Employee lifetime value (ELTV) is the a metric to estimate the total value an employee brings to an organization throughout their tenure with a company.

Description

Employee lifetime value is the

human resources Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms include ' ...

people analytics metric to estimate the total value an employee brings to an organization throughout their tenure with a

company A company, abbreviated as co., is a Legal personality, legal entity representing an association of legal people, whether Natural person, natural, Juridical person, juridical or a mixture of both, with a specific objective. Company members ...

. The term for the metric was coined by Maia Josebachvili. ELTV encompasses various factors, such as the employee's contributions, performance, skills, and potential impact on business growth and enables a business to determine how much to invest in employee recruitment, retention, and development. ELTV determines the

return on investment Return on investment (ROI) or return on costs (ROC) is the ratio between net income (over a period) and investment (costs resulting from an investment of some resources at a point in time). A high ROI means the investment's gains compare favorab ...

(ROI) of an employee.

References

People analytics {{business-stub