A learning management system (LMS) can save the average business a great deal of time and money, according to the results various research projects, brought together in an e-book by Create eLearning.


According to Create eLearning, an LMS can:

  • Drastically reduce the cost of recruiting, selecting and training workers
  • Improve worker productivity throughout their career with their employer
  • Reduce the pressure on an organisation’s workforce caused by worker vacancies


Mark Taggart, Create eLearning’s chief executive, explained, “Employee turnover means inconvenience, time and budget losses, temporary workforce overload and hiring replacements among other things. The cost of replacing a worker is the sum of various costs including numerous interviews, the on-boarding (induction) process and the opportunity costs of not being able to undertake projects because you don’t have the workers with appropriate skills.”


Mark Taggart, of Create eLearning.


According to Eremedia, the actual cost of replacing one ‘low-tier’ worker is 30 per cent to 50 per cent of their salary. Replacing mid-tier workers costs up to 150 per cent of their salary; while high-tier workers cost some 400 per cent of their annual salary to replace.


There is evidence to suggest that the average rate of employee turnover for all industries in 2014, in Western economies, was 15.7 per cent. Applying this to an ‘average’ business of just 16 employees suggests that this business will have two vacancies each year – and, even for low-tier workers, the costs of replacing these people can be substantial.


“While there are many reasons why workers leave their job – including corporate culture, salary level, flexibility, engagement and development opportunities – an LMS can help solve and improve most of these issues,” said Mark.


To explore these issues further, Create eLearning has produced an e-book – available from the Create eLearning website – that explains how to use an LMS platform to, among other things, help reduce staff turnover.