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An LMS as an Employee Performance Management System

Updated: Apr 25, 2021

LMS as an Employee Performance Management System

A skilled and knowledgeable workforce is critical to the success of any organization. As the competition for talent intensifies, more companies are learning the importance of hiring and training the right people.

Performance management refers to the process of collecting and analyzing supervisor feedback regarding an employee’s ability and progress to accomplish specific goals to the benefit of the organization. Effective supervisors have an ability to assist their workers in using their talents in ways that help accomplish organizational goals while also achieving the employee’s professional development goals. The performance management process combines the collection of pertinent information, monitoring goal progress, and facilitating feedback, and discussions. Through the analysis of employee strengths successes, and their ability to learn from their mistakes, companies can develop talent to maximize the performance of each worker. 

Unlike Performance Reviews (which focus solely on evaluating the performance of an employee), Performance management is implemented to ensure that each worker receives the resources and guidance they need to be successful within the organization.

eLearning and Employee Performance Management

Comprehensive and ongoing training provides the foundation of an effective performance management strategy as it serves to provide each employee with the specific knowledge and skills they need to be successful in their job role.

In the past, the only real option available to a company that wanted to implement employee training was through in-person, classroom-based training. But in recent years, as cloud-based technologies have continued to evolve and workforces have become increasingly remote (a trend that was in place even before COVID-19), online learning or “eLearning” has emerged as a preferred approach to employee training and development. While eLearning can impact most any area of employee performance management, some of the most common courses and programs include:

Companies that Incorporate eLearning into their performance management strategy can expect to see an increase in revenue on a per employee basis along with an improved overall bottom line. In addition, employees who participate in eLearning programs tend to have an increased sense of loyalty to the organization, leading to a decrease in turnover.

An LMS as an Employee Performance Management System

The core technology that supports all types of eLearning programs, including employee training and performance management, is a Learning Management System, or “LMS”. An LMS is the application that is used to build, deliver, manage, and track you eLearning-based performance management program. While some companies choose to deploy their LMS on-premises (self-hosted) more companies today are choosing to work with a cloud-based LMS offered by a third-party vendor for the following benefits:


A cloud-based LMS eliminates the need for a large, upfront capital expenditure on software, hardware, and other supporting infrastructure. And with a cloud LMS, the responsibility for the ongoing management and maintenance of the system is shifted to the cloud vendor.

Deployment Time

Unlike a self-hosted LMS, a cloud-based system allows your company to be up-and running quickly, allowing you to begin the implementation of your eLearning-based training program as soon as possible.

Convenience and Flexibility

In working with a cloud-based LMS, your employees can conduct their learning and training activities at any time and from any place that is convenient for them. All that is required is an Internet connection.

State-of-the-Art Technology

While on-premises technologies tend to age over time, working with a cloud-based LMS ensures that your company always has access to the “latest and greatest” in learning management features and capabilities.


While an on-premises LMS can present significant challenges in terms of planning for and implementing additional capacity as your training needs grow, most third-party LMS providers offer subscription-based plans, allowing you to easily scale up (or down) your capacity needs as your use evolves over time.

LMS Portals: A Learning Management System for Employee Performance Management

LMS Portals provides our clients and partners with a cloud-based, multi-tenant learning management system that allows you to launch and manage multiple private eLearning environments on-demand. The platform provides powerful support for eLearning-based employee management and includes robust tools for portal branding and customization, rapid and simplified course development, user onboarding, learner collaboration, analytics, and more.

Visit our Partner Program pages to learn more or contact us today to get started

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