The report, “Why it’s Time to Go Beyond Metrics to Access Employee Lifetime Value in Sales,” is part of a new series of targeted and concise research packages designed for sales executives. The principal author and researcher, Dr. Frank Mulhern of Northwestern University, examines Employee Lifetime Value as a long-term metric of the financial value of an employee, and says that the revenue a sales person generates is the best example of ELTV. The report cites a net benefit of $5 for every $1 invested in sales training, and warns that the cost of employee turnover is highest in the sales field – close to $600,000, according to a 2005 study.
The report also contains several practical tips for sales executives to apply to their business. Dr. Muhern concludes, “In between all the hard metrics we associate with sales, we need to invest in, take care of, and enrich the individuals who make these sales happen. That’s how we support employee engagement and loyalty and enhance Employee Lifetime Value.”
To read the entire research summary, please visit The Forum’s website, www.businessresultsthroughpeople.org. Click on the “Research”
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