Everyone's Important: Employee Lifetime Value Key to Growth
The Forum's New Research Summary Helps HR Leaders to Bring Out the Best in People
June 6, 2012, NAPERVILLE, IL – Historically, employees in most every enterprise have been treated as cost creators, rather than value creators for their companies, with sales performers taking most of the credit for success. Now, human resource leaders have a powerful and proven business model, Employee Lifetime Value (ELTV), as an important tool to quantitatively measure the long-term financial contribution every employee brings to an organization, according to a new research summary produced by the business thought leadership organization, The Forum: Business Results Through People.
The report, “Measuring the Financial Impact of Employee Lifetime Value,” is the second in a new series of targeted and concise research packages designed for HR executives. Its author, Dr. Frank Mulhern of Northwestern University, says that, “In today’s marketplace, competitive advantage and differentiation for companies comes from the energy, passion, talents and creativity of all its people. Therefore, it is crucial for an organization to have the ability to measure individual and team performance across the enterprise.”
The research summary introduces the concept, with a graphic Employee Lifetime Value model, and provides HR leaders the resources and opportunities to capitalize on the growing awareness among senior executives that employees can be the best resource to improve corporate performance and profitability. According to the Brookings Institution, 85 percent of a company’s assets are related to intangible capital such as knowledge and human talent. Dr. Mulhern says that, “Employee Lifetime Value provides an important opportunity for HR professionals to play a much broader, more valuable role in their organizations’ future success by leading their organizations with training, reward, and recognition strategies intended to bring out the best in people performance.”
Click here to read the entire research summary.
About The Forum
The Forum: Business Results Through People (www.BusinessResultsThroughPeople.org), affiliated with Northwestern University, is an organization for thought leadership advocating that the most effective way business leaders create and sustain organizational values is through partnership with people.
Susan Peterson (630) 369-7780
Sue Voyles (734) 667-2005