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Employee Lifetime Value

Employee  Lifetime Value

Know Your Organization's ELTV here:

Employee Lifetime Value (ELTV), takes huge inspiration from the fundamental metric of measuring business effectiveness, Customer Lifetime Value (CLTV) – a measure of profit, the organization will generate over the lifecycle of customer’s journey. ELTV, similarly represents the net value of returns, measured in dollar value over an employee lifecycle, directly attributable to a business outcome & organizational performance. On the lines of CLTV, ELTV is a fundamental measure of an organization’s human capital effectiveness.  

While CLTV helps us understand the effectiveness of business to meet consumer needs, measuring the value created v/s. value captured (existing customers) & value lost (customer churn), ELTV enables us with the human capital effectiveness of organization to run the business, & monetization potential of human capital, that organization should focus on.

How is The Brew’s ELTV conceptually different from the rest? – The Brew’s ELTV, takes in to account the business metrics (Revenues, Growth Rate, Gross Margin & Operating Costs etc.) & human capital metrics (Attrition, Employee tenure, Average Salary, Annual Increments etc.) to arrive at the net value of human capital & effort spend. It’s simplicity, in binding these 2, to arrive at a common denominator enables Leaders, an understanding to tweak mechanics, unlocking better returns & higher value.

Know Your Organization's ELTV here:

image credits: OC Tanner blog