What is Employee Lifetime Value?

Employee lifetime value (ELTV) refers to the expected future value of an employee’s time in an organization.

• Employee – Anyone who works at the organization, either on a full or part-time contract, and receives formal compensation. 
• Lifetime – This is the total duration of employees’ working relationship with the organization.

A high employee lifetime value has a positive impact on the business outcomes, as the employees truly bring value to the organization.

The below graph depicts how you would interpret ELTV. The X-axis represents the time and the Y-axis shows the employee output. The area below the curve is ELTV: