Research shows that 85% of a company’s assets are related to intangible capital such as knowledge and human talent. (Source: Brookings Institute) A statement we can absolutely agree with. Especially because more and more businesses begin to see employees as value creators rather than as expenses, and rightly so. After all, human capital is what keeps a business running. The employee’s enthusiasm, passion for the job, talent and expertise is what makes a company stand out from others.
For that reason, it is of the utmost importance that you can measure what the employee contributes to a company in the long haul. In sales, that’s easy, since a sales representative generates revenue on a daily basis.
The employee lifetime value
By using the employee lifetime value, or ELTV, companies can find out what the lifetime financial contribution of each of their employees entails. How do you increase the ELTV? First of all, hiring the right person for the job. That does not mean that you have to find someone who already knows everything there is to know about your field of expertise. Regular training sessions help. The more he learns, the more he will be able to apply that knowledge in the work field and ultimately generate more value for your company.
The key for a good business? Employees that are not only talented, but also come to work with a smile on their face. Keep your employees enthusiastic and give them the opportunity to learn, and they will gladly generate revenue.
Second quarter is coming up, are you ready to generate extra revenue for your business? Hire one of our sales representatives!