Are You Adding Value to Employees, So They Can Add Value to Customers?


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From my recent posts in my column, you know about Total Customer Value Management, how we add value to Customers, and how we help employees manage Customer-Centric Circles, and bring the top brass to focus on the Customer through the Customer Strategy and the Customer’s Bill of Rights you also have to think about adding value to the employee. Total Customer Value Management (and common sense) requires that you must also add value to the employees, and your partners (supply and delivery chain) and to society if you wish to add value to the Customer.

Value added employees can and will add value to Customers. This increases Customer Value, and which in turn, increases loyalty, market share, wallet share and profits as we learnt earlier. To add value to the employee, we must learn what the employee values. Ask yourself what is important to the employee?

One significant way of figuring employee value is to measure a parameter called Employee Value Added. We can just measure employee value with our employees, but it is always desirable to also measure the value your competition adds to its employees. We can then compare the value we add to our employees to the value competition adds to its employees.

Defining Employee Value Added (EVA)

EVA = Value we add to our Employees / Value our competition adds to their employees.

We build attribute trees of Benefits and Financials as follows:


Of course, you should modify this for your particular case, and the employee segment you are looking at.

Advantages of Employee Value Added

1. It is a measure of what your employees value, and what motivates them

2. Tells you what is most important to them in their work life

3. Reveals whether you are delivering what they value

4. Helps you improve Employee Value

5. By measuring competitive data, tells you whether your company is adding more or less value than competition

6. If you add less value, employees will migrate to a higher value adding company

7. Helps you find the causes of employee churn and to reduce it

How to use Employee Value Added for your Benefit

First, employ a Chief Employee Value Creator. The Chief of HRD should be renamed the Chief Employee Value Creator. Value added employees add value to Customers.

The Chief Employee Value Creator or the head of HRD has to learn to add value to the employee and not just police the employee and be the management spy or hatchet person in the eyes of the employee.

Reducing employee churn has high financial benefits (eliminates hiring and replacement costs, training, lost time and efficiency)


You can see that employee value add helps you in your Total Customer Value journey.

It helps create value for employees and thereby improved value for Customers. Customer-Centric Circles creates value for employees and for Customers.

It reduces churn, and increases your company’s efficiency. Lost employees and replacing them costs a considerable amount to the company.

Do it Yourself

Do you consider yourself a value added employee? Why? How much of this has to do with you and how much is dependent on the company?

Are you adding value to your employees? How?

How could the company increase value for you?

How could you increase value for yourself, your colleagues, partners and society? And for Customers?

How will they know that value is being increased?

Do you need to communicate value?

Gautam Mahajan
Gautam Mahajan, President of Customer Value Foundation is the leading global leader in Customer Value Management. Mr Mahajan worked for a Fortune 50 company in the USA for 17 years and had hand-on experience in consulting, training of leaders, professionals, managers and CEOs from numerous MNCs and local conglomerates like Tata, Birla and Godrej groups. He is also the author of widely acclaimed books "Customer Value Investment: Formula for Sustained Business Success" and "Total Customer Value Management: Transforming Business Thinking." He is Founder Editor of the Journal of Creating Value ( and runs the global conference on Creating Value (


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