← All Posts

Value Creation x Irreplaceability

Your worth as an employee isn't about the value you bring to the business.

It's about the value you bring and your irreplaceability.

So the formula goes like this:

Employee Value = Business Value Creation x Irreplaceability


  • Business Value Creation = a function of your actions and their overall impact on the business, both inside and out
  • Irreplaceability = between 0.1 (easy to replace) and 1 (hard to replace)

The truth is this:

Someone who adds a ton of business value but can be easily replaced isn't as valuable as someone who brings the same value but is tough to replace.

That's why folks who are harder to replace often earn more, even if they seem to contribute the same amount.

Salaries are bound to value creation and replacement cost.


Maybe, maybe not. But that's how it works.

Embrace it.

Boost your uniqueness, make yourself harder to replace, and watch your value soar.

More chances, more recognition, more cash.