How Much Does Digital Learning for SMEs Cost in the UK?
Introduction: The Cost Puzzle for SMEs
Running a small or medium-sized enterprise can often feel like a balancing act.
With limited budgets and rising competition, investing in employee development might seem like a luxury rather than a necessity.
However, the importance of staying competitive and adapting to the ever-changing business landscape makes digital learning not just beneficial but essential.
When you think about e-learning for your organisation, what's the first question that pops into your mind? It's probably, "How much is this going to cost?" That’s a completely understandable concern, and the answer isn’t always straightforward.
The pricing for digital learning can be quite complex, with different rates and structures from providers making it hard to pin down a clear number. Many companies often make it challenging to get a simple price, especially for tailored solutions.
And then what factors should you weigh before investing in digital learning?
In this article, we will outline typical costs, influencing factors, and strategies for maximising your budget.
At Jessanol, we’ve taken our decades of experience and designed our services and products just for SMEs, so we truly understand the concerns surrounding affordability and value.
By the end of this guide, you'll gain a clearer picture of digital learning costs in the UK, along with valuable insights to help you choose the best options tailored to your business needs.
Factors That Determine Digital Learning Costs for SMEs
Digital learning solutions are available in various formats, each with its own price range. Here are the main factors affecting costs:
Platform Subscriptions and Licensing Fees
The foundation of digital learning is its platform. Depending on how and who your users will be accessing it and whether you need tracking, there are different options for hosting digital learning.
The traditional option, a Learning Management System (LMS), usually operate on a subscription model, with prices differing based on features, user capacity, and scalability. You can expect costs from £50 to several hundred pounds per month for platforms suitable for small and medium enterprises (SMES).
There are other options, however. Low-cost options to consider are using AWS or existing intranet options, or collaboration tools like Slack. It really depends on your organisation.
Customisation and Content Development Costs
Each business has unique training needs. Customisation entails adapting off-the-shelf solutions or creating tailored content, which might involve developing video tutorials, interactive modules, or specific scenarios for certain industries.
Prices for these changes can start at £500 for minor adjustments and escalate to thousands for fully customised content.
Additionally, costs can fluctuate based on the complexity of the project and the software employed. For instance, here at Jessanol, we use tools and processes designed to support rapid course design and development. This means we can be competitive on our pricing, without compromising on delivering an effective learning solution.
Industry costs:
Level 1: £ 4, 000–£ 8, 000 per hour for courses with simple graphics and limited interactivity. (Source: eLearning Industry, 2023)
Level 2: £ 8, 000–£ 16, 000 per hour for more interactive content with quizzes and polished designs. (Source: CommLab India, 2023)
Level 3: £ 16, 000–£ 40, 000 + per hour for highly interactive courses with simulations, animations, and gamified elements. (Source: Designing Digitally, 2022)
Additionally, if your course requires updates, such as for regulatory or legal changes, ongoing maintenance and updates can add 10–30% to the initial development costs annually. (Source: The Learning Guild, 2021)
Maintenance and Support Expenses
Continuous technical assistance and updates are crucial for ensuring the smooth functioning of your platform. Some service providers incorporate these expenses within their subscription fees, whereas others bill them separately. You should allocate a minimum of £300 each year for basic support packages (Source: LearnDash, 2024).
Hidden Costs to Watch For
Always read the fine print. Extra charges can include:
Additional fees for more users or storage.
Costs for advanced analytics or integrations.
Penalties for exceeding usage limits.
Comparing Options: Off-the-Shelf vs Bespoke Solutions
Choosing between off-the-shelf platforms and bespoke solutions largely depends on your business goals and budget.
Benefits and Challenges of Ready-Made Platforms
Ready-made platforms are cost-effective and quick to deploy. They typically feature pre-built courses and tools, ideal for general skills training. However, they may lack the depth or relevance required for specialised industries.
Example Cost: Individual courses range from £20–£200+; subscription fees often range from £200–£600 per user annually. (Sources: Skillsoft, 2023; Udemy Business, 2023; LinkedIn Learning, 2023)
Delivery Options: Courses can be hosted on the provider's LMS or integrated into your own system. Licensing terms vary by provider.
Some platforms cannot host bespoke courses, so ensure if you may need that option, it is factored into the choice made.
When Bespoke Digital Learning Makes Sense
If your business requires highly specific training, such as compliance in niche industries, a bespoke solution is often the best fit. While upfront costs are higher, this approach ensures the training is directly aligned with your business objectives.
Example Cost: Custom development typically starts at £5,000 for simpler projects and can exceed £20,000 for complex solutions. (Sources: eLearning Industry, 2023; The Learning Guild, 2021)
Bespoke courses can be hosted on your system or the provider’s LMS.
The Average Costs of Digital Learning Solutions in the UK
Here’s a breakdown of typical costs you might encounter:
Entry-Level Platforms: £50 to £100 per month. Suitable for small teams.
Mid-Tier Platforms: £100 to £500 per month. Offers advanced features and scalability.
Bespoke Solutions: Starting at £5,000. Fully customised, with costs varying by complexity.
Off-the-Shelf Courses: £20–£200 per course or £200–£600 per user annually for subscription models. (Sources: OpenSesame, 2023; LinkedIn Learning, 2023)
Additional Costs: Content creation can add £500 to £10,000 or more, depending on scope.
See this article for more information about platforms designed for smaller businesses.
Maximising Value for Your Budget
You don’t need to break the bank to implement effective digital learning. Here are strategies to get the most out of your investment:
Leveraging Government Funding and Grants
The UK government offers schemes like the Skills for Growth programme, which can offset training costs. Check with local authorities for SME-specific grants.
Cost-Effective Strategies for SMEs
Understand the reason for the performance issues- e-learning may not be the right solution.
Prioritise to gain the best return on investment
Focus on fit-for-purpose solutions that leverage technology and processes to decrease costs.
Start with a smaller pilot programme to test feasibility.
Use a mix of off-the-shelf content and limited customisation.
Explore free or low-cost platforms for general training needs.
Tips for Negotiating with Providers
Don’t hesitate to:
Ask for discounts based on user or course volume.
Seek extended trial periods to evaluate platforms.
Request bundled services for better value.
Why Choose Jessanol for Your Digital Learning Needs?
At Jessanol, we’re committed to helping smaller businesses thrive through tailored digital learning solutions. Here’s what sets us apart:
Transparent Pricing: No hidden fees. Our packages are designed with you in mind.
Expertise: With years of experience, we understand the challenges faced by smaller businesses.
Comprehensive Support: From implementation to ongoing maintenance, we’re with you every step of the way.
Flexible Options: Choose from off-the-shelf, customisable, or fully bespoke solutions.
Conclusion: Your Digital Learning Investment Simplified
Navigating the costs of digital learning can be quite manageable. This article offers insights into what affects pricing and the various options available.
Smaller businesses frequently encounter challenges like hidden costs and unclear pricing structures, not to mention the important balance between staying affordable and ensuring quality. These hurdles can make it tough to feel confident when choosing digital learning solutions. However, by applying smart cost-saving strategies, your business can discover a solution that truly fits its budget and training objectives.
At Jessanol, we simplify the journey to effective digital learning. Whether you’re considering an off-the-shelf option, semi-customised content, or fully bespoke solutions, we’re here to guide you every step of the way.
Are you excited to explore your possibilities? Reach out to Jessanol today for a friendly consultation, and let's take that first step towards empowering your team with digital learning!