of the software updates and informs you when new versions are available. The catch is that fees may increase or the vendor may add/remove features. But that flexibility also applies to your terms of ownership. For example, you can switch to a different tool if the platform no longer meets your needs (if you’re not tied into a contract), or even add additional users and integrations to maximize functionality.
freemium
Train these employees LMS solutions are free to download. However, they contain paid features and add-ons. If you’re happy with the basic package, this could be a viable option for your organization. However, the cost can quickly add up if you need to unlock the extra features. Check out the platform to see what’s included and look for the fine print. For example, you don’t want to opt for a tool that watermarks everything you export or doesn’t allow you to include your own logo. Take a test drive to experience for yourself the limitations of the tool to avoid implementation delays later on.
Free/open source
Some organizations jump at the chance to download free employee training software. But this usually comes at a price. Open source platforms are supported by a team of developers who offer them to the public for free. However, their involvement usually ends there. They may have a user community or general FAQs. However, you still need programming knowledge to adapt the tool to your L&D program. There are also maintenance costs to consider, as well as implementation times. For example, your team may need a month to get the software up and running before they can even begin content development. Or your front-end users need a few weeks to master the interface. These are all delays that take a bite out of your budget and affect workplace productivity.
Conclusion
Choosing the best employee training management software is a complex process that requires input from everyone, even as far back as the training needs analysis phase. However, you can minimize implementation stress by establishing a budget and evaluating the needs of your L&D team. Find the pricing model and deployment type that strikes the ideal balance between customization and ease of use, while still allowing you to expand available resources and stay within your price range.
U.S folder offers all popular pricing models and deployment types, narrowing down your search to platforms that are ideal for your niche and use case.