How Much Does an HR Learning Management System Cost?

by Alexandrea Davis on January 25, 2023

Learn about the factors influencing HR learning management system cost and the return on investment your public sector organization can expect.

Article Highlights: 

Your organization’s learning and development training is anything but straightforward. HR professionals struggle to find time and meeting space to administer classes, and you can’t keep an accurate log of who’s completed what training. Employees aren’t too happy with the process, either, since they have to carve out time in the middle of the day to attend required training.

If your staff is spending more time overcoming administrative hurdles than actually, you may be considering investing in a cloud-based learning management system (LMS). An HR learning management system is a software tool that enables organizations to manage, distribute, and track their training efforts. Supervisors can use an LMS to assign employee training, and employees can log into an online portal to complete assignments when it’s most convenient for them.

But you still aren’t sure if an LMS is worth the money – or how much an LMS costs in the first place.

This article will discuss the factors that influence the cost of an HR learning management system. We’ll also highlight the tangible and intangible benefits of learning management systems so you can decide if an LMS is suitable for your organization. 

How Much Does an HR Learning Management System Cost?

Multiple factors influence the price of a learning management system, including the size of your organization, system setup fees, and add-on costs. Below, we outline how each factor contributes to the price of an LMS.

Organization size

The size of your organization plays the most significant role in HR learning management system cost. That's because annual license fees are often based on the total number of full-time employees at your organization. A cloud-based learning management system license might start at a base price, then increase in tiers for additional employees (for example, every 50 FTEs). 

In addition to annual licenses, you may encounter other pricing models, including: 

  • Pay per learner 
  • Pay per number of active users
  • Pay as you go

Depending on your organization’s unique needs, some of these models may be more cost-effective than others. For example, a pay-as-you-go model works well for organizations still determining how and when they will use a learning management system. A pay-per-active-user model may be a better option if your agency has temporary or seasonal employees, while a pay-per-learner model is cost-effective if the number of learners remains the same over time. 

System setup fees

In addition to a base fee (established through the pricing models above, you may incur system setup fees. These fees enable your agency to receive software setup support from the software provider and ensure you know exactly how to use your new LMS. 

For example, NEOGOV works with you to set up workflows within its LMS and teaches you how to customize your platform with unique organizational branding. Customer support representatives can also integrate your learning management system with the software tools you’re already using, like onboarding or performance management systems. 

Additional costs

Add-ons for your cloud-based learning management system will also incur additional fees. For example, NEOGOV offers an add-on that provides remote training for end users so employees across your organization know how to use their new LMS.  

In addition to add-ons directly related to the learning management system, you may purchase additional services the software company offers. Some of NEOGOV’s popular add-ons include a background check integration and single sign-on so that users can use the same log-in across platforms.

As you review your LMS package and any add-ons you’d like to include, keep an eye out for hidden costs. Take the time to ask questions about what is and is not included with a specific software tool so you don’t end up paying for features your organization doesn’t need or won’t use. 

Total estimated cost 

Now that you know what factors influence the price of HR learning management systems, it’s time to talk dollars and cents. Keep in mind that these numbers are estimates for the cost of an annual license, and prices will vary depending on the software you purchase. 

  • For up to 100 FTEs: Expect costs up to $10,000 for an annual license and another couple thousand dollars for setup. 
  • For 100+ FTEs: Expect costs in the tens of thousands of dollars for an annual license plus several thousand dollars for implementation setup. 

Generally speaking, an annual license is most cost-effective for large organizations. An agency with thousands of employees that mandates the same courses organization-wide will likely find that an annual licensing fee is the best pricing model. 

Smaller agencies may benefit from pursuing other pricing models (such as pay per learner, pay per active user, or pay as you go), which are more cost-effective on a per-employee basis. Agencies with fewer than 100 employees or with unique training needs for individual positions can choose pricing models that enable them to pay only for a specific feature or number of employees. 

Why Should You Invest in a Government LMS?

Purchasing a learning management system is an investment, so let’s talk returns. Below, we discuss the tangible and intangible benefits of using a government LMS. 

Tangible ROI

Above all else, a cloud-based learning management system enables your HR team and employees across your agency to save time on cumbersome administrative tasks. Simplified, centralized training program management means human resources can identify, assign, and track required training with just a few clicks of the mouse

Then, automated notifications and reminders ensure that employees know what training to complete and when. In an online learning platform, employees can complete training when it works best for their schedules, rather than cramming it into the middle of their workday. 

Because training no longer interferes with critical work tasks, employees have more time to focus on their jobs and can be more productive. This saved time and improved productivity results in monetary savings by giving you a better return on your investment in employee time and wages. 

Intangible ROI

A government LMS also offers an intangible return on your investment. Many learning management systems enable employees to browse a library of training content. This means, rather than waiting for HR to offer training, individuals can pursue learning experiences independently, allowing them to take control of their career growth and skill development

This autonomy and self-direction improves employee engagement and builds a growth-oriented organizational culture. Additionally, providing straightforward access to all required training and learning material makes it easy for your organization to uphold accountability and maintain compliance with training standards across the agency. 

Final Thoughts

While learning management system cost varies depending on the size of your organization, the benefits don’t. A learning management system saves your organization time and money, so employees can maximize their contributions to your agency. 

NEOGOV’s government LMS, Learn, provides key features that foster this high return on your investment. Employees who use this software tool enjoy access to a library of more than 1,500 pre-built courses – all while making it easy for HR teams to administer, track, and report on training compliance. 

And that’s just the beginning. If you’re excited to learn more about NEOGOV’s Learn, book a no-obligation demo today.

Alexandrea Davis

Alexandrea Davis is a Content Marketing Specialist at NEOGOV, supporting content strategy and development. With a love for storytelling and commitment to making an impact, she aims to create meaningful content that builds trust and erodes challenges for public service professionals.

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