Traditional HR metrics fall short in quantifying the returns from organizational investments made in employees.
Great employee onboarding accelerates the path to becoming an organizational contributor, while simultaneously reducing investments in time and cost. Having the right workplace culture, technological tools, and management practices can raise an employee’s potential performance. And focusing on retention mitigates the risk of lost productivity, knowledge and recruitment costs.
Employee Lifetime Value (ELTV) expresses the dollar value of these returns. In aggregate, ELTV details the opportunity cost of inaction, and is a critical tool in building business cases for investments, budget (re)allocations, and resourcing.