Articulating the return on investment (ROI) of People Practices is extremely challenging. However, even small improvements in practices like hiring, onboarding, and managing talent can result in significant ROI for the business. In this webinar, Maia will use her previous experiences as a derivatives trader and CEO to walk through a framework and case study that helps to articulate the ROI of investing in People by using the concept of Employee Lifetime Value (ELTV). In this webinar, you’ll learn: - How to articulate the ROI of investing in People - The 4 ways to increase Employee Lifetime Value (ELTV) in your organization - How to use ELTV to get buy-in from executives for the resources and tools you need

1. How to understand the
ROI of investing in People
U s ing Employee Lifetime Value to
artic ulate ROI
Maia Josebachvili
VP of Strategy & People
@MaiaJo_

2. 2
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Housekeeping

3. Maia Josebachvili
VP OF STRATEGY & PEOPLE
Maia Josebachvili is the VP of Strategy & People at
Greenhouse, where she’s part of the executive
team that’s led the company through 8x growth in
just two years. Previously Maiahas been a Founder
& CEO, a derivatives trader on Wall Street, an
engineer, and a pro-skydiver.

5. R O I I S H A R D E R T O M E A S U R E W I T H P E O P L E

6. M O S T C O M P A N I E S D O T W O T H I N G S
Ctrl C Ctrl V
+
Copy others Underinvest

7. YEAR 2
100K
YEAR 1
50K
Marketing leads per year

8. Q1
1 Year
Q2
Q3
Q4
P R O D U C T R O A D M A P P L A N

9. 6 Months
P R O D U C T R O A D M A P P L A N
Q1
Q2
Q3
Q4

10. Employee Lifetime ValueHow?
ELTV

11. Too many
variables
Too
subjective
Difficult to assign
value to people
T H E C A L C U L A T I O N P R O B L E M

12. Don’t calculate.
Compare.

13. ELTV model
Put it into action
Compare two scenarios
Framework
H o d i e O r d o
F I G N º 0 1

14. TIME
-6
-4
-2
0
2
4
6
8OU TPUT
T H E E M P L O Y E E L I F E C Y C L E
Start
Fully contributing
Decision to leave
Last day
ELTV

15. TIME
-6
-4
-2
0
2
4
6
8OU TPUT
R A I S I N G T H E B A R
How quickly
they ramp

16. TIME
-6
-4
-2
0
2
4
6
8OU TPUT
R A I S I N G T H E B A R
How high someone can go
How quickly
they ramp

17. TIME
-6
-4
-2
0
2
4
6
8OU TPUT
R A I S I N G T H E B A R
How high someone can go How much higher
they go over time
How quickly
they ramp

18. TIME
-6
-4
-2
0
2
4
6
8OU TPUT
R A I S I N G T H E B A R
How high someone can go How much higher
they go over time
How long they stay
How quickly
they ramp

19. TIME
-6
-4
-2
0
2
4
6
8OU TPUT
T H E E M P L O Y E E L I F E C Y C L E
How high someone can go How much higher
they go over time
How long they stay
How quickly
they ramp

20. TIME
-6
-4
-2
0
2
4
6
8OU TPUT
T H E E M P L O Y E E L I F E C Y C L E
How high someone can go How much higher
they go over time
How long they stay
How quickly
they ramp
Onboarding
Hiring Management &
Development
Management &
Culture

21. PER YEAR
600K
PER YEAR
60K
QuotaSalary

22. -10
0
10
20
30
40
50
60
70
80
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
MONTH
N ET
R EVENUE
(1,000s)
A S S U M P T I O N
CASE 1
6 months to ramp and
consistently hit quota
A better onboarding
program can decrease
ramp time by 30%1
CASE 2
4 months to ramp and
constituently hit quota
1. Organizations with a strong onboarding process improve new hire retention by
82% and productivity by over 70%. (Brandon Hall, The True Cost of a Bad Hire,
2015)
O N B O A R D I N G

23. -10
0
10
20
30
40
50
60
70
80
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
MONTH
N ET
R EVENUE
(1,000s)
A S S U M P T I O N
CASE 1
6 months to ramp and
consistently hit quota
CASE 2
4 months to ramp and
constituently hit quota
A better onboarding
program can decrease
ramp time by 30%1
1. Organizations with a strong onboarding process improve new hire retention by
82% and productivity by over 70%. (Brandon Hall, The True Cost of a Bad Hire,
2015)
O N B O A R D I N G
Case2: Fully ramped
in 4 months
Case1: Still ramping
4 months in

24. -10
0
10
20
30
40
50
60
70
80
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
MONTH
N ET
R EVENUE
(1,000s)
A S S U M P T I O N
1. A study from the Boston Consulting Group shows that recruiting is the HR
function with the highest impact on revenue. Excellent recruiting practices contribute
to more than 3x revenue growth and 2x profit margins.
A better hire can
outperform a peer
by 20%1
CASE 2
Consistently surpasses
monthly sales quota by
bringing on $60k per month
Consistently hits $50k
per month sales quota
CASE 1
H I R I N G

25. -10
0
10
20
30
40
50
60
70
80
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
MONTH
N ET
R EVENUE
(1,000s)
A S S U M P T I O N
1. A study from the Boston Consulting Group shows that recruiting is the HR
function with the highest impact on revenue. Excellent recruiting practices contribute
to more than 3x revenue growth and 2x profit margins.
A better hire can
outperform a peer
by 20%1
CASE 2
Consistently surpasses
monthly sales quota by
bringing on $60k per month
Consistently hits $50k
per month sales quota
CASE 1
H I R I N G
Case 2: 20%
more sales

26. -10
0
10
20
30
40
50
60
70
80
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
MONTH
N ET
R EVENUE
(1,000s)
A S S U M P T I O N
1. Companies that hire managers based on their management skills saw a 48%
increase in profitability. (State of the American Manager, Gallup, April 2015)
Great management and
development can
improve an employee’s
performance by 20% in
a year1
CASE 2
Goes from $60k in monthly
sales to $72k in monthly
sales in year 2
Continues to hit $50k
per month sales quota
CASE 1
M A N A G E M E N T & D E V E L O P M E N T

27. -10
0
10
20
30
40
50
60
70
80
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
MONTH
N ET
R EVENUE
(1,000s)
A S S U M P T I O N
CASE 2
Goes from $60k in monthly
sales to $72k in monthly
sales in year 2
Continues to hit $50k
per month sales quota
CASE 1
1. Companies that hire managers based on their management skills saw a 48%
increase in profitability. (State of the American Manager, Gallup, April 2015)
M A N A G E M E N T & D E V E L O P M E N T
Case 2: 20%
increase in
sales in year 2
Great management and
development can
improve an employee’s
performance by 20% in
a year1

28. -10
0
10
20
30
40
50
60
70
80
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
MONTH
N ET
R EVENUE
(1,000s)
A S S U M P T I O N
1. 36% of people switching jobs left because they were “unsatisfied with the work
environment / culture” of their previous employer. (Why and How People Change
Jobs, LinkedIn, 2015)
A great culture,
coupled with good
management, can
increase employee
tenure by one year1
CASE 2
Continues to thrive for
another year
Starts to look for a new
job 20 months in; leaves
after 2 years
CASE 1
C U L T U R E & M A N A G E M E N T

29. -10
0
10
20
30
40
50
60
70
80
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 36
MONTH
A S S U M P T I O N
1. 36% of people switching jobs left because they were “unsatisfied with the work
environment / culture” of their previous employer. (Why and How People Change
Jobs, LinkedIn, 2015)
A great culture,
coupled with good
management, can
increase employee
tenure by one year1
CASE 2
Continues to thrive for
another year
Starts to look for a new
job 20 months in; leaves
after 2 years
CASE 1
C U L T U R E & M A N A G E M E N T
N ET
R EVENUE
(1,000s)

30. P U T T I N G I T A L L T O G E T H E R : 3 - Y E A R O V E R V I E W
-10
0
10
20
30
40
50
60
70
80
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
MONTH
N ET
R EVENUE
(1,000s)

31. -10
0
10
20
30
40
50
60
70
80
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
MONTH
N ET
R EVENUE
(1,000s)
P U T T I N G I T A L L T O G E T H E R : 3 - Y E A R O V E R V I E W
$1,300,000
2.5x

32. Making the case
F r u c t u s L a b o r i s
F I G N º 3

33. Typical
(tactical) conversations

34. TIME
-6
-4
-2
0
2
4
6
8OU TPUT
Start
Fully contributing
Decision to leave
Last day
ELTV
R E V I S I T I N G E M P L O Y E E L I F E T I M E V A L U E

35. TIME
-6
-4
-2
0
2
4
6
8OU TPUT
R E V I S I T I N G E M P L O Y E E L I F E T I M E V A L U E
Hiring a better person
Hiring a person
more suited for
the job
ROI

36. E X A M P L E
Proposal
Template
G R E E N H O U S E P R O P O S A L
Situation Analysis
W h a t ’ s t h e c u r r e n t s t a t e o f t h i n g s ?
U s e d a t a a n d i n f o r m a t i o n f r o m y o u r
c o m p a n y a n d s u p p o r t i n g d a t a f r o m
e x t e r n a l s t u d i e s .
Proposed Solution
H o w d o y o u ‘ c o m b a t ’ t h e p r o b l e m ,
o r l e v e r a g e t h e o p p o r t u n i t y ?

37. E X A M P L E
Proposal
Template
110 5th Ave 3rd Floor
New York, NY 10011
Return on Investment
I n v e s t m e n t r e q u i r e d a n d b u s i n e s s i m p a c t .
e x t e r n a l s t u d i e s .
Proposed Solution
H o w d o y o u ‘ c o m b a t ’ t h e p r o b l e m ,
o r l e v e r a g e t h e o p p o r t u n i t y ?
Obstacles, Challenges
and Open Questions
N o p l a n i s f r e e f r o m o b s t a c l e s .
B e u p f r o n t a b o u t w h a t t h o s e a r e .

38. E X A M P L E
Proposal
Template
G R E E N H O U S E P R O P O S A L
Situation Analysis
Our recruiting process is not currently set up to
make data-driven decisions. Because of this,
hiring managers often have to rely on gut-feel
when making hiring decisions.
• At [OUR.CO], the Recruiting Team has no easy
way to track basic recruiting metrics like Days
to Offer or Candidate Satisfaction
• At [OUR.CO], 15% of new hires are classified
as ‘not the right fit for the job’ at their 6-month
check-in
• A study by the BCG group showed that
excellent recruiting practices contribute to
more than 2x profit margins
• Industry studies show that hiring decisions
based on gut-feel are more likely to be
influenced by unconscious bias, which
adversely impacts a company’s Diversity &
Inclusion initiatives

39. E X A M P L E
Proposal
Template
G R E E N H O U S E P R O P O S A L
Proposed Solution
Transform the recruiting process to facilitate
evidence-based and data-driven decisions.
• Develop a set of Recruiting KPIs to send to all
stakeholders at a regular cadence. Set goals
and targets around the KPIs and communicate
progress.
• Hire a Data Analyst to develop recruiting
reports, analyze metrics, and recommend
continuous optimizations on the recruiting
process.
• Create ‘offer packets’ to share with Department
Heads before approving offers. Offer packets
should include all feedback and scorecards
submitted about the candidate.

40. E X A M P L E
Proposal
Template
G R E E N H O U S E P R O P O S A L
Return on Investment
Investment required
• Data Analyst to manage initiative ($60k/year)
Business impact
By using data to inform process improvement and
hiring decisions, we can make a significant impact
on the employee lifetime value (ELTV).
Specifically:
• Increase quality of hire
• Increase percentage of employees who stay past
6 months

41. E X A M P L E
Proposal
Template
G R E E N H O U S E P R O P O S A L
Obstacles, Challenges,
& Open questions
Like with any data project, the first step will
be ensuring data integrity. It is likely that
our data is not complete enough to report
on as-is and will need an extensive “data
clean-up” before we’re ready to start
reporting regularly.
The program will need hiring manager buy-
in. In order to create offer packets and
track all of the data, interviewers will have
to input their feedback in a timely manner.
Hiring manager support in this initiative will
be very helpful.

42. G R E E N H O U S E P R O P O S A L
Return on Investment
I n v e s t m e n t r e q u i r e d a n d b u s i n e s s i m p a c t .
Situation Analysis
W h a t ’ s t h e c u r r e n t s t a t e
o f t h i n g s ? U s e d a t a a n d i n f o r m a t i o n
f r o m y o u r c o m p a n y a n d s u p p o r t i n g
d a t a f r o m e x t e r n a l s t u d i e s .
Proposed Solution
H o w d o y o u ‘ c o m b a t ’ t h e p r o b l e m ,
o r l e v e r a g e t h e o p p o r t u n i t y ?
Obstacles, Challenges
and Open Questions
N o p l a n i s f r e e f r o m o b s t a c l e s . B e u p f r o n t
a b o u t w h a t t h o s e a r e .
E X A M P L E
Proposal
Template

43. Employee Lifetime Value
Inputs: Onboarding,
hiring, management,
development, & culture
Relative value vs absolute
numbersTakeaways
H o d i e O r d o
F I G N º 0 1
Small improvements can
have a 6x return on ELTV
4
Articulate the return; don’t
ask for investment
5
@MaiaJo_
maia@greenhouse.io

44. THANK YOU!