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Value Add

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Definition:

Your value add is the real contribution you make to your organization's success. While doing the activities listed in your job description or your job specification is important and makes a contribution, your value add moves beyond activities or actions performed and illuminates, instead, the actual contributions you made to your organization's success.

Value added activities or contributions most often produce measurable results for your company. Value add contributions include such measurable roles and activities as: saved money, awed customers, increased sales, or significantly reduced the time or steps necessary to complete a work process.

Employees who have an identifiable, noteworthy value add impact on their organization are eligible for pay raises, promotions, recognition, and appreciation. These are the employees organizations most want to retain and recruit.

In a physical comparison, value add, according to Wikipedia, is "the difference between the sale price of a product and the cost of materials to produce it." In this instance, value add is the combination of labor, machine investment, shipping and distribution, marketing, packaging, and more that add value that add value that a customer will purchase to the raw materials that initially were the only product.

 

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