Enhancing Employee Learning and Development With Learning Management Systems
October 26, 2023
Enhancing Employee Learning and Development With Learning Management Systems

A recent survey by management consulting company Gallup found that nearly three-quarters of the U.S. workforce are not engaged. Learning and development (L&D) opportunities provide employees with a purpose, encourage community and foster curiosity, all of which can contribute to increased employee engagement. Furthermore, these programs show employees their development is valued, which can boost morale and improve attraction and retention. In fact, educational technology company LinkedIn Learning found that three of the top five reasons employees search for new jobs relate to their desire to learn, grow and develop new skills.


Successful L&D programs can also help employers reduce skills gaps and drive operational excellence. Yet, traditional learning opportunities aren’t always compatible with a modern workforce. For example, employers with a multi-generational workforce, a significant number of remote or semi-remote employees, or employees with a wide range of learning styles may find that conventional learning practices create unequal growth and learning opportunities within an organization. Therefore, finding an effective means for online training, such as a learning management system (LMS), is a critical aspect of many L&D programs.


This article explains how LMSs can be used to further L&D programs and outlines potential benefits and drawbacks.


LMS Overview

An LMS is a software application or web-based technology employers can use to plan, design, implement and evaluate their L&D programs. They’re often used to store e-learning content and automate employee learning processes. LMSs can have basic functionality or be highly advanced technology that can gamify learning, advance social and mobile learning, and use artificial intelligence. The following are common functions of LMSs:


  • Oversee training and e-learning
  • Store, organize and distribute courses
  • Track individual progress
  • Set employee goals
  • Communicate with individuals
  • Provide detailed analyses
  • Identify skills gaps
  • Indicate individuals in need of additional support


Benefits of Using LMSs

LMSs can benefit organizations that want to provide self-paced learning opportunities or have a widely dispersed workforce. They can help organizations evolve, accelerate growth and address talent shortages.


Using an LMS for L&D programs may be advantageous, as it may achieve the following:


  • Reduce cost. Over the long term, e-learning can be a cost-effective learning solution. With LMSs, employers don’t need to pay for travel, instructors, vendors or other materials (e.g., training manuals), which can reduce total training costs.
  • Save time. These systems allow employers to build complete courses quickly. These courses can continually reused and revised, reducing the time needed to onboard or retrain employees. Furthermore, LMSs lessen the administrative burden by automating much of the learning process. They also allow employees the opportunity for self-paced learning, which can reduce the amount of time employees spend away from work training.
  • Promote a learning culture. Giving employees a tool for continual and self-driven learning with LMSs can enable employers to create a culture of growth and learning. This can benefit both employers and employees by providing individuals with access to updated training and upskilling programs that can reduce skills gaps within an organization. LMSs also allow organizations to understand how effective their training programs are by measuring learning outcomes and connecting them to organizational performance.
  • Ensure compliance. Many organizations are required to provide employees with certain mandatory training (e.g., anti-harassment or health and safety training). LMSs track and store information proving that employees took and understood the required training. This can benefit employers in case of an audit or accident.
  • Boost engagement. Employers can create innovative and meaningful content to boost employee interest and engagement in L&D. Many LMSs allow for gamification, in which employees can unlock higher skill levels by gaining certain features, such as trophies and badges. This can motivate employees to reach new levels of learning and achievement, increasing engagement and improving the user experience.
  • Provide flexible learning. LMSs can easily be scaled up or down to meet the needs of an organization. Employers may choose from a wide variety of learning formats, including videos, webinars and e-learning modules. Personalized learning paths can also be created to meet individual needs, providing employees with an effective learning experience suited for them.  
  • Increase accessibility. Using an online learning system can help employers provide all employees with equal access to onboarding and learning opportunities. This can help ensure that employees won’t be held back from professional growth due to location, schedule availability or learning styles.  

Drawbacks of LMSs

As a software system, an LMS may not be right for every organization. Before purchasing an LMS, employers should consider the following potential disadvantages:


  • Set-up time—There is a significant upfront time commitment to implementing an LMS. After researching different LMS options, employers must learn how to create courses and implement the system, which may require administrators to undergo system training before launching the course. Additionally, coding and IT knowledge may be required to customize the courses.
  • User-friendliness—Employees who aren’t tech-savvy may initially struggle to adapt to online learning. As a result, it may take more time for some individuals to adapt to the new technology. Employers can help by selecting LMSs with simple and engaging features to improve employee engagement and use.
  • Associated costs—Although LMSs are generally a cost-effective learning solution, there are necessary expenditures, such as purchase fees and implementation, training, security and maintenance costs. These can quickly exceed an employer’s L&D budget. Employers may also find that they must hire additional third-party platforms to boost compatibility and functionality.
  • Limited options for personalized learning—The ability to individualize learning to meet employee needs is a crucial benefit of LMSs. However, some LMSs may provide limited opportunities for personalization, which can make employee learning and engagement less effective.
  • User issues—If LMS support fails to meet the needs of an organization, it can dramatically impact the functionality of an LMS and cause decreased employee engagement. For example, if an LMS only provides basic tutorial information, administrators and users may struggle with the functionality of courses. Furthermore, e-learning may not be right for all learning styles or all types of training (e.g., physical skills). It also lacks human connection, which some individuals may need or desire for optimal learning.
  • Lack of enforceability—Unlike in-person training, which is easy to enforce, LMSs require employees to be self-disciplined and follow through with their training with minimal oversight. As a result, employees may fail to complete essential training. They may also be able to cheat their way through LMS courses, which can undermine the effectiveness of L&D programs. 


Conclusion

Employee L&D is a long-term investment that can contribute to organizational success by lowering turnover, reducing skills gaps and improving employee satisfaction. As organizations navigate the diverse needs of a modern workforce, learning technology such as LMSs may help ensure that all employees have equal access to L&D opportunities.


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Top 5 HR Trends That Will Shape Businesses in 2025

January 7, 2025
As 2025 kicks off, the HR landscape is evolving faster than ever before. Technology, shifting workforce expectations, and the need for businesses to be agile in a dynamic global environment are all driving change. What worked yesterday may not be enough today, and companies must adapt to stay ahead. Here are the top five HR trends you’ll need to watch closely in 2025: 1. AI is Changing the Hiring Game Artificial intelligence is no longer just a buzzword in HR—it’s a game-changer. Tools that can scan resumes, match candidates to roles, and even conduct initial assessments are becoming staples for businesses aiming to save time and improve hiring outcomes. In 2024, many organizations began integrating AI to remove unconscious bias and make their hiring practices more inclusive, and this trend is expected to accelerate. 2. Flexibility Isn’t Just a Perk Anymore Hybrid and remote work models are here to stay, but the conversation has shifted. In 2025, it’s less about offering flexibility and more about making it work effectively. Companies are adopting sophisticated tools for remote collaboration, redefining performance metrics, and ensuring policies address the nuances of managing both in-office and remote teams. The focus is on maintaining productivity without compromising employee well-being. 3. Wellness Goes Beyond Gym Memberships In recent years, wellness programs have evolved beyond basic offerings like gym memberships to address a wider range of employee needs. As companies recognize the link between employee well-being and productivity, they’re broadening their focus to include mental health, financial stability, and holistic support. In 2023 and 2024, for example, Delta expanded its employee wellness initiatives by improving access to mental health care. The airline worked with Spring Health, a new EAP provider, to create a larger and more diverse network of mental health professionals, offering better support for both employees and their household members. Looking ahead to 2025, wellness will become more deeply integrated into company cultures. Expect companies to go beyond providing reactive support to fostering proactive wellness through personalized tools, such as mental health apps, financial coaching, and enhanced benefits like paid leave for caregiving. With these programs, businesses are not just addressing immediate health concerns but also empowering employees to manage their overall well-being in a more holistic way. The focus will be on creating a supportive, sustainable work environment that helps employees thrive both at work and in their personal lives. 4. Upskilling is a Competitive Necessity Technology is evolving faster than ever, and companies are racing to keep up. Upskilling employees in areas like data analysis, AI, and emerging tech became a priority in 2024, and it’s clear that this trend will only grow. Businesses that invest in continuous learning programs—whether through certifications, on-the-job training, or digital learning platforms—are better positioned to stay ahead in their industries. 5. Data is Driving HR Decisions HR is leaning heavily on people analytics to guide decision-making. Instead of relying on intuition, businesses are using data to understand employee engagement, pinpoint reasons for turnover, and improve productivity. The emphasis on metrics like employee sentiment and workforce utilization gained traction last year, and more organizations are embedding analytics into their HR strategies to tackle challenges proactively. Final Thoughts The HR landscape in 2025 will be shaped by these transformative trends. Businesses that embrace innovation and prioritize their people will find themselves not just adapting but thriving in the evolving workplace. As these trends unfold, staying proactive and flexible will be the key to turning challenges into opportunities.

IRS Announces 2025 PCORI Fee Update

January 6, 2025
The IRS has released the 2025 Patient-Centered Outcomes Research Institute (PCORI) fee , which will increase to $3.47 per covered life —a $0.25 increase from 2024. This fee applies to plan years ending on or after October 1, 2024 , and before October 1, 2025 . What is the PCORI Fee? The PCORI fee was introduced as part of the Affordable Care Act (ACA) to help fund the research conducted by the Patient-Centered Outcomes Research Institute (PCORI). This research focuses on improving healthcare outcomes by comparing different medical treatments. The fee is levied on insurers, as well as self-insured and level-funded health plans. The fee is calculated based on the average number of covered lives under a plan and is due once a year, with the filing occurring during the second quarter on Form 720 , the Quarterly Federal Excise Tax Return . The payment is due by July 31 each year. Key Details for Employers and Plan Sponsors Who is Affected? : The fee applies to health insurers, self-insured health plans, and level-funded health plans. When is it Due? : The fee must be reported on Form 720 and paid by July 31 each year. How is it Calculated? : The fee is based on the average number of covered lives during the plan year. The updated $3.47 per covered life fee will be in effect for health plans with policy years ending between October 1, 2024, and October 1, 2025. Employers should be prepared to account for this increase when filing for 2025. For more information on the PCORI fee and its reporting requirements, consult the IRS Bulletin 2024-49 , published on December 2, 2024, or visit the IRS PCORI Fee page . 

Federal DOL Restores Simplified Tip Credit Rule: Employer Guidance

January 6, 2025
In a move welcomed by many employers in the hospitality and service industries, the U.S. Department of Labor (DOL) has officially reinstated the pre-2021 tip credit rule. This change, effective December 17, 2024, follows a recent court of appeals decision that vacated the “80/20/30” tip credit rule that had been implemented under the Trump administration. If you’re wondering what this means for your business, don’t worry—this update doesn’t require any immediate action on your part. What Was the "80/20/30" Rule? Before we dive into the implications of the DOL’s latest rule change, let’s quickly review the "80/20/30" rule. This rule, introduced in 2021, placed specific restrictions on how much time tipped employees (such as waitstaff and bartenders) could spend on non-tip-generating duties (e.g., cleaning, setting up, and other side work). The rule essentially required that tipped workers spend at least 80% of their work hours on tip-generating activities to continue qualifying for the tip credit. Moreover, under the "80/20/30" rule, employers could no longer use the tip credit to offset wages for certain non-tip-producing activities, and they had to ensure that employees spent no more than 30 minutes at a time on side duties. This increased the burden on employers, as it required more careful tracking of employee duties and work hours to remain in compliance. Why Was the Rule Vacated? The court of appeals decision in August 2024 ruled that the "80/20/30" rule was too restrictive and inconsistent with the intent of the Fair Labor Standards Act (FLSA), which allows employers to take a tip credit for workers who perform both tipped and non-tipped duties. The court found that the new rule created unreasonable administrative burdens and restrictions that were not in line with past practices or legal precedents. In response to this ruling, the DOL moved quickly to restore the pre-2021 tip credit rule. What Does the Reinstatement of the Pre-2021 Rule Mean for Employers? With the reinstatement of the pre-2021 tip credit rule, the DOL has effectively simplified the way employers can apply the tip credit to their workers. Under the prior rule, employees who perform a combination of tipped and non-tipped duties can still qualify for the tip credit, as long as their primary job responsibility is related to tipped work. Employers no longer have to track the precise breakdown of time spent on tip-generating vs. non-tip-generating activities in the same way. This returns to the more flexible guidelines where as long as tipped employees perform "related" duties (e.g., cleaning their station, setting up for service), they can still receive the tip credit for those hours, provided those activities don’t dominate their workday. What Action Is Needed from Employers? For most employers, this change will not require any immediate action, as the final rule effectively restores the pre-2021 approach. The main thing to note is that employers should continue to comply with the broader requirements of the Fair Labor Standards Act (FLSA) and ensure they are properly paying employees at least the federal minimum wage (including tips) when they apply the tip credit. Here are a few things to keep in mind: Reassess Timekeeping Systems: While the rule change simplifies some aspects of record-keeping, employers still need to ensure they have a timekeeping system in place that accurately tracks the hours worked by tipped employees. It is essential to ensure that the wages (base pay plus tips) equal at least the federal minimum wage. No Need for Immediate Adjustments: If you were already applying the pre-2021 tip credit rule, no changes are necessary on your part. For those who had adjusted to the "80/20/30" rule, reverting back to the previous method should not require significant changes. State and Local Laws: Employers should still be mindful of any state or local laws that may have stricter requirements than federal law. Always check your state’s labor regulations to ensure full compliance. Why Is This Change Important? The reinstatement of the simplified tip credit rule provides relief to many employers, particularly in industries like restaurants, hotels, and other service-based businesses where tipping is common. The pre-2021 rule is seen as more employer-friendly, offering more flexibility in how tipped employees can spend their time without losing eligibility for the tip credit. For employers, this means less administrative burden, reduced risk of compliance issues, and potentially fewer legal challenges. This shift is a step toward simplifying labor law compliance for businesses already struggling with the complexities of wage and hour rules. Looking Ahead As we move further into 2025, it’s important for employers to stay informed of any future changes in federal labor regulations. While this change restores a previous rule, the DOL’s stance on tip credits and wage issues can continue to evolve. Employers in tip-dependent industries should continue to monitor updates from the Department of Labor and legal rulings to ensure ongoing compliance. The DOL’s restoration of the pre-2021 tip credit rule is a welcome change for many businesses, offering a return to simpler guidelines and less restrictive requirements. For most employers, no immediate action is required, but it’s always a good idea to review your practices to ensure they align with the updated rule. If you need further assistance in navigating these changes, reach out to Simco to ensure your business stays compliant in 2025 and beyond. 

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