What is the employee life cycle?

Employees are at the heart of any organisation. Businesses that care for their people and cultivate talents are more competitive and able to make their culture thrive. The section below provides a definition of the employee life cycle, as well as proof points of its importance for your business.

Employee life cycle model: a definition

The employee life cycle model forms part of the human resources strategy of the organisation. In essence, the model aims to identify the different stages an employee goes through when joining the business, all the way through to leaving it. The model has several stages from beginning to end, presented chronologically. The HR strategy should be aimed at improving the effectiveness of the employee cycle at all stages. As a result, this optimises the recruitment process, employee on-boarding, talent retention, employee development as well as off-boarding. It influences employee satisfaction and engagement, and as such contributes to the organisation’s success.

Why is the employee life cycle so important?

Employees are ambassadors of the business they work for. Their job satisfaction, engagement and drive contribute to the culture of the organisation. All phases of the cycle represent the journey an employee goes through and their experience throughout. For more on the employee experience, employee engagement and satisfaction, see the articles below:

• How to develop employee engagement and motivation in the workplace
• The impact of onboarding on employee experience and retention
• Employee satisfaction surveys: what they are and why they’re important for your business

The employee cycle is at the heart of the employee experience and therefore presents an opportunity for the business to improve that experience, cultivate and retain talent.

The employee life cycle stages

The employee life cycle model consists of several chronological stages that form the employee’s journey.

Stage 1. Making the first impression and attracting talent

This stage takes place outside the organisation, before joining it. It is the candidate’s attraction to the business. It requires a strong brand, credibility and an impactful job description. The job description should translate the company culture and attract the desired candidates. The language used in the job description and the wealth of content included in it will influence applicants’ desire to apply. As an example, highlighting the perks and incentives offered as part of the role is a plus. So is advertising benefits such as flexible hours, holidays and much more. All of these elements contribute to the employer’s branding. The image created is the first point of entry for future employees.

Stage 2. Recruitment of the successful candidate

Hiring the employee is a critical stage in the process. Recruitment teams screen through the list of applicants, create a shortlist and move to the interview stages with the relevant talents. Depending on the number of candidates who applied, the screening process can be challenging. The following steps can be taken to ensure that the applicants selected for the next stage are the right fit for the role:

• Check that the skills and qualifications highlighted in the CV match those highlighted in the job advert
• Pinpoint potential technical skills required for the open position
• Look into each candidate’s experience in similar roles
• Identify potential transferrable skills
• Ask for references or testimonials
• Conduct interviews with shortlisted candidates, with the recruitment team, the hiring manager and any relevant senior leaders
• Select the candidate who is the best fit for the organisation from a skill set, experience and cultural perspective
• Make an offer that is attractive enough when offering the role

See our content for more on the recruitment process and specifically Social media recruiting tips and strategies.

Stage 3. Getting a successful start with the on-boarding process

The on-boarding process happens after the candidate has been selected for the role. It is their first step in the business and as such should be as smooth as possible. The on-boarding process should provide an overview of the company, its culture, its values, its history and much more. The new employee will meet their colleagues and get to know the office or general work environment. They will also be provided with the equipment needed to fulfil their duty. The on-boarding process often involves compliance training, safety and security guidance, and data protection training. 

Stage 4. Ensuring continuous growth with career development initiatives

Most employees are eager to grow, learn new skills, be involved in different projects and develop their skill set. Leaders and human resources managers should have clear development plans for employees, providing them with opportunities for growth, either upward or laterally. Enabling employees to develop by investing time in training or coaching sessions has a long-term positive effect on their engagement and loyalty to the organisation. Having a thorough development plan benefits both employees and employers. Employees can see their skills improve and get on the radar for promotions, while employers can identify any skills gap within their teams and aim at tackling them for more effectiveness, either through training or by recruiting new team members.

Stage 5. The importance of employee evaluation and progress tracking

A group of metrics should be set to track the effectiveness of human resources actions relating to the employee life cycle. Employees’ progress is one of those potential metrics, as is the employee retention rate. Collecting employees’ feedback can be helpful and is often done through employee satisfaction surveys.

Stage 6. Talent retention efforts

In most cases, it is more efficient to put effort into retaining talent than recruiting new employees. Providing staff identified as top talents with opportunities and encouraging their career progression will result in optimised retention. Motivating employees is the best way to keep them on board. To do so, the right blend of recognition, financial rewards, company culture and job satisfaction is required.

Stage 7. The employee off-boarding process

No matter how much effort you put in, some employees will leave the business for various reasons, particularly in today’s fast-paced work environment. The employee life cycle should incorporate off-boarding strategies to smooth the separation between the employee and the organisation. The termination needs to follow some key steps aimed at protecting the company as well as ensuring a healthy and positive separation. To do so, leaders of human resources teams can conduct exit interviews. This often provides valuable feedback and highlights opportunities for improvement. These interviews can also be conducted by leaders themselves.

There is also some housekeeping to be done when an employee leaves. An off-boarding checklist can help to ensure that nothing is left behind. The contents of the list will depend on the nature of the business and the role of the employee. The employee who is leaving might also need to prepare a handover of the projects that they were managing. Aside from the operational aspect, emotions need to be managed as well, and by that we mean the emotions of the employee leaving, to ensure that they continue to be an ambassador and promote the brand as well as the emotions of the team that the employee is leaving behind. Those individuals might be affected by the change and have an increased workload until the position is filled. For all these reasons, this stage is critical to business continuity and an essential part of the employee life cycle.

Stage 8. Happy leavers become ambassadors

Employees who leave can be potential resources for future recruitment. They might come back and fill another position, or they might promote the business and encourage their network to apply for open positions. This makes for a more streamlined recruitment process and quick identification of talent. Providing a great experience until the end demonstrates the business’s values and creates various opportunities in the mid to long term.

Making positive efforts to manage a healthy employee life cycle is critical for long-term business success. It will influence the company culture, make for more engaged employees and optimise recruitment efforts.