Due to inadequate evidence of their contribution to the business, Human Resource (HR) and Learning and Development (L&D) departments’ substantial investments in Learning Management Systems (LMS) training programs can be difficult for them to measure effectiveness of; therefore, many executives are doubtful of their impact, making future investments a challenge.
Learning Management System (LMS) analytics dashboards allow HR/L&D teams to measure training effectiveness in simple, easy to read visual format by providing data including: completion rate, skill gaps, engagement level, return on investment (ROI).
This guide will provide information on feature descriptions, determining which analytics metrics are needed for the best evaluation of your training success, and how to assess your current LMS’s value in relation to your needs.
What Are LMS Analytics Dashboards?
Learning management systems use dashboards as central locations or single point of access to look at multiple data points on training activity in one view using charts, graphs, and custom widgets that are updated quickly (in most cases in real time).
Modern LMS dashboards display both learner activity as well as assessment data and will typically provide insight into the overall performance of a business using data provided from integrated Business Intelligence systems.
The majority of LMS dashboards utilize predictive and prescriptive analytics to provide real-time, prescriptive feedback to support the training process for employers/learning organizations as well as the learners themselves. Examples of full-featured LMS dashboards are Absorb LMS and CYPHER Learning LMS.
Additional Read:
The 7 KPIs Every L&D Manager Should Track
Essential Metrics to Track in LMS Dashboards
Organizations that leverage educated analytics will see 24% higher performance improvement than organizations relying only on traditional data sources.
HR/L&D Key Learning Measurement Metrics:
- Course Completion Rate: The percentage of all enrolled learners in Courses who complete (preferable 80%+ or better). Low Course Completion Rates indicate issues with learning engagement by the learners.
- Learner Engagement Score: Total time learners spent, number of learner interactions with Course Content, and number of quizzes taken by learners; these factors correlate with learning retention.
- Knowledge Retention Rate: The percentage of increase from the total Pre-Test Score to the total Post-Test Score; it indicates whether or not the learners retain information taught through the Course (target range is 20-30%) after a certain period of time.
- Training ROI: (Training Benefits minus Training Cost) divided by Training Cost multiplied by 100; LMS in enterprise companies may provide a 40-60% reduction in Training Delivery Cost versus Training Expenditure.
- Skills Improvement Score: The percentage of increase in skills or capabilities for all learners who take a Pre vs. Post Assessment or have their skills evaluated by their manager(s).
Advanced Metrics for ROI and Business Impact
Level 3–4 metrics encompass business results including productivity increases and decreased employee turnover and measure the use of skills we developed through our training programs to create new job opportunities.
Sales teams, after our training, show revenue growth. One business realized a 450% ROI. Utilizing dashboards containing predictive analytics allows you to plan for the eventuality of skills gaps and compliance issues.
LMS Analytics Dashboards: Comparison Table
How Dashboards Measure Training Effectiveness
LMS Analytic results are determined by combining Learning Metrics and Outcome Metrics – Therefore, high levels of both Engagement and Application of Skills create the highest level of Return on Investment. Trends can be monitored, such as overdue courses and low scores, allowing organizations to intervene sooner to reduce Certification Lapses. An example would be utilizing Dashboards to identify Content Gaps through API Integrations allowing Organizational Optimization in 60% less time.
Step-by-Step: Building Your Dashboard Strategy
- Align metrics with business objectives, such as compliance for Human Resources and Sales growth through Learning and Development.
- Integrate metrics into an employee’s profile by connecting LMS metrics with HRIS and/or CRM systems, providing a complete view of all employee data, as well as their engagement with training.
- Create customized, on-demand executive summaries for Return on Investment (ROI) and Team Dashboards for Managers.
- Weekly reviews of metrics will allow the identification of trends, such as drop-off rates, and make adjustments to the content.
- Calculate the ROI of your investment by determining the cost savings associated with training as well as the productivity gains.
The real-world example of how the LMS has assisted a company in linking their sales training with an increase in revenue of $50,000 and a decrease of 33% in complaints is an example of how the LMS returned 450% ROI.
Conclusion
Powerful LMS Solutions with Advanced Analytics Dashboards to Track Completion, Engagement, ROI, and Skill Gaps in Real-Time and Create Custom Reports That Allow Organizations to Optimize Their Training Programs, Demonstrate the Value of Their Business, and Drive Measurable Improvements in Their Workforce, by Leveraging the Seamless Integration SkillTriks Provides.
