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Podcast: Leadership Article Review Podcast
Episode: Tracking Employee Lifetime Value: Strategically Leveraging Metrics to Grow Your Talent Pipeline and Bottom Line, by Jonathan H. Westover PhD
Description:
This practitioner-oriented research brief examines why and how companies can strategically track employee lifetime value (ELV) metrics. ELV refers to the total financial contributions and indirect cost savings an employee provides over their career both within and beyond their tenure at an organization. After outlining the scholarly foundation demonstrating ELV as a key driver of competitive advantage, productivity, revenue and firm performance, the brief delves into methods for quantifying ELV. Two primary components are contribution value from direct compensation and indirect support roles, as well as retention value from avoided replacement expenses and future referral potential. Examples are given...