What Are Your Workers Worth? June 04, 2008 White paper discusses the new concept of "Employee Lifetime Value"
By Jeanie Casison
A shift is coming in the world of work according to the new whitepaper, "Employee Lifetime Value: The Critical Companion to Customer Lifetime Value." The white paper sponsored by the Performance Improvement Council, a division of the Incentive Marketing Association (IMA) in Naperville, Illinois, delves into the importance of the emerging business concept, "Employee Lifetime Value," the movement by organizations to consider employees to be valuable assets instead of costly expenses.
"The idea that customers produce lifetime value to a company has been studied intensively over the past few years. The potential value of employees to their employers, however, is just now being quantified," says Karen Renk, executive director of the IMA. "When employees are seen totally as a cost, companies are justifiably inclined to focus on reducing the cost instead of investing in it."
In addition to outlining how employees can contribute to the success of their company, the white paper offers suggestions on how to increase the value of employees through the strategic allocation of training, specialized workplace opportunities, bonuses and rewards. Additionally, the paper points out that Employee Lifetime Value is not always a given, but can be influenced by proactive interventions such as increased training and motivation programs.
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