Learning Management System Can Boost Employee Productivity to Fight Recession

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Investing in the right technology is a vital part of an organization’s success. That’s because technology not only improves processes but can also increase the efficiency of workers. A learning management system (LMS) is a technology that businesses can rely on, especially amid speculations of a coming recession.

Economists and business leaders are debating on whether or not the United States has entered a recession. While some recession news revealed the negative growth of the economy in the last two quarters, there are those that focus on other indicators. Factors such as strong job growth, low unemployment, and elevated household savings are making some analysts still cautiously optimistic.

But the chance of a recession is still present. Experts at investment bank and financial services company, Goldman Sachs, recently placed the risk of a recession happening in the next 12 months at 35%. In another survey of business leaders, 91% of US CEOs believe there will be a recession next year; only 34% think it will be a mild and short one.

On the other hand, a survey of HR leaders revealed how businesses can prepare for a recession. As part of preparing for an economic slowdown, HR leaders are focusing on increasing employee productivity. They’re also looking for ways on how to improve employee retention and company resilience. According to the Achievers Workforce Institute (AWI)—the research group that conducted the survey—having these programs could help “lean teams and equip leaders with ways to combat burnout.”

Increase Productivity to Fight Recession

Boosting worker productivity can help businesses survive during a recession when they’re reluctant to hire additional staff. It can also save on costs as companies can avoid additional expenses on wages and get the most from their current employees.

Moreover, increasing productivity can contribute to improving employee retention. Since programs to increase productivity often include cross-training employees, they also boost employee engagement and career development. Employee turnover statistics show that 20% of workers leave because of the lack of career development and growth in their jobs.

When employees have access to quality training, it shows the company is willing to invest in their skills. As a result, employees feel valued and become more loyal and proud to work for the company. They’re also motivated to do their best in their jobs and apply the new skills they’ve learned. In a recession, companies would want to retain their best employees as hiring and training new hires can be very costly for the business.

How Does a Learning Management System Work?

One of the most efficient ways to conduct employee training is by using a learning management system. The demand for LMS from corporate organizations is contributing to the sustained market growth of the software. Analysts expect the global LMS market share to reach $40,360,000 million by 2028. Since LMS proved beneficial to educational institutions, trainers, and organizations during the COVID-19 lockdowns, experts believe that users will continue to rely on the software to address future business disruptions like a recession.

Most learning management system providers offer cloud-based solutions. Cloud-based LMS can be a more cost-effective option than traditional software. That’s because users don’t need to shoulder the upfront costs of IT infrastructure and software licensing. Once a company has an account with an LMS, employees can be granted account login details to start using the training materials in the system.

• Mobile Learning. Cloud-based LMS often include mobile learning capabilities. So, employees can learn on the go and access learning content at times convenient to them. This increases flexibility in learning and makes it easier for employees to complete their training. Completing a training program is crucial to upskilling workers so they can become more productive in their work.
• Microlearning. LMS allows users to learn via microlearning. Microlearning refers to consuming short segments of online learning based on the needs of the learner. Examples of microlearning content include mobile-friendly videos, quick tutorials, knowledge checks, and simulations. These training materials can all be managed inside an LMS where employees can study at their own pace, during breaks, or during their work commute. Based on e-learning trends, 94% of L&D professionals prefer microlearning compared to other e-learning tools.
• Just-in-Time Training. LMS can also serve as a knowledge base that provides employees with the information they need to solve a problem on the spot. This “just-in-time training” allows employees to do a quick search to find the content they need. As a result, they can quickly review company SOPs, fill gaps in their knowledge, or pick up simple skills while on their shift.