Why you should measure the Employee Lifetime Value inside your organization
Within the past 12 months I came across over at least a hundred diagrams showcasing various frameworks around the best people practices — digital HR, hiring funnels, retention strategies, artificial intelligence, people analytics and so on. Boston Consulting Group posts a new one almost everyday. However, most of these come with extremely vague definitions and are rarely give you any guidance on how to actually apply them.
For a framework to be of any value, to me, it has to:
- have a path to success — such as a formula; doesn’t have to be magic, but it has to make sense
- some frameworks are really old, and while some are quite interesting — Maslow’s hierarchy of needs comes to mind — they are often plagued with bias
- easily answer the “How?”, usually by providing an example
- not be linked to a buzz word, such as Big Data or AI — I can easily prove to you they are the same thing
The hottest theories today are around the bestselling behavioral profiles: Emotional Intelligence, coaching and Agile are well known to the community; because of digital, there has also been a big push throughout the past year around continuous feedback to replace appraisals and HR and cognitive analytics in the context of data driven decision making.
While many are good at advertising new frameworks — not many offer a convincing method to make them worthwhile exploring as a standalone initiative. This was the main reason for which I decided to make a short video on a framework designed by Maia Josebachvili; the framework’s main goal is to measure the impact of people practices throughout the employment cycle to help any business compare different investment scenarios:
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