Measuring Matters: The Real LMS KPIs to Focus On

Measuring L&D success is crucial, but with 42% of L&D professionals citing showing ROI from L&D as their biggest challenge, it’s definitely not easy. The struggle isn’t in tracking data—it’s in tracking the right data. When we measure success correctly, we can determine whether we’re on the right track and focus on the right challenges. In L&D, this is vital because our efforts impact long-term processes and results across the entire organization.

The KPIs we set for our LMS will shape how success is viewed. Unfortunately, LMS KPIs can be misleading, causing too many organizations to focus on vanity metrics like sign-ups and downloads. While these metrics are easier to measure, they often fail to show the actual effectiveness of L&D initiatives. So, what KPIs should we focus on instead? Here are a few that truly matter.

Engagement: More Than Just Logging In

Engagement isn’t just about how many employees log into the LMS; it’s about how they interact with the content. Are they actively participating in discussions, completing interactive tasks, offering feedback, creating their own content, and asking questions? Tracking these interactions is crucial because it tells us what interests them, what they want to see in the future, and how they understand the material.

That’s how you apply a people-first approach to KPIs. By focusing on employees’ responses and behavior, we can see if employees are merely going through the motions without genuine engagement, in which case the learning won’t stick. Placing engagement at the top of the KPI list ensures a learning experience that’s both meaningful and impactful.

Content Creation: Empowering Employees to Share Knowledge

We mentioned content creation as part of the engagement KPI, but it deserves a closer look. Content creation within an LMS gives employees the stage and invites them to contribute to the learning process themselves. The student becomes the teacher, serving the organization on many levels.

First, it enriches the LMK with content that couldn’t be more relevant to the organization. This keeps valuable knowledge within the company, an issue business leaders everywhere are worried about, with 79% of CEOs worldwide concerned that skill gaps threaten future growth. 

Second, it boosts engagement because employees want to hear from the peers who created the content, which is perceived as more trustworthy, applicable, and needed. The creators’ engagement is also expected to grow as they become invested in the LMS they’ve contributed to and consider it their own project. 

How do we measure creation? In addition to the number of content assets created, we aim to see a diverse group of content creators, including employees from various departments, locations, seniority levels, and roles. This diversity makes the LMS more relevant, trustworthy, and engaging, ultimately building a robust knowledge hub for the company.

Progress: Tracking the Journey, Not Just the Destination

Progress in LMS usage includes achievements like employees completing courses, acquiring new capabilities, earning qualifications and diplomas, and moving from one level to the next. Progress reveals what employees are interested in rather than what they’re expected to focus on in theory. The churn rate reveals which courses may sound promising but lack practical insights for employees. 

Tracking progress helps identify their long-term goals and interests, the necessary knowledge in various departments, and the content they find particularly relevant and engaging. By focusing on progress as a KPI, we can adapt our L&D strategies to better meet employees’ needs, allowing both the LMS and the company to improve continuously. 

Real-Life Implementation: From Learning to Action

How beneficial is the content employees are consuming via the LMS? This KPI will let you know. One of the most important KPIs is the real-world application of learned skills. This tells us how the system’s content translates into actionable (and profitable) results. The LMS can help us identify this based on feedback from employees and their managers, as well as by correlating employees’ roles and challenges with the content they consume.

We should also measure the business results achieved through these newly acquired and extended skills to understand our LMS ROI fully. A recent survey finds that only about a third of organizations measure the impact employee training makes on financial outcomes, and that’s a shame, as this data can also convince C-level executives to further invest in L&D. 

Employee Satisfaction: The Heart of L&D Success

The ultimate purpose of L&D programs is to offer employees a great experience that delivers results. 90% of organizations are concerned about employee retention, and providing learning opportunities is a leading retention strategy. The connection between upskilling and retention is clear, as L&D drives employee loyalty and motivation. 

By asking for feedback via LMS functionalities, we can understand if we cover the topics, tools, and experiences employees seek. Allowing them to request content can also significantly impact their overall satisfaction. When employees feel that their personal and professional growth is valued, they’re more likely to stay with the company and contribute positively to its culture and success.

Measuring success in L&D isn’t just about numbers on a dashboard; it’s about understanding the deeper impact of our initiatives on people and the organization. By focusing on the above KPIs and choosing an LMS that offers relevant features and reports, we get a more accurate picture of our LMS’s effectiveness. These KPIs can help us align our efforts with the organization’s goals, demonstrate ROI more effectively, and, most importantly, support our employees’ growth and satisfaction.