Employees measure the ROI of employees
In this brief presentation, the speaker draws a parallel between measuring customer lifetime value and measuring employee lifetime value (ROI). Employers seek employees who deliver high ROI, meaning the revenue they generate or the costs they save exceed their salary. The speaker identifies three primary sources of employee leverage—experience, education, and effort. Experienced hires bring years of prior knowledge, reducing the need for on‑the‑job training. Educated hires shorten the learning curve about market or industry specifics. Effort, while less quantifiable, also contributes to the overall value an employee provides. By hiring individuals who already possess these attributes, companies can “buy” the benefits of experience and education, effectively saving time and resources that would otherwise be spent on training.
