Employee lifetime value (ELTV) is a metric used to measure the total financial value that an employee brings to a company over the course of their employment. It takes into account the employee’s salary, benefits, and other costs associated with their employment, as well as the value they bring to the company through their work, such as productivity, innovation, and customer satisfaction. ELTV is calculated by estimating the total revenue generated by the employee during their tenure with the company and subtracting the total costs associated with their employment. This metric is useful for companies to determine the return on investment for each employee and make informed decisions about employee retention and development strategies. It also helps in identifying high-performing employees and potential areas for improvement in the company’s human resources management. ELTV is an important tool for businesses to understand the long-term impact of their employees on their bottom line and make strategic decisions to maximize their overall value.
