Using customer lifetime value to demystify employee lifetime value

When almost any company can easily access the same raw materials, production technologies, management systems, machinery and equipment as its rivals, it is human value that often distinguishes one competitor from another. 

In a global economy based on knowledge, intangible assets and resources, the ability to manage and leverage human capital and talents has become increasingly critical. Workforces are now the true value creator for many organizations. Economists, business experts and academics have studied and written exhaustively about the factors that motivate and engage individuals to become long term customers, and have even created an area of study classified Customer Lifetime Value (CLTV).

This process aims to understand the true value of customer longevity so that an organization can ensure that it is spending the right amount of money and resources. Until recently, CLTV’s internal counter-part, Employee Lifetime Value (ELTV) has received relatively little attention. With employees playing an increasing role in maximizing Customer Lifetime Value, there is an increasing interest in the concept of Employee Lifetime Value.

This white paper delves into one of the key elements, approaching ELTV with a CLTV mindset, and is based on the recent comprehensive report produced by the Forum and the Performance Improvement Council entitled Employee Lifetime Value: Measuring the Long-Term Financial Contribution of Employees.  The report explores empirical studies, conceptual articles and industry surveys from both academic and professional sources.

To view complete white paper click the link in the upper right of the page.