Why e-learning is now more small-business friendly

Joanna L. Krotz writes about small-business marketing and management issues. She is the co-author of the "Microsoft Small Business Kit" and runs Muse2Muse Productions, a New York City-based custom publisher.

By Joanna L. Krotz

As businesses of every size scramble to stay competitive, Web-based training tools are hard to beat.

Nationwide, organizations of all kinds are pumping funds into online staff training. The global e-learning market is expected to reach $21 billion by 2008, up from roughly $7 billion in 2005, according to researcher IDC. Training delivered over the Internet is particularly gaining favor among small businesses because it’s suited to getting employees up-to-speed quickly.

"Delivered education for business training has seen a heavy increase in adoption rates among larger companies," says Dave Reed, an account executive at SkillSoft, a leading industry provider based in Nashua, N.H. "Now small businesses are also seeing value."

Here are the ways that e-learning can boost your business.

The e-learning advantage

Web-based learning options offer terrific flexibility and cost savings. Online courses can be taken in synchronous or real-time sessions. Or, self-study modules can be accessed in asynchronous or "just-in-time" sessions via archive or download. That way, employees can study whenever they prefer, day or night, weekends or holidays.

You save significant dollars because you don't need to hire experts, trainers or in-class instructors. You avoid the expense of employee travel or hotel stays and you gain time previously lost from the job. In addition, unlike classroom settings, e-learning employees advance at an individual pace and can update or refresh lessons whenever they choose.

The industry grows up

Nevertheless, early versions of online training and education suffered serious dropout rates, as high as 70% or more in some cases. Pioneer courses emphasized technology over personal interaction. Many e-earning formats had a passive, "just the facts" delivery, the electronic equivalent of a classroom teacher droning on in a monotone. It was hard to stay alert.

Nowadays, the industry has grown up. Students enjoy a rich range of interaction while still benefiting from e-learning's flexible schedules and user-directed pace. Educational institutions and online providers are harnessing sophisticated advances, such as off-the-shelf Flash animations, instant-messaging interactions and audio or video enhancements. Plus, a host of smaller providers market tailor-made simulations and personalized instructor-designs.

Most providers also have online demonstrations so you can evaluate the content and usability before you buy. To sign up for an e-learning IT or software training course from Microsoft, for example, you can check out the free skills assessment quiz at this page.

Best of all, e-learning still is cheap compared to traditional methods.

Finding offerings

Here's a rundown of a few better-known e-learning sources and how to find out more.

How one company uses e-learning

Tailor-made solutions are also becoming more affordable. "Increasingly, small companies with little or no IT resources are taking advantage of cost-effective online training that is both interactive and customized," says Lenny Schloss, co-owner of Punctuation Media, a Boca Raton, Fla., e-learning provider. One client, for instance, NursesSTAT, a South Florida health-care staffing agency, was undergoing growing pains. The company relied on in-class instructors to train new nurses to use its proprietary staffing technology system. That was slowing the operation, which meant the agency wasn't meeting staffing needs for its client hospitals.

Punctuation Media implemented a customized multimedia course that trained new recruits via the Internet. Once NursesSTAT moved its course online, the delay evaporated. Administrators could track compliance more quickly and nurses could also access ongoing support after the initial training.

Tips for choosing an e-learning provider

Many businesses are learning to leverage a combination of online and traditional training in order to get the most out of each channel. A fast-growing field, this is called "blended training." For instance, Great-West Healthcare, a Greenwood Village, Colo., health and life insurer relies on a desktop tool called "Outstart Trainer," from Boston-based provider OutStart, to develop product knowledge for its sales force. But for soft skills, salespeople are trained the old-fashioned way, in classrooms by instructors. "This approach enabled Great-West to save over $100,000 the first year alone," says Ed Hadley, OutStart spokesperson.

In choosing an e-learning provider:

Today's e-learning and corporate training is vastly more sophisticated than in the days of "Click True or False" and "Next screen." You'd be smart to take a look.