by Konstantin Tskhay

October 29, 2025

How does your Employee Lifetime Value stack up against Other Companies?

↓

Hi friends,

I know, it has been a while! I've been quite busy across the board:

• People Analytics Strategy for a law firm. I have just finished working with the client to develop their People Analytics Strategy, setting them on the journey to outcompete other companies within the space by really becoming a data-driven HR function.
  ​
• People Analytics Training for HR: I have also just completed training for the HRBPs for a global battery manufacturing client across US, North America, Middle East, and Asia. This training focused on helping HR use data to tell effective stories and to create beautiful and appropriate visualizations. Here is the overview of the sessions

Phew! This was a lot of fun! If you are interested in learning more about either of these projects, happy to grab 30 minutes to discuss.

But more importantly, we kicked off the eLTV Benchmarking Study with TAP network and Daneal Charney.

I have the overview of what eLTV right below. But first, please participate:

Here is the QR code, btw to make it even easier to participate or just click the link here.

Anyways, what is Employee Lifetime Value?

Every business leader knows Customer Lifetime Value (CLV) — the total revenue a customer brings in over their relationship with the company. It’s a cornerstone metric for understanding ROI in marketing and growth.

But few organizations apply the same logic to their greatest asset: their talent.

That’s where Employee Lifetime Value (eLTV) comes in.

At its core, eLTV quantifies the net value an employee contributes during their tenure—the revenue or output they generate minus the costs of hiring, onboarding, and development.

Hence, we are looking to combine business outcome variables to highlight the importance of:

• Retention: Longer tenure = greater impact
• Engagement: Higher engagement = greater contribution
• Hiring: Hiring the right person = stronger contribution
• Onboarding: Less time to onboard = more time to produce
• Efficiency: More efficient with AI = better outputs

You get the idea. We translate every HR metrics to value for the company, but also the value for the individual. After all, if we set our people for success, we will reap the rewards long term.

Hence, eLTV is not really an HR metric.

At least not in a traditional sense.

To me, it is a business metric, placing HR's focus on strategy.

And business focus on HR.

A simple way to think about it:

When companies track eLTV, they start to see the compounding returns of better hiring, faster onboarding, and stronger engagement—the same way marketers see the impact of customer retention.

When they don’t?

They risk optimizing for cost per hire instead of value per employee.

They lose sight of where human capital truly drives—or drains—business performance.

Anyways, we are closing the survey in just about 2 weeks and those who participate will receive the report on the research first. Don't miss out!

It really is a quick survey and we really believe it will do well to reframe the thinking within HR:

Here is the QR code, btw to make it even easier to participate or just click the link here.

Meanwhile, ciao!

K

​

Whenever you’re ready, there are 2 ways I can help you:

#1

If you’re still looking to get started in People Analytics, I recommend starting with my affordable course:

Practical People Analytics: Build data-driven HR programs to 10x your professional effectiveness, business impact, and career. This comprehensive course will teach you everything from building an HR dashboard for business results to driving growth through more advanced analytics (i.e., regression). Join your peers today! ​
​

#2

If you are looking for support in your human capital programs, such as engagement, retention, and compensation & benefits, and want to take a more data-driven approach, contact me at Tskhay & Associates for consulting services. Or simply reply to this email!