Lifetime value of employees: An important factor towards sustainable development

Tracking Employee Lifetime Value (ELV) - The net worth employees deliver during their time with the business - it can be difficult to measure, but providing a superior employee experience is also an effective way to optimize them.

AN EXCELLENT EXPERIENCE CAN EXCLUSIVE EMPLOYEE LIFETIME VALUE

Customer Lifetime Value (CLV) - The total revenue each customer brings has become an important KPI for many businesses. The CLV not only tells you if your product is working, but also tells you if your effort is worth it. Moreover, this value also tells you that customer segments should be endeavored to serve from the beginning. Fewer businesses are concerned with measuring Employee Lifetime Value (ELV).

The ELV is the net value each employee brings to the business during their time together - the value they bring minus all the costs of recruiting & training new employees, support and management costs. staff reason. As such, it is difficult to measure. While you can easily see how much revenue a sales rep makes, it's much more difficult to calculate the worth of a good sales rep. How much will good teamwork be worth? How to judge a manager who never fails to push

It's hard to find, but the employee's lifelong value deserves a lot of time to consider. In the end, your employees are your most valuable asset. Ensuring that "your staff delivers maximum viable value to the business" is the only factor that determines the business success of your business.

Businesses that ignore CLV can quickly be dismissed in an environment of fierce competition. Acquiring new customers takes a lot of time and money. Make sure you choose the right clients and then keep them for a long time to show the difference between growth and failure.

Similarly, if your business ignores ELV, it will also lead to serious risks. The hiring process is expensive and the training of new employees is also time consuming. Failure to meet employee expectations will cost your business a lot. Employees leaving before you can recoup the investment that the business has spent will cost you a lot. Besides, the frequent rotation of employees can lead to the loss of work ethic, knowledge management and corporate culture.

Tracking ELV will help you optimize HR performance. Identify employees who can provide "incredible" value to your business and help make the hiring process better. Tracking an employee's worth before and after a training program will show you which learning activities are worth the investment. And a tangible metric will help you ensure proper attention from your company 'C-levels' for employee engagement, motivation and retention.

WHAT CAN A BUSINESS DO TO PROMOTE EMPLOYEE LIFETIME VALUE?

The clear answer is: You need to create a superior employee experience.

Employee experience is a cornerstone of modern HR practices. Jacob Morgan has taken the case that employee experience is the current stage of business growth. In the old era, employers focused on being useful: making sure that employees had the necessary tools to perform tasks. With the advent of automation, the focus has shifted to efficiency: how to optimize employees' jobs to outperform the competition. The prevalence of knowledge-based work drives employee interaction: The recognition that creative, innovative employees work best when they are happy and motivated.

Finally, in today's globalized marketplace, companies wishing to attract and retain top talent must provide a world-class employee experience. The employee experience begins with the first interaction between the candidate and the employer until the end of the job interview. It is an overarching term about what employees enjoy working in your organization, from the workplace, the technologies used by the Enterprise to the Training and Development programs that the Company Business launched, the culture that Enterprise owns.

WHAT MAKES AN EXCELLENT EMPLOYEE EXPERIENCE?

To enhance the employee experience, you need to focus on three factors: physical space, digital technology and corporate culture. All three of these elements create every experience your employees will have in your company.

1. Physical space

The physical space can say a lot of good things about how your employees interact. Do you foster interaction with the open office or focus attention on the office with partitions? How do you show your brand's uniqueness and your company's value in your workspace design?

The pandemic we are facing presents even more challenges. How do you foster interactions while ensuring physical spacing? How will you help your employees feel safe? Will you switch to remote work?

2. Digital technology

The tools and technology you give your employees can make the difference between a great employee experience and a bad employee experience. Forcing employees to use outdated technology and software to work will have a serious impact on both performance and morale. In contrast, always up-to-date, user-friendly technologies will help train employees to quickly and efficiently operate their jobs.

Technology is also a core element in monitoring, managing, and improving employee experience. With the right on-site tools, you can follow people from the start when applying to the job interview, by doing this in the same way, you can optimize the customer journey from scratch. to the end.

3. Corporate culture

In order to attract, inspire and retain top talent, building a corporate culture is essential, where employee engagement, satisfaction and development are at the forefront and also is the central factor. Corporate culture can be somewhat abstract - Herb Kelleher describes it this way: "What people do while no one is watching." However, culture is manifested in behaviors that can be measured, encouraged, and developed. Creating a culture to support the employee experience means taking a step back and examining the behaviors you would like to be encouraged at at all levels of the organization and then designing the system to provide incentives. encourage people to perform those behaviors.

3 "KEYS" OF A EXCELLENT EMPLOYEE EXPERIENCE

Employee experience is a part of every business. Every meeting, email, interview, every action point, every interaction between you and your employees determines how your employees will feel working at the company. However, we believe that to improve the overall employee experience, there are 3 areas where you should focus:

1. Learning & Development

More than 1 in 3 employees and nearly 50% of millennials will be more likely to quit their jobs when they are not provided with training or education opportunities. In other words, building a great employee experience starts with a strong growth and training program.

Employees who are learning, improving, and continually develop are those who have a commitment to their work and, as a result, will be more productive. Employees find that their bosses invest in their development roadmap and will realize the value and then strive to bring better results for the company.

MVV Everlearn 4.0 Learner-centered thereby designing experiences that maximize participation, engagement, and attention to the content of the training. Plus powerful management features, Everlearn helps Enterprises professionalize training, fostering a culture of lifelong learning. From there, improving the capacity of human resources, creating a premise for the expansion & development of the business.

2. Rapid Feedback

Employee engagement has become a frequent question for “benefits & perks" – There are ideas that have heard a lot to the level of boredom like “free food or billiards table.” The employee experience is much more complex and that's what they experience when they come to work every day. Employee experience measurement is the only way to track and improve them.

There are ideas that have heard a lot to the level of boredom like “free food or billiards table.” The employee experience is much more complex and that's what they experience when they come to work every day. Employee experience measurement is the only way to track and improve them.

Make sure all responses are openly addressed. There's nothing worse than providing feedback and then feeling as though you've been left out. That doesn't mean you have to give your employees everything they ask for. But be sure to let the employee making the request that you are responding to them now and schedule what time frame they will be addressed until you have the time and budget to do so.

3. Alignment

In its Human Capital Trends 2020 report, Deloitte proposes creating exceptional employee experiences that require companies to nurture "a sense of belonging" in their employees. This can be best achieved by increasing the association between personal goals and company goals:

"When workers feel that the things they do create positive value and drive shared goals, which are significant and significant. They will be more engaged, motivated, and more likely to be. performance at a higher level. "

Today, as the world is increasingly "polarized", with telework evolving, positive employee experience depends on clearly conveying connection and a sense of connection with each individual. tablets from day one.

Overall, the employee experience a business creates, is delivered through three environments: physical, digital, and cultural. Creating an excellent staff experience requires you to combine Training and Development, Feedback and Participation, Personal, Team and Organizational Alignment. Putting a big picture in the picture shows better competencies, better employee retention rates, higher employee lifetime value scores, and happier and healthier employees.

Source: synthesis - Elearning Industry